OPIM 3801: Principles of

Project Management
Staffing and Resource Allocation
 Goals
Understand how to crash a project
Resource loading
Resource leveling

Goldratts critical chain

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 Action Plan and Gantt Chart
WBSC

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EXPEDITING A
PROJECT
 Introduction
Projects Compete With One Another for Resources
resources that are not consumed
resources that are consumed
Goal of Resource Allocation is to Optimize Use of
Limited Supply
Requires making trade-offs
time constrained
resource constrained

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Critical Path MethodCrashing a Project

Time and costs are interrelated

Faster an activity is completed, more is the cost
Change the schedule and you change the budget
Thus many activities can be sped up by spending
more money

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 What is Crashing?
To speed up, or expedite, a project
Resources to do this must be available
Changes the schedule for all activities
Impact on schedules for all the subcontractors
Often introduces unanticipated problems

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 Activity Slope
Used to calculate how much it will cost to crash an
activity
Calculates the dollars per time unit
Units of dollars per time unit
Change in Cost divided by change in time

Crash Cost Normal Cost

Slope
Crash Time Normal Time

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Activity Slopes Example

Table 9-1

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Table 9-2
Crashing Example Table

Normal Crash Normal Crash Cost per

Activity Preced Duration Duration Cost Cost Day
a 5 3 $50 $150 $50
b 4 2 $40 $200 $80
c b 7 6 $70 $160 $90
d a,c 2 1 $20 $50 $30
e a,c 3 3 $30 $0 $0
f b 8 5 $80 $290 $70
g d 5 4 $50 $180 $130
h e,f 6 3 $60 $180 $40

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 Determine Network Diagram
Need to determine all the paths
Critical and noncritical

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Crashing the Project

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Crashing the Project

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Crashing the Project

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Crashing the Project

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Crashing the Project

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Crashing the Project

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Crashing with Excel Solver

Caution: May find local minimums if not done properly

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Figure 6-6 Project Cost Versus Project
Duration for Sample Crash Problem

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 Fast-Tracking
Fast-tracking is another way to expedite a project
Mostly used for construction projects
Design-Build generally follows fast-tracking methods
Can be used in other projects
Refers to overlapping design and build phases
Design-Build vs. Design-Bid-Build
Increases number of change orders
Increase is not that large

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RESOURCE LOADING
Human Resources Management
I prefer Staff management
People are people
Useful to create a table that shows staff needed to
execute WBS tasks
One approach is an organizational breakdown
structure (OBS)
Organizational units responsible for each WBS element
Who must approve changes of scope
Who must be notified of progress
WBS and OBS may not be identical

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 The Responsibility (RACI) Matrix
Another approach is the Responsible, Accountable,
Consult, Inform (RACI) matrix
Also known as a responsibility matrix, a linear
responsibility chart, an assignment matrix, a responsibility
assignment matrix
Shows critical interfaces
Keeps track of who must approve what and who
must be notified

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 RACI Matrix
RESPONSIBLE..R
The Doer
The doer is the individual(s) who actually complete the task. The doer Is responsible for
action/implementation. Responsibility can be shared. The degree of responsibility is determined
by the individual with the A.

ACCOUNTABLE..A
Owner
The accountable person is the individual who is ultimately answerable for the activity or
decision. This includes yes or no authority and veto power. Only one A can be assigned
to an action.

CONSULTC
In the Loop
The consult role is individual(s) (typically subject matter experts) to be consulted prior to a final
decision or action. This is a predetermined need for two-way communication. Input from the
designated position is required.

INFORM..I
Keep in the Picture
This is individual (s) who needs to be informed after a decision or action is taken. They may be
required to take action as a result of the outcome. It is a one-way communication.

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 RACI Matrix

1 Place Accountability
(A) and Responsibility

(R) at the lowest
feasible level.
Responsibilities
R = Responsible (doer)
A = Accountable (answerable)
C = Consult (must be consulted)

Roles: People/ Bus. Units

I = Informed (must be informed)

2 There can be only one

accountable individual
per activity

Name

Name

Name

Name

Name

Name

Name
Rol e

Rol e

Rol e

Rol e

Rol e

Rol e

Rol e
Nr. Activities/ Processes/ Decisions 1 2 3 4 5 6 7
1
3 Authority must 2

accompany 3
4
accountability 5
6
7
8
4 Minimize the number of 9
10
Consults (C) and
Informs (I)

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 RACI Matrix Horizontal Analysis
Decisions/
Lots of Rs Activities

Will the task get done? Can activity or C A C I

decisions be broker into more specific A R C I C
tasks? C I R A
Lots of Is R A
Do all these individuals really need to be I A C
routinely informed, or could they be A I R C
informed only in exceptional A C R I
circumstances?
Lots of Cs
Do all these individuals really need to be consulted? Do the benefits of added input justify the time
lost in consulting all these individuals?

