1. Resource Management

2. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall12-2 Types of Constraints  Time  Resource  Mixed Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall

3. Resources Definition: anything that is scarce and required for any activity in the project. 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 typology, the 4Ms: –Men –Machines –Money (cost) –Material –Other

4. Loading (resource allocation) The assignment of work to an 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 except in flow production. Underloading is the most common, because it respects time. Overloading leads to be late.

5. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall12-5 Resource Loading The amounts of individual resources that a schedule requires during specific time periods. Resource loading table Resource NameWorkDetails5/55/125/195/26 Tom40 hrsWork8h32h Assign Bids40 hrsWork8h32h Jeff40 hrsWork8h32h Calculate Cost40 hrsWork8h32h Sue40 hrsWork8h32h Select Bid40 hrsWork8h32h Carol8 hrsWork8h PR Campaign8 hrsWork8h

6. What to do with non-linear duration-resource functions? Use a computer Focus on quasi-linear parts of the functions

7. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall12-7 Resource Leveling (Smoothing) A multivariate, combinatorial problem Objectives To determine the resource requirements so that they will be available at the right time To allow each activity to be scheduled with the smoothest possible transition across resource usage levels

8. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall12-8 Prioritization Rules for Leveling  Smallest amount of slack  Smallest duration  Lowest ID number  Greatest number of successor tasks  Requiring the most resources

9. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall12-9 General Procedure for Leveling 1.Create a project activity precedence table and network diagram, 2.Develop resource loading tables and a resource profile 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

10. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall12-10 Creating Resource Loading Charts (1/4) Display the amount of resources required as a function of time. 0 A4 Res = 6 4 B5 Res = 2 5 D9 Res = 7 9 E11 Res = 3 4 C7 Res = 2 11 F12 Res = 6 1.Start with a network diagram

11. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall12-11 Creating Resource Loading Charts 2/4 ActivityResourceDurationESSlackLF A64004 B21405 C234411 D74509 E3290 F61 012 2.Produce a table that shows the duration, early start, late finish, slack, and resource(s) required for each activity.

12. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall12-12 Creating Resource Loading Charts 3/4 A 2 4 6 8 2 121086414 C B D E F Project Days Resources 3.Draw an initial loading chart with each activity scheduled at its ES. Resource imbalance

13. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall12-13 Creating Resource Loading Charts 4/4 4.Rearrange activities within their slack to create a more level profile. Splitting C creates a more level project. A 2 4 6 8 2 121086414 C B D E F Project Days Resources C

14. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall12-14 Key Parameters in Multi-Project Environments  Schedule slippage  Resource utilization  In-process inventory

15. Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall12-15 Prioritizing Resource Allocations in Multi-Project Environments First come first served Greatest resource demand Greatest resource utilization Minimum late finish time Mathematical programming

16. Problem solving

17. Network with single resource data START (0) 0 00 0 0 0 0 e (1) 10 130 10 13 3 0 d (2) 2 73 5 10 5 3 c (3) 2 100 2 8 0 b (4) 0 55 5 10 5 5 a (1) 0 20 0 2 2 0 FINISH (0) 13 0 0 0

18. Aggregation with a bar chart (single resource, earliest start) activity12345678910111213 a11 b44444 c33333333 d22222 e111 Res. aggr. 5599955333111 Cum. res. 5101928374247505356575859 Resource units 11 10 9 8 7 6 5 4 3 2 1 123456789 111213 Time

19. Aggregation with a bar chart (single resource, latest start) activity12345678910111213 a11 b44444 c33333333 d22222 e111 Res. aggr. 1133399999111 Cum. res. 1258112029384756575859 Resource units 11 10 9 8 7 6 5 4 3 2 1 123456789 111213 Time

20. The S Curve analysis The minimum slope level is the less ‘critical’ from the viewpoint of availability

21. S Curve of the example

22. Other possibilities Alternative resources Alternative methods Alternative sequences (if there is no technical dependency)

23. 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 123456789 111213 Time Trying to keep the original TPT unchanged means that critical activities should not be moved. Thus try to move activities with free float. Resource units 11 10 9 8 7 6 5 4 3 2 1 123456789 111213 Time

24. 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 123456789 111213 Time

25. activity12345678910111213 a11 b44444 c33333333 d---22222 e111 Res. aggr. 5577755555111 Cum. res. 5101724313641465156575859 Solution

26. S Curve

27. Effect of levelling New „activity”: waiting for the resource (it is a lag, not a true activity) START (0) 0 00 0 0 0 0 e (1) 10 130 10 13 3 0 d (2) 5 100 5 5 0 c (3) 2 100 2 8 0 b (4) 0 50 0 5 5 0 a (1) 0 20 0 2 2 0 FINISH (0) 13 0 0 0 Changes: new precedence relationship, floats, late start and finish times

28. Optional homework Hypothetical project resource analysis and planning (4*5pts): –Resource need per activity –Loading chart –Network diagram –Smoothing with resource loading charts Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall12-28