RESOURCE PLANNING

UNIT 1 – RESOURCE PLANNING

• Resource planning
• Resource Planning is a key aspect of project management as the success of a
project is directly dependent of how the resources are allocated and how
optimally they are used. Having a resource plan also means that the teams
don’t have to juggle and struggle for resources as and when they need them.
• The goal of every company is to reach its objectives with as little effort as
possible. Resource planning in project management helps to achieve this goal.
• Knowing what resources are required for current and future projects helps you
plan more effectively. You can use the available resources more
economically without overburdening them, and you can proactively
procure any missing resources ahead of time.
• Here are some of the key benefits of project resource planning
• More reliable planning: It’s easier to avoid bottlenecks if you identify your resource needs early on. You can also calculate and plan
the availability of people with the necessary skills. Doing so provides greater reliability at all levels.
• Fewer overloads: Individuals and teams that are in high demand often suffer from an excessive workload, and having a clear
overview of your resource utilization helps avoid this problem. This leads to greater job satisfaction and employee retention.
• Well-documented: If your project fails due to missing resources, having good documentation can help you prove that your resource
management made the best possible use of the available resources. It provides a valuable lesson for future projects.
• Track resource availability 
• Reallocate resources in response to project changes
• Track utilization rates to avoid under utilization or overworking your teams
• Ensure project teams have the right skills and experience
• Optimize resource time, effort, and cost
• Identify and resolve resource conflicts
• Forecasting future staffing requirements
 RESOURCE PLANNING

 Construction companies face the challenge of delivering often complex projects to a

schedule, within a budget, and hopefully with a reasonable profit margin.

 Resource management is the process of planning the resources necessary to meet the

objectives of the project, and to satisfy the client's requirements.

 Project Resource Management Plan helps you to identify all of

the resources required to complete your project successfully.

 Using this Resource Plan, you will be able to identify the quantity of

manpower, equipment and materials needed to deliver your project.

 Manpower, equipment and materials are the most important project

resources that requires management attention.

 a) Seasonal shortages
 The supply and availability of these
b) Labour disputes
resources need to be looked for the
c) Equipment breakdowns
following reasons: d) Competing demands
e) Delayed deliveries
f) Other uncertainties

 The basic objective of resource planning is to supply and support field operations

so that the established time objectives can be met and costs can be within the

construction budget.
 PROCUREMENT

 Procurement planning is the process of deciding what to buy, when and from what

source.

 During the procurement planning process the procurement method is assigned and

the expectations for fulfillment of procurement requirements determined.

Procurement Planning is important because:

1.  It helps to decide what to buy, when and from what sources.

2.  It allows planners to determine if expectations are realistic; particularly the

expectations of the requesting entities, which usually expect their requirements

met on short notice and over a shorter period than the application of the

corresponding procurement method allows.

3.  It is an opportunity for all stakeholders involved in the processes to meet in
order to discuss particular procurement requirements. These stakeholders could be
the requesting entity, end users, procurement department, technical experts, and
even vendors to give relevant inputs on specific requirements.

4.  It permits the creation of a procurement strategy for procuring each

requirement that will be included in the procurement plan. Such strategy includes
a market survey and determining the applicable procurement method given the
requirement and the circumstances.
5.  Planners can estimate the time required to complete the procurement process and award
contract for each requirement. This is valuable information as it serves to confirm if the requirement
can be fulfilled within the period expected, or required, by the requesting entity.

6.  The need for technical expertise to develop technical specifications and/or scope of work for
certain requirements can be assessed, especially where in-house technical capacity is not available
or is non-existent.

7.  Planners can assess feasibility of combining or dividing procurement requirements into different
contract packages.
Resource definition:

Anything that can be used to satisfy construction needs is

called as an resource
Types of resources: (4 m’s)
Money Manpower Machinery

Material
Money :Money management is the process of
managing money, which
includesbanking and taxes. It is
investment, budgeting,
also called investment management.
Financial analysis of a project is divided into:
1. Estimation of capital cost requirement.
2. Source of financing.
The main elements of capital cost include:
•Engineering and project management cost.
•Construction materials, manpower , equipment cost
•Management and supervision during construction.
•Land acquisition including assembly holding
& improvement.
•Construction financing.
•Inspection & testing.
Sources of financing:

•Equity capital

•Preference capital

•Secured debentures

•Term loans

•Capital subsidy & development loans

Financial accounting systems : Accounting
information is generally used for three different purposes

•Internal reporting to the managers for day to day

planning monitoring and control

•Internal reporting to the managers for aiding strategic

plan

•External reporting to owners , governments , regulators

& outside parties.
Cost control :
•Cost control document serves the dual role of
recording financial transactions & also gives
managers an indication of progress & problems in
the execution of the project.

