PM Resource Control Jan 2014

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Prof. Maged S. Morcos© 1

Section IV

Scheduling and Resource Allocation

Aspects In PM

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Today’s Lecture # 7

Project Resource Allocation (Loading and Levelling)

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Contents of Lecture

Learning Objectives Expediting the Project Resource Loading Resource Leveling Allocating scarce resources Goldratt’s critical chain

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Learning Objectives

Learn how to take resource constraints into account

Determine the planned resource utilization for a project

Level the use of resources within the required time frame

Determine the shortest project schedule with limited resources

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Resource-Constrained Planning

Nearly all projects have limits on available resources.

Project delays often occur due to certain resources being unavailable.

A network diagram can be drawn to reflect the availability of a limited number of resources.

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Planned Resource Utilization

It’s necessary to indicate the amounts and types of resources needed to perform each activity.

Resource utilization based on each activity’s earliest start time are based on an as-soon-as-possible (ASAP) schedule.

Resource utilization charts based on each activity’s latest start time are based on an as-late-as-possible (ALAP) schedule.

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Resource Leveling

Resource leveling, or smoothing, is a method for developing a schedule that attempts to minimize the fluctuations in requirements for resources.

This method levels the resources so that they are applied as uniformly as possible without extending the project schedule beyond the required completion time.

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Resource-Limited Scheduling

Resource-limited scheduling is a method for developing the shortest schedule when the number or amount of available resources is fixed and cannot be exceeded.

This method will extend the project completion time if necessary in order to keep within the resource limits.

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Resource Planning

Determining what resources (people, equipment, materials, sub-contractors)and what quantities of each should be used and when they are needed to perform project activities.

Input is: work breakdown structure, historical information, scope, and activity duration estimates.

Output is: resource requirements described at the lowest level of the WBS

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Planning, scheduling, and cost estimating go hand-in-hand Resource allocation / cost estimating Resource allocation goes hand-in-hand with company

scheduling Goal of Resource Allocation is to Optimize Use of Limited

Supply Projects Compete With One Another for Resources

– resources that are not consumed– resources that are consumed

Requires making trade-offs– time constrained– resource constrained

Resource Allocation

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Resource Scarcity

People/subs – equipment – materials – facilities PM performance ~ measured by skill with which

trade-offs are made Cost/benefit usual measure Time constrained: resources / performance

variable Resource constrained: time / performance variable Time, resources, performance all constrained ?

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Learning ObjectivesResource LoadingResource Leveling

Contents of Lecture

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Learning Objective

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Learning Objectives

Learn how to take resource constraints into account

Determine the planned resource utilization for a project

Level the use of resources within the required time frame

Determine the shortest project schedule with limited resources

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Resource-Constrained Planning

Nearly all projects have limits on available resources.

Project delays often occur due to certain resources being unavailable.

A network diagram can be drawn to reflect the availability of a limited number of resources.

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Planned Resource Utilization

It’s necessary to indicate the amounts and types of resources needed to perform each activity.

Resource utilization based on each activity’s earliest start time are based on an as-soon-as-possible (ASAP) schedule.

Resource utilization charts based on each activity’s latest start time are based on an as-late-as-possible (ALAP) schedule.

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Resource Leveling

Resource leveling, or smoothing, is a method for developing a schedule that attempts to minimize the fluctuations in requirements for resources.

This method levels the resources so that they are applied as uniformly as possible without extending the project schedule beyond the required completion time.

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Resource-Limited Scheduling

Resource-limited scheduling is a method for developing the shortest schedule when the number or amount of available resources is fixed and cannot be exceeded.

This method will extend the project completion time if necessary in order to keep within the resource limits.

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Resource Planning

Determining what resources (people, equipment, materials, sub-contractors) and what quantities of each should be used and when they are needed to perform project activities.

Input is: work breakdown structure, historical information, scope, and activity duration estimates.

