resource allocation-a

8/7/2019 resource allocation-a

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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 o s t $ 2 2 0

1 2 3 4 5 6 7 8

a

b

c

d

e


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=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 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

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