Allocating Resources to the Project

Activity vs. Resource

Dominated Schedule Basis
Comparison
Sample Linear Responsibility Chart
(alternative RACI-responsibility
assignment matrix- in text)
Critical Path Method—Crashing a
Project
• Time and cost are interrelated
• The faster an activity is completed, the more it
costs
• Change the schedule and you change the budget
• Thus many activities can be speeded up by spending
more money
Crashing and its
repercussions
• To speed up, or expedite, a project
• Of course, the resources to do this must be
available
• Remember! Crunching/crashing a project
changes the schedule for all activities
• This will have an impact on schedules for all the
subcontractors
• Crashing a project often introduces
unanticipated problems
An Example of Two-Time CPM
Activity Slope

Crash Cost - Normal Cost

Slope 
Crash Time - Normal Time
Activity Slopes—Cost per Period for
Crashing

Table 9-2
Crashing the Project

Figure 9-1a
Seven Day Schedule

Figure 9-1b
Six Day Schedule

Figure 9-1c
Five Day Schedule

Figure 9-1d
Four Day Schedule

Figure 9-1e
Cost-Crash Curve

Figure 9-2
The Resource Allocation Problem

• As discussed, 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
Resource Allocation

• It is common to see the resource allocation

problem in terms of manpower, but it can apply to
equipment and capital as well
• Resource allocation in project management is very
similar to capacity planning in production
management
Resource Loading

• Resource loading describes the amount of

resources an existing schedule requires
• Gives an understanding of the demands a project
will make of a firm’s resources
Resource Leveling

• Approaches to even out the peaks and valleys of

resource requirements so that a fixed amount of
resources can be used over time.
• You shift tasks within their slack allowances to
level resources
• Scarce resources: never schedule more than 85-
95% of capacity