RESOURCE ALLOCATION By: Kemuel Bryan G. Luciaja
Resource An economic or productive factor required toaccomplish an activity, or as means to undertakean enterprise and achieve desired outcome.
The Three Most Basic ResourcesLandIncludes all natural resources (“gifts of nature”) used in theproduction process, such as arable land, forests, mineral and oildeposits, and water resources.LaborConsists of the physical and mental talents of individuals used inproducing goods and services.CapitalRefers not to money but to tools, machinery, andother productive equipment.
Resources in Project Managementanything used up to execute the project•Budget•People•Technology•Time•Space•Tools•Equipment•and etc.
Resource AllocationResource allocation is used to assign the availableresources in an economic way.In project management, resource allocation is thescheduling of activities and the resources requiredby those activities while taking into considerationboth the resource availability and the project time.
1. Basic allocation decision• The choice of which items to fund in the plan• What level of funding it should receive• Which to leave unfunded• The resources are allocated to some items, not toothers
2. Contingency mechanismsA.There is a priority ranking of items excluded from theplan, showing which items to fund if more resources shouldbecome available.B.There is a priority ranking of some items included in theplan, showing which items should be sacrificed if totalfunding must be reduced.
Example of Resource Allocation for Jobs Assume that the active resource plan is called “Night Plan”. 3 Job classes: DW Consumer Group OLTP Consumer Group Other Consumer Group
Resource levelingA project management technique used to examineunbalanced use of resources (usually people or equipment)over time, and for resolving over-allocations or conflicts.Leveling resources involves redistributing an imbalance ofallocated work. It assists project team members by keepingthem from becoming overwhelmed, working overtime, orrunning into project burnout.
Resource leveling If DW Consumer Group do not fully use the allocated 60%, the unused portion is available for use by jobs in OLTP and Other Consumer Group.
Resource levelingThe Two Key Elements of Resource Leveling:1. As the main aim of resource leveling is to allocate resource efficiently, so that the project can be completed in the given time period. Hence, resource leveling can be broken down into two main areas; projects that can be completed by using up all resources which are available and projects that can be completed with limited resources.2. Projects which use limited resources can be extended for over a period of time until the resources required are available. If then again, the number of projects that an organization undertakes exceeds the resources available. Then its wiser to postpone the project for a later date.
Resource Over-allocationOver-allocation of a resource is when a resourcehas been assigned more work than can becompleted during normal work hours. Resourceallocation often leads to overtime andoverspending on financial resources.
Techniques for Avoiding Resource Overload1. Resource Leveling2. Prioritize Projects3. Linking Tasks4. Leaving Breathing Room5. Avoid the “Putting out fires” approach to project management
Techniques for Avoiding Resource Overload1. Resource Leveling In this method, the project manager can either level resources by hand (complicated, but perhaps more sound) or use a software program such as Microsoft Project to level resources for you.
Techniques for Avoiding Resource Overload2. Prioritize Projects By prioritizing projects, when a resource allocation overload is apparent or a task conflict exists, it can be resolved without piling pressure on the individual or team (or requiring the individual or team to put in a couple twelve-hour days).
Techniques for Avoiding Resource Overload3. Linking Tasks Linking tasks is more of a logistical solution. If the resource has been assigned to research the markets for project A and project B, these tasks could be linked. In this manner, when it appears that a resource has been over- allocated, really the tasks are similar enough to count for two projects. By linking these tasks from the different projects, the problem can be resolved.
Techniques for Avoiding Resource Overload4. Leaving Breathing Room When scheduling the project, it is vital to leave breathing room between tasks. However, it is important to not under-allocate resources as this could lead to a loss of budget monies meaning resource allocations problems will affect your projects health. A fine balance must be achieved between breathing room and not moving forward quickly enough.
Techniques for Avoiding Resource Overload5. Avoid the “Putting out fires” approach to project management If your team is consistently putting out fires, it makes it difficult to focus on the project. Moreover, by putting out fires, the team becomes knee-deep in ash, while project tasks pile up. This is where project management techniques such as Scrum come in handy.