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Resource allocation and smoothing

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Project Management: Resource Allocation and Smoothing
تخصيص وتسوية الموارد

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Resource allocation and smoothing

1. 1. Project Management 2017 Dr. Mahmoud Abbas Mahmoud 0 Project Management Resource Allocation and Smoothing Dr. Mahmoud Abbas Mahmoud Assistant Professor 2017
2. 2. Project Management 2017 Dr. Mahmoud Abbas Mahmoud 1 Resource Allocation and Smoothing 1. Resource Planning A resource may be defined as the machine or person who will perform the scope of work. Resource planning is forecasting the resources required to perform the scope of work within the time plan. The resource constraint should be considered after the network diagram, schedule bar chart and procurement schedule have been developed. But before the crash- flow statement. 2. Resource Estimating The resource estimates is linked directly to the scope of work and bill of materials (BOM). The scope of work may be expressed as so many tons of steel, or so many square meters of wall paint etc. From this description estimator can convert the scope of work into manhours per unit ‘X’. Consider the following, if the scope of work is to erect (assemble) 12 tons of steel and the estimator knows from past experience that the work can be done in 150 manhours per ton and the men work 10 hour shifts, then the equation is: ( 12 tons × 150 manhours per ton ) 10 hrs per day = 180 mandays Resource / Duration Trade-Off 3. Resource Forecasting Resource forecasting is to forecast the total resource requirement by discipline or interchangeable resource. An interchangeable resource is when you have a pool (group) of workers and any one of them could perform the work. This is done by compiling all the resource estimates and presenting them in a structured resource table.
3. 3. Project Management 2017 Dr. Mahmoud Abbas Mahmoud 2 Resource Table Resource Forecast - Bar Chart Resource Forecast – Histogram Note: The bar chart shows the number of resources per activity per day, and the histogram shows the total recourse required per day. 4. Resource Availability In establishing the resource availability, the following points should be considered: a- Other resource commitments - if your company is involved in a number of projects which all draw from a common labor pool, the other projects' requirements must also be considered (also called multi-project resource scheduling). b- The anticipated sickness and absenteeism rate. For example: allow for a 25% absentee rate based on experience.
4. 4. Project Management 2017 Dr. Mahmoud Abbas Mahmoud 3 Planning for a 25% Absenteeism Keeping the above points in mind, the resource availability table will be developed. Consider the following example: 5. Resource Histogram The resource histogram is a popular planning tool because it gives a good visual presentation which is easy to assimilate and understand. The prerequisites for drawing the resource histogram are: a- Early start bar chart (after considering the procurement requirements which ensure the materials and equipment are available) b- Resource forecast per activity. Consider the following example:
5. 5. Project Management 2017 Dr. Mahmoud Abbas Mahmoud 4 Resource Table Resource Bar chart and Histogram 6. Resource Loading The resource forecast is now compared with the resources available. The ideal situation is achieved when the resource requirement equals the resources available. Unfortunately, in project management this seldom happens, because it is not always possible to adjust supply with demand, so some form of compromise is essential. A resource overload is when the resource forecast exceeds the available resources, while a resource under-load is when resource forecast is lower than the available resource. A resource overload will lead to some activities being delayed which could delay the completion of the project. A resource under-load will under-utilize the company's resources which could have a detrimental effect on the company's profitability.