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Unit 4 - PPT1 PM
Unit 4 - PPT1 PM
Unit 4 - PPT1 PM
and management
Resources and Cost Scheduling
Scheduling resources and cost refers to the process of effectively allocating and managing
resources, such as manpower, materials, equipment, and finances, over the duration of a
project in order to achieve project objectives within specified constraints.
This involves creating a detailed plan that outlines when and how resources will be utilized
throughout the project lifecycle, taking into account factors such as availability, capacity,
dependencies, and budgetary constraints.
Key aspects of scheduling resources and cost include:
1. Resource Allocation: Determining the types and quantities of resources needed for each
project activity and assigning them accordingly. This involves considering factors such as
resource availability, skill levels, and specialization.
2. Resource Leveling: Balancing resource utilization to prevent overallocation or
underutilization of resources. Resource leveling aims to smooth out peaks and troughs in
resource usage to optimize efficiency and productivity.
3. Cost Estimation and Budgeting: Estimating the costs associated with
acquiring, using, and maintaining resources throughout the project lifecycle.
This includes direct costs (e.g., labor, materials) and indirect costs (e.g.,
overhead, administrative expenses). Budgeting involves allocating funds to
cover projected costs and monitoring expenditures to ensure adherence to
budgetary constraints.
4. Resource Scheduling: Creating a schedule that specifies when resources will
be needed for each project activity. This involves sequencing tasks,
identifying resource dependencies, and allocating resources based on project
priorities and constraints.
5. Monitoring and Control: Continuously tracking resource usage and costs
throughout the project execution phase. Monitoring allows project managers
to identify deviations from the planned resource allocation and take corrective
actions to address issues and optimize resource utilization.
Resource Smoothening or Resource
Leveling
Resource smoothing, also known as resource leveling, is a project management
technique used to optimize the utilization of resources over the duration of a project
while avoiding peaks and troughs in resource demand. This technique involves
adjusting the timing and duration of project activities to create a more balanced and
sustainable resource allocation schedule.
For example, Imagine a construction project where various tasks, such as excavation,
foundation laying, structural work, and finishing, need to be completed over a certain
timeframe. The project requires skilled labor, construction equipment, and materials,
all of which are limited and subject to availability constraints.
Initially, the project schedule may be heavily front-loaded, with several critical tasks
scheduled to occur simultaneously or in quick succession, leading to a peak in
resource demand. For instance, if multiple construction teams are assigned to work on
different areas of the site simultaneously, there may be a shortage of skilled labor,
equipment, or materials, causing delays and inefficiencies.
To address this, project managers can use resource smoothing techniques to
redistribute tasks and resources more evenly throughout the project timeline.
This involves:
1. Identifying Resource Constraints: Assessing the availability of resources and
identifying potential constraints or limitations. For example, if there is a
shortage of skilled labor or specialized equipment during certain periods, it
may lead to resource bottlenecks.
2. Adjusting Task Dependencies: Reviewing the project schedule and adjusting
task dependencies to spread resource usage more evenly. For instance, instead
of scheduling all excavation work to be completed in the first week, the project
manager may stagger excavation tasks over several weeks to avoid overloading
resources.
3. Rescheduling Activities: Analyzing the critical path and rescheduling non-
critical activities to minimize resource conflicts. For example, if certain
finishing tasks can be deferred without impacting project deadlines, they may
be rescheduled to periods when resources are more readily available.
4. Optimizing Resource Allocation: Optimizing resource allocation by
reallocating resources from non-critical tasks to critical tasks or adjusting
resource utilization rates. For instance, if certain construction teams have
excess capacity during off-peak periods, they may be reassigned to support
critical activities during peak periods.
By implementing resource smoothing techniques, project managers can
achieve a more balanced resource allocation schedule, reduce resource
conflicts and bottlenecks, minimize project risks, and improve overall project
efficiency and effectiveness.
Resource Dependencies
Resource dependencies refer to the relationships between project tasks or activities
that dictate the availability and usage of resources.
In other words, resource dependencies define the dependencies between the
resources required for different tasks within a project.
These dependencies determine the sequence, timing, and allocation of resources
throughout the project lifecycle.
Resource dependencies can manifest in various forms, including:
1. Sequential Dependencies: Some tasks must be completed before others can begin.
For example, painting a wall may depend on first completing the task of plastering
or priming the surface. Sequential dependencies dictate the order in which tasks are
performed and ensure that prerequisite tasks are completed before dependent tasks
can start.