Output is: resource requirements described at the lowest level of the WBS

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Planning, scheduling, and cost estimating go hand-in-hand Resource allocation / cost estimating Resource allocation goes hand-in-hand with company

scheduling Goal of Resource Allocation is to Optimize Use of Limited

Supply Projects Compete With One Another for Resources

– resources that are not consumed– resources that are consumed

Requires making trade-offs– time constrained– resource constrained

Resource Allocation

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Resource Scarcity

People/subs – equipment – materials – facilities PM performance ~ measured by skill with which

trade-offs are made Cost/benefit usual measure Time constrained: resources / performance

variable Resource constrained: time / performance variable Time, resources, performance all constrained ?

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Resource

Loading

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Resource Loading

Amount of specific resources that are scheduled for use on specific activities or projects at specific times.

Usually a list or table.

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11 44

22

33

A= Design FrameA= Design Frame

3 wk.3 wk.

3 wk.3 wk.

4 wk.4 wk.

2 wk.2 wk.

6 wk. 6 wk.

D = Do external workD = Do external work

E = Build BodyE = Build Body

C = Design BodyC = Design Body

B = Purchase B = Purchase

Material.Material.

Critical path is longest path A- C- E = 12 weeks.

0

6

8

12 12

8

6

0

Example 1: Resource Loading

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PERT Exp. Time Variance

Activity a m b T var.

A 2 6 10 6 1.78

B 1 3 5 3 0.44

C 1 2 3 2 0.11

D 1 3 5 3 0.44

E 1 4 7 4 1.00

Example 1: Resource Loading…(Cont.)

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Early Late Slack Critical

Activity Time ES EF LS LF TF CA

A 6 0 6 0 6 0 C

B 3 0 3 5 8 5

C 2 6 8 6 8 0 C

D 3 6 9 9 12 3

E 4 8 12 8 12 0 C

T (max) = 12 + 1.70 = 13.70T (min) = 12 - 1.70 = 10.30


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Early Start Bar Chart

Activity timelabors 1 2 3 4 5 6 7 8 9 10 11 12

A 6 4 4 4 4 4 4 4

B 3 2 2 2 2

C 2 4 4 4

D 3 2 2 2 2

E 4 3 3 3 3 3

Labors 6 6 6 4 4 4 6 6 5 3 3 3

Cum 6 12 18 22 26 30 36 42 47 50 53 56

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Early Start Bar Chart - Resource Loading before Leveling

labors 1 2 3 4 5 6 7 8 9 10 11 12

7

6

B

D

5

4 D

3

2

1 A C E

Labors 6 6 6 4 4 4 6 6 5 3 3 3

Cum 6 12 18 22 26 30 36 42 47 50 53 56

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Labors

0

1

2

3

4

5

6

7

1 2 3 4 5 6 7 8 9 10 11 12Time

Labors


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Late Start Bar Chart

Activity time labors 1 2 3 4 5 6 7 8 9 10 11 12

A 6 4 4 4 4 4 4 4

B 3 2 2 2 2

C 2 4 4 4

D 3 2 2 2 2

E 4 3 3 3 3 3

Lab 4 4 4 4 4 6 6 6 3 5 5 5

Cum 4 8 12 16 20 26 32 38 41 46 51 56

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late Start Bar Chart - Resource Loading before Leveling

labors 1 2 3 4 5 6 7 8 9 10 11 12

7

6

B

5

D4

3

2

1 A C E

Labors 4 4 4 4 4 6 6 6 3 5 5 5

Cum 4 8 12 16 20 26 32 38 41 46 51 56

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Labors

0

1

2

3

4

5

6

7

8

9

1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16

Time

No.

of L

abor

Res

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Labors

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1 2 3 4 5 6 7 8 9 10 11 12

Early 6 6 6 4 4 4 6 6 5 3 3 3

Late 4 4 4 4 4 6 6 6 3 5 5 5

Cum E 6 12 18 22 26 30 36 42 47 50 53 56

Cum L 4 8 12 16 20 26 32 38 41 46 51 56

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6 6 64 4 4

6 6 53 3 34 4 4 4 4

6 6 63

5 5 56

12

18

22

26

30

36

42

4750

5356

4

8

12

16

20

26

32

3841

46

51

56

0

10

20

30

40

50

60

Early

Late

Cum E

Cum L

Early 6 6 6 4 4 4 6 6 5 3 3 3

Late 4 4 4 4 4 6 6 6 3 5 5 5

Cum E 6 12 18 22 26 30 36 42 47 50 53 56

Cum L 4 8 12 16 20 26 32 38 41 46 51 56

1 2 3 4 5 6 7 8 9 10 11 12


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Resource

Levellin

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Example 1: Resource levelling

The total labors required = 56 and Total Project Time = 12 weeks then

Labour/week = 56/12 = 4.667 i.e. 5 labors per day hence levelling is required.

