Resource Management – The basics

Cynthia Wang
Construction Management and Property Program

UNSW

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Types Of Project Constraints
Technical or Logic Constraints

Constraints related to the networked sequence in which

project activities must occur.

Physical Constraints
Activities that cannot occur in parallel or are affected by
contractual or environmental conditions.

Resource Constraints

The absence, shortage, or unique interrelationship and

interaction characteristics of resources that require particular
sequencing and time duration of project activities.
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The Resource Problem

Importance of Resources

Project network times are not a schedule until resources have been
assigned.

In previous CPM calculation, there is an implicit assumption that

resources will be available in the required amounts when needed.
Creating practical project schedule requires making realistic
judgments of resource availability and project durations.

Cost estimates are not a budget until they have been time-phased.

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Project Resources

It is important to see if
Comprise The idea here is resource assignments
people, Some resources are to identify
consumed (e.g. can be
equipment, resource smoothed/levelled
materials and materials and quantities
consumables); through changing
consumables, required for each activity sequences or
buildings and others are applied activity in each
(HR, equipment). rescheduling the entire
facilities. project phase. project in order to
prevent over-allocation.

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 Resource Estimation
There are five basic methods for resource
estimation:
1. Parametric estimation
2. Analogous estimation
3. Historical data
4. Expert judgment
5. Three-point estimating

Three-point estimation based on Beta distribution is a

probabilistic estimation technique and the same
concept is used in PERT networks.

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Estimating Method & Method Statement

Single Value Probability or

Estimating or Stochastic
Deterministic Estimating
Estimating

Method Statements store highly detailed

Whatever decision is made by the
information of all key scheduling decisions
estimator, it needs to be fully documented
for future retrieval. The information include
for future reference. Method Statement is
quantities, units of quantities, output rates
an appropriate format for recording such
of specific resources, duration and the
decisions.
actual output rates, etc.

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Parametric Estimation
Total resource usage for execution of a given activity in terms of man-
hours (for each trade/specialisation) is estimated by using productivity
rates and appropriate job-management factors.

For example, if the standard time for placing of concrete is 2.1

man-hours/m3 of concreters and the efficiency factor is 0.75, for
a 100 m3 concrete placement job we need:
2.1/.75 = 2.8 man-hours/m3
(expected average labour input/m3).
100*2.8 = 280 man-hours (total labour needed for the
placement of 100 m3 of fresh concrete in normal conditions).

In abnormal conditions (too cold, restricted areas, etc.), more

resources are needed (efficiency rate is lower.)
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Assume a crew of 7, the duration will be:
280/7 = 40 work-hours
Take 8 hours to be one day,
then it is 5 days to complete the job. Parametric Estimation
If we assign two crews of 7 workers each, (continued)
then the duration will be 2.5 days.

This explains the relationship between the

resource quantities assigned to a given activity
(number of workers, items of plant etc) and
the corresponding duration that the activity
takes to complete.

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Method Statement of Bulk excavation
Quantity = 9,000 m3;
Productivity Rates = one person one hour can
excavate 100 m3= 0.01 Person Hours/m3;
Total person hours required = 90
A Previous Example Of
Typical Crew Size = 1.5, therefore 90/1.5 = 60hrs Parametric Estimation
Assume 8 hours / day, then the work can be done
in
60 / (8 hours/day) = 7.5 days or 8 days

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Analogous Estimating

Similar When Example: if on Applicable Prone to

project data comparing to average pipe to similar errors but
is used to similar activities welding in the US activities useful
estimate (locality and takes 20% less time (not when no
future other factors to do than in unusual local data
activity must be Australia, then we ones) is available.
durations considered). can estimate pipe
welding activity
duration by
adjusting the US √√
data.

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Historical Data
Many companies compile historical data.

Also, there are many published productivity data handbooks and online databanks.

These data can be used to estimate duration of new activities.

Only valid if all other factors are the same.

Job and managerial conditions, as well as environmental factors impact productivity.

This method is useful for very specialised activities and when operators are trained to
perform tasks to set methods.
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Expert Judgement
Engagement of experts for scheduling may be necessary, particularly when:
• A new technology is involved.
• A new project/business is undertaken with no prior experience.
• Proprietary technology or design is involved.
• Complicated operations, e.g. offshore projects
• Project is executed in hostile environments
• Safety reviews are involved.
• Local knowledge is essential.

It is a good practice to validate the estimates from two methods.

In construction industry, parametric estimation is common due to
availability of guidelines and standards.
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Resource-Loaded Schedules
To prepare a resource-loaded schedule
Develop an initial project schedule. Usually, this is done for key resources (top 10
Allocate resources to activities. or 20% or critical resources), balancing one
Generate resource histograms (profiles). resource can affect the balance created for
Investigate if resource profiles can be previous resources.
smoothed or levelled (peaks and troughs
are not desirable) through changing the
sequences of activities or splitting activities.

Therefore, when resources are considered two scenarios arise:

Resources are fixed and duration can vary- Resource Levelling
Duration is fixed and resources can vary- Resource Smoothing 13
Classification of a Resource Scheduling Problem

A time-constrained project
- Completed by imposed time (time is fixed)
- If required, resources can be added to ensure the project is completed by a specific
date
- resource usage should be no more than is necessary and sufficient.

A resource-constrained project.
- Assumes the level of resources available cannot be exceeded
- If the resources are inadequate, it will be acceptable to delay the project, but as little as
possible.

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Resource Allocation/Optimization
1- Resource smoothing (Time- Constraint Project)

- A technique that adjusts the activities of a schedule model such that the
requirements for resources on the project do not exceed certain predefined
resource limits.
- The project’s critical path is not changed and the completion date may not be
delayed.
- Consequently Activities may only be delayed within their free and total float.

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Resource Allocation/Optimization
2- Resource levelling (Resource-Constraint Project)

- A technique in which start and finish dates are adjusted based on resource constraints with
the goal of balancing the demand for resources with the available supply.
- Can be used when shared or critically required resources are available only at certain times
or in limited quantities, or are overallocated, such as when a resource has been assigned
to two or more activities during the same time period.
- Can often cause the original critical path to change.
- Available float is used for levelling resources first, but you may need to go beyond this.
- Consequently, the critical path through the project schedule may change and/or extended.

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Resource Smoothing- Example

Max. 3
Backhoes
available

Delay
Fence and
wails (use
the slack)

If Irrigation is delayed.

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