Question

In: Operations Management

Consider the portfolio of projects described in the table. The resource requirements are in numbers of...

Consider the portfolio of projects described in the table. The resource requirements are in numbers of labor hours. The Greatest Resource Utilization rule would begin work with project:

Project Date Rec'd Date Due Resource 1 Resource 2 Resource 3
A Apr 2006 Oct 2006 200 0 400
B Feb 2006 Sep 2006 150 200 170
C Mar 2006 Aug 2006 0 250 200
D Jan 2006 Nov 2006 150 100 0

Options:

A.

B.

C.

D.

Solutions

Expert Solution

Here the resource requirements are in labor hours. Hence the resource utilization is labor utilization.

Labor utilization can be found as labor hours per month, by dividing the total labor hours with the number of months for a particular portfolio

The project details are:

Project

Date Rec’d

Date Due

Resource 1

Resource 2

Resource 3

A

Apr 2006

Oct 2006

200

0

400

B

Feb 2006

Sep 2006

150

200

170

C

Mar 2006

Aug 2006

0

250

200

D

Jan 2006

Nov 2006

150

100

0

Hence the total duration (in number of months), total resource (in labor hours) and labor utilization (in labor hours per month) is:

Project

Duration (months)

Resource (labor hours)

Resource Utilization (labor hours per month)

A

6

600

100

B

7

520

74.29

C

5

450

90

D

10

250

25

Hence, according to the greatest utilization rule: Project A is the project with which one should start. This is because project A is taking the maximum time an employee should contribute hence maximizing their utilization.

.

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