Early Start Bar Chart - Leveled at 5 Resources

Activity time labors 1 2 3 4 5 6 7 8 9 10 11 12

A 6 4 4 4 4 4 4 4

B 3 2 1 1 1 1 1 1

C 2 4 4 4

D 3 2 2 2 2

E 4 3 3 3 3 3

Labors 5 5 5 5 5 5 4 4 3 5 5 5

Cum 5 10 15 20 25 30 34 38 41 46 51 56

Slack

Activity ES TF

A 0 0

B 0 5

C 6 0

D 6 3

E 8 0

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Example 1: Resource levelling

Early Start Bar Chart - Leveled at 5 Resources based on ES and TF

labors 1 2 3 4 5 6 7 8 9 10 11 12

7

6

5 B D

4

3

2

1 A C E

Labors 5 5 5 5 5 5 4 4 3 5 5 5

Cum 5 10 15 20 25 30 34 38 41 46 51 56

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Example 1: Resource Levelling…(Cont.)

labors

0

1

2

3

4

5

6

1 2 3 4 5 6 7 8 9 10 11 12

Time

No.

of L

abou

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ourc

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Labors

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Late Start Bar Chart - leveled at 5 Resources

Activity time labors 1 2 3 4 5 6 7 8 9 10 11 12 13 14

A 6 4 4 4 4 4 4 4

B 3 2 1 1 1 1 1 1

C 2 4 4 4

D 3 2 2 2 2

E 4 3 3 3 3 3

Labors 4 4 4 4 4 5 5 5 4 4 4 5 2 2

Cum 4 8 12 16 20 25 30 35 39 43 47 52 54 56

D extended beyond project expected time

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Late Start Bar Chart - Resource Loading after Leveling at 5 Labors / week

labors 1 2 3 4 5 6 7 8 9 10 11 12 13 14

7

6

5 B

4 B D

3

2

1 A C E D

Labors 4 4 4 4 4 5 5 5 4 4 4 5 2 2

Cum 4 8 12 16 20 25 30 35 39 43 47 52 54 56

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Example: Resource Levelling…(Cont.)

Labors

0

1

2

3

4

5

6

1 2 3 4 5 6 7 8 9 10 11 12 13 14

Time

No.

of L

abor

Res

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Labors

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Resource

Loading

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Resource Loading

Amount of specific resources that are scheduled for use on specific activities or projects at specific times.

Usually a list or table.

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Example: Production of a Videotape

See tables 6-4 and 6-5 for the problem of production of a videotape.

The resources are: Scriptwriter Producer Client Editing Room

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Action Plan and Gantt Chart for Production of a Videotape

Figure 6-10

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Resource

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Gantt Chart for Videotape Project, Adjusted for Client Availability

Figure 6-11

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Prof. Maged S. Morcos© 48Figure 6-12

Resource Overallocation Report for Scriptwriter Showing all Activities

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Graphic Resource Overallocation Report for Scriptwriter

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Resource Leveled Report for Scriptwriter Showing all Activities

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Graphic Resource Leveled Report for Scriptwriter

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Daily Resource Loading Chart for Videotape Project, Scriptwriter Leveled

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Final Videotape Project Gantt Chart Schedule, With Two Scriptwriters and Producer Leveled

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Thirty-Four-Week Resource Loading Chart for Software Engineering Group

Figure 6-18

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28,282 Hours NeededGroup Capacity

– 21 (people) 40 (hrs/wk) 34 wk = 28,560 labor hrs Correction for Holidays

– 21 3 (days) 8 (hours) = 504 labor hrs– Capacity is thus lowered to 16,056 labor-hours

Vacations (11 people take vacation)– 11 2 (weeks) 40 = 880 labor hrs

Resource Loading/Leveling and Uncertainty

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Hours Available– 28,560 - 504 - 880 = 27,176– about 1100 less than needed – 28,282/27176 = 1.04 or 104 % of capacity

What about– Workers getting sick?– Task not ready when worker is ready?– Change orders?

