LECTURE 7

Resource Allocation and

Project Management
Tools WWW.EUSS.EDU
AGENDA

1. Project Resource Allocation

2. Introduction to Project
Management Tools
3. GANTT Chart in Project
Management
4. Common Project Management
Software
AGENDA

1. Project Resource Allocation

2. Introduction to Project
Management Tools
3. GANTT Chart in Project
Management
4. Common Project Management
Software
WHAT IS RESOURCE ALLOCATION?

Resource allocation refers to the process of assigning and distributing available

resources, such as personnel, funds, equipment, and materials, to specific tasks
or activities within a project or organization.

Resource allocation aims to maximize the utilization of available resources while

minimizing waste and inefficiencies.
BENEFITS OF EFFECTIVE RESOURCE ALLOCATION

1. Optimized Resource Utilization: By allocating resources efficiently, organizations

can make the most out of limited resources, ensuring that they are utilized to their
fullest potential. This helps in achieving maximum output with minimum input, thereby
improving productivity and cost-effectiveness.

2. Improved Project Performance: Proper allocation of resources ensures that

project tasks are adequately supported, leading to improved project performance in
terms of quality, timeliness, and budget adherence. Projects are more likely to stay on
track and meet their objectives when resources are allocated strategically.

3. Enhanced Risk Management: Effective resource allocation allows organizations

to better manage risks associated with resource constraints and uncertainties. By
identifying and mitigating resource-related risks early on, organizations can minimize
project disruptions and improve overall project resilience.
BENEFITS OF EFFECTIVE RESOURCE ALLOCATION

4. Increased Flexibility and Adaptability: Organizations with effective resource

allocation practices are better equipped to adapt to changes in project scope,
requirements, or external factors. They can reallocate resources dynamically to
address emerging needs or challenges, fostering greater flexibility and adaptability
in project execution.

5. Better Decision-Making: Resource allocation involves making informed decisions

based on data, priorities, and objectives. Organizations that prioritize effective
resource allocation have access to better information for decision-making, enabling
them to allocate resources more strategically and align them with organizational
goals.
BENEFITS OF EFFECTIVE RESOURCE ALLOCATION

5. Enhanced Stakeholder Satisfaction: When resources are allocated effectively,

projects are more likely to meet stakeholder expectations and deliver value.
Stakeholders, including clients, customers, and employees, are more satisfied with
project outcomes when resources are used efficiently to deliver high-quality results
within budget and schedule constraints.

6. Competitive Advantage: Effective resource allocation can provide organizations

with a competitive edge by enabling them to deliver projects more efficiently and
effectively than competitors. This can lead to improved market positioning, customer
satisfaction, and overall success in the marketplace.
WHAT FACTORS
INFLUENCE
RESOURCE
ALLOCATION?
FACTORS INFLUENCING THE RESOURCE ALLOCATION
PROCESS

Resource Availability: The availability of resources, including personnel, budget,

equipment, and technology, significantly influences resource allocation decisions.
Project managers must assess both the quantity and quality of available resources to
allocate them effectively and ensure successful project execution. Constraints in
resource availability may necessitate prioritization or reallocation to optimize resource
utilization.

Project Requirements: The specific requirements of a project, such as scope,

complexity, timeline, and quality standards, play a pivotal role in resource allocation.
Projects with stringent deadlines may demand a larger allocation of resources or even
resource intensification (increased resources for a shorter duration) to ensure timely
completion. Similarly, projects with complex technical demands may require specialized
resources or additional training/upskilling.
FACTORS INFLUENCING THE RESOURCE ALLOCATION
PROCESS

Project Cost Considerations: Cost considerations are another critical factor in

resource allocation decisions. Balancing resource cost rates with available budgetary
constraints ensures financial feasibility and efficient resource utilization. Conducting
cost-benefit analyses and assessing return on investment can guide resource allocation
decisions by evaluating potential benefits against associated costs.

