resource allocation-a
TRANSCRIPT
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RESOURCEALLOCATION
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Project Management by Meredith Mantel
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Crashing a Project
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Crashing a Project
Crashing Crashing a project means to add resources
to the project to reduce the time taken
and thus expediting the project
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Things to note whencrashing Not all activities can be crashed on
increment of one day
Technological changes can have very
different effect on crashing
Follow the two principles
Focus on critical path(s) when trying toshorten the duration of the project
Select the least expensive way to do it.
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Crashing - Example( )Duration Days Cost
Activity
Precedence Normal Crash Normal Crash
a - 3 2 40 80
b a 2 1 20 80
c a 2 2 20 20
*d a 4 1 30 120
**e b 3 1 10 80
* Partial Crashing Allowed
** Partial Crashing Not Allowed
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( )Duration Days Cost
Activity Precedence Normal Crash Normal Crash slope
a - 3 2 40 80 -40
b a 2 1 20 80 -60
c a 2 2 20 20 -
*d a 4 1 30 120 -30
**e b 3 1 10 80 - (70 2
)days
Cost/Time Slope
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Negative Slope As the time is decreased, cost is increased
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=N o rm a l S ch e d u le 8 d a y s=C o s t $ 1 2 0
a
b
c
d
e
3
2
2
4
3
Crashing - Example
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=N o rm a l S ch e d u le 8 d a y s=C o s t $ 1 2 0
1 2 3 4 5 6 7 8
a
b
c
d
e
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=C ra sh e d S ch e d u le 7 d a y s
=C o s t $ 1 6 0
1 2 3 4 5 6 7 8
a
b
c
d
e
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=C ra sh e d S ch e d u le 6 d a y s
=C o s t $ 2 2 0
1 2 3 4 5 6 7 8
a
b
c
d
e
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=C ra sh e d S ch e d u le 5 d a y s
=C o s t $ 2 6 0
1 2 3 4 5 6 7 8
a
b
c
d
e
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=C ra sh e d S ch e d u le 4 d a y s
=C o s t $ 3 5 0
1 2 3 4 5 6 7 8
a
b
c
d
e
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Problem
Find the lowest cost tocomplete the projectin 10 days.
a
b
c
d
e
Crashed Normal Partial
Activity
Time Cost Time Cost Crashing?
a 3 60 3 60 No
b 6 80 7 30 Yes
c 2 90 5 50 No
d 5 0 6 30 No
e 2 100 4 40 Yes
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Problem - Solution
Critical Path a-c-e a cannot be
crashed
b has lowest costto crash but canbe crashed only1 day.
e to be crashed bytwo days thus.
a
b
c
d
e
Crashed Normal Partial
Activit
y
Time Cost Time Cost Crashing?
a 3 60 3 60 Nob 6 80 7 30 Yes
c 2 90 5 50 No
d 5 0 6 30 No
e 2 100 4 40 Yes
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Determining the best trade offs
between available resources , includingtime, throughout the duration of theproject
Resource Allocation
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Resource Allocation
A shortcoming of scheduling proceduresis
Do not address the issues of resource
utilization and availability
Why? Focus is on time and not on physical
resources
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Project Triangle
&S cop e Q u a lity
Cost Time
Resources
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Resource Allocation
Resource is not merely cost; it includesTime
Material
Facilities Labor
Equipment
etc
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Focus of discussion
Progress Time
Resources
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Resource Allocation
Schedules should be evaluated not onlyon time but also on timing and use ofscarce resources
Why to manage resources if schedule isalready decided?
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Extreme Points
Extreme points of relationship betweentime use and resources are these:
Time Limited
The project must be finished by a certaintime, using as few resources as possible.Time is critical
Resource Limited
The project must be finished as soon aspossible, but without exceeding somespecific level of resource usage or somegeneral resource constraint.
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The points between these two extremesrepresent time/resource-use trade-offs.
But there are a limited number of trade-offs.
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Over determined System
If all three variableTime
Cost
Specifications Are fixed, then the system is
overdetermined.
PM has NO flexibility in managing theproject.
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System Constrained Tasks
Require fixed amount of time and knownquantities of resources
Industrial heat treatment of products Setting up of concrete
Preparing a wafer of Silicon
etc
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Evening out the demand for various
resources required in a project byshifting tasks within their slackallowances
Resource Loading
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Resource Loading
It describes the amounts of individualresources an existing schedule requiresduring specific time periods
Therefore, it is irrelevant whether we areconsidering a single work unit or severalprojects:
The load (requirement) of each resource
type is listed as function of time period Resource Loading gives a generalunderstanding of the demands a project(or set of projects) will make on an
organizations resources
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Resource Loading
It is also a first step in attempting toreduce excessive demand on certainresources
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Nonlinear relation
Use of resource on a project is often non-linear
i.e. if a increase in resource by X percent
does NOT decrease the time by Xpercent
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Concerned with evening out the
demand for various resources requiredin a project by shifting tasks withintheir slack allowances
Resource Leveling
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Advantages of Smoother
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Advantages of SmootherResource Usage
Less hands-on management required
PM may use just-in-time inventory policy
If resource is people, smoother usage
means higher morale of the people Associated cost also tends to be leveled
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Resource Leveling Example
,a2
,
b
3
,c 5[
]2
[ ]4
[]2Activity
Workers
a 8 a
b 6 c c
c 4 c
2 b b
1 2 3 4 5 1 2 3 4 5
Days Days
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Resource Leveling ExampleActivity
Workers
a 8 a
b 6 c c
c 4 c
2 b b
1 2 3 4 5 1 2 3 4 5Days Days
Activity
Workers
a 8
b 6 a b
c 4 c
2
1 2 3 4 5 1 2 3 4 5Days Days