Network Techniques –

Resource Allocation & Resource Leveling

Reghunath.K.P.
L&T Institute of Project Management

Stay Ahead - Stay Relevant - Stay Connected

© Larsen & Toubro
 Resource Allocation

• Resource allocation is assigning the required resources for

each activity, in the required amount and timing. Resource
allocation is also called resource loading.
• In the context of construction scheduling, resources
include labor, materials, and equipment.
• In most project management software, there are two ways
of assigning budget:
– Lump-sum
– Assign the required resources for the activity. The cost of the
activity will be automatically calculated by the program.

Stay Ahead - Stay Relevant - Stay Connected

© Larsen & Toubro
 Resource Allocation

• Advantages of assigning resources:

1. Ability to level your resources.
2. Produce procurement reports specifying the resources
needed by type, quantity, date, and cost.
3. Helps more in project control and earned value
management.
4. Easier to change the cost or availability of a resource.
5. Ability to use ‘resource calendars’ and resource-driven
activities / schedules.

Stay Ahead - Stay Relevant - Stay Connected

© Larsen & Toubro
 Example

• Activity: Place concrete block (CMU) for roof

parapets. This will take 3 days. Resources needed:
– 1 foreman, paid Rs. 200 /day
– 3 masons, paid Rs. 120 /day each
– 2 helpers, paid Rs. 80 /day each
– 0.25 crane, cost Rs. 6000 /day
– 1900 Blocks, cost (along with accessories) Rs. 6/ea

Stay Ahead - Stay Relevant - Stay Connected

© Larsen & Toubro
 Example
• We can say the cost of the activity is Rs. 18,060/-,
or
• We can say the activity includes these resources:

How How Price Total

Resource many Resource many each cost
Foreman 1 200 600
Foreman 1
Masons 3 120 1080
Masons 3
Helpers 2 80 480
Helpers 2 Crane 0.25 6000 4500
Crane 0.25 Blocks (with
Blocks (with accessories) 1900 6 11400
accessories) 1900 Total 18060

Stay Ahead - Stay Relevant - Stay Connected

© Larsen & Toubro
 Resource Distributions

• Primavera/MS Project allow different distributions to

budget and/or resources
– Uniform, triangular, trapezoidal, front-end loaded, Bell-shaped,
and user specified.
• It is vital for the scheduler to keep an eye on the resources
profile (at least key resources) throughout the project in
order to match demand with supply.
– After each update, check again: Activities shift, so the resource
profile changes.

Stay Ahead - Stay Relevant - Stay Connected

© Larsen & Toubro
 Resource Leveling

• Resource leveling: minimizing the fluctuation in

day-to-day resource usage throughout the project.
• Resource leveling is usually done by shifting non-
critical activities within their available float.
• In general, only labor and equipment may need
leveling.

Stay Ahead - Stay Relevant - Stay Connected

© Larsen & Toubro
 Resource Leveling - 2

• Almost all projects start with few activities, peak

up, then wind down with few activities. For this
reason, resource usage profile may not be a
uniform line throughout the project.
• Resource leveling may be done at a single or
multiple project level.

Stay Ahead - Stay Relevant - Stay Connected

© Larsen & Toubro
 Resource Profile

Actual, not leveled

Resource need

Time

Stay Ahead - Stay Relevant - Stay Connected

© Larsen & Toubro
Resource need Resource Profile

Ideal, unrealistic

Time

Stay Ahead - Stay Relevant - Stay Connected

© Larsen & Toubro
Resource need
Resource Profile

Leveled, realistic

Time

Stay Ahead - Stay Relevant - Stay Connected

© Larsen & Toubro
 Forward & Backward Leveling

• Forward Leveling: Start the project on the planned start

date but maintain the resource limits and allow the project
to finish later than the finish deadline.
• Backward leveling: If feasible, start the project earlier than
the planned start date by a number of days so that you can
finish the project on the required finish date without
raising the resource limits.

Stay Ahead - Stay Relevant - Stay Connected

© Larsen & Toubro
 Forward & Backward Leveling

• In both forward and backward leveling, the

limitation of resources may not allow the project
to finish / start as planned.
• Options may be:
1. Allow the project to finish later than planned
2. Allow the project to start earlier than planned
3. Assign more resources

Stay Ahead - Stay Relevant - Stay Connected

© Larsen & Toubro
 Resource Leveling – Example

Act ID Activity Description IPA Dur Laborers

A Purchase & Deliver materials - 5 2
B Remove old vinyl tile - 7 4
C Install ceramic tile A 3 3
D Install new vinyl tile A, B 5 3
E Clean up & inspect C, D 2 2

Stay Ahead - Stay Relevant - Stay Connected

© Larsen & Toubro
Resource Leveling Example: The Network

• Find ways to improve the labor usage profile. Available resources – 6

No.

0, 5 5, 8
A C
5 3
0 12, 14
2, 7 9, 12
E
PS 2
0, 7 7, 12
12, 14
0 B D
7 5

0, 7 7, 12

Stay Ahead - Stay Relevant - Stay Connected

© Larsen & Toubro
Bar Chart & Resource Histogram

Stay Ahead - Stay Relevant - Stay Connected

© Larsen & Toubro
Resource Leveling: Solution, Step 1

Stay Ahead - Stay Relevant - Stay Connected

© Larsen & Toubro
Resource Leveling: Solution, Step 2

Stay Ahead - Stay Relevant - Stay Connected

© Larsen & Toubro
 Resource Calendars
• Resource calendar is a feature in Primavera/MS Project,
where you can assign a calendar to a resource, then
allocate this resource to an activity.
– For example, create a “Safety Inspection” calendar and assign the
calendar to the resource ‘Safety Engineer’. The Safety Engineer is
available only on Monday and Wednesday.
– When this resource is assigned to an activity, the activity can be
scheduled only on Monday and Wednesday.

Stay Ahead - Stay Relevant - Stay Connected

© Larsen & Toubro