No Rs
Job may not get done; everyone is waiting to approve, be consulted, or informed; no one sees their
role as taking the initiative to get the job done.

No As
No performance accountability; therefore, no personal consequence when the job doesnt get done.
Rule #1 in RACI charting: There must be one, but only one, A for each action or decision listed on
the chart.

No Cs / Is
Is this because individuals/departments dont talk? Does a lack of communication between
individuals/departments result in parallel or uninformed actions?
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 RACI Matrix Vertical Analysis

Lots of Rs Decisions/
Activities

Can this individual stay C A C I

on top of so much? A R C I C
C I R A
R A
No empty spaces I A C
A I R C
Does the individual need A C R I
to be involved in so many
activities?
Too many As
Can some of the accountability be pushed down in the organization?
No Rs or As
Is this a line position? Could it be expanded or eliminated?
Overall pattern
Does the pattern fit the personality and style of the role occupant? Does it go
against the personality type of the role occupant? (i.e., either too much or too little
involvement, etc.)

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Sample RACI Matrix

Figure 6-7

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 The Resource Allocation Problem
CPM/PERT ignore resource utilization and
availability
With external resources, this may not be a problem
It is, however, a concern with internal resources
Schedules need to be evaluated in terms of both
time and resources

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 Time Use and Resource Use
Time limited: A project must be finished by a
certain time
Resource limited: A project must be finished
without exceeding some specific level of resource
usage
System-constrained: A project has fixed amount of
time and resources

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 Resource Loading
Amount of specific resources that are scheduled
for use on specific activities at specific times
Resource loading describes the amount of
resources an existing schedule requires
Gives an understanding of the demands a project
will make of a firms resources
Usually a list or table

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Resource A

Figure 9-6a 32
Resource B

Figure 9-6b 33
 Overloading
The Charismatic VP
Its hard to say no to the boss.
Over committed subordinates.
Who do you call on when you have a problem?
Who gets worked to death and who slips out the back?
Solution
Set limits on amount of over scheduling
Whip the slackers
Reward good behavior, punish the slackers
Learn to make the hard calls

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RESOURCE LEVELING
 Why Resource Leveling?
Less hands-on management is required
May be able to use just-in-time inventory
Improves morale
Fewer personnel problems
Office Spacework just hard enough not to get fired

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 Resource Leveling
When an activity has slack, we can move that
activity to shift its resource usage
May also be possible to alter the sequence of
activities to level resources
Small projects can be leveled by hand
Software can level resources for larger projects
Large projects with multiple resources are complex
to level

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Resource Leveling

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Resource Tab

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Resource Leveling

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Calendar

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Main Task Sheet

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Main Task Sheet - L

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Gantt Chart

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Gantt Chart - L

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Network Diagram

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Network Diagram - L

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Resource Sheet

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Resource Usage

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Resource Usage - L

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Task Usage

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Task Usage - L

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Resource Form

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Resource Form - L

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Resource Graph

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Resource Graph - L

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Task Sheet

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Tracking Gantt

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Tracking Gantt - L

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Leveling Options

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34 Week Resource Loading Chart - Software Group

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 Resource Loading/Leveling and
Uncertainty
28,282 Hours Needed
Group Capacity
21 (people) 40 (hrs/wk) 34 wk = 28,560 labor hrs
Correction for Holidays
21 3 (days) 8 (hours) = 504 labor hrs
Vacations
11 2 (weeks) 40 = 880 labor hrs

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 Resource Loading/Leveling and
Uncertainty continued
Hours Available
28,560 - 504 - 880 = 27,176
about 1100 less than needed
28,282/27176 = 1.04
What about
Workers getting sick?
Task not ready when worker is ready?
Change orders?

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GOLDRATTS CRITICAL
CHAIN
 Introduction

Most common complaints

unrealistic due dates
too many changes
resources and data not available
unrealistic budget
Issues/problems driven by need to make trade-offs
Are these problems caused by human decisions
and practices?

