Resource Allocation &

Management
 Types of Constraints

qTime

qResource

qMixed
 Resources
• Definition: Resource – any person, item, tool, or service that is
needed by the project that is either scarce or has limited
availability.
• Resources are constraints for the project.
• Resources can be:
– Non-storable: has to be renewed for each period, e.g. work
– Storable: depleted only by usage (remains available if not
used) e.g. money
• The most common resource, the 4Ms:
– Men
– Machines
– Money (cost)
– Material
– Other
 Resource Requirements
• Identify scope
• Establish task list
• Estimate task duration
• Identify requirements
• Begin staffing and procurement processes to acquire
the resources needed
• Assign resources to tasks
• Identify the resources needed
• Seek approval
• Procurement
• Enter this information into the project plan
• Determine dependencies
 Resource Allocation Problem

ØSchedules should be evaluated not merely

in terms of meeting project milestones, but
also in terms of the timing and use of scarce
resources.

ØA fundamental measure of the project

manager’s success in project management
is the skill with which the trade-offs among
performance, time, and cost are managed.
 Resource Allocation Problem

The extreme points of the relationship between

time use and resource use are the following:

Ø Time Limited: The project must be finished by a

certain time, using as few resources as possible.
But it is time, not resource usage, that is critical
Ø Resource Limited: The project must be finished as
soon as possible, but without exceeding some
specific level of resource usage or some general
resource constraint
 Loading (resource allocation)

• The assignment of work to a worker, machine or

unit (generally: to a workstation) in time.
• A workstation can be:
– underloaded (load < capacity)
– fully loaded (load = capacity)
– overloaded (load > capacity)

• Fully loading is nearly impossible to reach.

• Underloading is the most common, because it
respects time.
• Overloading leads to be late.
 Resource Loading

ØResource loading describes the amounts of

individual resources an existing schedule
requires during specific time periods.

ØThe loads (requirements) of each resource

type are listed as a function of time period.

ØResource loading gives a general

understanding of the demands a project or set
of projects will make on a firm’s resources.
 Resource Loading

ØThe project manager must be aware of the

flows of usage for each input resource
throughout the life of the project.

ØIt is the project manager’s responsibility to

ensure that the required resources, in the
required amounts, are available when and
where they are needed.
 Resource Loading
The amounts of individual resources that a schedule requires during
specific time periods.

Resource loading table

Resource Name Work Details 5/5 5/12 5/19 5/26
Tom 40 hrs Work 8h 32h
Assign Bids 40 hrs Work 8h 32h
Jeff 40 hrs Work 8h 32h
Calculate Cost 40 hrs Work 8h 32h
Sue 40 hrs Work 8h 32h
Select Bid 40 hrs Work 8h 32h
Carol 8 hrs Work 8h
PR Campaign 8 hrs Work 8h
 Resource Leveling (Smooting)
Ø Resource levelling is used when limits on the availability of
resources are targeted.
Ø Resource smoothing is used when the time constraint
takes priority, to complete the work by the required date
while avoiding peaks and Lack of resource demand.
Ø Resource leveling aims to minimize the period-by-period
variations in resource loading by shifting tasks within their
slack allowances.
Ø The purpose is to create a smoother distribution of resource
usage.
ØObjectives:
qTo determine the resource requirements so that they will
be available at the right time,
qTo allow each activity to be scheduled with the
smoothest possible transition across usage levels.
 Resource Leveling (Smooting)

ØResource management is a multivariate, combinatorial

problem, i.e. multiple solutions with many variables, the
mathematically optimal solution may be difficult or infeasible.
ØMore common approach to analyzing resource leveling
problems is to apply some resource leveling heuristics.

Resource Leveling Heuristics

ØPrioritizing resource allocation include applying resources
to activities:
qwith the smallest amount of slack
qwith the smallest duration
qthat start earliest
qwith the most successor tasks
qrequiring the most resources
 Resource Leveling Steps

1. Create a project activity network diagram

2. Create a table showing the resources required for
each activity, durations, and the total float available
3. Determine activity late finish times

4. Identify resource over allocation

5. Level the resource loading table

6. Recalculate net activity slacks and project delay

7. Identify any resource conflicts and begin to smooth
the loading table using one or more heuristics
 Resource Leveling Techniques

1. Shift the start date of an activity within its

slack time
2. Split the activity within its slack time
Creating Resource Loading Charts (1/4)

Display the amount of resources required as a

function of time.

