In: Operations Management
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.
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.
.
IF YOU HAVE ANY DOUBT, KINDLY COMMENT. I WOULD LOVE TO HELP YOU!!!
IF YOU LIKE THE ANSWER, PLEASE GIVE AN UP-VOTE OR THUMB UP. THIS WILL ENCOURAGE ME TO ANSWER MORE!!