Project Management 10
P1363
PowerPoint1.pptxChapter Eight
Scheduling Resources and Costs
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Where We Are Now
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Learning Objectives
08-01 Understand the differences between time-constrained and resource-
constrained schedules.
08-02 Identify different types of resource constraints.
08-03 Describe how the smoothing approach is used on time-constrained projects.
08-04 Describe how the leveling approach is used for resource-constrained
projects.
08-05 Understand how project management software creates resource-constrained
schedules.
08-06 Understand when and why splitting tasks should be avoided.
08-07 Identify general guidelines for assigning people to specific tasks.
08-08 Identify common problems with multiproject resource scheduling.
08-09 Explain why a time-phased budget baseline is needed.
08-10 Create a time-phased project budget baseline.
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Chapter Outline
8.1 Overview of the Resource Scheduling Problem
8.2 Types of Resource Constraints
8.3 Classification of a Scheduling Problem
8.4 Resource Allocation Methods
8.5 Computer Demonstration of Resource-Constrained Scheduling
8.6 Splitting Activities
8.7 Benefits of Scheduling Resources
8.8 Assigning Project Work
8.9 Multiproject Resource Schedules
8.10 Using the Resource Schedule to Develop a Project Cost Baseline
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Project Planning Process
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FIGURE 8.1
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8.1 Overview of the Resource Scheduling Problem
Resources and Priorities
Project network times are not a schedule until resources have been assigned.
There are always more project proposals than there are available resources.
The project priority team will add a new project only if resources are available.
Cost estimates are not a budget until they have been time-phased.
Once resource assignments have been finalized, you are able to develop a baseline budget schedule for the project.
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The Resource Scheduling Problem
Resource Smoothing
Involves attempting to even out varying demands on resources by delaying non-critical activities (using slack) to lower peak resource demand and, thus, increase resource utilization when resources are adequate over the life of the project.
Resource-Constrained Scheduling
Occurs when resources are not adequate to meet peak demands. The late start of some activities must be delayed, and the duration of the project may be increased.
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Types of Project Constraints
Technical or Logical Constraints
Are related to the networked sequence in which project activities must occur.
Resource Constraints
Occur when the absence, shortage, or unique interrelationship and interaction characteristics of resources require a particular sequencing of project activities.
Note that the resource dependency takes priority over the technological dependency but does not violate the technological dependency.
Types of Resources Constraints
People
Materials
Equipment
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Constraint Examples
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FIGURE 8.2
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8.3 Classification of a Scheduling Problem
Time-Constrained Project
Must be completed by an imposed date.
Time (project duration) is fixed and resources are flexible. If required, resources can be added to ensure the project is completed by a specific date.
Resource-Constrained Project
Assumes the level of resources available cannot be exceeded.
Resources are fixed and time is flexible. If the resources are inadequate, it will be acceptable to delay the project.
Consult a project priority matrix to determine if the project is time- or resource- constrained.
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8.4 Resource Allocation Methods
Limiting Assumptions
Splitting activities will not be allowed.
Splitting refers to interrupting work on one task and assigning the resources to work on a different task for a period of time, then reassigning them to work on the original task.
Level of resources used for an activity cannot be changed.
Risk Assumptions
Activities with the most slack pose the least risk.
Reduction of flexibility does not increase risk.
The nature of an activity (easy, complex) doesn’t increase risk.
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Time-Constrained Projects
Must be completed by an imposed date.
Focus on resource utilization.
Require use of resource smoothing techniques that balance demand for a resource.
Leveling (Smoothing) Techniques
Delay noncritical activities by using positive slack to reduce peak demand and fill in the valleys for the resources without delaying the entire project.
Goals of Smoothing Resource Demand
Reduce the peak of demand for the resource
Reduce the number of resources over the life of the project
Minimize the fluctuation in resource demand
Downside of Smoothing Resource Demand
Loss of flexibility that occurs from reducing slack
Creates more critical activities and/or near-critical activities because of slack reduction
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Botanical Garden
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FIGURE 8.3
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Resource-Constrained Projects
Resources are limited in quantity or availability.
Activities are scheduled using heuristics (rules of thumb) by following the priority rules:
Minimum slack
Smallest (least) duration
Lowest activity identification number
The parallel method is used to apply heuristics.
The parallel method is an iterative process that starts from the beginning of project time and, when the resources needed exceed the resources available, retains activities first by the priority rules.
