Where We Are Now

© McGraw Hill 1
 Learning Objectives

8-1 Understand the differences between time-constrained and resource-

constrained schedules.
8-2 Identify different types of resource constraints.
8-3 Describe how the smoothing approach is used on time-constrained
projects.
8-4 Describe how the leveling approach is used for resource-constrained
projects.
8-5 Understand how project management software creates resource
constrained schedules.
8-6 Understand when and why splitting tasks should be avoided.
8-7 Identify general guidelines for assigning people to specific tasks.
8-8 Identify common problems with multiproject resource scheduling.
8-9 Explain why a time-phased budget baseline is needed.
8-10 Create a time-phased project budget baseline.

© McGraw Hill 2
 Chapter Outline

8.1 Overview of the Resource Scheduling Problem

8.2 Types of Resource Constraints
8.3 Classification of a Scheduling Problem
8.4 Resource Allocation Methods
8.5 Computer Demonstration of Resource-Constrained Scheduling
8.6 Splitting Activities
8.7 Benefits of Scheduling Resources
8.8 Assigning Project Work
8.9 Multiproject Resource Schedules
8.10 Using the Resource Schedule to Develop a Project Cost Baseline

© McGraw Hill 3
 8.1 Overview of the Resource Scheduling Problem

Resources and Priorities

• Project network times are not a schedule until resources
have been assigned.
• The implicit assumption is that resources will be available in the
required amounts when needed.
• There are always more project proposals than there are available
resources.
• The project priority team will add a new project only if resources are
available.
• Cost estimates are not a budget until they have been time-
phased.
• Once resource assignments have been finalized, you are able to
develop a baseline budget schedule for the project.

© McGraw Hill 4
Overview of the Resource
Scheduling Problem

Adequacy of labour?
Contractors from outside required?

Dependencies of resources when new

critical path?

Flexibility of resources?
Original deadline is realistic?

© McGraw-Hill Education. 8-5

© McGraw Hill 5
 Project Planning Process

FIGURE 8.1 Access the text alternative for slide images.

© McGraw Hill 6
 The Resource Scheduling Problem

Resource Smoothing
• Involves attempting to even out varying demands on
resources by delaying noncritical activities (using slack) to
lower peak resource demand and, thus, increase
resource utilization when resources are adequate over
the life of the project.
Resource-Constrained Scheduling
• Occurs when resources are not adequate to meet peak
demands. The late start of some activities must be
delayed, and the duration of the project may be increased.

© McGraw Hill 7
 Types of Project Constraints

Technical or Logical Constraints

• Are related to the networked sequence in which project activities must occur.
Physical Constraints
• Activities that cannot occur in parallel or are affected by contractual or
environmental conditions
Resource Constraints
• Occur when the absence, shortage, or unique interrelationship and interaction
characteristics of resources require a particular sequencing of project activities.
• Note that the resource dependency takes priority over the technological
dependency but does not violate the technological dependency.
Types of Resources Constraints
• People –(when exchanged –loss of productivity)
• Materials- (survey data/ concrete/chemicals)
• Equipment
• Common pool for the resources

© McGraw Hill 8
 Constraint Examples

Resource conflicts

FIGURE 8.2 Access the text alternative for slide images.

© McGraw Hill 9
 8.3 Classification of a Scheduling Problem
Classification of Problem
• Using a priority matrix will help determine if the project is time or
resource constrained
Time-Constrained Project
• Must be completed by an imposed date.
• Time (project duration) is fixed and resources are flexible. If required,
resources can be added to ensure the project is completed by a specific
date.
Resource-Constrained Project
• Assumes the level of resources available cannot be exceeded.
• Resources are fixed and time is flexible. If the resources are inadequate,
it will be acceptable to delay the project.
• Consult a project priority matrix to determine if the project is time- or
resource- constrained.

© McGraw Hill 10
 8.4 Resource Allocation Methods

Limiting Assumptions
• Splitting activities will not be allowed.
• Splitting refers to interrupting work on one task and assigning the
resources to work on a different task for a period of time, then
reassigning them to work on the original task.
• Level of resources used for an activity cannot be changed.
Risk Assumptions
• Activities with the most slack pose the least risk.
• Reduction of flexibility does not increase risk.
• The nature of an activity (easy, complex) doesn’t increase
risk.

© McGraw Hill 11
 Time-Constrained Projects

Must be completed by an imposed date.

Focus on resource utilization.
Require use of resource smoothing techniques that balance demand for a
resource.
Leveling (Smoothing) Techniques
• Delay noncritical activities by using positive slack to reduce peak demand and
fill in the valleys for the resources without delaying the entire project.
Goals of Smoothing Resource Demand
• Reduce the peak of demand for the resource.
• Reduce the number of resources over the life of the project.
• Minimize the fluctuation in resource demand.
Downside of Smoothing Resource Demand
• Loss of flexibility that occurs from reducing slack.
• Creates more critical activities and/or near-critical activities because of slack
reduction.

