In: Operations Management
QUESTION TWO [18]
In many projects, the quantities of the types of resources available to perform the project activities are limited. Several activities may require the same resources at the same time, and there may not be sufficient resources available to satisfy all the demands. Resources can therefore constrain the schedule of a project.
With regard to this:
2.1 Explain what resource-constrained project planning is. (3)
2.2 Explain what is meant by resource levelling or smoothing. (3)
2.3 Describe why and when resource levelling or smoothing is used. (8)
2.4 Explain how resource levelling keeps a project on schedule. (4)
2.1 Explain what resource-constrained project planning is?
Resource constrained is made up of two words resource and constrained.
Resource =anything available to use and serve as input.
Constrained = anything that acts as a barrier which limits you.
Therefore resource-constrained is defined as the lack of available input that acts as an obstacle in the completion of a project. It is necessary for the project manager to analyse the need of the project resources in order to successful completion of the project.
Resource constrained project planning is an activity of scheduling the available resources in such a way that the project can be completed in time. If a project is not completed in time due to the lack of resources then it will hamper the image and profitability of a company. Resource constrained include three main factors that are controllable in nature. It includes:
Manpower or Employees.
Equipment or Machinery.
Available Input Resources.
Skills required by manager to deal with Resources constrained issue:
Analytical skills.
Problem solving skills.
Decision making skills.
Managerial skills etc.
Example of resource constrained
A mask manufacturing company has a deadline to manufacture 20000 masks in two days but it has limited availability of resources such as limited number of employees and lack of upgraded technology.In that case the manager needs to schedule the tasks in such a way that the available inputs can be used efficiently and productively to generate the effective result by successful accomplishment of task. This can be done by doing overtime in order to meet the deadline.
2.2 Explain what is meant by resource levelling or smoothing.
Resource Levelling
Resource levelling is defined as a project scheduling activity under which the deadline of a project can be extended due to scarcity of resources. It means levelling the available resources in such a way that this will result in completion of the project even with the cost of some delay. Under resource leveling, the project manager can extend the schedule to get the resource. It is done to maintain the balance between the demand and the available supply. In resource levelling 'Resource' is the main constraint.
It is also called Resource Constrained Scheduling (RCS). This technique focuses on the available resources rather than the project completion duration.
For example : resource leveling is seen mainly in the construction business where contaractor can shift his employees or labours to another construction project.
Resource Scheduling
Resource scheduling is defined as an activity of completion of a project within the given timeframe even at the availability of limited resources i.e.,the priority is given to the completion of a project by using all the available resources in an organisation even by delaying the other tasks. In resource scheduling 'Time' is the main constraint.
Resource smoothing is also called Time Constrained Scheduling (TCS). Project manager has to optimize the available resources because the project end date cannot be changed.
Example of Resource Scheduling is: when a student has to give an exam on a given day and he has to finish the available course in the given time period then he has to schedule his syllabus in such a way that he will complete it before the exam. The priority is given to the time since the exam date is fixed and student has to finish the syllabus within those duration only.
2.3 Describe why and when resource levelling or smoothing is used?
Resource levelling is regarding the 'resource constraint' and the resource smoothing is regarding 'time constrained' so the use of these project optimizing techniques depends upon the nature of the project.
Use of resource levelling
Resource levelling is used when you have to use a limited number of resources and project completion dates can be delayed further . In that case the project manager can take the resources from another project of his own company and schedule it to the given project depending upon the necessity and priority of the project. It is wiser to shift the other projects in order to save heavy expenditure on buying the extra resources. It means using the available resources in such a way that it will enhance productivity by delaying other projects depending upon their priority.
Use of resource scheduling
Resource scheduling is used when a company has to deliver the project on time. This technique is used to meet the expected deadlines with a limited number of resources.
For example when a student is given an assignment then he is also provided with the deadline under which he has to submit the project. In that case the priority of students to finish the project on time and submitted to the teacher by using all the available resources he has to complete the project.
2.4 Explain how resource levelling keeps a project on schedule.
The main focus of resource leveling is to use the available resources in hand by delaying the project but a delay in the project will affect the company's goodwill. Therefore the project manager should identify between the critical project and the noncritical project .He needs to level the resources in such a way the project whose deadline is near, completed using the available resources . This will help to reduce the over allocation of resources to the less critical project .Resource levelling benefits the organization to bridge the gap between the over allocated and under allocated resource and to deliver the project on time.Projects, which use limited resources can be extended for over a period of time until the resources required are available. If the project date can be delayed and the available resources can be used to complete the project within the delay,this will save cost of buying extra resources.