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Resource Leveling
Theoretical Background & Context:
With the passage of time more and more organizations are becoming project oriented. For this
they have hired project managers to the run the projects for them. One of the key aspects that is
of utmost importance for project managers is Scheduling. Scheduling allows them to plan given
the limited resources available. Understanding the scheduling process and being able to manage
all deviances is a trait of a good project manager. One of the most used techniques for scheduling
is the Critical Path Method. The essence of the CPM includes precedence logic amongst
activities followed by a through calculation of Earliest Start (ES), Earliest Finish (EF), Latest
Start (LS) & Latest Finish (LF). All of these calculations are on the basis on the forward and
backward pass that are an integral part of CPM. Using the calculated figures the total float and
the free floats are calculated for the complete project and individual activities.
For efficient scheduling it is vital for the project manager to understand the resource constraints
at hand to be able to efficiently manage the scheduling of the project. The three types of resource
constraints that a project manager needs to keep in mind for proficient scheduling are
People
Materials
Equipment
People constraint covers the human resources aspect. For varying skill requirements, team
members are required to ensure the timely progression of the project
Material constraint includes all physical resources required to ensure project completion on
time. Various project failures have been associated with delays in material obtainability.
Equipment constraint refers to the availability of the appropriate equipment to deliver the
project requirements.
Resource leveling, is an optimization technique that enhances the use of resources using the
demand and supply. The demand is balanced with the supply of the respective resources to create
a schedule for maximizing the utility out of the resources available. Projects are faced with
various resource constraints due to various reasons which may include parallel projects, very
specific skill sets required by employees or even time and cost factors. Over time, various
software and techniques have surfaced for resource allocation which are used by project
managers to allocate resources to their project and thereby schedule work accordingly. The basic
challenge for the project manager becomes to plan the resources accordingly. Resource leveling
allows for a deviation in the start and end times of the project to be able to accommodate the
resources available. Often resource leveling and resource smoothing are interchangeably used. It
is the process by which it is ensured that the demand for the resource does not exceed the supply
of the resource.
1
A guide to the Project Management Body of Knowledge (PMBOK Guide). 5th Edition
2
Y. Liu, S. Zhao, X. Du, and S. Li, Optimization of resource allocation in construction using genetic algorithms, in Proceedings of the
International Conference on Machine Learning and Cybernetics (ICMLC '05), vol. 2, pp. 34283432, August 2005
The genetic algorithm-based multiresource leveling model was developed through MS Excel.
The module automatically calculates the start and the finish times of an activity at each unit after
its duration and production rate are calculated. The principles of optimum crew size and natural
rhythm provided the basis for the proposed model. It produces a work schedule in which
resource allocation is automatically performed to provide a continuous and uninterrupted use of
resources. Once LOB is developed and implemented, resource leveling is performed according to
the principle of optimum crew size that makes use of a utility curve, which shows that
productivity will suffer if the crew size varies from the planned/optimum crew size.
It is very important to understand that the project management tools support the project manager,
but do not perform the project management instead. The service of customization of an existing
tool or development of a system specifically for the company needs can be also considered a
project management service.
Case Study
A very basic example to understand resource leveling would be of a construction project. There
could be two scenarios as described below.
Scenario A
The project is a time oriented one and cannot be delayed any further. The current resources
dedicated are 15 and each is fully utilized. As per the current rate of completion the project
would take 50 weeks to complete whereas the requirement is to have it completed within 42
weeks. In such a scenario the assumption at hand that we take is that resources are unlimited and
can be utilized fully. The respective project manager would make use of resource leveling and
utilize more resources such that the revised schedule with the additional resources ensures that
the project completion timeline of 42 weeks is met.
Scenario B
This project is one with a resource constraint. Currently 15 individuals are deployed on the
project and the project completion timeline is 42 weeks. The project manager can only use 10
resources and he has to let go off 5 resources. Once that decision is made the project manager is
in a situation whereby 10 of his workers have work of about 12 hours to be completed within an
8 hour work day. The project manager makes use of resource leveling and allocates work such
that no individual has to complete more than 8 hours of work a day. This delays the project
completion date from 42nd week to 50th week.
Below is a graphical snapshot of the impact of resource leveling.
