Allocating Resources

To The Project

Prepared by:
Kumar Nimish (16M903) &
Snigdha(16M909)
DEFINITION
• Resource allocation is the process of assigning and scheduling
available resources in the most effective and economical manner.
Projects will always need resources and resources are scarce. The
task therefore lies with the project manager to determine the
proper timing of those resources within the project schedule.
• Mainly, resource allocation concerns how we allocate specific,
limited resources to specific activities (or projects) when there are
competing demands for the same limited resources.
Contd.
• In order to manage resources in such a way as to optimize the use
of a limited supply, trade - offs must be made.
• Time constrained
• Resource constrained
EXPEDITING A PROJECT
THE CRITICAL PATH METHOD
• In traditional PERT/CPM, the rules of “ standard practice ” apply
and the normal task duration estimate is made with the normal or
standard - practice resource usage. Then a second estimate,
referred to as the crash duration, is made based on the resources
required
• Time and cost are interrelated
• The faster an activity is completed, the more it costs
• Change the schedule and you change the budget
• Thus many activities can be speeded up by spending more money
to expedite the task.
What is Crashing / Crunching?
• To speed up, or expedite, a project
• Of course, the resources to do this must be available
• Crunching a project changes the schedule for all activities
• This will have an impact on schedules for all the subcontractors
• Crunching a project often introduces unanticipated problems
• The “ slope” information for non - or - partially segmented activities is normally
given in the slope chart. Activity slope is computed as follows:

Crash Cost - Normal Cost

Slope 
Crash Time - Normal Time
Example:
• consider the network shown in Figure 6 - 1(a) that was constructed from the data
in Table 6 - 1. It is easier to illustrate the impact of crashing on an activity - on -
arrow (AOA) network than on an activity - on - node (AON) network, so we use
that approach here. Also, we use dummy activities in this case not to illustrate
precedence but to show time durations and slack on the time axis.
Cost-Crash Curve
• The same method is used when the task durations are probabilistic,
that is, using three time estimates. In this case, optimistic, most
likely, and pessimistic activity duration estimates are made for the “
normal ” resource loading and new optimistic, most likely, and
pessimistic duration estimates must be made for crash resource
loading.
Fast-Tracking a Project
In addition to crashing a project in order to expedite it, a project may
also be fast -tracked .
• Used Primarily in Construction Industry.
• the term refers to an expediting technique in which the design and
planning phases of a project are not actually completed before the
building phase is started. Usually design and plan are finished
before the building is started, so letting them overlap reduces
project duration — if the fact that design and planning are
incomplete does not result in a significant amount of rework and
change orders during the building phase.
RESOURCE LOADING
• Resource loading refers to the amounts of specific resources that
are scheduled for use on specific activities or projects at specific
times.
• Gives an understanding of the demands a project will make of a
firm’s resources
• It usually takes the form of a list or table.
EXAMPLE
• An examination of this table reveals an interesting anomaly in MSP and most
other project management software. Unless specified otherwise, MSP assumes
that any resource assigned to an activity will work on that activity 100 percent of
the time available on the resource calendar.
The Charismatic VP
• Subordinates have hard time saying no to well liked boss.
• Leads to overcommitted subordinates.
• Problem further compounded because more experienced workers tend to be most
over worked.
• One solution is to set specific limits on amount of overscheduling permitted.
Resource loading is usually displayed as a list of the amounts of specific resources
assigned for use on specific project activities at specific times, or as a graph showing
the level of a resource ’ s capacity required against the project calendar. To be useful
for scheduling, the resource must have a calendar showing the resource ’ s
availability. The calendar should include hours — and days — worked each week, any
holidays on which the resource will not be available, and any other information
affecting the availability of the resource. Resource cost per unit of usage should be
included on the calendar, plus any additional cost for overtime or over use.
Overscheduling a resource may cause serious problems for the PM.
Resource Leveling
• Less hands-on management is required
• May be able to use just-in-time inventory
• Improves morale
• Fewer personnel problems
• When an activity has slack, we can move that activity to shift its resource usage
• May also be possible to alter the sequence of activities to levelize resources
• Small projects can be levelized by hand
• Software can levelize resources for larger projects
• Large projects with multiple resources are very complex to levelize
Gantt Chart for Videotape Project,
Adjusted for Client Availability
Resource Overallocation Report for
Scriptwriter Showing all Activities
Graphic Resource Overallocation Report
for Scriptwriter
Resource Leveled Report for Scriptwriter
Showing all Activities
Graphic Resource Leveled Report for
Scriptwriter
Final Videotape Project Gantt Chart
Schedule, With Two Scriptwriters and
Producer Leveled
Resource Loading/Leveling and
Uncertainty
• 28,282 Hours Needed
• Group Capacity
• 21 (people)  40 (hrs/wk)  34 wk = 28,560 labor hrs
• Correction for Holidays
• 21  3 (days)  8 (hours) = 504 labor hrs
• Vacations
• 11  2 (weeks)  40 = 880 labor hrs
continued
• Hours Available
• 28,560 - 504 - 880 = 27,176
• about 1100 less than needed
• 28,282/27176 = 1.04