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Figure 6-21 Three Project
Scenarios

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Project Completion Time Statistics Based on
Simulating Three Projects 200 Times

Scenario 1 Scenario 2 Scenario 3

Average 50.4 51.9 53.4
Std Dev 7.1 6.3 5.3
Max 69.4 72.7 69.3
Min 30.1 36.1 39.3
Median 50.0 51.8 53.1

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 Reasons Why We Fail
Average Completion Times
What does the mean completion time mean?
Assuming Known Activity Times
Can lead to unrealistic project completion times.
How does this occur?
Shape of the Distribution
Worker Time Estimates
Inflated Time Estimates become self fulfilling prophecies
Keepa yer mouf shutta; early completion penalties
Student Syndrome

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 Multitasking
Two Small Projects

Whats the best way of tackling this? Theres only

one of you.

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Figure 6-23 Two possibilities

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 Common Chain of Events
Underestimate time needed to complete
project
assumption of known activity times and independent
paths
Project team members inflate time estimates
Work fills available time
student syndrome
early completions not reported

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Common Chain of Events continued
Safety time misused
Misused safety time results in missed deadlines
Hidden safety time complicates task of prioritizing
project activities
Lack of clear priorities results in poor multitasking

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 Common Chain of Events
concluded
Poor multitasking increases task durations
Uneven demand on resources also results due to
poor multitasking
More projects undertaken to ensure all resources
fully utilized
More projects further increases poor multitasking

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 Reversing the Cycle
Reduce number of projects assigned to each
individual
Schedule start of new projects based on availability
of bottleneck resources
Reduce amount of safety time added to individual
tasks and then add some fraction back as project
buffer
activity durations set so that there is a high probability
the task will not be finished on time

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 The Critical Chain
Longest chain of consecutively dependent events
considers both precedence relationships and resource
dependencies
Project Buffer
Feeding or Feeder Buffer
BEST PRACTICE: Front Load Your Project

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Figure 6-25 Project and Feeder
Buffers

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Questions

Comments

Concerns

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Individual Project

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Group Project

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Optional Info
This is not part of this class this
semester.
ALLOCATING SCARCE
RESOURCES TO
PROJECTS
 Use of Software
Begin with Pert/CPM Schedule
Examine activities period by period and resource by
resource
When demand for resources exceed supply
Look at tasks and resources
Based on priority (critical path?)
What are critically short resources? Bottlenecks?

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 General Priority Rules
As soon as possible
As late as possible
Shortest task duration first
Minimum slack first *(No. 1)
Most critical followers
Most successor
Most resources first

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 *Minimum Slack First Rule
Minimizes Schedule Slippage
amount project or set of projects delayed
Maximizes Resource Utilization
extent that resources are over or underworked
Minimizes In-Process Inventory
amount of unfinished work in the system

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Constrained Resource Scheduling

Heuristic An approach, such as a

Approach rule of thumb, that yields
a good solution that may
or may not be optimal

Optimization An approach, such as

Approach linear programming, that
yields the one best
solution.

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 Heuristic Methods
They are the only feasible methods used to attack
large projects
While not optimal, the schedules are very good
Take the CPM/PERT schedule as a baseline
They sequentially step through the schedule trying
to move resource requirements around to levelize
them
Resources are moved around based on one or more
priority rules

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 Common Priority Rules
As soon as possible
As late as possible
Shortest task first
Most resources first
Minimum slack first
Best results
Most critical followers
Most successors
Arbitrary

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 Optimization Methods
Finds the one best solution
Uses either linear programming or enumeration
Not all projects can be optimized

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 Multi-Project Scheduling and Resource
Allocation
Scheduling and resource allocation problems
increase with more than one project
The greater the number of projects, the greater the
problems
One way is to consider each project as the part of a
much larger project
However, different projects have different goals so
combining may not make sense
Must also tell us if there are resources to tackle the
new projects we are considering

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Standards to Measure Schedule Effectiveness

Schedule slippage
Resource utilization
In-process inventory

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 Schedule Slippage
The time past a projects due date
Slippage may cause penalties
Different projects will have different penalties
Expediting one project can cause others to slip
Taking on a new project can cause existing projects
to slip

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 Resource Utilization
The percentage of a resource that is actually used
We want a schedule that evens out the dips and
peaks of resource utilization
This is especially true of labor, where hiring and
firing is expensive

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 In-Process Inventory
Amount of work waiting to be processed because
there is a shortage of some resource
Generally called work in progress(WIP)
Good measure of productivity and forecasting future
work loads
Holding cost is incurred

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 Heuristic Techniques
Multi-projects are too complex for optimization
approaches
Many of the heuristics are extensions of the ones
used for one project

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 Additional Priority Rules
Resource scheduling method
Minimum late finish time
Greatest resource demand
Greatest resource utilization
Most possible jobs

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