Hours Worked
9 8
6
8.5
4
8 2
7.5 0
1 2 3 4 5 1 2 3 4 5 6
Staff Staff
Conclusion
At a point in time resource leveling was considered a very vague topic but there has been extensive
research on the subject over time. Multiple researchers have covered various aspects to increase
efficiency of the technique and there are various tools available nowadays that help complete resource
leveling for project managers. Resource leveling will continue to evolve as time progresses and we hope
to see industries widely adopt it for optimization of resources for the benefit of the organizations.
References
1. A guide to the Project Management Body of Knowledge (PMBOK Guide). 5th Edition
5. Atilla Damci, David Arditi and Gul Polat. Resource Leveling in Line-of-Balance
Scheduling. Computer-Aided Civil and Infrastructure Engineering. Volume 28, Issue 9,
pages 679692, October 2013
10. Construction Scheduling Using the Constraint Satisfaction Problem Method. By:
Lorterapong, Pasit; Ussavadilokrit, Mongkol. Journal of Construction Engineering &
Management. Apr2013, Vol. 139 Issue 4, p414-422. 9p. 9 Diagrams, 5 Charts. DOI:
10.1061/(ASCE)CO.1943-7862.0000582.
11. Efficient Managing of Complex Programs with Project Management Services. Marina
Stoshikj, Natalia Kryvinska & Christine Strauss. Global Journal of Flexible Systems
Management (March 2014) 15(1):2538. DOI 10.1007/s40171-013-0051-8
12. Multiresource Leveling in Line-of-Balance Scheduling. Atilla Damci; David Arditi,
M.ASCE; and Gul Polat
13. Resource leveling scheduling by an ant colony-based model. Mohsen Garmsiri* and
Mohammad Reza Abassi. Garmsiri and Abassi Journal of Industrial Engineering
International 2012, 8:7
Appendix:
Multi-resource Leveling in Line-of-Balance Scheduling
Author Atilla Damci1; David Arditi, M.ASCE2; and Gul Polat3
Date September 2013
Document Journal of Construction Engineering & Management ASCE
Key Words Line-of-balance; Multiresource leveling; Genetic algorithm; Cost and schedule
The most controllable factor in handling a project is the effective utilization of
the resources. That is what going to differentiate 1 Project from the other with
similar deliverables and availability of resources. Resource management is the
key factors in developing dependable project and cost schedules. Two primary
approaches used for resources management are: Resource allocation and resource
leveling respectively.
The principle of natural rhythm that allows shifting the start times of an activity
forward or backward at different units of production by changing the number of
crews employed. When applied to the LOB schedule of a pipeline project that
was used to illustrate the model, it was observed that the proposed multi-resource
leveling model provided a smoother resource utilization histogram while
maintaining optimum productivity.
The second module of the model deals with resource leveling through an add-in
called Evolutionary Solver that allows the application of genetic algorithms to
perform resource leveling.
The constraints for the model are specified in the third step. The first constraint
ensures that the earliest change in the number of crews can be accommodated
only after the first crew moves to its next destination
Efficient and effective resource management is the key to success in any Project.
Inappropriate use resources can affect the reliability of the project schedule. This
tool really can help the project manager or organizations to have control over
resource allocation.
Challenges:
This model can be inefficient on large-scale problems with too many variables
because it may consume too much computer time to find the optimal solution and
in some cases, may not be able to find the solution.
Misc. Ideas
This requires a lot of focus on extracting, populating and reviewing data. The
data is based on some assumptions and variables which can be changed. So one
can miss the big picture while just focusing on the available information.
Based on above there is a lot of data to analyze which can really suppress the
creativity of the individual to manage resources.
1989 onwards, various studies were conducted to study the real-life scheduling
problems to come up with an alternate solution. Researchers included, Easa
(1989), Leu et al (2000), Kastor and Sirakoulis (2009), Jian and Shi (2005), Kim
and Graza (2005), Najafia et al (2009) and many more. Some researchers like
Najafia and Jiang and Shi have developed algorithms as part of their research to
solve the challenges at hand. Whereas others have used other techniques like
CPM (Kim and Graza) and other methods for resource allocation.
