Resource Management

Types of Constraints

Time

Resource

Mixed

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 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
 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.
 Resource Loading
The amounts of individual resources that a schedule requires during
specific time periods.
Resource loading table
Resource Name Work Details 5/5 5/12 5/19 5/26
Tom 40 hrs Work 8h 32h
Assign Bids 40 hrs Work 8h 32h
Jeff 40 hrs Work 8h 32h
Calculate Cost 40 hrs Work 8h 32h
Sue 40 hrs Work 8h 32h
Select Bid 40 hrs Work 8h 32h
Carol 8 hrs Work 8h
PR Campaign 8 hrs Work 8h
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 What to do with non-linear
duration-resource functions?
• Use a computer
• Focus on quasi-linear parts of the functions
 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

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 Prioritization Rules for Leveling

Smallest amount of slack

Smallest duration

Lowest ID number
Greatest number of successor tasks
Requiring the most resources

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 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

Copyright © 2010 Pearson Education, Inc. Publishing as Prentice Hall 12-9

Creating Resource Loading Charts (1/4)

Display the amount of resources required as a

function of time.

4 B 5 5 D 9 9 E 11
Res = 2 Res = 7 Res = 3

1. Start with a
0 A 4 network diagram
Res = 6 11 F 12
Res = 6
4 C 7
Res = 2
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 Creating Resource Loading Charts 2/4

Activity Resource Duration ES Slack LF

A 6 4 0 0 4
B 2 1 4 0 5
C 2 3 4 4 11
D 7 4 5 0 9
E 3 2 9 0 11
F 6 1 11 0 12

2. Produce a table that shows the duration,

early start, late finish, slack, and
resource(s) required for each activity.
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 Creating Resource Loading Charts 3/4
3. Draw an initial loading chart with
8 each activity scheduled at its ES.
Resources

6
Resource
4 imbalance
A D F
B
2 E
C

2 4 6 8 10 12 14
Project Days
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 Creating Resource Loading Charts 4/4
4. Rearrange activities within their slack
to create a more level profile. Splitting
8 C creates a more level project.
Resources

4 C
A D F
B
2 E
C

2 4 6 8 10 12 14
Project Days
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 Key Parameters in
Multi-Project Environments

 Schedule slippage

 Resource utilization

 In-process inventory

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 Prioritizing Resource Allocations in
Multi-Project Environments
• First come first served

• Greatest resource demand

• Greatest resource utilization

• Minimum late finish time

• Mathematical programming

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Problem solving
 Network with single resource data
0
2 0 10
0 c (3)
0 0 2
2 8 10
0 a (1) 0 0
0 0 0 0 2 3 10 0 13 13 0 13
2
START (0) 2 3 7 e (1) FINISH (0)
0 0 0 d (2) 10 3 13 13 0 13
5
0 5 5 5 5 10

b (4)
5 5 10
 Aggregation with a bar chart
(single resource, earliest start)
activity 1 2 3 4 5 6 7 8 9 10 11 12 13
a 1 1
b 4 4 4 4 4
c 3 3 3 3 3 3 3 3
d 2 2 2 2 2
e 1 1 1
Res. aggr. 5 5 9 9 9 5 5 3 3 3 1 1 1
Cum. res. 5 10 19 28 37 42 47 50 53 56 57 58 59
Resource units
11
10
9
8
7
6
5
4
3
2
1
1 2 3 4 5 6 7 8 9 10 11 12 13
Time
 Aggregation with a bar chart
(single resource, latest start)
activity 1 2 3 4 5 6 7 8 9 10 11 12 13
a 1 1
b 4 4 4 4 4
c 3 3 3 3 3 3 3 3
d 2 2 2 2 2
e 1 1 1
Res. aggr. 1 1 3 3 3 9 9 9 9 9 1 1 1
Cum. res. 1 2 5 8 11 20 29 38 47 56 57 58 59
Resource units
11
10
9
8
7
6
5
4
3
2
1
1 2 3 4 5 6 7 8 9 10 11 12 13
Time
 The S Curve analysis

• The minimum slope level is the less

‘critical’ from the viewpoint of availability
 S Curve of the example
70

60

50

40 ES
LS
30 smoothest

20

10

0
1 2 3 4 5 6 7 8 9 10 11 12 13
 Other possibilities
• Alternative resources
• Alternative methods
• Alternative sequences
(if there is no technical dependency)
 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
1 2 3 4 5 6 7 8 9 10 11 12 13

Time

• Trying to keep the original TPT unchanged

means that critical activities should not be
moved. Thus try to move activities with
free float.
 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
1 2 3 4 5 6 7 8 9 10 11 12 13

Time
 Solution
activity 1 2 3 4 5 6 7 8 9 10 11 12 13
a 1 1
b 4 4 4 4 4
c 3 3 3 3 3 3 3 3
d - - - 2 2 2 2 2
e 1 1 1
Res. aggr. 5 5 7 7 7 5 5 5 5 5 1 1 1
Cum. res. 5 10 17 24 31 36 41 46 51 56 57 58 59
 S Curve
70

60

50

ES
40
LS
smoothest
30
leveled

20

10

0
1 2 3 4 5 6 7 8 9 10 11 12 13
 Effect of levelling
• New „activity”: waiting for the resource
(it is a lag, not a true activity)
0
2 0 10
0 c (3)
0 0 2
2 8 10
0 a (1) 0 0
0 0 0 0 2 0 10 0 13 13 0 13
2
START (0) 5 0 10 e (1) FINISH (0)
0 0 0 d (2) 10 3 13 13 0 13
0
0 0 5 5 5 10

b (4)
0 5 5

• Changes: new precedence relationship,

floats, late start and finish times
 Optional homework
• Hypothetical project resource analysis and
planning (4*5pts):
– Resource need per activity
– Loading chart
– Network diagram
– Smoothing with resource loading charts

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