2. Shared Resources Dependencies: Certain tasks may require the use of the
same resources concurrently. For example, two tasks may require the use of a
specialized piece of equipment or skilled labor at the same time. Shared
resource dependencies can lead to resource conflicts and shortages if
resources are not effectively managed and allocated.
3. Resource Constraints Dependencies: Dependencies may arise due to
constraints on the availability or capacity of resources. For instance, if a
project has a limited budget or a shortage of skilled personnel, it may impact
the scheduling and execution of tasks dependent on those resources. Resource
constraints dependencies influence project scheduling, resource allocation,
and overall project feasibility.
4. External Dependencies: Dependencies can also extend beyond the project
team to external factors or stakeholders. For example, a project may depend
on the timely delivery of materials from suppliers or approvals from
regulatory authorities. External dependencies can introduce uncertainties and
risks into project planning and execution, as they are often beyond the direct
control of the project team.
how resource dependencies can impact
project scheduling and cost estimation?
1. Sequence of Activities: Resource dependencies influence the sequence in which project
activities must be performed. Certain tasks may depend on the completion of others
before they can start. For example, pouring concrete for a foundation is dependent on
completing excavation work. Failure to identify and manage these dependencies can lead
to delays in project execution and subsequent scheduling conflicts.
2. Resource Availability: Resource dependencies affect the availability of resources needed
to complete tasks. If multiple activities require the same resources concurrently, it can
lead to resource conflicts and shortages. For instance, if two tasks require the use of a
specialized piece of equipment simultaneously, one task may need to be delayed or
rescheduled, resulting in increased project duration and potentially higher costs.
3. Critical Path Analysis: Resource dependencies impact the critical path of the project,
which represents the sequence of tasks that determine the shortest possible duration for
completing the project. Activities with resource dependencies along the critical path have
a significant impact on project duration. Any delays or disruptions in these critical
activities can lead to delays in project completion and increased costs.
4. Resource Overallocation: Resource dependencies can result in overallocation
of resources, where multiple tasks require the same resources at the same time.
This can lead to inefficient resource utilization, increased labor costs, and
potential delays in project delivery. Project managers must carefully manage
resource allocation to avoid overloading resources and ensure optimal resource
utilization.
5. Cost Estimation: Resource dependencies influence cost estimation by
affecting the duration and effort required to complete project activities. Tasks
that are dependent on the availability of critical resources may require
additional time and effort to complete, leading to higher labor costs and
potentially increased project expenses. Failure to accurately account for
resource dependencies in cost estimation can result in budget overruns and
financial risks for the project.
Resource-Constrained Scheduling
Resource-constrained scheduling is a project management technique used to create
project schedules while considering the availability and limitations of resources. In
resource-constrained scheduling, the project schedule is developed based on the
constraints imposed by the availability of resources such as manpower, equipment,
materials, and budgetary limitations.
Here's an examination of the concept of resource-constrained scheduling and its
impact on project timelines and costs:
1. Optimizing Resource Utilization: Resource-constrained scheduling aims to optimize
the utilization of available resources throughout the project lifecycle. By considering
resource availability and limitations during the scheduling process, project managers
can allocate resources efficiently and avoid overallocation or underutilization of
resources.
2. Balancing Resource Demand and Supply: Resource-constrained scheduling
involves balancing the demand for resources with the available supply. Project
managers must prioritize tasks and allocate resources in a way that ensures critical
activities are adequately supported while avoiding resource shortages or conflicts.
3. Impact on Project Timelines: Resource constraints can have a significant impact on
project timelines. Limited availability of resources may extend the duration of certain
project activities, leading to delays in project completion. Resource-constrained scheduling
helps project managers identify resource bottlenecks and adjust the project schedule to
mitigate delays and ensure project deadlines are met.
4. Impact on Project Costs: Resource constraints can also impact project costs. Limited
availability of resources may necessitate additional expenses, such as overtime pay for
personnel or outsourcing certain tasks to external vendors. Conversely, efficient resource
allocation and utilization can help minimize costs by avoiding unnecessary resource
overallocation or idle time.
5. Trade-offs and Prioritization: Resource-constrained scheduling often requires trade-offs
and prioritization of project activities. Project managers may need to make decisions about
which tasks to prioritize based on resource availability and project objectives. This may
involve delaying non-critical tasks or reallocating resources from less critical activities to
critical ones.
6. Risk Management: Resource constraints introduce risks to project execution, such as
delays, cost overruns, and quality issues. Effective resource-constrained scheduling
involves proactive risk management to identify potential resource-related risks and develop
mitigation strategies to address them. This may include cross-training personnel,
implementing contingency plans, or securing additional resources as needed.
Concept of Crashing