Kim et al (2005) took his research to the next level whereby he suggested a
hybrid algorithm to solve resource constrained multiple project scheduling
Short
problem. In 2006, Buddhakulsomsiri and Kim, suggested a solution of splitting
Description
activities when resources are limited.
The ant colony optimization, as per the name, is based on behavior of insects, in
particular ants. Ants find the shortest route to and back from sources of food to
their nests. And once they find the food source, they leave a trail of a chemical
named pheromone. The chemical allows other ants to know the route to the
food and back home. When the next ant uses the same path based on the
pheromone left by one of the other ants it also leaves the same chemical behind
for other ends. Eventually the path is overloaded with chemical (pheromone)
presence for others ants to realize that this is the path to follow which decreases
the chances of the other ants using any other part. Using the analogy, the ant
colony optimization algorithm is a simulation using the process of how ants find
food and let others know to create a real life model to understand resource
levelling. The model has two main objectives.
Identification of minimum time T
Minimize resource usage amount
Over other algorithm models, the advantage that the ant colony optimization
algorithm has is that it can be run continuously and adapt to changes in real time.
The basic ACO algorithm involves the following:
Ants choose the trail with the largest concentration of pheromone with
a certain probability p
For a whole colony following this behavior, the shortest path will be
much higher in pheromone concentration than the other paths. Then, the
probability of choosing any other paths will be very small
Projects face various deviations in terms of time and the costs associated and
resource levelling is an important tool to overcome those challenges. The paper
presents one of the tools, Ant colony optimization which is a means to level the
resources. The paper analyses the ant colony based model and its application in
detail. The journal concludes highlighting the importance of the model and
informing that the model will be further developed into a system so that it can
easily be adopted by professionals to resolve their real-life scheduling problems.
The model, albeit an interesting one, has a set of assumptions which create a set
Misc. Ideas of limitation for it. It can only be applied to projects that fit within its
assumptions.
URL http://link.springer.com/article/10.1186/2251-712X-8-7/fulltext.html
(Link)
Analyzed
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Open source examples provide even better understanding of the need of project
Short management as a service because the tool itself is on disposal at no cost, but the
Description client has costs for the service of functionality adjustments.
One thing is sure when speaking about developments in the software industry
advancement and improvement are always possible.
Due to the market developments and competition increase, the project-based
workload in organizations is increasing, even in companies that were traditionally
not working in this way.
With this the need for appropriate project management system is increasing.
That is why the internal analysis of the company and knowledge of the business
needs is prerequisite for successful selection and tool implementation.
Our work discussed the project management concept because the one is basis for
right assessment of client needs and poses evaluation criteria that have to be
considered when deciding on a certain solution.
The solution must follow the company policies in regard to resources, time and
cost management, collaboration etc.
The same project management techniques and approaches are not necessarily
equally effective in different companies.
However, it does not mean that the project management performance cannot be
actually done by other party and with it optimized.
It is very important to understand that the project management tools support the
project manager, but do not perform the project management instead.
The diverse social and cultural background, level of experience and project
involvement of the different persons represents significant challenges for
effective communication.
Misc. Ideas
Project management has established itself as a universal set of techniques, which
finds applicability in any type of activity in any sector, nevertheless if the project
management is internally performed, or assigned to external service providers, it
has to manage the various tasks in a comprehensive manner
URL Athens. Article attached.
(Link)
Analyzed
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A Novel Resource- Leveling Approach for Construction Project Based on Differential Evolution
Author Hong-Hai Tran and Nhat-Duc Hoang
Date 21 May 2014
Hindawi Publishing Corporation, Journal of Construction Engineering, Volume
Document
2014
Heuristic Methods, Resource leveling based on differential evolution(RLDE),
Key Words
Mathematical techniques
In this paper, the researchers introduce a new approach for resource leveling
based on differential evolution, which is named as resource leveling based on
differential evolution (RLDE).
The paper first highlights the issues pertaining to resources in construction
projects, where managing resources is a critical part of the project. The
Short researchers stresses the fact that in such projects, contractors need to effectively
Description manage resources as stakes are high and failure to manage resources properly
can lead to project delays and financial losses to the owner.