Resource Interdependencies: Resource allocation decisions should account for

interdependencies between different project tasks, activities, and resources. Some
tasks may rely on specific resources for completion, and changes in resource allocation
for one task can have ripple effects on others. Evaluating these interdependencies
helps optimize resource allocation to maintain project flow and minimize bottlenecks.
FACTORS INFLUENCING THE RESOURCE ALLOCATION
PROCESS

Environmental Factors: External environmental factors beyond the organization's

control can also impact resource allocation. Market conditions, economic factors,
industry trends, regulatory requirements, and competition are examples of external
factors that may influence resource allocation decisions. For instance, in a highly
competitive market, organizations may allocate additional resources to research and
development or marketing to gain a competitive edge.
RESOURCE CONSTRAINTS

Resource constraints in project

management are limitations or
shortages of resources such as
people, equipment, and
materials that can impact
project planning, scheduling,
and execution.
TYPES OF RESOURCE
CONSTRAINTS
1. People Resources:
Human resources are essential for project success, and their
availability directly influences project scheduling and
execution.
Different skills and expertise are required for various project
tasks, leading to complexity in scheduling and resource
allocation.
Interchangeability of skills may sometimes be possible but
often results in reduced productivity.
Additional point: People resources may also include
subcontractors or consultants hired for specific project
tasks, adding further complexity to resource management.
TYPES OF RESOURCE
CONSTRAINTS
2. Material Resources:
Materials required for project tasks can
range from chemicals for scientific
projects to concrete for construction
projects.
Availability and shortages of materials can
cause delays and impact project
timelines.
Planning and scheduling material delivery
are critical, especially for projects with
time-sensitive requirements.
Additional point: Just-in-time inventory
management practices can help minimize
material storage costs and optimize
resource utilization.
TYPES OF RESOURCE
CONSTRAINS
3. Equipment Resources:
Equipment refers to machinery or tools necessary for
project activities.
Equipment availability, type, size, and quantity are
important considerations for project planning.
Assumptions about equipment availability can lead
to oversights and delays in project execution.
Centralized resource pools for equipment across
multiple projects can ensure efficient resource
allocation.
Additional point: Maintenance schedules and
downtime for equipment should be factored into
project planning to avoid disruptions.
THE RESOURCE ALLOCATION PROCESS
1. Identify the Required Resources: Begin by identifying the specific resources needed for
the project, including personnel with specific skill sets, equipment, and materials necessary for
task completion.

2. Assess Resource Availability: Determine the availability of resources by evaluating

factors such as personnel availability, equipment availability, and material availability.
Additionally, consider the associated costs and procurement lead times for acquiring
resources.

3. Prioritize Resource Allocation: Prioritize the allocation of resources based on the

criticality of tasks or activities within the project. Identify which tasks are essential for project
success and allocate resources accordingly to ensure these tasks receive priority attention.
THE RESOURCE ALLOCATION PROCESS

4. Allocate Resources: Once prioritization is complete, allocate resources by assigning

personnel, equipment, and materials to specific tasks or activities according to the project
plan. Ensure that resources are distributed effectively to support task execution and meet
project milestones.

5. Monitor and Control Resource Allocation: Continuously monitor resource utilization

throughout the project lifecycle. Track resource usage, identify any deviations from the plan,
and make necessary adjustments to resource allocation as needed. Control resource
allocation to ensure that the project remains within budget constraints and adheres to the
established schedule.
STRATEGIES FOR MANAGING RESOURCES

1. Prioritization:
Prioritizing resources involves allocating them to the most critical tasks or activities
first. This ensures that essential project elements are addressed promptly, helping to
maintain project schedules and budgets.
2. Optimization:
Optimizing resources entails utilizing them as efficiently as possible. This can be
achieved by employing resources in the most cost-effective manner or leveraging
readily available resources to their fullest potential.
3. Resource Leveling:
Resource leveling encompasses adjusting a project's schedule to ensure the efficient
and effective utilization of resources. This may involve modifying the duration of tasks
or activities, or adjusting the allocation of resources to ensure a balanced workload
and prevent resource bottlenecks.
COMMON PROBLEMS IN ALLOCATING RESOURCES

Limited Resources
Limited resources occur when a project requires more resources than are available. This
constraint can lead to delays and other issues as project managers struggle to obtain the
necessary resources to meet project requirements.

Competing Demands for Resources

Competing demands for resources arise when different parts of a project require the same
resources, leading to competition. This can result in delays and other issues as project
managers struggle to allocate resources fairly among competing tasks or activities.

