1

Group Members

Natasha Zahid
Saadia Sadique
Amber Saleem
Moazma Naseer

Topic of Presentation
Resource Allocation

Critical Path Crashing

Resource Leveling
Resource Constrained
Schedules
Multi-project Resource
Management
Critical Chain

The Resource Allocation

Problem

Resource allocation is a major problem in a project. In general term we define

three major resources allocated to the project, which are:
Time
Cost
Performance
Critical path method- Crashing a project
CPM and AON allowed the PM to schedule the physical resources to the
project. There are tow time and cost specifications are defined for each
activity. One is called Normal and other is called Crash.

What is Crashing /
Crunching?

To speed up, or expedite, a project

Of course, the resources to do this must be available
Crunching a project changes the schedule for all activities
This will have an impact on schedules for all the subcontractors
Crunching a project often introduces unanticipated problems
Time requirement of a task must be determined with an assumption about the
level of resources devoted to the task.
We need to know what additional resources are needed to shorten the
completion times.

 Slope: while crashing a project, it is the

important to consider the relation called
slope. It is calculated as:

Steps to follow:
To crash a project, two steps should be
followed.
Focus on the critical path when trying to
shorten the project
Crashing a noncritical activity will not
influence project duration.

Fast Tracking:
Another method for crashing a project is fast
tracking. It seems to be reasonable way to
expedite construction projects as well as
other types of projects when the early build or
carrying out steps are fairly routine and well
understood. It is a partial use of the basic
concepts
in
the
phase-gate
project
management and is dependant on effective
feed-back and feed-forward communication.

Resource Allocation problem:

The extreme points of the relationship
between time use and resource use
are:
Time limited.
Resource limited.

Resource loading:
Resource loading is the process of calculating the total load from project task
son each resource for each time period of the projects duration.
It gives a general understanding of the demand, a project or set of
project will make on a firm resources.
It is a guide for early project planning and also the first step to reduce
excessive demands on certain resources.
The use of the resources on a project is often non linear
The project action plan links the schedule directly to specific demands
for resources.
It is the job for the project manager to deal with overloading of
resources, either by adding people or by changing the schedule

Resource leveling:
Resource leveling is concerned with
evening out the demand for various
resources required in project by shifting
tasks within their slake alliances.
The purpose is to create a smoother
distribution of resources usage.

 Managerial implications:
Less management is required if the use of a
given resource is nearly constant over its period
of use.
The PM may be able to use a just-in-time
inventory policy without much worry that the
quantity delivered will be wrong.
If the resources being leveled are people,
leveling improves morale and results in fever
problems in the personal and payroll offices.

 Cost implications:
When resources are leveled the
associated cost also tends to smooth
out.
If the labor requirements are leveled the
organization can save and avoid the
hiring and layoff cost.

Resource loading / leveling and uncertainty

Unexpected delays can occur in the work

schedule of a project for multiple reasons.
The demand can be leveled by moving
some resources forward and some back
depending upon the flexibility of the
production environment.
Trade off can be made between periods of
over capacity and the periods of under
capacity.

Constrained resources
The lack of resources where and when
needed is caused due to
loss or theft
failure of a supplier to produce and
deliver,
assignment of resources to another
activity

Two fundamental approaches to

constrained resource allocation are
Heuristic Model
Optimization Model

Heuristic Model
Seek better solutions
Approaches to constrained resource scheduling problems
in wide, general use for number of reasons
Feasible methods of attacking large, non linear, complex
problems
Schedules generated by this approach may not be optimal
PERT/CPM schedule and analyze resource usage period
by period, resource by resource

Uses priority rule and most common rules include

Example
resource used by activities e,
f, g and h in the figure
is scarce. To which
activity would you
assign the resource,
based on the following
rules?
a.
Minimum slack
b.
Most successors
c.
Most critical followers
d.
Shortest task first

Two events will occur while

scheduling heuristic model

Routine runs out of activities before it runs out of the resources and
excess resources are left idle assigned elsewhere in the organization
as needed during current period or applied to future tasks
or it runs out of resources before all activities have been scheduled. If
minimum-slack-first rule is used resources used would be devoted to
critical activities, delaying those with greater slack.

Optimization Model
Seek best solution but limited in ability to
handle complex solutions and large
problems
Allocation and scheduling of resources
depend on sophisticated mathematical and
graphical tools
Two categories to find optimal solution for
resource
constraints
include
linear
programming, enumeration and combined
programming and enumeration methods.

