Project Management

Quản lý Dự án
Dr. TRAN QUYNH LE
Dr. NGUYEN DUC DUY
Industrial Systems Engineering Department
Mechanical Engineering Faculty
Ho Chi Minh City University of Technology (HCMUT)–
VNUHCM
 Chapter 8
Scheduling Resources and Costs

2
3
 LEARNING OUTCOME

After learning this chapter you should be able to:

• Understand the differences between time-constrained and
resource-constrained schedules.
• Identify different types of resource constraints.
• Understand how project management software creates resource-
constrained schedules.
• Understand when and why splitting tasks should be avoided.
• Identify general guidelines for assigning people to specific tasks.
• Identify common problems with multiproject resource scheduling.

4
Project Planning Process

5
The Resource Problem

▪ Resources and Priorities

• Project network times are not a schedule until resources have been assigned.
➢ The implicit assumption is that resources will be available in the required
amounts when needed.
➢ Adding new projects requires making realistic judgments of resource
availability and project durations.

6
The Resource Problem

▪ Technique 1: Resource Leveling

• 1. When to keep resource usage at a constant level (reduce fluctuation in demand for
key resources).
• 2. When key or shared resource are only available at certain times, or available in
limited quantities, or over-allocated
▪ Technique 2: Resource Smoothing
• to even out varying demands on resources by using slack (delaying noncritical
activities)
• to expect a resource utilization and do not exceed certain predefined resource limits.
▪ Resource-Constrained Scheduling
• Resource leveling (or smoothing) involves attempting to even out demands on
resources by using slack (delaying noncritical activities) to manage resource
utilization.
7
Illustration of Resource Leveling and Resource Smoothing

▪ The diagram shows a project with 6 activities.

▪ Assume that each box in the Gantt chart represents a time period of 1 month on
the horizontal axis.
▪ Constraints
1. The project cannot have more than 5 resources at any point (predefined
resource limit).
2. Only 4 resources are available to work on Activity D at any point (scarce
resources).

8
Illustration of Resource Leveling and Resource Smoothing

Notes: All resourses is in the same level.

9
Illustration of Resource Leveling and Resource Smoothing
1. Apply Critical Path Method
In the first step, the schedule is analyzed with the Critical Path Method (CPM).
A-C-D-F is determined to be the Critical Path of the project. Activities B and E have
some float, which is represented in gray. Activity D is utilizing more than 4
resources in some months (violating constraint 2).

10
Illustration of Resource Leveling and Resource Smoothing
2. Apply Resource Leveling
Resource Leveling is performed. Since only 4 resources are available to work on
Activity D, which is on the Critical Path, we need to extend the activity duration to
reduce resource usage each month, which further results in increase in the Critical
Path duration by 1 month.

11
Illustration of Resource Leveling and Resource Smoothing
3. Apply Resource Smoothing
Resource Smoothing is performed to meet the predefined resource limit of 5
resources at any point during the project.
Finally we end up with a resource optimized schedule that meets both the resource
constraints.

12
Types of Project Constraints

▪ Technical or Logic Constraints

• Constraints related to the networked sequence in which project activities must
occur.
▪ Physical Constraints
• Activities that cannot occur in parallel or are affected by contractual or
environmental conditions.
▪ Resource Constraints
• The absence, shortage, or unique interrelationship and interaction characteristics
of resources that require a particular sequencing of project activities.

13
Constraint Examples

14
Kinds of Resource Constraints

▪ People
▪ Materials
▪ Equipment
▪ Working Capital

15
Classification of A Scheduling Problem

▪ Classification of Problem
• Using a priority matrix will help determine if the project is time or resource
constrained.
• Time Constrained Project
➢ A project that must be completed by an imposed date.
• Time is fixed, resources are flexible: additional resources are required to ensure project
meets schedule.
• Resource Constrained Project
➢ A project in which the level of resources available cannot be exceeded.
• Resources are fixed, time is flexible: inadequate resources will delay the project.

16
Resource Allocation Methods

▪ Limiting Assumptions
• Splitting activities is not allowed—once an activity is start, it is carried to
completion.
• Level of resource used for an activity cannot be changed.
• 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.

17
Resource Allocation Methods (cont’d)

▪ Time-Constrained Projects: Smoothing Resource Demand

• Projects that must be completed by an imposed date.
• Require the use of leveling techniques that focus on balancing or smoothing
resource demands by using positive slack (delaying noncritical activities) to
manage resource utilization over the duration of the project.
➢ Peak resource demands are reduced.
➢ Resources over the life of the project are reduced.
➢ Fluctuation in resource demand is minimized.

18
Botanical Garden

19
Resource Allocation Methods (cont’d)

▪ Resource Demand Leveling Techniques for Time-Constrained Projects

• Advantages
➢ Peak resource demands are reduced.
➢ Resources over the life of the project are reduced.
➢ Fluctuation in resource demand is minimized.
• Disadvantages
➢ Loss of flexibility that occurs from reducing slack.
➢ Increases in the criticality of all activities.

20
Resource Allocation Methods (cont’d)

▪ Resource-Constrained Projects
• Projects that involve resources that are limited in quantity or by their availability.
• Scheduling of activities requires the use of heuristics (rules-of-thumb) that focus
on:
1. Minimum slack
2. Smallest (least) duration
3. Lowest activity identification number
• The parallel method is used to apply heuristics
➢ An iterative process that starts at the first time period of the project and schedules
period-by-period any activities scheduled to start using the three priority rules.