Inadequate Resource Planning

Inadequate resource planning occurs when project managers fail to anticipate resource
needs adequately, leading to lacking resources when needed most. This can result in delays
and other issues as project managers scramble to obtain necessary resources last minute.
COMMON PROBLEMS IN ALLOCATING RESOURCES

Limited Visibility into Resource Availability

Limited visibility into resource availability makes it challenging for project managers to plan
and allocate resources effectively. Without up-to-date information on resource availability,
project managers may overlook scheduling conflicts or fail to allocate resources optimally.

Difficulty in Balancing Resource Allocation

Difficulty in balancing resource allocation arises when project managers struggle to distribute
resources evenly across different project parts. This can lead to resource constraints in some
areas and wasted resources in others, affecting overall project performance.

Inability to Manage Resources Effectively

Inability to manage resources effectively occurs when project managers lack the necessary
skills or tools to allocate and utilize resources efficiently. This can lead to resource allocation
problems and hinder project progress.
COMMON PROBLEMS IN ALLOCATING RESOURCES

Limited Communication
Limited communication between project managers and team members can lead to
misunderstandings and miscommunication about resource allocation, causing delays and
other issues. Clear and transparent communication is essential for effective resource
allocation and project success.
 Organizing a birthday party for a child named Sarah.
CASE STUDY The project team consists of a party planner, a cake
baker, and a decorator.

Scenario 1: The cake baker encounters a personal

emergency and is unable to fulfill the order for
Sarah's birthday cake, leaving the project team
without a crucial component of the party.

Discussion question: How should you allocate

resources in this project to compensate for the
absence of the cake baker and ensure that Sarah's
birthday party remains memorable?
 Organizing a birthday party for a child named Sarah.
CASE STUDY The project team consists of a party planner, a cake
baker, and a decorator.

Scenario 2: The decorator, who was responsible for

setting up the party venue with themed decorations,
encounters a scheduling conflict and is only
available to work on the day of the party itself,
leaving no time for pre-party setup.

Discussion question: How should you allocate

resources in this project to compensate for the lack
of pre-party setup by the decorator and ensure that
Sarah's birthday party venue is appropriately
decorated and themed?
RESOURCE OPTIMIZATION TECHNIQUES

Resource optimization in project management involves maximizing the utilization of

available resources to achieve project objectives efficiently while minimizing costs
and delays. It aims to balance resource demand with resource capacity, ensuring
that resources are allocated effectively across project tasks to optimize project
performance.

Two techniques commonly used for resource optimization are resource leveling and
resource smoothing.
AGENDA

1. Project Resource Allocation

2. Introduction to Project
Management Tools
3. GANTT Chart in Project
Management
4. Common Project Management
Software
WHAT IS PROJECT
MANAGEMENT TOOL?

Project management software is a digital

tool or application designed to assist project
managers and teams in planning, organizing,
executing, and monitoring projects.

These software solutions provide a

centralized platform for managing project-
related tasks, resources, schedules, budgets,
and communication.
 MANAGEMENT
Increased productivity Enhanced collaboration

BENEFITS OF
Automation of repetitive tasks, task Real-time updates, file sharing, and

PROJECT
prioritization, and time tracking communication features that facilitate

TOOLS
functionalities. teamwork.

Efficient resource Improved organization

allocation Centralized repositories for project
Tools for assigning tasks, tracking progress, documentation, schedules, and
and managing project resources communication.
effectively.
FUNCTIONALITIES OF PROJECT
MANAGEMENT TOOLS

Planning and Scheduling Task and Resource Management

Create detailed project plans, including Assign responsibilities

defining project scope, setting milestones, and Track progress
establishing task dependencies Monitor resource utilization
Schedule tasks
Allocate resources
Set deadlines, facilitating the development of
comprehensive project timelines.
FUNCTIONALITIES OF PROJECT
MANAGEMENT TOOLS

Collaboration and Communication Tracking and Monitoring

Provide tools for sharing files, exchanging Track project progress

messages, and collaborating on project- Monitor key performance
related tasks. indicators (KPIs)
Facilitate real-time communication and Identify potential bottlenecks or
promotes transparency, ensuring that team issues.
members stay informed and aligned Provide reporting and analytics
throughout the project. features
AGENDA

1. Project Resource Allocation

2. Introduction to Project
Management Tools
3. GANTT Chart in Project
Management
4. Common Project Management
Software
WHAT IS
A GANTT
CHART?
GANTT Chart is a type of bar chart that
visually represents the schedule and progress
of tasks or activities within a project.