• What about
• Workers getting sick?
• Task not ready when worker is ready?
• Change orders?
Thirty-Four-Week Resource Loading Chart
for a Software Engineering Group
ALLOCATING SCARCE
RESOURCES TO PROJECTS
Use of Software
• Begin with PERT/CPM Schedule
• Activities examined period by period and resource by resource
• In cases where demand for resource exceeds supply, tasks considered one by
one and resources assigned to these tasks based on priority rules

Some Comments about Constrained Resources

• Every time a project falls behind schedule, the PM is apt to plead for more
resources. In spite of the PM ’ s complaints about the scarcity of resources,
serious cases of resource scarcity rarely apply to resources in general, but rather
to one or two very specific resources. We call such resources “ Walts. ”
• The term was derived from the name of an individual, Walter A., who is employed
by a large insurance company.
Some Priority Rules
• As soon as possible: This is the standard rule in scheduling. Activities are
scheduled to start on their ESTs, and resources are made available with that in
mind.
• As late as possible: With this rule, resources are made available so that activities
start on their LSTs whenever possible without increasing the project ’ s duration.
• Shortest task duration first: Always consistent with technological precedences,
shorter tasks are given priority over longer tasks. This rule maximizes the number
of tasks that can be completed by a system in a given time period.
• Minimum slack first: Tasks are supplied with resources in inverse order of their
slacks. This rule usually minimizes the number of late activities.
Contd.
• Most critical followers: The number of successors on the critical path(s) for each
activity is counted. Activities with a higher number of critical successors take
precedence. The rationale here is that such activities would cause the greatest
damage to the desired project schedule if they are late.
• Most successor: The same as the previous rule except that all successors are
counted. This rule has the same rationale as the preceding rule.
• Most resources first: With this rule, the greater the use of a specifi c resource on
a task, the higher the task ’ s priority for the resource. This rule is based on the
assumption that more important activities have a greater demand for scarce
resources.
Choosing a Priority Rule
• Schedule Slippage
• amount project or set of projects delayed

• Resource Utilization
• extent that resources are over or underworked

• In-Process Inventory
• amount of unfinished work in the system
ALLOCATING SCARCE
RESOURCES TO SEVERAL
PROJECTS
Pseudoactivities
• Used to link several project together
• Have duration but do not require any resources
• This approach allows a set of projects to be dealt with as though it
were a single project
• use of MSP’s resource loading and leveling charts and tables
Multiple Projects Connected with
Pseudoactivities Shown on a Time Line
Resource Allocation and the Project
Life Cycle
• Figure : Project or task life cycles
GOLDRATT’S CRITICAL
CHAIN
Introduction
• Similar issues that trouble people about working on
projects regardless of type of project
• unrealistic due dates
• too many changes
• resources and data not available
• unrealistic budget
• These issues/problems related to need to make trade-offs
• To what extent are these problems caused by human
decisions and practices?
• Optimism
• Capacity should be equal to demand
• The “Student Syndrome”
• Multitasking to reduce idle time
• Assuming network complexity makes no difference
• Management cutting time to “motivate” workers
• Game playing
• Early finishes not canceling out late finishes
Three Project Scenarios
Project Completion Time Statistics Based
on Simulating Three Projects 200 Times
THANK YOU!!