In-Depth Notes on Scheduling Resources and Costs for Project Management

Where We Are Now

  • Overview of project management phases and focus on resource scheduling.

Learning Objectives

  • 8-1: Differentiate between time-constrained and resource-constrained schedules.
  • 8-2: Identify types of resource constraints.
  • 8-3: Explain the smoothing approach for time-constrained projects.
  • 8-4: Describe leveling for resource-constrained projects.
  • 8-5: Understand the role of project management software in resource scheduling.
  • 8-6: Reasons to avoid splitting tasks.
  • 8-7: Guidelines for task assignments.
  • 8-8: Issues with multiproject resource scheduling.
  • 8-9: Importance of a time-phased budget baseline.
  • 8-10: How to create a time-phased project budget baseline.

Chapter Outline

  1. Overview of the Resource Scheduling Problem
  2. Types of Resource Constraints
  3. Classification of Scheduling Problems
  4. Resource Allocation Methods
  5. Computer Demonstration of Resource-Constrained Scheduling
  6. Splitting Activities
  7. Benefits of Scheduling Resources
  8. Assigning Project Work
  9. Multiproject Resource Schedules
  10. Developing a Project Cost Baseline using the Resource Schedule

Overview of the Resource Scheduling Problem

  • Resource Needs: Project networks are incomplete until resources are assigned.
  • Project Priorities: Limited resources mean only prioritized projects are accepted.
  • Cost Time-Phasing: A budget cannot be finalized until resources are appropriately allocated.

The Resource Scheduling Problem

  • Resource Smoothing: Adjusting schedules to balance workloads across the project duration, using slack for non-critical activities.
  • Resource-Constrained Scheduling: Adjusting project timelines when resources are insufficient to meet peak demands; can lead to longer project durations.

Types of Project Constraints

  • Technical/Logical Constraints: Order in which project activities must happen.
  • Resource Constraints: Depend on the availability and interdependencies of resources, prioritized over technical constraints.
    • Resource types: People, materials, equipment.

Classification of Scheduling Problems

  • Time-Constrained Projects: Must be completed by a set date; resource flexibility is allowed.
  • Resource-Constrained Projects: Resource levels are fixed; project completion might be delayed if resources are inadequate.
  • Project Priority Matrix: Tool to determine if a project is time or resource constrained.

Resource Allocation Methods

  • Key Assumptions: Cannot split activities; maintain a constant level of resource usage.
  • Smoothing Techniques: Utilize slack time effectively by postponing non-critical tasks to manage peak demands.

Time-Constrained Projects

  • Goals: Efficient resource utilization, reduction of peak demands, and minimized fluctuation in resource workloads.
  • Downsides: Loss of flexibility, increased critical activities due to reduced slack.

Resource-Constrained Projects

  • Scheduling Heuristics: Use rules like minimum slack and smallest duration to prioritize activities.
  • Parallel Method: Iterative approach for matching available resources with project demands.

Computer Demonstration of Resource-Constrained Scheduling

  • Example: EMR project has limited design engineers, with peak demand significantly exceeding available resources.

Splitting Activities

  • Definition: Interrupting work on an activity to allocate resources to other tasks before returning can complicate scheduling and often adds risk.
  • Benefits: Can improve overall resource utilization if start-up/shutdown costs are minimal.

Benefits of Scheduling Resources

  • Provides time for alternative strategies, cost-time trade-offs, and flexibility to handle unforeseen events.

Assigning Project Work

  • Strategies: Avoid assigning difficult tasks solely to top performers; collaborate to balance workloads and develop skills across teams.
  • Considerations: Group dynamics, experience levels, complementing skills.

Multiproject Resource Scheduling Problems

  1. Schedule Slippage: Delays from shared resources causing a ripple effect.
  2. Inefficient Utilization: Peaks and valleys in resource demand due to competing project priorities.
  3. Resource Bottlenecks: Shortages causing delays and extensions.

Managing Multiproject Scheduling

  • Establish dedicated project offices, utilize queuing systems for resource allocation, treat projects as one large entity.
  • Consider outsourcing and hiring temporary workers to meet demands.

Using Resource Schedule to Develop a Project Cost Baseline

  • Purpose: To evaluate project status regarding cost and schedule.
  • Process:
    • Assign work packages to responsible teams.
    • Analyze planned costs with earned value management.
  • Create cash flow and resource usage reports to track financials effectively.

Key Terms

  • Heuristics, Leveling, Planned Value (PV), Resource-Constrained Project, Resource-Constrained Scheduling, Resource Smoothing, Splitting, Time-Constrained Project, Time-Phased Budget Baseline.