# Resource-Allocation.ppt

16 de Mar de 2023
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### Resource-Allocation.ppt

• 2. Allocating Resources to the Project  Allocation of physical resources to one or multiple projects.  At any given time, the firm may have fixed level of various resources like - labor-hours of various types of professionals - machine hours of various types of machinery - hours of computing time - specialized locations  The project schedule should be adjusted to smooth the use of the resources
• 3. Critical Path Method—Crashing a Project  Time and cost are interrelated  The faster an activity is completed, the more it costs  Change the schedule and you change the budget  Thus many activities can be speeded up by spending more money
• 4. What is Crashing / Crunching?  To speed up, or expedite, a project  Of course, the resources to do this must be available  Crunching a project changes the schedule for all activities  This will have an impact on schedules for all the subcontractors  Crunching a project often introduces unanticipated problems
• 5. Direct Cost vs. Indirect Cost  Direct cost increases if the activity duration is to be reduced.  The Indirect cost decreases if the activity duration is to be reduced.
• 7. An Example of Two-Time CPM
• 8. Activity Slopes—Cost per Period for Crashing Negative slope: as the time required for a project or task is decreased, the cost is increased.
• 9. Crashing the Project When crashing a project, first task is to develop a table or graph of the cost of a project as a function of the project’s various possible completion dates. Crash selected activities, one at a time, to decrease the project duration.
• 10. Crashing the Project Two principles: •Focus on the critical path(s) when trying to shorten the duration of a project. (Crashing a non-critical activity will not influence project duration.) •When shortening a project’s duration, select the least expensive way to do it.
• 11. Crashing example 1 3 2 4 6 5 D [10,8] 10 •Direct Cost – Rs. 25,500 Indirect Cost – Rs. 200/day
• 12. Step 1 Path Normal Crashing A by 2 day ADG 21 19 AEH 37 35 BH 35 35 CFH 25 25
• 13. Step 2 Path Normal Crashing A by 2 day Crashing E, B by 3 days ADG 21 19 19 AEH 37 35 32 BH 35 35 32 CFH 25 25 25
• 14. Step 3 Path Normal Crashing A by 2 day Crashing E, B by 3 days Crashing H by 2 days ADG 21 19 19 19 AEH 37 35 32 30 BH 35 35 32 30 CFH 25 25 25 23
• 16. 2 5 3 6 7 1 4 A [9,6] 210 G [5,3] 180 H [2,1] 300 Question •Direct Cost – Rs. 37,500 Indirect Cost – Rs. 250/day
• 18. Question 1: Events Normal Crash Activity Time (days) Cost (Rs) Time (days) Cost (Rs) 1-2 3 360 2 400 2-3 6 1440 4 1620 2-4 9 2160 5 2380 2-5 7 1120 5 1600 3-4 8 400 4 800 4-5 5 1600 3 1770 5-6 3 480 2 760 Indirect cost: Rs100/day
• 19. Question 2: Normal Crash Activity Time (days) Cost (Rs) Time (days) Cost (Rs) Slope 1-2 8 100 6 200 50 1-3 4 150 2 350 100 2-4 2 50 1 90 40 2-5 10 100 5 400 60 3-4 5 100 1 200 25 4-5 3 80 1 100 10 Indirect cost: Rs. 70/day
• 20. Risks in Project Crashing Various external and internal factors may lead project manager to go for crashing, but it usually affects the quality of work as the time taken (besides cost) is the major issue on his mind:  New resources aren't going to be familiar with the tasks at hand, so they will probably be less productive than current team members.  Who will guide the new members up the learning curve? Usually it will be the most productive members of the team, who could themselves be working to get the task finished more quickly.  Being available does not equal being qualified. For example, while outsourcing, one can't be sure that workers are trained enough to deliver as per expected standards.
• 21. Project Fast Tracking  Fast tracking means that the activities that are normally done in sequence are instead performed partially in parallel. In other words, Fast tracking is applied by re-scheduling various activities within the project to be worked on simultaneously instead of waiting for each piece to be completed separately.  Fast-tracking always involves risk that could lead to increased cost and some rework later.  A good rule of thumb is that sequential activities can sometimes be fast-tracked by up to 33%. In other words, if you're fast-tracking, you can start the second of two sequential activities when the first activity is 66% complete.
