Allocating resources
- 1. Allocating Resources To The Project Prepared by: Snigdha
- 2. 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.
- 3. 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
- 5. 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.
- 6. 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
- 7. • The “ slope” information for non - or - partially segmented activities is normally given in the slope chart. Activity slope is computed as follows: TimeNormal-TimeCrash CostNormal-CostCrash Slope
- 8. 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.
- 11. Cost-Crash Curve
- 12. • 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.
- 13. 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.
- 14. 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.
- 15. 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.
- 17. 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 over scheduling permitted(e.g. 125%) • Installing project oriented management systems and resource loading reports. 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. Over scheduling a resource may cause serious problems for the PM.
- 18. 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
- 19. Gantt Chart for Videotape Project, Adjusted for Client Availability
- 20. Resource Over allocation Report for Scriptwriter Showing all Activities
- 21. Graphic Resource Over allocation Report for Scriptwriter
- 22. Resource Leveled Report for Scriptwriter Showing all Activities
- 23. Graphic Resource Leveled Report for Scriptwriter
- 24. Final Videotape Project Gantt Chart Schedule, With Two Scriptwriters and Producer Leveled
- 25. 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
- 26. 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?
- 27. Thirty-Four-Week Resource Loading Chart for a Software Engineering Group
- 28. ALLOCATING SCARCE RESOURCES TO PROJECTS
- 29. 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.
- 30. Some Priority Rules • As soon as possible • As late as possible • Shortest task duration first • Minimum slack first • Most critical followers • Most successor • Most resources first
- 31. 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
- 32. ALLOCATING SCARCE RESOURCES TO SEVERAL PROJECTS
- 33. Pseudo activities • 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
- 34. Multiple Projects Connected with Pseudo activities Shown on a Time Line
- 35. Resource Allocation and the Project Life Cycle • Figure : Project or task life cycles
- 37. 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?
- 38. • 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
- 40. Project Completion Time Statistics Based on Simulating Three Projects 200 Times
- 41. Thank You!