© McGraw Hill 12
 Botanical Garden

FIGURE 8.3
© McGraw Hill 13
 Resource-Constrained Projects

Resources are limited in quantity or availability.

Activities are scheduled using heuristics (rules of thumb) by
following the priority rules:
1. Minimum slack
2. Smallest (least) duration
3. Lowest activity identification number
The parallel method is used to apply heuristics.
• The parallel method is an iterative process that starts from
the beginning of project time and, when the resources
needed exceed the resources available, retains activities
first by the priority rules.

© McGraw Hill 14
 Resource-Constrained Schedule through Period 2-3

FIGURE 8.4 Access the text alternative for slide images.

© McGraw Hill 15
 Resource-Constrained Schedule through Period 5-6

FIGURE 8.5 Access the text alternative for slide images.

© McGraw Hill 16
 8.5 Computer Demonstration of Resource-Constrained
Scheduling

EMR Project
• The development of a hand-held electronic medical reference
guide to be used by emergency medical technicians and
paramedics.
Resource Problem
• Only eight design engineers can be assigned to the project due
to the shortage of design engineers and commitments to other
projects.
• The peak demand is 21 design engineers.

© McGraw Hill 17
 EMR Project Network View Schedule before Resources
Leveled

FIGURE 8.6 Access the text alternative for slide images.

© McGraw Hill 18
 EMR Project before Resources Added

FIGURE 8.7 Access the text alternative for slide images.

© McGraw Hill 19
 EMR Project—Time-Constrained Resource Usage View,
January 15-23

Resource Name Work Jan 15 Jan 21

T W T F S S M T W
Design engineers 3,024 hrs 72h 136h 136h 168h 168h 144h 104h 88h 64h
Architectural decisions 200 hrs
Internal specs 480 hrs 40h 40h 40h
External specs 224 hrs
Feature specs 320 hrs 32h
Voice recognition SW 320 hrs 32h 32h 32h 32h 32h 32h
Case 64 hrs 16h 16h 16h 16h
Screen 48 hrs 24h 24h
Database 800 hrs 32h 32h 32h 32h 32h 32h 32h 32h
Microphone-soundcard 80 hrs 16h 16h 16h 16h 16h
Digital devices 168 hrs 24h 24h 24h 24h 24h 24h 24h
Computer I/O 120 hrs 24h 24h 24h 24h 24h
Review design 200 hrs

FIGURE 8.8A
© McGraw Hill 20
 Resource Loading Chart for EMR Project, January 15-23

FIGURE 8.8B Access the text alternative for slide images.

© McGraw Hill 21
 EMR Project Network View Schedule after Resources
Leveled

FIGURE 8.9 Access the text alternative for slide images.

© McGraw Hill 22
 EMR Project Resources Leveled

FIGURE 8.10 Access the text alternative for slide images.

© McGraw Hill 23
 The Impacts of Resource-Constrained Scheduling

Reduces slack; reduce flexibility

Increases the number of critical and near-critical activities

Increases scheduling complexity because resource constraints are added

to technical constraints

May make the traditional critical path no longer meaningful

Can break the sequence and leave the network with a set of disjointed
critical activities

May cause parallel activities to become sequential

Can change activities from critical to noncritical

© McGraw Hill 24
 © McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No
8-25
reproduction
© McGraw Hill or further distribution permitted without the prior written consent of McGraw-Hill Education. 25
 8.6 Splitting Activities

Splitting Tasks

• Is a scheduling technique used to get a better project schedule

and/or to increase resource utilization.

• Involves interrupting the work and sending the resource to

another activity for a period of time and then having the
resource resume work on the original activity.

• Can be useful if the work involved does not include large start-
up or shut-down costs.

• Is considered a major reason why projects fail to meet

schedule.

© McGraw Hill 26
 Splitting Activities

FIGURE 8.11 Access the text alternative for slide images.

© McGraw Hill 27
 8.7 Benefits of Scheduling Resources

Leaves time for considering reasonable alternatives

• Cost-time tradeoffs
• Changes in priorities
Provides the information needed to prepare time-phased
work package budgets with dates
• To gauge the impact of unforeseen events
• To assess how much flexibility over certain resources

© McGraw Hill 28
 8.8 Assigning Project Work

Reasons why we should not always assign the best people the
most difficult tasks:
• Best people: resent the fact that they are always given the
toughest assignments
• Less experienced participants: resent the fact that they are
never given the opportunity to expand their skill/knowledge
base
Factors to be considered in deciding who should work together:
• Minimize unnecessary tension; complement each other.
• Experience: veterans team up with new hires.
• Future needs: have people work together early on so that they
can become familiar with each other.

© McGraw Hill 29
 8.9 Multiproject Resource Schedules

Problems in a multiproject environment

1. Overall schedule slippage
• Shared resources causes a ripple effect—delays in one project
create delays for other projects.

2. Inefficient resource utilization

• Different schedules and requirements by multiple projects create
the peaks and valleys in overall resource demands.

3. Resource bottlenecks
• Shortages of critical resources required by multiple projects cause
delays and schedule extensions.

