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FOR

PLANNING
process of setting
goals and creating
steps you can follow
to achieve those goals.
PRODUCTION
Production is the process of
transforming raw materials and
resources into finished
products or services that meet
the needs and demands of
consumers.
PRODUCTION
PLANNING
Production planning is the process of defining,
scheduling, and coordinating the activities,
resources, and materials required to complete a
construction project.

It is a crucial aspect of project management that


aims to optimize the quality, cost, and time of the
project.
PRODUCTION PLAN
CAN DETERMINE:

WHAT IS GOING TO BE
PRODUCED
WHERE IT IS GOING TO BE
PRODUCED
HOW IT IS GOING TO BE
PRODUCED
BY WHO IT IS GOING TO BE
PRODUCED
IMPORTANCE OF PLANNING:
Minimizing Delays and Cost Overruns

Ensuring Quality

Maximizing Productivity
TIPS FOR EFFECTIVE PLANNING IN
CONSTRUCTION PROJECTS
Define the scope of work clearly, including the objectives,
deliverables, and timelines.

Develop a detailed project plan that includes tasks, timelines,


budgets, and resources.

Assign responsibilities clearly to each team member, and ensure


they have the necessary resources and support.

Develop contingency plans for unexpected challenges, including


changes in the scope of work, delays, and cost overruns.

Regularly review and update the project plan, and communicate


any changes to all team members.
THE FIVE CRITICAL PRODUCTION
AND CONTROL STEPS ARE:

planning routing scheduling loading dispatching


THE FIVE CRITICAL PRODUCTION AND CONTROL
STEPS ARE:

planning
THE FIVE CRITICAL PRODUCTION AND CONTROL
STEPS ARE:

routing
THE FIVE CRITICAL PRODUCTION AND CONTROL
STEPS ARE:

scheduling
THE FIVE CRITICAL PRODUCTION AND CONTROL
STEPS ARE:

loading
THE FIVE CRITICAL PRODUCTION AND CONTROL
STEPS ARE:

dispatching
Uncertainty and variability Integration and coordination
Construction projects are complex and Construction projects involve multiple
dynamic, involving multiple phases, tasks, and parties, such as design,
stakeholders, changing conditions, and procurement, fabrication, installation,
unforeseen events. and commissioning.

Stakeholder satisfaction
These stakeholders have
different needs,
Resource management Quality control expectations, and interests,
Construction projects require various Construction projects need to meet the which may not always be
types of resources, such as labor, specifications, standards, and aligned or compatible.
equipment, materials, and expectations of the clients, regulators, Stakeholder satisfaction is
subcontractors. and users. the degree to which the
project meets or exceeds
the stakeholder needs,
expectations, and interests.

Environmental impact
Construction projects have significant impacts on the
environment, such as greenhouse gas emissions, energy
consumption, waste generation, and pollution.
RESOURCES
IN THE CONSTRUCTION INDUSTRY

Resources might include:

Human resources.
Suppliers, contractors and consultants.
Natural resources.
Materials.
Products.
Construction plant.
Tools.
Equipment.
RESOURCE
ALLOCATION
A Comprehensive Guide for Project
Success
Also known as RESOURCE SCHEDULING
The process of identifying and assigning
resources for a specific period to various
activities.

Improper resource planning and allocation


blows up costs, delays, and ultimately
derails projects off their tracks.
EXAMPLE OF
RESOURCE
ALLOCATION
Imagine you were to decide to remodel a room in your
house. The questions to ask regarding resource
allocation would be the following:
Who are you going to hire?
What type of materials are needed?
What's your budget for the remodel?
How much of your budget is going to go towards
paying the workers and how much of it has to go
towards materials?
By when do you want the remodel to be done?
IMPORTANCE OF
RESOURCE
ALLOCATION

Reduce project resource costs significantly


Maximize the productivity of resources on
projects
Enhance employee engagement and
satisfaction
Facilitate client satisfaction with successful
project delivery
Achieve the best outcome
CHALLENGES IN
RESOURCE
ALLOCATION

Huge Number of Projects


Changing Project Scope
Shortage of Skilled Resources
Delivery of materials
METHODS IN
RESOURCE
ALLOCATION

Uniform distribution of resources


Employees working on tasks of interest
Diversification of employee skills
What-if analysis of variables
WHAT IS RESOURCE
ALLOCATION?
HOW TO ALLOCATE
RESOURCES FOR
PROJECTS
RESOURCE
ALLOCATION

In Project Management, it is described as…

process of scheduling resources/a step of


project resource management that involves
estimating resources, procuring resources,
allocating resources and tracking resources
until the project is completed.
WHO IS RESPONSIBLE
FOR RESOURCE
ALLOCATION?

