This document discusses resource allocation and smoothing in project management. It begins by defining resources and explaining resource planning, estimating, and forecasting. It describes developing resource tables and bar charts/histograms to forecast resource needs. It discusses checking resource availability and identifying overloads and underloads. Finally, it explains how to perform resource smoothing to improve resource loading by moving activities and adjusting resources. The overall aim is to optimize allocation of resources like workers, equipment and materials to complete a project on schedule.

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Project Management
Resource Allocation and Smoothing
Dr. Mahmoud Abbas Mahmoud
Assistant Professor
2017

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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.

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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.

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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:

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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.

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Resource Loading (overloading and under-loading)
The overloads and under-loads can now be identified and addressed as follows:
a- Resource Smoothing: assign resources to critical activities first, then try
moving the other activities to ease any overload and under-utilization.
b- Time-Limited Resource Scheduling: the end date of the project is fixed,
so resources must be increased to address any overloads.
c- Resource-Limited Resource Scheduling: the maximum number of
resources is fixed, so the end date may need to be extended to address any
overload.
d- Increase Resources: to address an overload.
e- Reduce Resources: to address an under-load (under-utilized).
7. Resource Smoothing
Resource smoothing is the process of moving activities to improve the resource
loading profile.
The first step is to select the resource to be smoothed. To decide which resource
to smooth consider:
a- The resource that is most overloaded.
b- The resource that is most used on the project.
c- The least flexible resource - this could be the resource that comes from
overseas, is difficult to get hold of or is least available.
d- The most expensive resource to hire.

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Example:
Resource Bar chart and Histogram

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Smoothed Bar chart and Histogram