PM Resource Control Jan 2014

Section IVWk7:Project Resource Allocation (Loading and Levelling) Scheduling and Resource Allocation Aspects In PM Prof. Maged S. Morcos© 1 Today’s Lecture # 7 Wk7:Project Resource Allocation (Loading and Levelling) Project Resource Allocation (Loading and Levelling) Prof. Maged S. Morcos© 2 Contents of Lecture  Learning Objectives Wk7:Project Resource Allocation (Loading and Levelling)  Expediting the Project  Resource Loading  Resource Leveling  Allocating scarce resources  Goldratt’s critical chain Prof. Maged S. Morcos© 3 Maged S. Morcos© 4 .Learning Objectives  Learn how to take resource constraints into account Wk7:Project Resource Allocation (Loading and Levelling)  Determine the planned resource utilization for a project  Level the use of resources within the required time frame  Determine the shortest project schedule with limited resources Prof. Morcos© 5 .  Project delays often occur due to certain resources being unavailable.Resource-Constrained Planning  Nearly all projects have limits on available Wk7:Project Resource Allocation (Loading and Levelling) resources. Maged S.  A network diagram can be drawn to reflect the availability of a limited number of resources. Prof. Prof. Maged S.  Resource utilization charts based on each activity’s latest start time are based on an as-late-as-possible (ALAP) schedule.Planned Resource Utilization  It’s necessary to indicate the amounts and types of Wk7:Project Resource Allocation (Loading and Levelling) resources needed to perform each activity.  Resource utilization based on each activity’s earliest start time are based on an as-soon-as-possible (ASAP) schedule. Morcos© 6 . Morcos© 7 . or smoothing.Resource Leveling  Resource leveling. is a method for Wk7:Project Resource Allocation (Loading and Levelling) developing a schedule that attempts to minimize the fluctuations in requirements for resources. Prof.  This method levels the resources so that they are applied as uniformly as possible without extending the project schedule beyond the required completion time. Maged S. Maged S.Resource-Limited Scheduling  Resource-limited scheduling is a method for Wk7:Project Resource Allocation (Loading and Levelling) developing the shortest schedule when the number or amount of available resources is fixed and cannot be exceeded. Prof. Morcos© 8 .  This method will extend the project completion time if necessary in order to keep within the resource limits. Maged S. scope.  Output is: resource requirements described at the lowest level of the WBS Prof. Wk7:Project Resource Allocation (Loading and Levelling) materials.Resource Planning  Determining what resources (people.  Input is: work breakdown structure. and activity duration estimates. sub-contractors)and what quantities of each should be used and when they are needed to perform project activities. equipment. Morcos© 9 . historical information. Maged S. Morcos© 10 . and cost estimating go hand-in-hand  Resource allocation / cost estimating  Resource allocation goes hand-in-hand with company Wk7:Project Resource Allocation (Loading and Levelling) scheduling  Goal of Resource Allocation is to Optimize Use of Limited Supply  Projects Compete With One Another for Resources – resources that are not consumed – resources that are consumed  Requires making trade-offs – time constrained – resource constrained Prof. scheduling.Resource Allocation  Planning. resources. Maged S. Morcos© 11 .Resource Scarcity  People/subs – equipment – materials – facilities  