Usually, project managers are responsible


for resource allocation because they have the
most visibility and control over project
budgets, scope of work, and task
management.
Sometimes, companies will include professionals,
like resource planners or planning specialists to
look beyond the project itself and make
determinations with more context from company
performance and resources.
RESOURCE ALLOCATION PROCESS:
HOW TO ALLOCATE PROJECT RESOURCES

Define your Project Scope

Estimate What Project Resources Will Be Needed

Assess Your Current Resource Utilization & Resource Availability

Create a Resource Allocation Plan

Keep Track of your Project Resources

Use Resource Allocation Reports


As part of your project scope, you need to define the following:
The statement of work
Project constraints
Project schedule and timeline with milestones
Project deliverables
SAMPLE OF A RESOURCE PLANNING TEMPLATE
SAMPLE OF A RESOURCE PLANNING TEMPLATE
RESOURCE
ALLOCATION
METHOD

some commonly utilized


resource allocation:

Critical Path Method


Resource Leveling
Resource Smoothing
RESOURCE
ALLOCATION
METHOD

some commonly utilized


resource allocation:

Critical Path Method


Resource Leveling
Resource Smoothing
RESOURCE
ALLOCATION
METHOD

some commonly utilized


resource allocation:

Critical Path Method


Resource Leveling
Resource Smoothing
RESOURCE
ALLOCATION
TOOLS

Gantt Chart
Resource Allocation
Matrix
Resource Breakdown
Structure
Workload Charts
RESOURCE
ALLOCATION
TOOLS

Gantt Chart
Resource Allocation
Matrix
Resource Breakdown
Structure
Workload Charts
RESOURCE
ALLOCATION
TOOLS

Gantt Chart
Resource Allocation
Matrix
Resource Breakdown
Structure
Workload Charts
RESOURCE
ALLOCATION
TOOLS

Gantt Chart
Resource Allocation
Matrix
Resource Breakdown
Structure
Workload Charts
RESOURCE ALLOCATION TIPS:
Know Your Resource Dependencies

Track Time

Use Resource Allocation Tools



1. RESOURCE BOTTLENECKS - the delay affects multiple tasks that rely on the materials.
Example: if steel beams are delayed, structural work, welding, and concrete pouring may be
affected.
COMMON POSSIBLE STRATEGY: PRIORITIZATION
- the project manager must prioritize tasks affected by the material delay. Critical path activities should receive
immediate attention.
2. LABOR IDLE TIME - these are the workers assigned to tasks dependent on the delayed
materials may experience idle time, leading to inefficiency.
COMMON POSSIBLE STRATEGY:
2.1. TEMPORARY REALLOCATION - temporarily reallocating workers
to other tasks.
2.2. COST OVERRUNS - Rushed deliveries or alternative material
sources may increase costs.
2.3. OVERTIME - Rushed deliveries or alternative material
sources may increase costs.
• Understanding the full scope of the project, individual project phases, and the required
resources will help to create strategic resource allocations that positively impact each project.

• Having an in-depth understanding of the project helps to reduce the response time of change
orders and create contingency plans for their resource allocations.
• Setting up a procedure to allocate construction resources early helps to identify
potential red flags and figure out different ways to respond to them beforehand.
This helps to handle any allocation issues efficiently when they inevitably
happen.
Risks in your construction resource allocation plan can vary:
• Unskilled workers taking on project roles that require skilled work
• New team members not being fully trained on safety procedures
• Project schedules slipping due to unrealistic expectations around workforce availability
• Errors due to lack of proper oversight
Identifying and documenting your resources helps to create the foundation for strategic resource
allocations. Construction resource management solutions will allow you to identify the people
you need to track and customize the workforce data you plan to capture and document.
Real-Time Tracking: Use software or mobile apps to track material deliveries and adjust schedules
accordingly.
Predictive Analytics: Predict delays based on historical data and adjust resource allocation
proactively.
Collaboration Tools: Facilitate communication among team members, suppliers, and contractors
to address delays promptly.
Over-allocation of your workforce happens when more project assignments are assigned
than your team members can reasonably handle. It’s inevitable that organizations will
have a single team member assigned to multiple projects.
Proper time tracking can be a painful, cumbersome process, but the benefits far outweigh the
negatives. Time tracking allows general contractors to: Keep your team on track, Prioritize
projects, Performance reviews, Avoid under and over-allocations.
Construction projects can come with a lot of internal, external, and mandatory dependencies. It’s
important to keep these dependencies in mind when allocating resources to prevent idle hands
waiting for tasks to be completed and costing the organization unnecessary costs.
Operations teams will often meet on a regular basis to discuss and create a
strategic workforce plan. These resource planning meetings are a good
opportunity to reflect on and evaluate how effective your resource allocation
plan is.

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