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Project Management
A Managerial Approach
Chapter 9
Resource Allocation
Fast-Tracking
Another way to expedite a project is known as fast-tracking
It refers to overlapping the design and build phases of a project Because design is usually completed before construction starts, overlapping the two activities will result in shortening the project duration
Chapter 9-4
Resource Loading
Resource loading describes the amounts of individual resources an existing schedule requires during specific time periods The loads (requirements) of each resource type are listed as a function of time period Resource loading gives a general understanding of the demands a project or set of projects will make on a firms resources
Chapter 9-9
Resource Loading
An excellent guide for early, rough project planning Because the project action plan is the source of information on activity precedences, durations, and resources requirements, it is the primary input for both the project schedule and its budget The action plan links the schedule directly to specific demands for resources
Chapter 9-10
Resource Loading
The PERT/CPM network technique can be modified to generate time-phased resource requirements The project manager must be aware of the ebbs and flows of usage for each input resource throughout the life of the project It is the project managers responsibility to ensure that the required resources, in the required amounts, are available when and where they are needed
Chapter 9-11
Resource Leveling
Resource leveling aims to minimize the periodby-period variations in resource loading by
The purpose is to create a smoother distribution of resource usage Several advantages include:
Less hands-on management is required May be able to use a just-in-time inventory policy
Chapter 9-12
Resource Leveling
When resources are leveled, the associated costs also tend to be leveled The project manager must be aware of the cash flows associated with the project and of the means of shifting them in ways that are useful to the parent firm Resource leveling is a procedure that can be used for almost all projects, whether or not resources are constrained
Chapter 9-13
Heuristic Methods
Heuristic approaches to constrained resource scheduling problems are in wide, general use for a number of reasons:
1. They are the only feasible methods of attacking the large, nonlinear, complex problems that tend to occur in the real world of project management 2. While the schedules that heuristics generate may not be optimal, they are usually quite good- certainly good enough for most purposes
Chapter 9-15
Heuristic Methods
Most heuristic solution methods start with the PERT/CPM schedule and analyze resource usage period by period, resource by resource In a period when the available supply of a resource is exceeded, the heuristic examines the tasks in that period and allocates the scarce resource to them sequentially, according to some priority rule Technological necessities always take precedence
Chapter 9-16
Heuristic Methods
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
Chapter 9-17
Heuristic Methods
Most priority rules are simple adaptations of the heuristics used for the traditional job shop scheduling problem of production/operations management Most heuristics use a combination of rules: a primary rule, and a secondary rule to break ties As the scheduling heuristic operates, one of two events will result:
The routine runs out of activities before it runs out of resources The routine runs out of resources before all activities have been scheduled
Chapter 9-18
Optimizing Methods
The methods to find an optimal solution to the constrained resource scheduling problem fall into two categories:
Mathematical programming Enumeration
Mathematical programming can be thought of as liner programming (LP) for the most part
Chapter 9-19
Optimizing Methods
Linear programming is usually not feasible for reasonably large projects where there may be a dozen resources and thousands of activities In the late 1960s and early 1970s, limited enumeration techniques were applied to the constrained resource problem Tree search, and branch and bound methods were devised to handle up to five resources and 200 activities
Chapter 9-20
Resource utilization
In-process inventory
The organization (or the project manager) must select the criterion most appropriate for its situation
Chapter 9-22
Mathematical Programming
Mathematical programming can be used to obtain solutions to certain types of multiproject scheduling problems These procedures determine when an activity should be scheduled, given resource constraints Mathematical programming, however, is rarely used in project management to handle the multiproject problem (mostly, heuristics are used)
Chapter 9-25
Mathematical Programming
The three most common objectives of mathematical programming are:
1. Minimum total throughput time (time in the shop) for all projects 2. Minimum total completion time for all projects 3. Minimum total lateness or lateness penalty for all projects
These objectives are most appropriate for job shop type solutions to resource constraints
Chapter 9-26
Heuristic Techniques
There are scores of different heuristic-based procedures in existence They represent rather simple extensions of well-known approaches to job-shop scheduling:
Resource Scheduling Method Minimum late finish time Greatest resource demand Greatest resource utilization Most possible jobs
Chapter 9-27
Summary
The critical path method (CPM) is a network constructed in the same manner as PERT but considers the possibility of adding resources to tasks to shorten their duration The resource allocation problem is concerned with determining the best trade-offs between available resources, including time, throughout the duration of the project
Chapter 9-28
Summary
Resource loading is the process of calculating the total load from project tasks on each resource for each time period of the projects duration Resource leveling is concerned with evening out the demand for various resources required in a project by shifting tasks within their slack allowances
Chapter 9-29
Summary
There are two basic approaches to addressing the constrained resources allocation problem:
Heuristic methods Optimizing methods
For multiproject scheduling, three important measures of effectiveness are schedule slippage, resource utilization, and level of inprocess inventory
Chapter 9-30
Summary
When a new project is added to a multiproject system, the amount of slippage is directly related to the average resource load Mathematical programming models for multiproject scheduling aim to either minimize total throughput time for all projects, minimize the completion time for all projects, or minimize total lateness for all projects
Chapter 9-31
Resource Allocation
Questions?
Chapter 9-32
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Picture Files
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Figure 9-1
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Figure 9-2
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Figure 9-3
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Figure 9-4
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Figure 9-5
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Figure 9-6
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Figure 9-7
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Figure 9-8
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Figure 9-9a
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Figure 9-9b
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Figure 9-10
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Figure 9-11
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Figure 9-12
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Figure 9-13
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Figure 9-14
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Figure 9-15
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Figure 9-16
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Table Files
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