PM performance ~ measured by skill with which Wk7:Project Resource Allocation (Loading and Levelling) trade-offs are made  Cost/benefit usual measure  Time constrained: resources / performance variable  Resource constrained: time / performance variable  Time. performance all constrained ? Prof. Contents of Lecture Wk7:Project Resource Allocation (Loading and Levelling) Learning Objectives Resource Loading Resource Leveling Prof. Maged S. Morcos© 12 . Morcos© 13 .Wk7:Project Resource Allocation (Loading and Levelling) Prof. Maged S. Maged S. Morcos© 14 .Learning Objectives Wk7:Project Resource Allocation (Loading and Levelling)  Learn how to take resource constraints into account  Determine the planned resource utilization for a project  Level the use of resources within the required time frame  Determine the shortest project schedule with limited resources Prof. Morcos© 15 .  Project delays often occur due to certain resources being unavailable.Resource-Constrained Planning  Nearly all projects have limits on available Wk7:Project Resource Allocation (Loading and Levelling) resources.  A network diagram can be drawn to reflect the availability of a limited number of resources. Prof. Maged S. Prof. Maged S. Morcos© 16 .  Resource utilization charts based on each activity’s latest start time are based on an as-late-as-possible (ALAP) schedule.  Resource utilization based on each activity’s earliest start time are based on an as-soon-as-possible (ASAP) schedule.Planned Resource Utilization  It’s necessary to indicate the amounts and types of Wk7:Project Resource Allocation (Loading and Levelling) resources needed to perform each activity. or smoothing. Maged S. Prof.Resource Leveling  Resource leveling.  This method levels the resources so that they are applied as uniformly as possible without extending the project schedule beyond the required completion time. is a method for Wk7:Project Resource Allocation (Loading and Levelling) developing a schedule that attempts to minimize the fluctuations in requirements for resources. Morcos© 17 . Maged S. Prof.Resource-Limited Scheduling  Resource-limited scheduling is a method for Wk7:Project Resource Allocation (Loading and Levelling) developing the shortest schedule when the number or amount of available resources is fixed and cannot be exceeded.  This method will extend the project completion time if necessary in order to keep within the resource limits. Morcos© 18 .  Output is: resource requirements described at the lowest level of the WBS Prof.  Input is: work breakdown structure. Maged S. sub-contractors) and what quantities of each should be used and when they are needed to perform project activities. scope.Resource Planning  Determining what resources (people. and activity duration estimates. equipment. historical information. Wk7:Project Resource Allocation (Loading and Levelling) materials. Morcos© 19 . and cost estimating go hand-in-hand  Resource allocation / cost estimating  Resource allocation goes hand-in-hand with company Wk7:Project Resource Allocation (Loading and Levelling) scheduling  Goal of Resource Allocation is to Optimize Use of Limited Supply  Projects Compete With One Another for Resources – resources that are not consumed – resources that are consumed  Requires making trade-offs – time constrained – resource constrained Prof. Morcos© 20 .Resource Allocation  Planning. Maged S. scheduling. resources. Morcos© 21 .Resource Scarcity  People/subs – equipment – materials – facilities  PM performance ~ measured by skill with which Wk7:Project Resource Allocation (Loading and Levelling) trade-offs are made  Cost/benefit usual measure  Time constrained: resources / performance variable  Resource constrained: time / performance variable  Time. Maged S. performance all constrained ? Prof. Wk7:Project Resource Allocation (Loading and Levelling) Prof. Maged S. Morcos© 22 . Prof. Morcos© 23 .Resource Loading  Amount of specific resources that are Wk7:Project Resource Allocation (Loading and Levelling) scheduled for use on specific activities or projects at specific times. Maged S.  Usually a list or table. Morcos© 24 . B = Purchase Material.Example 1: Resource Loading 6 Wk7:Project Resource Allocation (Loading and Levelling) 6 A= Design Frame 0 0 2 D = Do external work 3 wk.E = 12 weeks. Critical path is longest path A.C. Maged S. 1 3 wk. Prof. 12 1 6 wk. 3 8 2 E = Build Body 4 wk. 8 C = Design Body 4 2 wk. 44 E 1 4 7 4 1. Maged S.00 Prof.78 0.44 0. Morcos© 25 .) Wk7:Project Resource Allocation (Loading and Levelling) PERT Activity A B C D a 2 1 1 1 m 6 3 2 3 b 10 5 3 5 Exp. Time Variance T 6 3 2 3 var. 1.Example 1: Resource Loading…(Cont.11 0. ) Wk7:Project Resource Allocation (Loading and Levelling) Early Activity Time ES EF Late LS LF Slack TF Critical CA A B C 6 3 2 0 0 6 6 3 8 0 5 6 6 8 8 0 5 0 C C D E 3 4 6 8 9 12 9 8 12 12 3 0 C T (max) = T (min) = Prof. Maged S.70 = 10.70 = 13.30 26 . Morcos© 12 + 12 - 1.70 1.Example 1: Resource Loading…(Cont. Maged S.) Wk7:Project Resource Allocation (Loading and Levelling) Early Start Bar Chart labor s 4 2 4 2 3 Labor s Cum 6 6 6 12 6 18 4 22 4 26 4 30 6 36 6 42 Activity A B C D E time 6 3 2 3 4 1 4 2 2 4 2 3 4 2 4 4 5 4 6 4 7 8 9 10 11 12 4 2 4 2 2 3 5 47 3 3 50 3 3 53 3 3 56 Prof. Morcos© 27 .Example 1: Resource Loading…(Cont. Example 1: Resource Loading…(Cont. Maged S. Morcos© 28 .Resource Loading before Leveling labors 7 6 1 2 3 4 5 6 7 8 9 10 11 12 5 4 3 2 1 Labors Cum B D D A 6 6 6 12 6 18 4 22 4 26 4 30 C 6 36 6 42 E 5 47 3 50 3 53 3 56 Prof.) Wk7:Project Resource Allocation (Loading and Levelling) Early Start Bar Chart . Maged S. Morcos© 29 .Example 1: Resource Loading…(Cont.) Wk7:Project Resource Allocation (Loading and Levelling) Prof. Example 1: Resource Loading…(Cont. Maged S. Morcos© 30 .) Wk7:Project Resource Allocation (Loading and Levelling) Late Start Bar Chart Activity A B C D E time 6 3 2 3 4 labors 4 2 4 2 3 Lab Cum 4 4 4 8 4 12 4 16 4 20 6 26 6 32 6 38 3 3 41 1 4 2 4 3 4 4 4 5 4 6 4 2 2 4 2 4 2 3 5 46 2 3 5 51 2 3 5 56 7 8 9 10 11 12 Prof. Example 1: Resource Loading…(Cont. Maged S.) late Start Bar Chart . Morcos© 31 .Resource Loading before Leveling Wk7:Project Resource Allocation (Loading and Levelling) labors 7 6 5 4 3 2 1 Labors Cum 1 2 3 4 5 6 7 8 9 10 11 12 B D A 4 4 4 8 4 12 4 16 4 20 6 26 C 6 32 6 38 E 3 41 5 46 5 51 5 56 Prof. of Labor Resource 6 5 Labors 4 3 2 1 0 1 2 3 4 5 6 7 8 Time 9 10 11 12 13 14 15 16 Prof. Maged S.) Labors Wk7:Project Resource Allocation (Loading and Levelling) 9 8 7 No. Morcos© 32 .Example 1: Resource Loading…(Cont. ) Wk7:Project Resource Allocation (Loading and Levelling) 1 2 3 4 5 6 7 8 9 10 11 12 Early 6 6 6 4 4 4 6 6 5 3 3 3 Late 4 4 4 4 4 6 6 6 3 5 5 5 Cum E 6 12 18 22 26 30 36 42 47 50 53 56 Cum L 4 8 12 16 20 26 32 38 41 46 51 56 Prof. Morcos© 33 .Example 1: Resource Loading…(Cont. Maged S. Example 1: Resource Loading…(Cont. Morcos© 34 .) 