1. Project Management OPER 576 Resource Allocation Greg Magnan, Ph.D. May 6, 2004

2. Project Life Cycle Stages

3. II. Project Planning 4.Identify Resource Requirements To avoid future resource problems and help assign responsibility For each WBS element, consider: Knowledge, skills, facilities, equipment, supplies, materials, special/unusual resources People, Materials, Equipment, Capital Identify type, amount, and cost ESTIMATE!

4. Identify Resource Requirements

5. II. Project Planning 6.Responsibility Assignment Matrix To make responsibilities clear and visible WBS elements down left side Note Deliverables Names of individuals/groups along top Mark Primary responsibility (P) One for each terminal element Negotiate commitment from each person

6. II. Project Planning 8.Schedule Deliverables / Gantt Chart To provide basis for project monitoring Identify start and finish dates Review precedence to ensure that no terminal element starts or finishes too soon Gantt charts, however, do NOT show precedence Once again, uses WBS as main input

7. Sample Gantt Chart

9. II. Project Planning 9.Schedule Resources “Resource the Plan” to help maintain commitment of resources Resource managers allocate resources Act in collaboration with Project Manager Confirm or negotiate specific commitments for each resource Be aware of resource manager’s constraints or policies (e.g., % res. util. limits) –May affect schedule sequence! Completion date, too

10. Resourcing Plans Resource Categories –People, Materials, Equipment, Capital Time Constrained vs. Resource Constrained –Time: Imposed Date –Resource: Cannot exceed level of Resource –Problem is combinatorial: lots of possible solutions Incorporating resources may result in new Critical Path Resource Constrained –Parallel Method Minimize delay while maintaining technical relationships and resource limitations

11. Parallel Method Combinatorial problem: expensive optimal solutions Heuristics: priority allocation rules –Minimum slack (first) –Smallest duration (second; tie-breaker) –Lowest activity number (third) Parallel: starts at first time period and schedules period-by-period any activities eligible to start –Apply priority rules when resource conflict –Effectively delaying early start times of downstream activities

12. In Class Problem

13. Determine ES, EF, LS, LF & SL

14. Scheduled Resource Load Chart w/ ES and Slack updates

15. Baseline Gantt Chart

16. Resource-Constrained Scheduling: Impacts Slack: reduced Flexibility: reduced (slack used to min. delay) Network sensitivity: increased Scheduling complexity: increased –May no longer be intuitive If you don’t account for resource needs, the resource-constrained schedule will materialize –If early enough, may be able to create alternatives

17. Multi-project Scheduling This is where resources really become an issue –Resource needs reconciled across projects –Priorities, risks, resource requirements, tasks Effects –Overall schedule slippage –Inefficient resource utilization –Resource bottlenecks Project Management Offices (PMO) –Prioritize projects –Centralized scheduling/ resource mgt –Control outsourcing