• 22. The Resource Allocation Problem  As discussed, CPM/PERT ignore resource utilization and availability  Critical resources can’t be renewed or inventoried.  Schedules need to be evaluated in terms of both time and resources (scarce ones)  Time Limited vs. Resource Limited
• 23. Resource Loading  Resource loading describes the amount of resources an existing schedule requires  Gives an understanding of the demands a project will make of a firm’s resources
• 26. Resource Leveling  Approach to even out the peaks and valleys of resource requirements so that a fixed amount of resources can be employed over time.  Less hands-on management is required  May be able to use just-in-time inventory  Improves morale  Fewer personnel problems
• 27. Resource Leveling Continued  When an activity has slack, we can move that activity to shift its resource usage  May also be possible to alter the sequence of activities to levelize resources  Small projects can be levelized by hand  Software can levelize resources for larger projects  Large projects with multiple resources are very complex to levelize
• 28. Resource Leveling Steps Create a project activity network diagram and mention the duration of the activities Calculate EOT( earliest occurrence time) for all the events. This helps in calculation of float/ slack of activities Develop a time-phased resource loading diagram Identify any resource conflicts and begin to smooth the loading table using slacks
• 29. Resource Leveling Techniques 1. Shift the start date of an activity within its slack time 2. Split the activity within its slack time
• 30. Resource Leveling Example: Activity Duration Manpower Req. 1-2 6 8 1-3 10 4 1-4 6 9 2-3 10 7 2-4 4 6 3-5 6 17 4-5 6 6 Q: Reduce the peak manpower requirement and smoothen the period to period resource requirement.
• 32. Question:  A job requires the following resources: Six crane operators have been recruited for the job. How would you manage the job so as to complete it at the earliest?
• 33. Constrained Resource Scheduling Heuristic Approach An approach, such as a rule of thumb, that yields a good solution that may or may not be optimal. Optimization Approach An approach, such as linear programming, that yields the one best solution.
• 34. Heuristic Methods  The only feasible way on large projects  While not optimal, the schedules are very good  Take the CPM/PERT schedule as a baseline  They sequentially step through the schedule trying to move resource requirements around to levelize them  Resources are moved around based on one or more priority rules
• 35. Common Priority Rules  As soon as possible  As late as possible  Shortest task first  Most resources first  Minimum slack first  Most critical followers  Most successors  Arbitrary
• 36. Heuristic Methods Continued  These are just the common ones  There are many more  The heuristic can either start at the beginning and work forwards  Or it can start at the end and work backwards
• 37. Optimization Methods  Finds the one best solution  Uses either linear programming or enumeration  Not all projects can be optimized  Approaches only work with small to medium projects
• 38. Multi-Project Scheduling and Resource Allocation  Scheduling and resource allocation problems increase with more than one project  The greater the number of projects, the greater the problems  One way is to consider each project as part of a much larger project  However, different projects have different goals so combining may not make sense  Must also tell us if there are resources to tackle new projects we are considering
• 39. Standards to Measure Schedule Effectiveness 1. Schedule slippage 2. Resource utilization 3. In-process inventory
• 40. Schedule Slippage  The time past a project’s due date when the project is completed  Slippage may cause penalties  Different projects will have different penalties  Expediting one project can cause others to slip  Taking on a new project can cause existing projects to slip
• 41. Resource Utilization  The percentage of a resource that is actually used  We want a schedule that smoothes out the dips and peaks of resource utilization  This is especially true of labor, where hiring and firing is expensive
• 42. In-Process Inventory  This is the amount of work waiting to be processed because there is a shortage of some resource  Similar to WIP in manufacturing  The cost here is holding cost
• 43. Heuristic Techniques  Multi-projects are too complex for optimization approaches  Many of the heuristics are extensions of the ones used for one project
• 44. Additional Priority Rules  Resource scheduling method  Minimum late finish time  Greatest resource demand  Greatest resource utilization  Most possible jobs