60 Wk7:Project Resource Allocation (Loading and Levelling) 56 50 47 40 36 30 26 20 22 18 12 6 46 4 6 8 4 6 12 4 4 4 4 4 4 6 6 6 6 6 5 3 3 5 3 5 3 5 16 20 30 26 32 42 38 Early Late Cum E Cum L 41 50 46 53 51 10 0 Early Late Cum E Cum L 1 6 4 6 4 2 6 4 12 8 3 6 4 18 12 4 4 4 22 16 5 4 4 26 20 6 4 6 30 26 7 6 6 36 32 8 6 6 42 38 9 5 3 47 41 10 3 5 50 46 11 3 5 53 51 12 3 5 56 56 Prof. Maged S. Maged S. Morcos© 35 .Wk7:Project Resource Allocation (Loading and Levelling) Prof. 667 i.Leveled at 5 Resources Activity A B C D E time 6 3 2 3 4 labors 4 2 4 2 3 Labors Cum 5 5 5 10 5 15 5 20 5 25 5 30 4 34 4 38 3 3 41 1 4 1 2 4 1 3 4 1 4 4 1 5 4 1 6 4 1 4 4 2 3 5 46 2 3 5 51 2 3 5 56 7 8 E 9 ES 0 0 6 6 8 10 11 TF 0 5 0 3 0 12 Wk7:Project Resource Allocation (Loading and Levelling) Labour/week = 56/12 = 4. 5 labors per day hence levelling is required. Morcos© 36 . Maged S.e. Prof.Example 1: Resource levelling The total labors required = 56 and Total Project Time = 12 weeks then Slack Activity A B C D Early Start Bar Chart . Example 1: Resource levelling Early Start Bar Chart . Morcos© 37 .Leveled at 5 Resources based on ES and TF labors 7 6 5 4 3 2 B D 1 2 3 4 5 6 7 8 9 10 11 12 Wk7:Project Resource Allocation (Loading and Levelling) 1 Labors Cum A 5 5 5 10 5 15 5 20 5 25 5 30 C 4 34 4 38 E 3 41 5 46 5 51 5 56 Prof. Maged S. Example 1: Resource Levelling…(Cont. of Labour Resource 5 4 3 2 1 0 1 2 3 4 5 6 Time 7 8 9 10 11 12 Labors Prof.) Wk7:Project Resource Allocation (Loading and Levelling) labors 6 No. Morcos© 38 . Maged S. ) Late Start Bar Chart . Maged S.Example 1: Resource Levelling…(Cont.leveled at 5 Resources Activity A B C D E time 6 3 2 3 4 labors 4 2 4 2 3 Labors Cum 4 4 4 8 4 12 4 16 4 20 5 25 5 30 5 35 3 4 39 3 4 43 3 4 47 1 4 2 4 3 4 4 4 5 4 6 4 1 1 4 1 4 2 3 5 52 2 54 2 56 2 2 1 1 1 7 8 9 10 11 12 13 14 Wk7:Project Resource Allocation (Loading and Levelling) D extended beyond project expected time Prof. Morcos© 39 . Resource Loading after Leveling at 5 Labors / week Wk7:Project Resource Allocation (Loading and Levelling) labors 1 2 3 4 5 6 7 8 9 10 11 12 13 14 7 6 5 4 3 2 1 A C E D B B D Labors Cum 4 4 4 8 4 12 4 16 4 20 5 25 5 30 5 35 4 39 4 43 4 47 5 52 2 54 2 56 Prof.) Late Start Bar Chart .Example 1: Resource Levelling…(Cont. Morcos© 40 . Maged S. Example: Resource Levelling…(Cont. Maged S. of Labor Resource Wk7:Project Resource Allocation (Loading and Levelling) 5 4 3 2 1 0 1 2 3 4 5 6 7 Time 8 9 10 11 12 13 14 Labors Prof.) Labors 6 No. Morcos© 41 . Maged S. Morcos© 42 .Wk7:Project Resource Allocation (Loading and Levelling) Prof. Morcos© 43 .Resource Loading  Amount of specific resources that are Wk7:Project Resource Allocation (Loading and Levelling) scheduled for use on specific activities or projects at specific times.  Usually a list or table. Prof. Maged S. Morcos© 44 Wk7:Project Resource Allocation (Loading and Levelling) .  The resources are:  Scriptwriter  Producer  Client  Editing Room Prof.Example: Production of a Videotape See tables 6-4 and 6-5 for the problem of production of a videotape. Maged S. Action Plan and Gantt Chart for Production of a Videotape Wk7:Project Resource Allocation (Loading and Levelling) Figure 6-10 Prof. Maged S. Morcos© 45 . Wk7:Project Resource Allocation (Loading and Levelling) Prof. Maged S. Morcos© 46 . Adjusted for Client Availability Wk7:Project Resource Allocation (Loading and Levelling) Prof.Gantt Chart for Videotape Project. Morcos© Figure 6-11 47 . Maged S. Resource Overallocation Report for Scriptwriter Showing all Activities Wk7:Project Resource Allocation (Loading and Levelling) Figure 6-12 Prof. Morcos© 48 . Maged S. Graphic Resource