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21

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Agenda of the Lecture

1. Overview of the Resource Scheduling Problem

2. Types of Resource Constraints

3. Classification of a Scheduling Problem

4. Resource Allocation MethodsA. Assumptions

B. Time-Constrained Projects: Smoothing Resource Demand

C. Resource-Constrained Projects

5. Computer Demonstration of Resource-Constrained Scheduling

A. The Impacts of Resource-Constrained Scheduling

6. Splitting Activities

7. Benefits of Scheduling Resources

8. Assigning Project Work9. Multi project Resource Schedules

10. Using the Resource Schedule to Develop a Project Cost Baseline

A. Why a Time-Phased Budget Baseline Is Needed

B. Creating a Time-Phased Budget

82

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83

Overview of the Resource Scheduling Problem

Resources and PrioritiesProject network times are not a schedule

until resources have been assigned.

The implicit assumption is that resources will be available in

the required amounts when needed.Adding new projects requires making realistic judgments of

resource availability and project durations.

Cost estimates are not a budget

until they have been time-phased.

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84

Project Planning Process

FIGURE 8.1

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85

Overview of the Resource Scheduling Problem

.

Resource Smoothing (or Leveling)

Involves attempting to even out varying demandson resources by using slack (delaying noncriticalactivities) to manage resource utilization whenresources are adequate over the life of the project.

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86

Types of Project Constraints

Technical or Logic Constraints Constraints related to the networked sequencein which project activities must occur.

Physical ConstraintsActivities that cannot occur in parallel or are affected by

contractual or environmental conditions.

Resource Constraints The absence, shortage, or unique interrelationship and

interaction characteristics of resources that require a particular

sequencing of project activities Kinds of Resource Constraints

People, materials, equipment

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Constraint Examples

FIGURE 8.2

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Classification of A Scheduling Problem

Classification of ProblemUsing a priority matrix will help determine if

the project is time or resource constrained.

1.Time-Constrained Project

Must be completed by an imposed date. Time is fixed, resources are flexible: additional resources

are required to ensure project meets schedule.

2.Resource-Constrained Project

Is one in which the level of resources availablecannot be exceeded.

Resources are fixed, time is flexible: inadequateresourceswill delay the project.

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Resource Allocation Methods

Limiting AssumptionsSplitting activities is not allowedonce an

activity is start, it is carried to completion.

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)

doesnt increase risk.

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Resource Allocation Methods (contd)

Time-Constrained ProjectsMust be completed by an imposed date.

Require use of leveling techniques that focuson balancing or smoothing resource demands.

Use positive slack (delaying noncritical activities)to manage resource utilization over the durationof the project.

1. Peak resource demands are reduced.2. Resources over the life of the project are

reduced.

3. Fluctuation in resource demand is minimized.

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812

Resource Allocation Methods (contd)

Resource Demand Leveling Techniquesfor Time-Constrained Projects

Advantages

Peak resource demands are reduced.

Resources over the life of the project are reduced.

Fluctuation in resource demand is minimized.

Disadvantages

Loss of flexibility that occurs from reducing slack.

Increases in the criticality of all activities.

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813

Resource Allocation Methods (contd)

Resource-Constrained Projects Resources are limited in quantity or availability.

Activities are scheduled using heuristics(rules-of-thumb) that focus on:

1. Minimum slack

2. Smallest (least) duration

3. Lowest activity identification number

The parallel method is used to apply heuristics

An iterative process starting at the first time periodof the project and scheduling period-by-period the startof any activities using the three priority rules.

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814

Resource-Constrained Schedule through Period 23

FIGURE 8.4

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815

Resource-Constrained Schedule through Period 23

FIGURE 8.4 (contd)

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816

Resource-Constrained Schedule through Period 23

FIGURE 8.4 (contd)

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817

Resource-Constrained Schedule through Period 56

FIGURE 8.5

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818

Resource-Constrained Schedule through Period 56

FIGURE 8.5 (contd)

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819

Resource-Constrained Schedule through Period 56

FIGURE 8.5 (contd)

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820

Computer Demonstration of Resource-Constrained Scheduling

EMR Project

The development of a handheld Electronic MedicalReference guide to be used by emergency medical

technicians and paramedics. Problem

There are only eight design engineers who can beassigned to the project due to a shortage of design

engineers and commitments to other projects.

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821

EMR Project:

Network ViewSchedule before

Resources Leveled

FIGURE 8.6

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822

EMR Project before Resources Added

FIGURE 8.7

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823

EMR ProjectTime Constrained Resource Usage View,January 1523

FIGURE 8.8A

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Resources Calculations

Project requires 21 design engineers on Jan 18thand 19th (168 hrs/8 hrs per engineer = 21

engineers)

824

FIGURE 8.8A

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825

Resource Loading Chart for EMR Project, January 1523

FIGURE 8.8B

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826

EMR ProjectNetwork View

Schedule

after ResourcesLeveled

FIGURE 8.9

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827

EMR Project Resources Leveled

FIGURE 8.10

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828

The Impacts of Resource-ConstrainedScheduling

Reduces delay but reduces flexibility.

Increases criticality of events.

Increases scheduling complexity. May make the traditional critical path

no longer meaningful.

Can break sequence of events.

May cause parallel activities to becomesequential and critical activities with slackto become noncritical.

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829

Splitting

Splitting A scheduling technique use to get a better project

schedule and/or increase resource utilization.

Involves interrupting work on an activity to

employ the resource on another activity, thenreturning the resource to finish the interruptedwork.

Is feasible when startup and shutdown costs are

low.

Is considered the major reason why projects failto meet schedule.

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830

Splitting Activities

FIGURE 8.11

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831

Benefits of Scheduling Resources

Leaves time for considerationof reasonable alternatives:

Cost-time tradeoffs

Changes in priorities

Provides information for time-phasedwork package budgets to assess:

Impact of unforeseen events

Amount of flexibility in available resources

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832

Multiproject Resource Schedules

Multiproject Scheduling Problems1. Overall project slippage

Delay on one project create delays for other projects

2. Inefficient resource application

The peaks and valleys of resource demands createscheduling problems and delays for projects.

3. Resource bottlenecks

Shortages of critical resources required for multipleprojects cause delays and schedule extensions.

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833

Multiproject Resource Schedules (contd)

Managing Multiproject Scheduling:Create project offices or departments to oversee

the scheduling of resources across projects.

Use a project priority queuing system: first come,

first served for resources.

Centralize project management: treat all projectsas a part of a megaproject.

Outsource projects to reduce the numberof projects handled internally.

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834

Direct Labor BudgetRollup ($000)

FIGURE 8.12

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835

Time-Phased Work Package Budget (Labor Cost Only)

FIGURE 8.13

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836

Two Time-Phased Work Packages (Labor Cost Only)

FIGURE 8.14

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837

Patient Entry Project Network

FIGURE 8.15

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838

Patient Entry Time-Phased Work Packages Assigned

FIGURE 8.16

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839

CEBOO Project Monthly Cash Flow Statement

FIGURE 8.17

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840

CEBOO Project Weekly Resource Usage Schedule

FIGURE 8.18

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841

Key Terms

Heuristic

Planned value (PV)

Resource-constrained projects

Smoothing

Splitting

Time-constrained projects

Time-phased budget baseline

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The End

Thanks a lot for Your Attention!

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