Multi project scheduling and resource allocation

Two common approaches to deal with

Scheduling and allocating resources
are
Treat several projects as if they were
each element of a single large projects
Consider all projects completely
independent

The important parameters affected by project

scheduling are following
Schedule slippage
Resource utilization
In-process inventory

Manufacturing process model

J = (/) / (1-/)
Arrival rate of the job to be processed
by a facility
facilitys rate of servicing job
j average number of jobs

Heuristic technique

Resource scheduling method

Dij = Max [ EF LS]
Priority = dj rij
Greatest resource utilization
Most possible jobs

A multi project scheduling

Heuristic
The most common approach to scheduling and allocating
resources to multiple projects is to treat the several
projects as if they were each elements of a single large
project
Another way of attacking the problem is to consider all
projects as completely independent
To describe such a system properly, standards are needed
by which to measure scheduling effectiveness
The most common approach to scheduling and allocating
resources to multiple projects is to treat the several
projects as if they were each elements of a single large
project

 Another way of attacking the problem is to

consider all projects as completely independent
To describe such a system properly, standards
are needed by which to measure scheduling
effectiveness
Three important parameters affected by project
scheduling are:
Schedule slippage
Resource utilization
In-process inventory

Selected Project

Selected Project

Introduction
Project for Improvement of Financial Reporting and
Auditing (Revised) was started in 1996.
Authorities responsible for:
(i) Sponsoring: Ministry of Finance
(ii) Execution : Office of the Auditor General,
Ministry of Finance/CGA
(iii) Operation and maintenance: Office of the Auditor
General, Ministry of Finance/CGA
Time required for completion of project :120
Months (10 years)

 adopt and implement a modern accounting system designed

according to recognized accounting principles and standards
and based on modem information technology;
implement a governance structure and legal framework for an
independent and effective audit function;
improve the professional capacity of the elements of the civil
service responsible for fiscal management;
make increasing use of the private sector to supplement
public sector resources; and
adopt improved standards for private sector financial
disclosure.

Objectives/ Benefits
Modernized government audit procedures and adoption of internationally
accepted auditing standards will eradicate program oversights and improve
evaluation capabilities.
Effective accounting and reporting systems will enable the government to
better formulate, control, and monitor its budget.
Strengthened financial management practices will increase the impact of
development programs and related external assistance.
Financial information generated by the improved accounting and information
systems will be more useful, complete, reliable and timely. Improved data
will facilitate program management by government decision-makers.
Tighter internal controls will lessen the occurrence of errors and irregularities
in the processing of payments and receipts.
Related training programmes will build staff capabilities and enhance
utilization of human resources.

Resources Requirement

Capital Cost of Project

GOP

IDA

Total

Original cost

306.767

1056.642

1363.409

Revised cost

470.962

1647.056

2118.018

Sources and amount of rupee component of Project

Government Sources
Grant

Original: Rs. 306.767 million

Revised: Rs. 468.433 million
Loan
Investment
Direct Government Expenditure for the project will be to
the tune of Rs.460.170 million and provided in the local
currency

HUMAN RESOURCES

1. Administration

Total human resource for

administration

194 posts to be filled

Total pay per month

4,577,886

Total pay per year

54,934,632

2. IT persons
Total IT posts

60 posts to be filled

Total pay per month

2,732,000

Total pay per year

32,784,000

Building
Cost of Building, Water Supply,
Fire Fighting, Furniture and
Furnishing etc. @ Rs.1500/-P.Sft.

=10,06,21,500/-

ii). Electrical Equipments.

@ Rs.150/- P.Sft.
=87,20,530/iii). Horticulture @ Rs.15/-- P.Sft.
=10,06,215/Total:- Rs.11,03,48,245/Add 5% Contingencies.. Rs.55,17,412/Total: Rs.11,58,65,657/Add 8% Departmental Charges.
Rs.92,69,253/Total: Rs.12,51,34,910/Say:
Rs.125.135 Million.

Materials, Supplies & Equipments

a) Power supply
52
25 KWA connections to be provided.
b) Inter net/Electronic Mail facility will be provided by wide area networking to
have access to various agencies.
c) Server
a) 10 servers Compaq ML-350 have been purchased and installed. 27 servers have to be
purchased.

d) PC's
a) 667 PC's P-III and P-IV Branded along with UPS have already been purchased with full
accessories. 700 PCs P-IV along with UPS has to be purchased

e) Laser Printer.
a) 134 laser jet printers have been purchased for the implementation of the project.

f)

Dot-Matrix Printers.
a) 5 Dot Matrix Printers have been purchased.

g) Epson Printers
a) 7 printers have been purchased.

h) Printronix Printers
i) 8 line printers have been purchased for sites.

Transport Facilities
Sr. no.

specification

Required for

No.

Unit cost

Total cost

1300cc

Project
Director

1.3m

1.3m

1300cc

GM (MIS)

1.3m

1.3m

1000cc

DGs/Director

0.7m

4.9m

Toyota Hiace

Staff

1.5m

6.0m

total

13

13.5m

Results of the Project

Conclusion

It went through various phases with varying degree of success

in terms of satisfactory progress on achievement of objectives.
The key factor that galvanized the project was a professional
team having the confidence of the Auditor General. This team
brought about fundamental changes in the approach to the
project management; professionalism, project culture,
engagement, risk taking, aggressive tracking of activities etc.
The project has made an impact by training around 22000
DDOs, 400 auditors, 2000 SAP end users. One of the key
success parameters is that the project has made its presence
conspicuous to a point where it is high on Government agenda.

GOLDRATTS CRITICAL
CHAIN
Problems with traditional project
management
Thoughtless optimism
Capacity should be set equal to demand
The student syndrome
Parkinsons Law
Multi-tasking

CRITICAL CHAIN PROJECT MANAGEMENT

(CCPM)

Critical Chain - the Critical Chain is

defined as the longest chain [not path]
of dependent tasks.
Project Buffer
Feeding Buffers