In construction projects where human resource, equipment and money are the
key resource requirements, there are usually fluctuations in resources. This can
result in issues related to costs, as hiring and laying off workers for a short
period of time can be costly for the contractors. Moreover, hiring resources and
keeping them to meet the demand during peak can also result in lower profits as
resources would be idle during the low demand period.
To cater this issue, resource leveling technique is used to minimize such
fluctuation in resources. This is achieved by moving activities which are non-
critical within their floats and thus not effecting the project duration.
The researchers then highlight the short comings in the existing techniques used
for resource leveling. It states that the mathematical techniques used for resource
leveling are not practical in cases where the size of project network is high.
Other techniques like heuristic methods which is used in software such as
Microsoft Project is also not always suitable they operate on certain rules based
on the type of the problem.
The paper further mentions that the use of evolutionary algorithm (EAs) has
gained some popularity in recent years in order to find a feasible solution to
resource leveling issues.
As a result of such limitations, the researchers stresses the superiority of
differential evolution DE which is a population based stochastic search engine
and thus proposes a new technique for resource leveling which is called resource
leveling based on differential evolution (RLDE). The aim of RLDE is to
minimize variations in resources required and utilized on a daily basis and to
achieve a maximum uniform level of resources without any issues of idle
resources. The researchers then attempted to demonstrate the superiority of
RLDE approach over Microsoft Project 2007 and other algorithms such as
genetic algorithm (GA) and particle swarm optimization algorithm (PSO) with
the help of an experiment result by using these techniques on a project consisting
of 44 activities.
Thus the researchers concluded that the new RLDE is a good approach to help
project managers deal with the resource leveling issues.
The short comings in the existing resource leveling tools and the comparison
Misc. Ideas between resource leveling based on differential evolution (RLDE), genetic
algorithm (GA) and particle swarm optimization algorithm (PSO)
URL http://dx.doi.org/10.1155/2014/648938
(Link)
Analyzed
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Having such a changing and complex environment any schedule must be subject
to continuous revision to remain in line with project status.
CSP based scheduling method is able to meet with various types of constraints
involve in construction projects.
The paper employees various used techniques to make schedule which satisfy
project constraints & define CSP schedule performed in five stages as :
Stage 1: Identification & Define of Project Activities & Constraints.
Stage 2: Imposition of Project Constraints.
Stage 3: Backtracking in case of non-satisfying situation & decision for
Alternate schedule.
Stage 4: In case of non-satisfaction of constraint, relaxation is asked.
Stage 5: Realization of Plan & Decide Activity Start & Finish Time.
Example:
A general hospital decided to construct a new building right across its old
building. The construction has to be completed within twenty weeks and the
management has demanded that the old hospital building should be functional
during the construction. For the old building two gates are used to serve the
hospital while third gate is used as a spare gate. Decision with regards to gates
which will be in service during the construction is left at the project level.
Besides these managerial constraints, the technological constraints were given
separately in a table. The researcher than demonstrate the solution using CPM
and CSP approaches and shows a comparison between the two methods
.
The example shows that CPM based method emphasized on pre-determine and
fixed logic based scheduling activities requiring planners to understand all the
constraints in the beginning of the scheduling process. Whereas on the other
hand CSP based method allow constraints to be incorporated in a flexible way.
In end researchers concludes that CSP based methods are more practical in
construction scheduling as compare to CPM which is at present in adequate for
real life constrains in construction projects. This research lays a foundation for
more research in future which can be expanded in other areas.
Misc. Ideas Advantage of CSP based scheduling methods over CPM in construction projects.
URL http://dx.doi.org/10.1061/(ASCE)CO.1943-7862.0000582
(Link)
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In hybrid model, a schedule was computed and for every review meeting and was
used as a controlling tool, the scrum team experiences were incorporated in the
model. Till the project ended, the next iteration is computed with the exact same
process. The model was tested on four different projects with three scrum teams.
The Hybrid model showed very good results as compared to the SCRUM model
in terms of cost and efficiency both. Which reflected that Agile and traditional
methods are not exactly incompatible.
The results indicated that using quantitative model for agile developments could
prove to be beneficial for project management.
Challenges:
Further research needs to be done. Other than that it will require more human
Misc. Ideas
resource as the software developers could not be overburdened.