GANTT charts show start and end dates, as

well as dependencies, scheduling and
deadlines, including how much of the task is
completed per stage and who is the task
owner.
UNDERSTANDING GANTT CHART COMPONENTS
Task list: Runs vertically down the left of the gantt chart to describe project work and may
be organized into groups and subgroups
Timeline: Runs horizontally across the top of the gantt chart and shows months, weeks,
days, and years
Dateline: A vertical line that highlights the current date on the gantt chart
Bars: Horizontal markers on the right side of the gantt chart that represent tasks and show
progress, duration, and start and end dates
Milestones: Yellow diamonds that call out major events, dates, decisions, and deliverables
Dependencies: Light gray lines that connect tasks that need to happen in a certain order
Progress: Shows how far along work is and may be indicated by percent complete and/or
bar shading
Resource assigned: Indicates the person or team responsible for completing a task
BENEFITS OF
CREATING GANTT
CHART
Break down a project into more manageable chunks
Easily view task dependencies and relationships
Allow team members to view the relationship between their
work and others’
Visualize and monitor the progress of tasks over time
See constraints and conflicts, such as one resource being
assigned to two tasks at once
Identify the critical path of the project
STEPS FOR CREATING GANTT CHART

Step 1: Define Project Tasks

Identify all the tasks required to complete the project.
Break down larger project deliverables into smaller, manageable tasks.
Ensure tasks are specific, measurable, achievable, relevant, and time-bound
(SMART).
Step 2: Estimate Task Durations
Estimate the duration required to complete each task.
Consider factors such as resources available, dependencies between tasks, and
any potential risks or uncertainties.
Step 3: Sequence Tasks
Determine the order in which tasks need to be completed.
Identify task dependencies, i.e., tasks that must be completed before others
can start.
Use predecessor-successor relationships to establish task sequences.
STEPS FOR CREATING GANTT CHART
Step 4: Create a Timeline
Establish a timeline for the project, typically displayed horizontally along the
top or bottom of the Gantt chart.
Determine the project start and end dates based on project constraints and
deadlines.
Step 5: Plot Tasks on the Gantt Chart
Use the timeline as a reference to plot each task on the Gantt chart.
Represent tasks as horizontal bars, with the length of each bar indicating its
duration.
Position bars according to task start and end dates along the timeline.
Step 6: Add Task Dependencies:
Connect related tasks with dependencies, such as finish-to-start, start-to-
start, finish-to-finish, or start-to-finish relationships.
Use arrows or lines to illustrate the dependencies between tasks on the
Gantt chart
STEPS FOR CREATING GANTT CHART

Step 7: Include Milestones and Key Dates

Identify project milestones, which are significant events or achievements that
mark progress points in the project.
Add milestone markers to the Gantt chart to highlight key dates or project
milestones.
Step 8: Customize Gantt Chart
Customize the Gantt chart to improve readability and usability.
Add labels, titles, and legends to provide context and clarity.
Use color-coding or shading to distinguish between different types of tasks,
task statuses, or task categories.
AGENDA

1. Project Resource Allocation

2. Introduction to Project
Management Tools
3. GANTT Chart in Project
Management
4. Common Project Management
Software
MICROSOFT PROJECT

Microsoft Project is a one of the most widely used project management software tool
designed to assist project managers in planning, tracking, and managing projects of
all sizes and complexities.

Microsoft Project offers a range of features and functionalities to streamline project

planning, resource allocation, scheduling, and collaboration.
MICROSOFT PROJECT
Microsoft Project enables project managers to create detailed project plans, define
tasks, assign resources, set timelines, and establish dependencies between tasks.

The software also provides various views, including Gantt charts, timelines, and task
lists, to visualize project progress and milestones effectively.

One of the key advantages of Microsoft Project is its flexibility and scalability, making
it suitable for projects across industries and sectors. Whether managing a small team
or a large enterprise project, Microsoft Project offers customizable features to adapt
to diverse project requirements and workflows.
TUTORIALS FOR MICROSOFT PROJECT

https://www.youtube.com/watch?v=iUqbhkJWt_4
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