4 B 5 5 D 9 9 E 11
Res = 2 Res = 7 Res = 3

1. Start with a
0 A 4 network diagram
Res = 6 11 F 12
Res = 6
4 C 7
Res = 2
Creating Resource Loading Charts 2/4

Activity Resource Duration ES Slack LF

A 6 4 0 0 4
B 2 1 4 0 5
C 2 3 4 4 11
D 7 4 5 0 9
E 3 2 9 0 11
F 6 1 11 0 12
2. Produce a table that shows the duration,
early start, late finish, slack, and
resource(s) required for each activity.
 Creating Resource Loading Charts 3/4
3. Draw an initial loading chart with
8 each activity scheduled at its ES.
Resources

6
Resource
4 imbalance
A D F
B
2 E
C

2 4 6 8 10 12 14
Project Days
 Creating Resource Loading Charts 4/4
4. Rearrange activities within their slack
to create a more level profile. Splitting
8 C creates a more level project.
Resources

4 C
A D F
B
2 E
C

2 4 6 8 10 12 14
Project Days
Key Parameters in Multi-Project Environments
Ø Schedule slippage
Ø Resource utilization
Ø In-process inventory

Prioritizing Resource Allocations in Multi-Project

Environments
• First come first served
• Greatest resource demand
• Greatest resource utilization
• Minimum late finish time
• Mathematical programming
 Problem solving:
Network with single resource data

0
2 0 10
0 c (3)
0 0 2
2 8 10
0 a (1) 0 0
0 0 0 0 2 3 10 0 13 13 0 13
2
START (0) 2 3 7 e (1) FINISH (0)
0 0 0 d (2) 10 3 13 13 0 13
5
0 5 5 5 5 10

b (4)
5 5 10
 Aggregation with a bar chart
(single resource, earliest start)
activity 1 2 3 4 5 6 7 8 9 10 11 12 13
a 1 1
b 4 4 4 4 4
c 3 3 3 3 3 3 3 3
d 2 2 2 2 2
e 1 1 1
Res. aggr. 5 5 9 9 9 5 5 3 3 3 1 1 1
Cum. res. 5 10 19 28 37 42 47 50 53 56 57 58 59
Resource units
11
10
9
8
7
6
5
4
3
2
1
1 2 3 4 5 6 7 8 9 10 11 12 13
Time
 Aggregation with a bar chart
(single resource, latest start)
activity 1 2 3 4 5 6 7 8 9 10 11 12 13
a 1 1
b 4 4 4 4 4
c 3 3 3 3 3 3 3 3
d 2 2 2 2 2
e 1 1 1
Res. aggr. 1 1 3 3 3 9 9 9 9 9 1 1 1
Cum. res. 1 2 5 8 11 20 29 38 47 56 57 58 59
Resource units
11
10
9
8
7
6
5
4
3
2
1
1 2 3 4 5 6 7 8 9 10 11 12 13
Time
 The S Curve analysis

• The minimum slope level is the less

‘critical’ from the viewpoint of availability
 S Curve of the example

70

60

50

40 ES
LS
30 smoothest

20

10

0
1 2 3 4 5 6 7 8 9 10 11 12 13
 Other possibilities

• Alternative resources
• Alternative methods
• Alternative sequences
(if there is no technical dependency)
 Levelling the load
• We must have a starting allocation of activities over time
and a resource constraint (previous example).
Resource units
11
10
9
8
7
6
5
4
3
2
1
1 2 3 4 5 6 7 8 9 10 11 12 13

Time

• Trying to keep the original TPT unchanged means that

critical activities should not be moved. Thus try to move
activities with free float.
 Solution

• There are only 2 activities with free float: b & d

• Which one to move and to where?
• Moving activity d 3 days in advance is
eliminating the peak.
Resource units
11
10
9
8
7
6
5
4
3
2
1
1 2 3 4 5 6 7 8 9 10 11 12 13

Time
 Solution

activity 1 2 3 4 5 6 7 8 9 10 11 12 13
a 1 1
b 4 4 4 4 4
c 3 3 3 3 3 3 3 3
d - - - 2 2 2 2 2
e 1 1 1
Res. aggr. 5 5 7 7 7 5 5 5 5 5 1 1 1
Cum. res. 5 10 17 24 31 36 41 46 51 56 57 58 59
 S Curve

70

60

50

ES
40
LS
smoothest
30
leveled

20

10

0
1 2 3 4 5 6 7 8 9 10 11 12 13
 Effect of levelling
• New „activity”: waiting for the resource (it is a lag, not a true
activity)
0
2 0 10
0 c (3)
0 0 2
2 8 10
0 a (1) 0 0
0 0 0 0 2 0 10 0 13 13 0 13
2
START (0) 5 0 10 e (1) FINISH (0)
0 0 0 d (2) 10 3 13 13 0 13
0
0 0 5 5 5 10

b (4)
0 5 5

• Changes: new precedence relationship, floats, late start

and finish times