Overallocation Report for Scriptwriter Wk7:Project Resource Allocation (Loading and Levelling) Figure 6-13 Prof. Maged S. Morcos© 49 Resource Leveled Report for Scriptwriter Showing all Activities Wk7:Project Resource Allocation (Loading and Levelling) Figure 6-14 Prof. Maged S. Morcos© 50 Graphic Resource Leveled Report for Scriptwriter Wk7:Project Resource Allocation (Loading and Levelling) Figure 6-15 Prof. Maged S. Morcos© 51 Maged S. Scriptwriter Leveled Wk7:Project Resource Allocation (Loading and Levelling) Figure 6-16 Prof.Daily Resource Loading Chart for Videotape Project. Morcos© 52 . With Two Scriptwriters and Producer Leveled Wk7:Project Resource Allocation (Loading and Levelling) Figure 6-17 Prof.Final Videotape Project Gantt Chart Schedule. Morcos© 53 . Maged S. Morcos© 54 .Thirty-Four-Week Resource Loading Chart for Software Engineering Group Wk7:Project Resource Allocation (Loading and Levelling) Figure 6-18 Prof. Maged S. Maged S.560 labor hrs  Correction for Holidays – 21  3 (days)  8 (hours) = 504 labor hrs – Capacity is thus lowered to 16.056 labor-hours  Vacations (11 people take vacation) – 11  2 (weeks)  40 = 880 labor hrs Prof.282 Hours Needed  Group Capacity – 21 (people)  40 (hrs/wk)  34 wk = 28.Resource Loading/Leveling and Uncertainty Wk7:Project Resource Allocation (Loading and Levelling)  28. Morcos© 55 . 282/27176 = 1. the capacity of the group is approximately 37. 56 Wk7:Project Resource Allocation (Loading and Levelling) Prof. Given the 28.560 .176 – about 1100 less than needed – 28. Maged S.504 .500 labor-hours. but they average work between 50 – 60 hours per week. At a 55 hour week.282 labor-hour workload. This emphasizes that in projects the level of uncertainty surrounding the production process is so much greater that the amount of excess capacity in the work force needs to be much larger. which explains the engineering group’s ability to meet most of its delivery-date commitments. Morcos© . for example.880 = 27.Resource Loading/Leveling and Uncertainty continued  Hours Available     – 28.04 or 104 % of capacity What about – Workers getting sick? – Task not ready when worker is ready? – Change orders? The company is of high-quality work and in fact engineers are scheduled to work 40 hour weeks. the system would operate. on average at about 75 percent of capacity. Morcos© 57 . Maged S.Wk7:Project Resource Allocation (Loading and Levelling) Prof. Morcos© 58 . Maged S.Example 1 of Constrained Resources Wk7:Project Resource Allocation (Loading and Levelling) Prof. Maged S. Morcos© 59 .Example 2 of Constrained Resources Wk7:Project Resource Allocation (Loading and Levelling) Prof. Resource Loading – Bar Chart Wk7:Project Resource Allocation (Loading and Levelling) As can be seen the critical activities are two: activity “First floor rooms D = 8 and “Stairs & Hall” D = 4 with total of 12 days. Morcos© 60 . Maged S. The resulting histogram of resource loading will look like the following: Prof. Morcos© 61 Resource Loading .Wk7:Project Resource Allocation (Loading and Levelling) Prof. Maged S.Histogram . Resource Loading – Cumulative Curve Wk7:Project Resource Allocation (Loading and Levelling) Cumulative Painters 35 30 25 20 15 10 5 0 0 1 Toal No. Maged S. Morcos© 62 . of Painters 16 12 8 4 2 3 4 5 19 22 24 26 28 30 31 32 Cumulative Painters 6 7 8 9 10 11 12 Project Time Prof. Maged S.Resource Leveling – Bar Chart Wk7:Project Resource Allocation (Loading and Levelling) By leveling the activity of “Painting Basement rooms “ to start