Page 221 - DCAP304_DCAP515_SOFTWARE_PROJECT_MANAGEMENT

Unit 11: Resource Allocation

Notes

Notes However, it is also important to ensure that the resource limit is not exceeded and
the technical relationships in the project network are not altered.

Resource Constraints

The most important resources that project managers have to plan and manage on day-to-day
basis are people, machines, materials, and working capital. Obviously, if these resources are
available in abundance then the project could be accelerated to achieve shorter project duration.
On the other hand, if these resources are severely limited, then the result more likely will be a
delay in the project completion time. Depending on the type of resources, the costs of providing
an abundance of such resources to accelerate project completion time can be very high. However,
if resources are readily available and excess premiums are not incurred to use them on the
project, then project cost should be low, as some project costs are resource related while others
are likely to be time dependent. In general, projects with a shorter duration are less expensive.
The longer the duration of the project, the higher will be overall project cost due to the increase
in fixed costs such as overheads. The reality is that as long as the work on a project is ongoing it
will continue to draw resources into its orbit. Whatever the parameters of the project, it is
unlikely that the relationship between cost and duration is linear. For any particular project, the
decision to place the project on the curve between the point of least duration with its associated
higher resource requirements and a point of increased duration with its associated lower resource
requirements depends on the particular parameters of the project.

When a project plan is first devised it is likely that the plan will identify peaks of resource requirements.
However, given the finite nature of resource availability, it may be impractical to meet such peak
resource needs. Ideally, there should be an even demand for resources over the entire project duration,
with a smooth increase at the beginning of a project and a smooth decrease at the end. Given the
limited nature of resources, thoughtful consideration should be given to the project resource
requirements; the project plan should be refined when necessary so that it is practical.

Did u know? What are the four stages?
The process of refining the plan to effectively manage and schedule resources (sometimes
referred to as resource modeling) comprises four major stages: resource definition, resource
allocation, resource aggregation, and resource leveling (which includes resource
smoothing).

Resource Allocation

Resource allocation, also called resource loading, is concerned with assigning the required
number of those resources identified in the previous step to each activity identified in the plan.
More than one type of resource may be attributed to a specific activity. For example, fixing the
plates on a ship’s hull may require 10 fitters, 20 welders, 15 laborers and a certain type of
welding machine. From a practical standpoint, resource allocation does not have to follow a
constant pattern; some activities may initially require fewer resources but may require more of
the same resources during the later stages of the project. At this stage, the impact of any resource
allocation decision is not known and we cannot yet answer questions such as:

 Is lack of resources on this particular activity having an adverse effect on the duration of
the whole project? Such an activity is more likely to be on the critical path.

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