Resource Planning A resource may be defined as the machine or person who will perform the scope of work.

Resource planning is therefore forecasting the resources required to perform the scope of work within time plan. The resource constraint should be considered after the network diagram, schedule bar-chart and procurement schedule have been developed, but before the cash-flow statement. Resource Estimating The resource estimates is linked directly to the scope of work and bill of materials. The scope of work may be expressed as so many tones of steel, or so many square meters of wall paint etc. From this description estimator can convert the scope of work into manhours per unit X. It may be represented by the formula: (tonne)(manhour per tone)/time in hours per day Example: Determine the manhours required to erect 12 tonnes of steel by 150 persons working 10 hours per day per shift. 12x150/10=180 manhours

By varying resource ability, the duration of the activity will change. As the time and budget parameters are the first to be planned, the room for resource planning may have already been constrained. In this case the resource analysis function is to forecast the manpower resources required to meet the time and budget. In practice the figures are not always so simple, certain industries work in multi-trade , for example , a bricklayer, electrician, carpenter and labor may work together and the estimated total hours may include a contribution from each trade. Resource Forecasting The next step is to forecast the total resource requirement by discipline or interchangeable resource. An interchangeable resource is when you have a pool of workers and any one of them could perform the work. This is done by compiling all the resource estimates and presenting them in a structured resource table.
Activity Number Resource Type Quantity per day Resource Duration Lead Time 100 Builder 2 2 0 200 Builder 4 4 2 300 Builder 3 2 6

Activity Number The resource information is addressed through an activity number. Therefore the timing of the resource can be linked directly with schedule of that activity. This is why it is necessary to perform the CPM analysis and activity scheduling before resources analysis. Resource Type This field is used to distinguish the different types of resource, for example, it could be Mr. Mike , an engineer, a welder or a builder. Quantity per Day Use this field to enter the quantity of resource required per day, in this case activity 100 requires 2 builders per day. Duration Use this field to indicate how many days the resource will be work on that activity. This number can be less than the duration of the activity, but obviously not more. Lead Time The lead time is the difference between the activitys scheduled start and the resources start. For example activity 200 the builder starts two days after the early start of the activity time.

Resource Available The next step is to quantify the resources available inside and outside the company. The following points should be considered: Other resource commitments: If your company is involved in a number of projects which all draw from a common labor pool, the other projects requirement s must be considered. The anticipated sickness and absentees rate. For example 25% were observed in a company.

Resource Loading The resource forecast is now compared with the resources available. The ideal situation is achieved when the resources requirement equals the resources available. Unfortunately, in project management this seldom happens, because it not always possible to adjust supply with demand, so some form of compromise is essential. The overloads and underloads can be identified and addressed as following: Resource Smoothing: assign resources to critical activities first, then try moving the other activities to ease any overload and under-utilization. Time limited Resource Scheduling: the end date of the project is fixed, so resources must increase to address any overloads. Resource Limited Resource Scheduling: the maximum number of resources is fixed, so the end date need not to be extended to address any overload.

Increase Resources: to address an overload. Reduce Resources: to address an underload (underutilized).

Resource Smoothing Resource smoothing is the process of moving activities to improve the resource loading profile. The first step is to select the resource to be smoothed, because it is not possible to smooth for more than one resource at a time. To decide which resource to smooth consider: The resource that is most overloaded. The resource most used on the project. The least flexible resource- this could be the resource that comes from overseas, is difficult to get hold of or is least available. The most expensive resource to hire.

This can be leveled by moving activities away from the overloaded area by either: Changing the logic of the network. Moving non-critical with their float so that the end date of the project is not affected, while making sure the network logic is maintained. This is similar to assigning resources to critical activities first.

Increase Resources When the resources are overloaded there are a number of options to the resources available: Working Overtime: This will increase the number of hours available without having to employ more staff. This can be achieved by working more hours per day and more days per week, however working overtime will increase the labor rate and may reduce productivity. Working Shifts: This will increase the utilization of machines, equipment and also increase the number of manhours worked in confined space. Increase Productivity: Education and training should improve productivity especially if it incorporates automation. However, this is really a long term strategy which may not be able to address your short term needs.

Job and Knock: When workers have finished a job, they can leave the factory, although they will be paid for full day or shift. The benefit here is that the job will not be stretched out. Sub-Contractors: Using sub-contractors will increase the workforce in the short term. The benefit here is that there are no long term commitments, but the labor costs will be higher. Using subcontractors can also be useful to check the performance of your in-house workforce.

Reduce Resources When the resources are unloaded, or underutilized there are number of options for reducing the available resources: Move unemployed resources to critical activities. Move unemployed resources to fill-in jobs which either have a resale value or can be used by the company, i. g. building a space house. Hire out resources internally or externally- the hire rate can be competitively reduced to at least make a contribution their salary. Pre-manufacture to make components before they are needed. However, check the trade-off between resource utilization and additional cost of the trial assembly, disassembly and handling. Maintenance of equipment during slack periods. Train your workforce during slack periods to gain new skills which make them more productive and flexible in the future. Send underutilized workforce on leave.

The profit of a company in the long term well depend directly on the efficient utilization of its resources.