with same painter after he/she finishes activity “Painting Bedrooms. the following resource histogram can be developed showing loading of only thre painter from start to day 10 and 1 painter only in days 11 and 12 Prof. Morcos© 63 . Morcos© 64 Resource Leveling – Histogram . Maged S.Wk7:Project Resource Allocation (Loading and Levelling) Prof. Histogram Wk7:Project Resource Allocation (Loading and Levelling) If we imagine that we have limited number of painters. say only 2 than the project duration will exceed the 12 and reach to 16 days Prof.Limited Resource Loading . Maged S. Morcos© 65 . Prof. The slacks are revised to appear as in next Bar Chart.Limited Resource Leveling – by Utilizing Activities Slacks Wk7:Project Resource Allocation (Loading and Levelling) Since only 2 painters are available then according to slacks the first two activities have 0 slacks then the third activity have +8 slacks and then the fourth have + 6 slacks. Maged S. We have to delay activities “Basement” and “Bedrooms” to start after the first activity is finished but this will delay the project from 12 to 14 days because of the duration of the “Bedrooms” activity creating a problem at day 9 with 4 painters more than the required 2. Morcos© 66 . Resource Leveling by Utilizing Activities Slacks First Iteration Wk7:Project Resource Allocation (Loading and Levelling) Since only 2 painters are available then according to slacks the first two activities have 0 slacks then the third activity have +8 slacks and then the fourth have + 6 slacks. Maged S. We have to delay activities “Basement” and “Bedrooms” to start after the first activity is finished but this will delay the project from 12 to 14 days because of the duration of the “Bedrooms” activity creating a problem at day 9 with 4 painters more than the required 2. The slacks are revised to appear as in next Bar Chart. Prof. Morcos© 67 . Morcos© 68 . Bedroom will start after 8 days and continue to day 14.Resource Leveling by Utilizing Activities Slacks Second Iteration Wk7:Project Resource Allocation (Loading and Levelling) Two activities “Stairs & Halls” and “Basement Rooms” are the next in slack value of 0. To choose between them we see which one was on the critical path earlier. The resulting number of painters is 2 until day 13 and 14 where they appear to be 3 painters. Maged S. This is “Stairs & Halls” This will start after day 8 and continue through day 12. hence another iteration is required. Prof. The remaining two activities will start after day 12. The next time a painter is available will have to start delayed until after day 14 and will be allocated to “Bathroom” as shown in Bar Chart above. The total leveled resources is now 2 all over the project time which is delayed by 4 days from 12 to 16 due to this resource constraint. “Basement Rooms” will start after day 12 and will continue through day 16. Prof. Maged S. so the available painter will be allocated to it.Resource Leveling by Utilizing Activities Slacks Third Iteration Wk7:Project Resource Allocation (Loading and Levelling) Two activities “Bathroom” and “Basement Rooms” need a painter on day 13. “Basement Rooms” has less slack (-4days) than the other activity. Morcos© 69 . Morcos© 70 . Maged S.Homework for Lecture # 7 (PMinP ch6)  All Problems should be Solved Using PC Wk7:Project Resource Allocation (Loading and Levelling)  Homework From Chapter 6 – Problems TBA Prof. Morcos© Questions? Thank You 71 . Maged S.Wk7:Project Resource Allocation (Loading and Levelling) Prof.