Question

4. What is resource leveling? Briefly describe two advantages.

Answer 1

Resource leveling is the process of streamlining resource allocation and usage so as to improve project efficiency. It is the optimal utilization of resources so that there is no under-allocation or over-allocation. The project start dates and end dates are calibrated based on resource availability so that the demand and supply of resources are balanced. Resource leveling is important as there is always a limit on the availability of resources.

The main advantages of Resource leveling are as follows:

• Resource leveling ensures that project delays are minimized or avoided. Since the resources are allocated to each task optimally, the on-time completion of all tasks becomes more likely. Resources leveling also helps to avoid delays which may be caused due to improper allocation of resources.
• Resource leveling ensures that projects are completed within their assigned budgets. Since resources are utilized optimally, the chances of budget over-runs are reduced. The under-utilization of resources may lead to resources getting idle, while over-utilization may lead to lower project efficiency. Both these scenarios that lead to an increase in project costs are reduced to minimum levels by using Resource leveling.