21
Resource-Constrained Schedule through Period 2–3

22
Resource-Constrained Schedule through Period 2–3
ES resource load chart

23
24
Resource-Constrained Schedule through Period 2–3

Resource-constrained schedule through period 2–3

25
26
27
28
Resource-Constrained Schedule through Period 5–6
Resource-constrained schedule through period 5–6

29
Resource-Constrained Schedule through Period 5–6
Final resource-constrained schedule

30
Resource-Constrained Schedule through Period 5–6
New, resource-constrained network

31
Resource-Constrained Schedule using Loading chart (
Biểu đồ phụ tải)

Activity Predecessor Duration resourse/ week

A - 5 8
B - 3 4
C A 8 3
D A,B 7 2
E - 7 5
F C,D,E 4 9
G F 5 7

32
Resource-Constrained Schedule using Loading chart (
Biểu đồ phụ tải)

33
Resource-Constrained Schedule using Loading chart (
Biểu đồ phụ tải)
20
19
18
17
16
15 E
14
13
12
11 B E
10
9
8 E
7
6
5 A D F
4 G
3
2 C
1
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22
34
 Resource-Constrained Schedule using Loading chart (
Biểu đồ phụ tải)
20 20
19 19
18 18
17 17
16 16
15 15
14 14
13 13
12 12
11 B 11 B
10 10
9 9
8 E 8 E
7 7
6 6 B
5 A D F 5 A D F
4 G 4 G
3 3
2 C 2 C
1 1
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22

35
Resource-Constrained Schedule using Loading chart (
Biểu đồ phụ tải)
20
19
18
17
16
15
14
13
12
11
10
9
8 E
7
6 B
5 A D E F
4 G
3
2 C D
1
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24
36
Resource-Constrained Schedule using Loading chart ( Biểu
đồ phụ tải)
20
19
18
17
16
15
14
13
12
11
10
9
8
7
6 B
5 A D F
4 G
3 E
2 C
1
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29
37
Computer Demonstration of Resource-Constrained
Scheduling
▪ EMR Project
• The development of a handheld electronic medical reference guide to be used by
emergency medical technicians and paramedics.
▪ Problem
• There are only eight design engineers who can be assigned to the project due to
a shortage of design engineers and commitments to other projects.

38
EMR Project: Network View of Schedule before Resources Leveled

39
EMR Project before Resources Added

40
EMR Project—Time Constrained Resource Usage View

41
Resource Loading Chart for EMR Project

42
EMR Project Network View Schedule after Resources Leveled

43
EMR Project Resources Leveled

44
The Impacts of Resource-Constrained Scheduling

▪ Reduces delay but reduces flexibility.

▪ Increases criticality of events.
▪ Increases scheduling complexity.
▪ May make traditional critical path no longer meaningful.
▪ Can break sequence of events.
▪ May cause parallel activities to become sequential and critical activities with
slack to become noncritical.

45
Splitting/Multitasking

▪ Splitting/Multitasking
• A scheduling technique use to get a better project schedule and/or increase
resource utilization.
➢ Involves interrupting work on an activity to employ the resource on another activity,
then returning the resource to finish the interrupted work.
➢ Is feasible when startup and shutdown costs are low.
➢ Is considered the major reason why projects fail to meet schedule.

46
Splitting/Multitasking

47
Assigning Project Work

▪ Factors to Consider in Assigning Work:

• Don’t always pick the same people for the toughest assignments.
• Choose people with an eye to fostering their development through participation
on the project.
• Pick people with compatible work habits and personalities but who complement
each other.
• Team-up veterans with new hires to share experience and socialize newcomers
into the organization.
• Select people who may need to learn work together on later stages of the project
or other projects.

48
Multiproject Resource Schedules

▪ Multiproject Scheduling Problems

• Overall project slippage
➢ Delay on one project create delays for other projects
• Inefficient resource application
➢ The peaks and valleys of resource demands create scheduling problems and
delays for projects.
• Resource bottlenecks
➢ Shortages of critical resources required for multiple projects cause delays and
schedule extensions.

49
Multiproject Resource Schedules

▪ Managing Multiproject Scheduling

• Create project offices or departments to oversee the scheduling of resources
across projects.
• Use a project priority queuing system: first come, first served for resources.
• Centralize project management: treat all projects as a part of a “megaproject.”
• Outsource projects to reduce the number of projects handled internally.

50
Using the Resource Schedule to Develop a Project
Cost Baseline
Why a Time-Phased Budget Baseline Is Needed

▪ There is no way to be certain how much of the physical work has been
accomplished.
▪ These systems do not measure how much work was accomplished for the
money spent!
▪ Hence, without time-phasing cost to match your project schedule, it is
impossible to have reliable information for control purposes

51
Creating a Time-Phased Budget

52
Time-Phased Work Package Budget (labor cost only)

53
Two Time-Phased Work Packages (labor cost only)

54
Patient Entry Project Network

55
Patient Entry Time-Phased Work Packages Assigned

56
Project Monthly
Cash Flow
Statement

57
Project Weekly
Resource Usage
Schedule

58
Key Terms

▪ Heuristic
▪ Leveling/smoothing
▪ Multitasking
▪ Resource-constrained projects
▪ Resource profile
▪ Splitting
▪ Time-constrained projects

59
This Page Intentionally Left Blank

60