1. Prepared by Scott M. Shafer, Updated by William E. Matthews and Thomas G. Roberts, William Patterson University Copyright 2007 John Wiley & Sons, Inc.5-1 Mantel, Meredith, Shafer, and Sutton Copyright  John Wiley & Sons, Inc. All rights reserved. Reproduction or translation of this work beyond that permitted in Section 117 of the 1976 United States Copyright Act without express permission of the copyright owner is unlawful. Request for further information should be addressed to the Permissions Department, John Wiley & Sons, Inc. The purchaser may make back-up copies for his/her own use only and not for distribution or resale. The Publisher assumes no responsibility for errors, omissions, or damages, caused by the use of these programs or from the use of the information herein. 6 – Allocating Resources to the Project

2.  Projects Compete With One Another for Resources consumed (e.g., materials) non-consumed (e.g., equipment)  Goal of Resource Allocation is to Optimize Use of Limited Supply  Requires making trade-offs time constrained resource constrained Copyright 2007 John Wiley & Sons, Inc.6-2

3.  Normal Duration Estimates  Normal Costs  Crash Duration Estimates  Crash Costs  Crash Cost Per Day Crash Cost - Normal Cost Normal Duration – Crash Duration Copyright 2007 John Wiley & Sons, Inc.6-3

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11.  Three time estimates made for both normal resource loading and crash resource loading  Variance of normal activity may be different than variance of crash time Copyright 2007 John Wiley & Sons, Inc.6-11

12.  Target Cell minimize crashing costs  By Changing Cells amount to crash activities time events occur  Constraints amount each activity can be crashed precedence relationships complete project by specified time nonnegativity Copyright 2007 John Wiley & Sons, Inc.6-12

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14.  Fast Tracking is an expediting technique in which one phase of the project is started before preceding phases are completed  It is used in the construction industry when the building phase is started before the design and planning phases are complete  Building phase started before design and planning phases completed  Particularly appropriate when large proportion of work is routine Copyright 2007 John Wiley & Sons, Inc.6-14

15.  Amount of specific resources that are scheduled for use on specific activities or projects at specific times.  Usually a list or table. Copyright 2007 John Wiley & Sons, Inc.6-15

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17.  Subordinates have a hard time saying "no" to a well liked boss which can lead to overcommitted subordinates.  Problem further compounded because more experienced workers tend to be most over worked.  One solution is to set specific limits on amount of overscheduling permitted. Copyright 2007 John Wiley & Sons, Inc.6-17

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25.  28,282 Hours Needed  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  Additional Problems Workers getting sick Task not ready when worker is ready Change orders Copyright 2007 John Wiley & Sons, Inc.6-25

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27.  Begin with Pert/CPM Schedule  Examine activities period by period and resource by resource  Where demand for resource exceeds supply, consider tasks one by one ….. resources assigned to these tasks based on priority rules Copyright 2007 John Wiley & Sons, Inc.6-27

28.  As soon as possible  As late as possible  Shortest task duration first  Minimum slack first  Most critical followers  Most successor  Most resources first Copyright 2007 John Wiley & Sons, Inc.6-28

29.  Schedule Slippage amount project or set of projects delayed  Resource Utilization extent that resources are over or underworked  In-Process Inventory amount of unfinished work in the system Copyright 2007 John Wiley & Sons, Inc.6-29

30.  Used to link several project together  Have duration but do not require any resources  This approach allows a set of projects to be dealt with as though it were a single project use of MSP’s resource loading and leveling charts and tables Copyright 2007 John Wiley & Sons, Inc.6-30

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33.  Issues that trouble people about working on projects regardless of type of project unrealistic due dates too many changes unrealistic budget  These issues/problems related to need to make trade-offs  To what extent are these problems caused by human decisions and practices? Copyright 2007 John Wiley & Sons, Inc.6-33

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36.  Average Completion Times  Implications of Assuming Known Activity Times  Shape of the Distribution  Worker Time Estimates  Impact of Inflated Time Estimates  Student Syndrome Copyright 2007 John Wiley & Sons, Inc.6-36

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39.  Underestimate time needed to complete project assumption of known activity times and independent paths  Project team members inflate time estimates  Work fills available time student syndrome early completions not reported  Misused safety time can lead to missed deadlines  Hidden safety time complicates task of prioritizing project activities  Lack of clear priorities results in poor multitasking Copyright 2007 John Wiley & Sons, Inc.6-39

40.  Poor multitasking increases task durations  Uneven demand on resources also results due to poor multitasking  More projects undertaken to ensure all resources fully utilized  More projects further increases poor multitasking Copyright 2007 John Wiley & Sons, Inc.6-40

41.  Reduce number of projects assigned to each individual  Schedule start of new projects based on availability of bottleneck resources  Reduce amount of safety time added to individual tasks and then add some fraction back as project buffer activity durations set so that there is a high probability the task will not be finished on time Copyright 2007 John Wiley & Sons, Inc.6-41

42.  Longest chain of consecutively dependent events considers both precedence relationships and resource dependencies  Project Buffer  Feeding Buffer The safety time added to chains other than the critical chain because the network’s paths often lead into or merge with the critical chain Copyright 2007 John Wiley & Sons, Inc.6-42

43. Copyright 2007 John Wiley & Sons, Inc.6-43 Any ?s