CH8: Scheduling Resources and Costs

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.

8.3 Classification of a Scheduling Problem

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

Project Planning Process 實例 image

8.1 Overview of the Resource Scheduling Problem

Resources and Priorities

Project network times are not a schedule until resources have been assigned.

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.

8.2 Types of Resource Constraints

The Resource Scheduling Problem

Resource Smoothing

Resource-Constrained Scheduling

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.

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.

Types of Project Constraints

Resource Constraints

Technical or Logical Constraints

Types of Resources Constraints

Are related to the networked sequence in which project activities must occur.

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.

People

Materials

Equipment

Constraint Examples 實例 image

Time-Constrained Project

Must be completed by an imposed date.

There are always more project proposals than there are available resources.


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.

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.

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

Botanical Garden 實例 image

Resource-Constrained Projects

Resources are limited in quantity or availability.

Activities are scheduled using heuristics (rules of thumb) by following the priority rules:

  1. Minimum slack
  1. Smallest (least) duration
  1. 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.

Resource-Constrained Schedule through Period 2-3 實例
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Resource-Constrained Schedule through Period 5-6 實例
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EMR Project

Resource Problem

The development of a hand-held electronic medical reference guide to be used by emergency medical technicians and paramedics

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

EMR Project Network View Schedule before Resources Leveled
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EMR Project before Resources Added 實例
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EMR Project—Time-Constrained Resource Usage View, January 15-23 實例
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Resource Loading Chart for EMR Project, January 15-23
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EMR Project Network View Schedule after Resources Leveled
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EMR Project Resources Leveled 實例
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The Impacts of Resource-Constrained Scheduling

click to edit

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

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.

Splitting Activities 實例
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Leaves time for considering reasonable alternatives

Provides the information needed to prepare time-phased work package budgets with dates

Cost-time tradeoffs

Changes in priorities

To gauge the impact of unforeseen events

To assess how much flexibility over certain resources

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

Problems in a multiproject environment

1. Overall schedule slippage

2. Inefficient resource utilization

3. Resource bottlenecks

Shared resources causes a ripple effect—delays in one project create delays for other projects.

Different schedules and requirements by multiple projects create the peaks and valleys in overall resource demands.

Shortages of critical resources required by multiple projects cause delays and schedule extensions.

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

Why a Time-Phased Budget Baseline Is Needed

Creating a Time-Phased Budget

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)

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

Direct Labor Budget Rollup ($000) 實例
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Time-Phased Work Package Budget (labor cost only)實例
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Two Time-Phased Work Packages (labor cost only) 實例
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Patient Entry Project Network 實例
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Patient Entry Time-Phased Work Packages Assigned實例
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Project Monthly Cash Flow Statement 實例
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Project Weekly Resource Usage Schedule 實例
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