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Project Management Chapter 6 Resource Allocation

Project Management Chapter 6 Resource Allocation. Resource Allocation. Activities compete with one another and Projects compete with one another for resources Allocate scarce recourses to competing activities in an efficient way. Material Human Resources Capital Resources- i.e. equipment

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Project Management Chapter 6 Resource Allocation

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  1. Project ManagementChapter 6Resource Allocation

  2. Resource Allocation • Activities compete with one another and Projects compete with one another for resources • Allocate scarce recourses to competing activities in an efficient way. • Material • Human Resources • Capital Resources- i.e. equipment • Resource allocation requires trade-offs • time constraint • resource constraint • Performance constraint Ardavan Asef-Vaziri 6-2

  3. Resource Loading For each resource For each time period: Determine the total resource time required by all activities If total Time Required < Capacity Go to 2 Re-schedule some activities to eliminate resource overloading in that time period Delay activities that have slack time first; No impact on CP If that doesn’t work, then delay one or more critical activity Go to 1

  4. Resource Loading/Leveling and Uncertainty 28,282 Hours Needed during the next 34 weeks Group Capacity 21 (people)  40 (hours/week)  34 weeks = 28,560 labor hours Correction for Holidays 21 (people)  3 (days)  8 (hours) = 504 labor hours Vacations 11 (people)  2 (weeks)  40 (hours) = 880 labor hours Hours Available 28,560 - 504 - 880 = 27,176 about 1100 less than needed 28,282/27176 = 1.04, or 104% of capacity 10/23/2014 Ardavan Asef-Vaziri 4

  5. Resource Loading/Leveling and Uncertainty 10/23/2014 Ardavan Asef-Vaziri 5

  6. Allocation Priority Rules • As soon as possible: Standard rule in scheduling. Activities are scheduled to start on their ESTs • As late as possible: Activities start on their LSTs whenever possible without increasing the project’s duration • Shortest task duration first: Consistent with technological precedence's, • Minimum slack first: Tasks are supplied with resources in inverse order of their slacks • Most critical followers: Activities with a higher number of critical successors take precedence • Most successors: Same as previous rule except all successors are counted • Most resources first: The greater the use of a specific resource on a task, the higher the task’s priority for the resource 10/23/2014 Ardavan Asef-Vaziri 6

  7. Standards to Measure Schedule Effectiveness • Schedule Slippage • The difference between actual completion date and the planned date • Slippage may cause penalties • Expediting one project can cause others to slip • Taking on a new project can cause existing projects to slip • Resource Utilization • The percentage of a resource actually used • We prefer balanced utilization among most of the resource types • In-Process Inventory • The volume of work waiting to be processed because there is a shortage of some resource • Similar to WIP in manufacturing • The cost here is holding cost of the resources waiting 10/23/2014 Ardavan Asef-Vaziri 7

  8. Assignments 3-8 10/23/2014 Review Questions: 1,3,4,5,8 Discussion Questions: 12,13,14,18 Problems: 23 Cases: 1 St. Dismas -4 10/23/2014 Ardavan Asef-Vaziri 1-8

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