© McGraw Hill 30
 Managing Multiproject Scheduling

Create project offices or departments to oversee the scheduling of

resources across multiple projects
Use a project priority queuing system—first come, first served for
resources
Treat individual projects as part of one big project and adapt the
scheduling heuristics to this “mega project”
Utilize project management software to prioritize resource allocation
Outsource projects to reduce the number of projects managing internally
Hire temporary workers to expedite certain activities that are falling
behind schedule
Contract project work during peak periods when there are insufficient
internal resources to meet the demands of all project

© McGraw Hill 31
 8.10 Using the Resource Schedule to Develop a Project
Cost Baseline

Why a Time-Phased Budget Baseline Is Needed

• To determine if the project is on, ahead, or behind schedule and over

or under its budgeted costs

• To assess how much work has been accomplished for the allocated
money spent—the project cost baseline (planned value, PV)

Creating a Time-Phased Budget

• Assign each work package to one responsible person or department

and deliverable

• Compare planned schedule and costs using an integrative system

called earned value

• Generate cash flow statements and resource usage schedules

© McGraw Hill 32
 Direct Labor Budget Rollup ($000)

FIGURE 8.12 Access the text alternative for slide images.

© McGraw Hill 33
 Time-Phased Work Package Budget (labor cost only)

FIGURE 8.13 Access the text alternative for slide images.

© McGraw Hill 34
 Two Time-Phased Work Packages (labor cost only)

FIGURE 8.14 Access the text alternative for slide images.

© McGraw Hill 35
 Patient Entry Project Network

FIGURE 8.15 Access the text alternative for slide images.

© McGraw Hill 36
 Patient Entry Time-Phased Work Packages Assigned

FIGURE 8.16 Access the text alternative for slide images.

© McGraw Hill 37
 Project Monthly Cash Flow Statement
January February March April May June July
Project
Hardware
Hardware specifications $11,480.00 $24,840.00 $3,360.00
Hardware design $23,120.00 $29,920.00 $14,960.00
Hardware documentation $14,080.00 $24,320.00
Prototypes
Order GXs
Assemble preproduction models
Operating system
Kernel specifications $5,320.00 $9,880.00
Drivers
OC drivers $3,360.00 $12,320.00 $11,760.00 $12,880.00
Serial VO drivers
Memory management
Operating system documentation $10,240.00 $21,760.00
Network interface
Utilities
Utilities specifications $8,400.00
Routine utilities $5,760.00 $21,120.00 $20,160.00 $10,560.00
Complex utilities
Utilities documentation $7,680.00 $17,920.00
Shell
System integration
Architectural decisions $20,400.00
Integration first phase
System H/S test
Project documentation
Integration acceptance test
Total $37,200.00 $44,960.00 $48,240.00 $55,120.00 $80,400.00 $56,240.00 $23,440.00

FIGURE 8.17
© McGraw Hill 38
 Project Weekly Resource Usage Schedule
12/30 1/6 1/13 1/20 1/27 2/03
I. Suzuki 24 hrs 40 hrs 40 hrs 40 hrs 40 hrs 40 hrs
Hardware specifications 24 hrs 40 hrs 40 hrs
Hardware design
Hardware documentation
Operating system documentation
Utilities documentation
Architectural decisions 24 hrs 40 hrs 40 hrs 16 hrs
J. Lopez 24 hrs 40 hrs 40 hrs 40 hrs 40 hrs 40 hrs
Hardware specifications 12 hrs 20 hrs 20 hrs
Hardware design
Prototypes
Kernel specifications 12 hrs 20 hrs 20 hrs
Utilities specifications
Architectural decisions 24 hrs 40 hrs 40 hrs 16 hrs
Integration first phase
J.J. Putz 24 hrs 40 hrs 40 hrs
Hardware documentation
Kernel specifications 24 hrs 40 hrs 40 hrs
Operating system documentation
Utilities documentation
Project documentation
R. Sexon 24 hrs 40 hrs 40 hrs
Hardware specifications 24 hrs 40 hrs 40 hrs
Prototypes
Assemble preproduction models
OC drivers
Complex utilities
Integration first phase
System H/S test
Integration acceptance test
FIGURE 8.18
© McGraw Hill 39
 Key Terms

Heuristics
Leveling
Planned value (PV)
Resource-constrained project
Resource-constrained scheduling
Resource smoothing
Splitting
Time-constrained project
Time-phased budget baseline

© McGraw Hill 40
You have prepared the following schedule for a project in which the key
resource is a tractor(s). There are three tractors available to the project.
Activities A and D require one tractor to complete , while activities B, C, E
and F require two tractors.

Develop a resource -constrained schedule in the loading chart that follows.

Use the parallel method and heuristics given. Be sure to update each period
as the computer would do. Record the early start (ES), late finish (LF) and
slack (SL) for the new schedule.

© McGraw-Hill Education. All rights reserved. Authorized only for instructor use in the classroom. No
8-41
reproduction
© McGraw Hill or further distribution permitted without the prior written consent of McGraw-Hill Education. 41
 Answer

© McGraw Hill 42