•Financial performance of the project can be known

& thus keeping the project under financial control.

•Information regarding materials used & labour

inputs within each job can be found out
Materials: Materials are generally
classified into the following three groups
1. Cementing materials
• Lime
• Cement
• Mortar (etc)
2. Solid materials
• Stones
• Bricks
• Iron
•Timber (etc)
3.Protective material
• Paints
• Varnishes
• Plaster (etc)
Time of purchase:
•The purchase is mainly depend upon quality
specification ,quantity required ,timing of
requirement much in advance .
•Based on this information the purchasing
department will locate the suppliers, place the
orders ,procure the materials.
•Indents are generally prepared .The indent
should generally contain the item code ,
specification , quantity required , & time.
•The indents are generally checked by the store
personal . This will prevent the unnecessary
buying.
•Only authorized persons are eligible to the
requisition of purchase of materials as per the
delegated powers given in the purchase manual.
Transportation :
•Thematerials have to be transported from the buyers
premises to the sellers premises.

•Formalities like sales tax & octroi have to be completed

by filling the necessary forms.

•These forms have to be filled else the goods will be

stopped at the numerous check posts.

•The buyer have to co ordinate with the rail , road , ship to

obtain the materials at the lowest rates and at an earliest
time.
Delivery & distribution :

•The delivery & distribution is generally carried on

by
the inspection.

•The buyer have to be satisfied by the quality of the

product.

•Checking is generally done by the quality control

department.

•There will be a delay in the distribution of the

materials if the materials do not give satisfactory
results in the inspection.
Introduction

•Next to agriculture , the construction industry provides

maximum employment.

•There is no job security & the workers are hired when

required & fired when the work is over.

•Legislation is generally necessary for the following

reasons.

1. To fix the terms of employment.

2. To provide proper working conditions.
3.To provide social security.
Types of labour:

Skilled labour
• masons
• carpenters
• Painters
• electricians
• Plumbers

Unskilled labour.
• Majdoors .
• Beldars .
• Bhisti.
• House keeping labour.
• Helper.
• Material shifting labours.
General points regarding manpower:

•Safety manual regarding manpower has to be

maintained

•Trade unions should be established

•Safety department should check weather all the

workers are insured

•Workers should give proper training while dealing with

heavy machines

•Facilities should be provided such as drinking water ,

shelter if they are imported from other states , food
facilities etc.
Purpose of machineries:
•Machineries are generally used to reduce the no of labour.
•To reduce time of the construction.
•To increase the effectiveness of the project.

Machinery selection is mainly depend upon:

1. Weather to purchase or to hire the equipment
2. Purchase is generally preferred when the equipment is
needed for the entire project.
3. Hiring is generally preferred when the cost of the
machinery is high to purchase.
4. It is better to use the equipment which is available at
the construction site
5. Use of standard equipment , availability of spare
parts.
6. Suitability of local labour for operation.
Types of equipments:
• Earth moving equipment.
1.Excavation equipment.
2.Earth compaction equipment.

•Hauling equipment

•Hoisting equipment

•Conveying equipment

•Pile driving equipment

•Tunnelling & rock drilling

equipment.

•Pumping & dewatering

equipment.
Equipment management checklist: Management
checklist should generally contain :

•Mechanise selectively for economy of production ,

quality & speed of construction.

•Choose between buying , hiring & leasing

•Choose size & number of equipment including

stand
by.

•Select the prime mover- petrol/diesel/electric.

•Check suitability for local conditions.

•Decide on mobile or stationary equipments.

•Arrange finance of purchase.

•Examine the warranties while purchase.

•Inform the manufacture of any deficiences.

•Insist on method statement for equipment used

•Use only trained personal for operation.

•Insist on regular preventive maintenance.

•Provide suitable access roads & foundation for

equipment.