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Resource-Constrained Schedule through Period 2-3
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FIGURE 8.4
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Resource-Constrained Schedule through Period 5-6
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FIGURE 8.5
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8.5 Computer Demonstration of Resource-Constrained Scheduling
EMR Project
The development of a hand-held electronic medical reference guide to be used by emergency medical technicians and paramedics
Resource Problem
Only eight design engineers can be assigned to the project due to the shortage of design engineers and commitments to other projects.
The peak demand is 21 design engineers.
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EMR Project Network View Schedule before Resources Leveled
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FIGURE 8.6
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EMR Project before Resources Added
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FIGURE 8.7
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EMR Project—Time-Constrained Resource Usage View, January 15-23
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FIGURE 8.8A
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Resource Loading Chart for EMR Project, January 15-23
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FIGURE 8.8B
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EMR Project Network View Schedule after Resources Leveled
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FIGURE 8.9
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EMR Project Resources Leveled
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FIGURE 8.10
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The Impacts of Resource-Constrained Scheduling
Reduces slack; reduce flexibility
Increases the number of critical and near-critical activities
Increases scheduling complexity because resource constraints are added to technical constraints
May make the traditional critical path no longer meaningful
Can break the sequence and leave the network with a set of disjointed critical activities
May cause parallel activities to become sequential
Can change activities from critical to noncritical
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8.6 Splitting Activities
Splitting Tasks
Is a scheduling technique used to get a better project schedule and/or to increase resource utilization.
Involves interrupting the work and sending the resource to another activity for a period of time and then having the resource resume work on the original activity.
Can be useful if the work involved does not include large start-up or shut-down costs.
Is considered a major reason why projects fail to meet schedule.
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Splitting Activities
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FIGURE 8.11
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8.7 Benefits of Scheduling Resources
Leaves time for considering reasonable alternatives
Cost-time tradeoffs
Changes in priorities
Provides the information needed to prepare time-phased work package budgets with dates
To gauge the impact of unforeseen events
To assess how much flexibility over certain resources
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8.8 Assigning Project Work
Reasons why we should not always assign the best people the most difficult tasks
Best people: resent to the fact that they are always given the toughest assignments
Less experienced participants: resent to the fact that they are never given the opportunity to expand their skill/knowledge base
Factors to be considered in deciding who should work together
Minimize unnecessary tension; complement each other
Experience: veterans team up with new hires
Future needs: have people work together early on so that they can become familiar with each other
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8.9 Multiproject Resource Schedules
Problems in a multiproject environment
Overall schedule slippage
Shared resources causes a ripple effect—delays in one project create delays for other projects.
Inefficient resource utilization
Different schedules and requirements by multiple projects create the peaks and valleys in overall resource demands.
Resource bottlenecks
Shortages of critical resources required by multiple projects cause delays and schedule extensions.
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Managing Multiproject Scheduling
Create project offices or departments to oversee the scheduling of resources across multiple projects
Use a project priority queuing system—first come, first served for resources
Treat individual projects as part of one big project and adapt the scheduling heuristics to this “mega project”
Utilize project management software to prioritize resource allocation
Outsource projects to reduce the number of projects managing internally
Hire temporary workers to expedite certain activities that are falling behind schedule
Contract project work during peak periods when there are insufficient internal resources to meet the demands of all project
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8.10 Using the Resource Schedule to Develop a Project Cost Baseline
Why a Time-Phased Budget Baseline Is Needed
To determine if the project is on, ahead, or behind schedule and over or under its budgeted costs
To assess how much work has been accomplished for the allocated money spent—the project cost baseline (planned value, PV)
Creating a Time-Phased Budget
Assign each work package to one responsible person or department and deliverable
Compare planned schedule and costs using an integrative system called earned value
Generate cash flow statements and resource usage schedules
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Direct Labor Budget Rollup ($000)
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FIGURE 8.12
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Time-Phased Work Package Budget (labor cost only)
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FIGURE 8.13
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Two Time-Phased Work Packages (labor cost only)
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FIGURE 8.14
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Patient Entry Project Network
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FIGURE 8.15
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Patient Entry Time-Phased Work Packages Assigned
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FIGURE 8.16
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Project Monthly Cash Flow Statement
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FIGURE 8.17
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Project Weekly Resource Usage Schedule
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FIGURE 8.18
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Key Terms
Heuristics
Leveling
Planned value (PV)
Resource-constrained project
Resource-constrained scheduling
Resource smoothing
Splitting
Time-constrained project
Time-phased budget baseline
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© 2021 McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom.
No reproduction or further distribution permitted without the prior written consent of McGraw-Hill Education.
Because learning changes everything.®
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