This document discusses resource allocation in project management. It explains that resource allocation helps review and modify activity schedules and project completion dates. The main steps are to identify all resource requirements, map them to activities, and schedule resources to smooth uneven demand over time. Smoothing may involve adjusting activity start dates or splitting activities. Creating resource schedules can also impact critical paths. Individual resource allocation considers availability, critical tasks, risk, training, and team building. The final output is cost, activity, resource, and cost schedules.

1. SPM-UNIT III
RISK MANAGEMENT
RESOURCE ALLOCATION
Prof. Kanchana Devi

2. Resource Allocation- Introduction
 Helps in reviewing and modifying the ideal
activity plan.
 Helps in revise stage or project completion
dates
 The final result of resource allocation involves
schedules like
 Activity Schedule
 Resource Schedule
 Cost Schedule
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Prof. Kanchana Devi

3. Nature of Resources
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 A resource is any item or person required for the
execution of the project
 In general resource will fall into one of the seven
categories
 Labor
 Equipment
 Materials
 Space
 Service
 Time
 Money

4. Identifying Resource Requirements
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 The first step in resource allocation plan is to
list the resources that will be required along
with the expected level of demand.
 This can be done by considering each activity
in turn and identifying the resources required.

5. Identifying Resource Requirement
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6. Resource Requirement List
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7. Scheduling Resources
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 After identifying resource requirement list, next
is to map this list to activity plan to assess the
distribution of resources required over the
duration of the project.
 Can be done by representing the activity plan
as a bar chart and produce a histogram for
each resource.

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Schedule
Total Float

9. Problem
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 It causes two analyst/designers to be idle for
twelve days
 One for seven days
 One for two days between specification and
design
 Another problem in uneven histogram is it is
that more likely to call for levels of resource
beyond those available.

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11. Smoothing
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 By adjusting the start date of some activities
and splitting others, a resource histogram can
subject to constraints such as precedence
requirement, be smoothed to contain resource
at available levels.
 By delaying the start of some activities,
reduces the maximum level of demand for the
resource.
 Non-critical activities can be split, they can
provide a useful way of filling.

12. Two ways of prioritizing
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 Total float priority
 Activities are ordered according to the total float
 Smallest total float has higher priority(Like Ranking)
 Ordered list priority
 Activities that can be proceed at the same time are
ordered according to a set of simple criteria.
 Burman’s Priority list:
 Shortest Critical Activities
 Critical Activities
 Shortest Non-Critical Activities
 Non-Critical Activities with Least Float
 Non- Critical Activities

13. Creating Critical Paths
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 Scheduling resources can create new critical
paths.
 Delaying the start of an activity due to lack of
resources will cause that activity to become
critical
 Delay in completing one activity can delay the
availability of a resource required for later
activity.

14. Allocating Individuals
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 Availability
 Criticality
 Risk
 Training
 Team Building

15. Cost Schedule
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 Categories of cost
 Staff cost
 Staff Salary
 Overheads
 Expenditure of organization
 Usage Charges
 Charge for use of resource