The company is of high-quality work and in fact engineers are scheduled to work 40 hour weeks, but they average work between 50 – 60 hours per week.

At a 55 hour week, for example, the capacity of the group is approximately 37,500 labor-hours. Given the 28,282 labor-hour workload, the system would operate, on average at about 75 percent of capacity, which explains the engineering group’s ability to meet most of its delivery-date commitments.

This emphasizes that in projects the level of uncertainty surrounding the production process is so much greater that the amount of excess capacity in the work force needs to be much larger.

Resource Loading/Leveling and Uncertainty continued

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Allocatin

g Scarce Reso

urces

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Example 1 of Constrained Resources

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Example 2 of Constrained Resources

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Resource Loading – Bar Chart

As can be seen the critical activities are two: activity “First floor rooms D = 8 and “Stairs & Hall” D = 4 with total of 12 days. The resulting histogram of resource loading will look like the following:

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Resource Loading - Histogram

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Resource Loading – Cumulative Curve

Cumulative Painters

48

1216

1922 24 26 28 30 31 32

05

101520253035

0 1 2 3 4 5 6 7 8 9 10 11 12

Project Time

Toal

No.

of P

aint

ers

Cumulative Painters

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Resource Leveling – Bar Chart

By leveling the activity of “Painting Basement rooms “ to start with same painter after he/she finishes activity “Painting Bedrooms, the following resource histogram can be developed showing loading of only thre painter from start to day 10 and 1 painter only in days 11 and 12

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Resource Leveling – Histogram

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Limited Resource Loading - Histogram

If we imagine that we have limited number of painters, say only 2 than the project duration will exceed the 12 and reach to 16 days

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Limited Resource Leveling – by Utilizing Activities Slacks

Since only 2 painters are available then according to slacks the first two activities have 0 slacks then the third activity have +8 slacks and then the fourth have + 6 slacks. We have to delay activities “Basement” and “Bedrooms” to start after the first activity is finished but this will delay the project from 12 to 14 days because of the duration of the “Bedrooms” activity creating a problem at day 9 with 4 painters more than the required 2.

The slacks are revised to appear as in next Bar Chart.

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Resource Leveling by Utilizing Activities Slacks First Iteration

Since only 2 painters are available then according to slacks the first two activities have 0 slacks then the third activity have +8 slacks and then the fourth have + 6 slacks. We have to delay activities “Basement” and “Bedrooms” to start after the first activity is finished but this will delay the project from 12 to 14 days because of the duration of the “Bedrooms” activity creating a problem at day 9 with 4 painters more than the required 2.

The slacks are revised to appear as in next Bar Chart.

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Resource Leveling by Utilizing Activities Slacks Second Iteration

Two activities “Stairs & Halls” and “Basement Rooms” are the next in slack value of 0. To choose between them we see which one was on the critical path earlier. This is “Stairs & Halls” This will start after day 8 and continue through day 12. Bedroom will start after 8 days and continue to day 14. The remaining two activities will start after day 12.

The resulting number of painters is 2 until day 13 and 14 where they appear to be 3 painters, hence another iteration is required.

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Resource Leveling by Utilizing Activities Slacks Third Iteration

Two activities “Bathroom” and “Basement Rooms” need a painter on day 13. “Basement Rooms” has less slack (-4days) than the other activity, so the available painter will be allocated to it. “Basement Rooms” will start after day 12 and will continue through day 16. The next time a painter is available will have to start delayed until after day 14 and will be allocated to “Bathroom” as shown in Bar Chart above.

The total leveled resources is now 2 all over the project time which is delayed by 4 days from 12 to 16 due to this resource constraint.

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Homework for Lecture # 7 (PMinP ch6)

All Problems should be Solved Using PC Homework From Chapter 6

– Problems TBA

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Questions?

Thank You

PM Resource Control Jan 2014

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