1.
Resource Management: Resource Planning, Allocation, and Levelling
Resource Planning
Resource management is the efficient and effective deployment of an
organization's resources, which can include people, equipment, money,
and time. Resource planning is the initial phase where a project manager
identifies and forecasts the resources required to complete a project
successfully. This involves:
⦁ Identifying Resource Needs: Determining the specific types of
resources (e.g., engineers, masons, cranes, cement) and their
quantity required for each task.
⦁ Forecasting Availability: Predicting when resources will be available
and for how long. This is crucial for scheduling.
⦁ Creating a Resource Breakdown Structure (RBS): A hierarchical list
of all resources by function and type, similar to a Work Breakdown
Structure (WBS) for tasks.
⦁ Estimating Resource Costs: Calculating the cost associated with
each resource, which is a key input for the project budget.
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Effective resource planning is the foundation for a realistic project
schedule and budget, helping to prevent resource shortages or over-
allocation later in the project.
Resource Allocation
Resource allocation is the process of assigning the planned resources to
specific project tasks. The goal is to use resources in the most efficient
manner to complete the project on time and within budget. Key
considerations in resource allocation include:
⦁ Matching Skills to Tasks: Assigning team members with the right
skills and experience to the appropriate tasks.
⦁ Availability: Ensuring the assigned resources are available when
needed.
⦁ Avoiding Over-Allocation: A common mistake is assigning a single
resource to multiple tasks that overlap in time, which leads to delays
and burnout.
Resource allocation is a dynamic process that requires constant
monitoring and adjustment as the project progresses.
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Resource Levelling
Resource levelling is a technique used to optimize the use of resources by
adjusting the project schedule. The primary goal is to smooth out the
peaks and valleys in resource demand, creating a more balanced and
sustainable workload. This is done by shifting non-critical tasks to periods
when a resource is under-utilized, without delaying the project's critical
path.
⦁ When to use Resource Levelling: It is particularly useful when
resource constraints are the limiting factor and a project manager
wants to avoid resource conflicts, reduce overtime, or prevent the
need for additional resources.
⦁ Impact: It may extend the project's overall duration but leads to a
more stable and efficient work environment.
2. Introduction to Material Management, Purchase Management, and
Inventory Control
Material Management
Material management is a specialized function that deals with the
planning, procurement, storage, and movement of materials required for
a project. Its objective is to ensure that the right materials are available
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at the right time, in the right quantity, at the right place, and at the right
cost. In the construction industry, this is a critical function because
material costs often constitute a significant portion of the total project
budget.
Purchase Management
Purchase management is the process of acquiring the necessary
materials, equipment, and services for a project. It is a key component of
material management and involves a series of steps:
⦁ Needs Identification: Receiving a purchase requisition from the site
or project team.
⦁ Supplier Selection: Identifying and evaluating potential suppliers
based on price, quality, reliability, and lead time.
⦁ Issuing Purchase Orders (POs): Creating a legally binding document
that specifies the items, quantity, price, and terms of delivery.
⦁ Follow-up and Expediting: Monitoring the supplier to ensure on-
time delivery.
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⦁ Receiving and Inspection: Verifying that the received goods match
the PO specifications.
Inventory Control
Inventory control is the process of managing the materials stored on-site
to minimize holding costs while ensuring that materials are available
when needed. Effective inventory control aims to strike a balance
between having enough materials to avoid delays and having too much,
which ties up capital and increases the risk of damage or theft. Key
aspects include:
⦁ Establishing Minimum and Maximum Stock Levels: Setting
thresholds to trigger reordering.
⦁ Regular Audits: Periodically counting inventory to ensure records
are accurate.
⦁ Secure Storage: Storing materials in a safe and organized manner to
prevent loss, damage, or theft.
3. Importance of PR, PO, WO, and GRN
These are essential documents that form the backbone of a well-
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managed procurement and execution process.
⦁ PR (Purchase Request / Requisition):
⦁ Importance: A formal internal document used by a department
or project team to request the purchase of goods or services. It
is the official trigger for the purchasing process, providing a
record of what is needed and who authorized the request.
⦁ PO (Purchase Order):
⦁ Importance: A legally binding external document sent
from the buyer to the supplier. It details the items,
quantity, price, payment terms, and delivery date. A PO
protects both parties by formalizing the agreement.
⦁ WO (Work Order):
⦁ Importance: A document that authorizes and directs a
specific task or job to be performed. In construction, it can
be a directive to a subcontractor to perform a specific scope
of work, detailing the work to be done, the timeline, and the
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payment terms. It clarifies the scope and terms for a specific
task.
⦁ GRN (Goods Received Note):
⦁ Importance: A document created upon the physical receipt of
goods at the site or warehouse. It confirms that the goods have
been received and inspected. The GRN is crucial for three-way
matching (matching the PO, invoice, and GRN) before the
payment is released, preventing payment for goods that were
never received or were damaged.