Scheduling Resources and Costs Study Notes

Scheduling Resources and Costs

Chapter Overview

  • PowerPoint Presentation by Charlie Cook, Copyright © 2014 McGraw-Hill Education.

Where We Are Now

  • Estimate: Understanding project networks and associated resources and costs.

  • Topics Covered:   - Project definitions (1)   - International projects (2)   - Agile project management (10)   - Career paths (8-2)

Overview of the Resource Scheduling Problem

  • Key Concepts:   - Project network times need resources for a schedule.   - Assumption: Resources are available in required amounts when needed.   - New projects require realistic resource availability judgments and project duration assessments.   - Cost estimates need time-phasing to convert to budgets.

Project Planning Process

  • Elements:   - Scope/WBS (Work Breakdown Structure)   - Network: understanding the sequence of activities.   - Resource and Cost Scheduling: critical for budget management.   - Master Plan: integration of all elements.   - Risk Management: addressing uncertainties throughout the project life cycle.

The Resource Problem

  • Resource Smoothing (Leveling):   - Objective: Even out resource demand by utilizing slack to delay noncritical activities, improving resource utilization across the project life.

  • Resource-Constrained Scheduling:   - Involves extending project duration to meet resource limitations by possibly delaying the late start of activities.

Types of Project Constraints

  • Technical or Logic Constraints: Relating to the sequence of project activity dependencies.

  • Physical Constraints: Activities that cannot run in parallel due to contractual or environmental limitations.

  • Resource Constraints: Lack or specific relationships among resources necessitating prioritized sequencing of activities.   - Resource examples: People, materials, equipment.

Classification of a Scheduling Problem

  • Priority Matrix Utilization: Helps to decipher project type (time vs. resource constrained).   - Time-Constrained Projects: Must meet a fixed date; focus on additional resource allocation to maintain schedule.   - Resource-Constrained Projects: Levels of resources are constant, which can lead to delays if resource demand outstrips supply.

Resource Allocation Methods

  • Limiting Assumptions:   - Activities cannot be split; completion is essential.   - Activity resource levels remain unchanged.

  • Risk Assumptions:   - Activities with high slack have minimal risk due to flexibility.   - Complexity does not inherently escalate risk levels.

Resource Allocation Techniques for Time-Constrained Projects

  • Focus on smoothing resource demands through slack management:   - Lead to minimized peaks in resource demands.

  • Advantages and disadvantages:   - Advantages: Reduced peak demand, minimized fluctuation.   - Disadvantages: Reduced flexibility, increased criticality.

Resource-Constrained Scheduling Techniques

  • Schedules are created under limited resource availability using heuristic methods:   - Priority rules based on minimum slack, shortest duration, and activity identification.

  • Utilizes a parallel method for scheduling across project periods.

Impact of Resource-Constrained Scheduling

  • Affects overall project metrics:   - May reduce delays but also flexibility.   - Increased complexity in scheduling and event criticality adjustments may provoke a re-evaluation of the critical path.

Splitting

  • Definition: A scheduling technique to better manage project timelines and resource allocation involves interrupting work on activities.

  • Applicable when initial costs of starting and stopping activities are minimal; however, it is a frequent cause of project schedule failure.

Benefits of Scheduling Resources

  • Allows for evaluation of alternative strategies, critical for cost-time tradeoffs amid changes in priorities.

  • Aid in the development of time-phased budgets to monitor actual expenditures and expected project completion.

Multiproject Resource Scheduling Challenges

  • Typical Issues:   - Delays in one project can affect others, leading to inefficiencies.   - Resource bottlenecks can cause significant delays and extensions on multiple projects.

  • Management Strategies:   - Establish project offices for resource oversight.   - Implement project prioritization systems for resource distribution.   - Practice centralized project management for efficiency across projects.   - Consider outsourcing to alleviate internal resource burdens.

Creating a Project Cost Baseline

  • Importance of Time-Phased Budgeting:   - Gauges its alignment with project timeline and cost markers (planned value, PV).   - Involves assigning work packages and comparing schedules against actual outcomes through earned value methodologies.

Case Examples and Models

  • Resource Load Charts: Demonstrates utilization rate and planning, assessing outcomes for theoretical questions.

  • Sample Exercises: Critical thinking problems designed to test student understanding of scheduling implications under various constraints and conditions   - Example challenges include resource allocation and efficiency under new constraints.

Key Terms

  • Heuristic: A general rule of thumb applied to simplify complex scheduling scenarios.

  • Leveling: The process of balancing resource allocation over time.

  • Planned Value (PV): The budgeted cost of work scheduled.

  • Resource-Constrained Projects: Projects limited by specific resource availability.

  • Resource Smoothing: Balancing resource allocation across project phases to reduce peaks and valleys.

  • Splitting: Interrupting work to allow for resource allocation to multiple tasks.

  • Time-Constrained Projects: Projects needing completion by a defined deadline.

  • Time-Phased Budget Baseline: Budget allocated according to project timelines and phases.