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Resource Management

Resource Management

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Resource Management

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  1. Resource Management Chapter 12

  2. Learning Goals • Recognize the variety of constraints that can affect a project, making scheduling and planning difficult. • Understand how to apply resource-loading techniques to project schedules to identify potential resource over-allocation situations. • Apply resource-leveling procedures to project activities over the baseline schedule using appropriate prioritization heuristics. • Follow the correct steps necessary to effectively smooth resource requirements across the project life cycle. • Apply resource management within a multi-project environment.

  3. Resource Management Resource management is an iterative process scheduling activity of balancing the activity network and overall schedule against the available resources. • Project scheduling is a two step process • Construct the network • Check the network against resource availability Resource availability always has a direct bearing on the duration of project activities.

  4. Types of Constraints • Resource • People • Materials • Money • Equipment A restriction or limitation, either internal or external to the project, that will affect the performance of the project or process. • Technical • Physical • Time • Mixed

  5. Resource Constraint Example How do we handle this constraint?

  6. Resource Loading Table With Over Allocation • Jeff is over allocated (unless we can work him 16 hours a day) Need to use a resource loading chart

  7. Resource Loading • The amount of individual resources that a schedule requires during specific time periods • Resource loading attempts to assign the appropriate resource for the appropriate amount to each project activity Resource Loading Chart Added “Bob” as a resource

  8. Resource Constraint Example Bob is added

  9. Resource Leveling (Smoothing) The process that addresses the complex challenges of project constraints Objectives • To determine the resource requirements so they will be available at the right time • To allow each activity to be scheduled with the smoothest possible transition across resource usage levels

  10. Prioritization Rules for Leveling Simple leveling heuristics (rules of thumb) for prioritizing resource allocation include applying resources to: • Task with the smallest amount of slack • Task with the smallest duration • Task that start earliest in the WBS • Task with the most successor tasks • Task requiring the most resources The implication of how resources are prioritized is significant, as it has a “ripple” effect throughout the remainder of the activity network

  11. General Procedure for Leveling • First create a project activity network diagram (slide 13/14) • Create a table showing the resources required Resource Loading Table (slide 15/16/17) • Determine resources needed, the activity early starts and late finishdates (slide 18) • Identify resource conflicts and “smooth” over allocation with Leveling Heuristics (slide 10/19) • Repeat step 4 until resources are level

  12. Example: Sample Project Data • Develop the project • Determine the WBS • Determine timing

  13. Example: Sample Project Network • Create a network diagram 1 1 0 0 0 0 0 CP = A-C-F-H-K 3 3 3 5 Slack

  14. Example: Sample Project Gantt Chart • Create a Gantt Chart as a visual representation of the WBS

  15. Example: Sample Project Slack and Resource Needs • Determine the resources needed to complete the WBS task • Use to develop the resource loading table Step 1 Develop Table

  16. Example: Sample Project Resource Loading Table Graph Style • Graphically display the resource needs or…..

  17. Example: Sample Project Resource Loading Table

  18. Example: Sample Project Resource Loading Table with Slack Included Step 2 Find LF Dates 3 days slack Step 3 Find Over Allocation 0 days slack - on CP Let’s say we only have 9 resources available per day. What about?

  19. Example: Sample Project - Resource Leveling the Network Use Leveling Heuristics (slide 10) Step 4 Level the resources X 3 2 X 7 11 9 9

  20. 4 B 5 Res = 2 5 D 9 Res = 7 9 E 11 Res = 3 0 A 4 Res = 6 11 F 12 Res = 6 4 C 7 Res = 2 Creating Resource Loading Charts • Displays the amount of resources required as a function of time • Another way to create a graphic of the resource management process • Start with a network diagram Sample Network

  21. Sample Network Data Table Project ends Day 12 • Produce a table that shows the duration, early start, late finish, slack, and resource(s) required for each activity. List in order of increasing slack, then latest finish time for activities with the same slack

  22. D A F B E C Sample Project Resource Load Chart Draw an initial loading chart with each activity duration scheduled at its ES. 8 6 Resource imbalance 8 Hours Available Resources 4 2 Notice: Day 14Not 12 2 4 6 8 10 12 14 Project Days

  23. 8 6 Resources D 4 A C F B E 2 C 2 4 6 8 10 12 14 Project Days Creating Resource Loading Charts Rearrange activities within their slack to create a more level profile. Splitting C creates a more level project. C has 4 days of slack available. Notice: Day 12

  24. Key Parameters in Multi-Project Environments • Eventually you will be confronted with dealing with resource allocation across multiple projects • Allocations made in one project are likely to effect other projects • This leads to • Inefficient use of resources • Bottlenecks • Ripple effects • Heightened pressure on personnel to multitask

  25. 8 6 Resources D 4 A C F B E 2 C 2 4 6 8 10 12 14 Project Days Key Parameters in Multi-Project Environments • Need to minimize the negative effects • Schedule slippage • Resource utilization • In-process inventory

  26. Prioritizing Resource Allocations in Multi-Project Environments Each have their advantages and disadvantages • First come first served (Lean Push) • Greatest resource demand (TOC) • Greatest resource utilization (Time Management) • Minimum late finish time (CPM) • Mathematical programming (Optimization)

  27. Discussion Questions • Consider a project to build a bridge over a river gorge. What are some of the resource constraints that would make this project challenging? • For many projects, the key resources to be managed are the project team personnel. Explain in what sense and how project team personnel are often the project critical resource. • What is the philosophy underlying resource loading? What does it do for our project? Why is it a critical element in effectively managing the project plan? • It has been argued that a project schedule which has not been resource leveled is useless. Do you agree or disagree with this statement? Why or why not? • Discuss the nature of “time/cost tradeoffs” on projects. What does this concept imply for our project management practices?

  28. Discussion Questions • When resource leveling a project, there are a number of heuristics that can help us prioritize those activities that receive resources first. Explain how each of the following heuristics works and give an example: a. Activities with the smallest slack: b. Activities with the smallest duration: c. Activities with the lowest identification number: d. Activities with the most successor tasks: e. Activities with requiring the most resources: • Multi-tasking can have an important negative impact on your ability to resource level a project. When your team members are involved in multiple additional commitments, we must be careful not to assign their time too optimistically. In fact, it has been said: “Remember, 40 hours is not the same as one week’s work.” Comment on this idea. How does multi-tasking make it difficult to accurately resource level a project? • Why is resource management significantly more difficult in a multi-project environment? What are some rules of thumb to help project managers better control resources across several simultaneous projects?