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

Crashing a project • CPM and AON allowed the PM to schedule the physical resources to the project. One is called Normal and other is called Crash. which are:  Time  Cost  Performance • Critical path method.The Resource Allocation Problem • Resource allocation is a major problem in a project. There are tow time and cost specifications are defined for each activity. In general term we define three major resources allocated to the project. .

a project Of course. or expedite. We need to know what additional resources are needed to shorten the completion times. . 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.What is Crashing / Crunching? • • • • • • • To speed up.

• Slope: while crashing a project. it is the important to consider the relation called slope. It is calculated as: .

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

Fast Tracking: • Another method for crashing a project is fast tracking. . 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. 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.

• Resource limited.Resource Allocation problem: • The extreme points of the relationship between time use and resource use are: • Time 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 project’s duration. a project or set of project will make on a firm resources. either by adding people or by changing the schedule .  It is a guide for early project planning and also the first step to reduce excessive demands on certain resources.  It is the job for the project manager to deal with overloading of resources.  It gives a general understanding of the demand.  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.

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

.• 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.

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• Trade off can be made between periods of over capacity and the periods of under capacity.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.

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 .

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

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

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.

enumeration and combined programming and enumeration methods.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. .

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 = (λ/µ) / (1-λ/µ) • λ Arrival rate of the job to be processed by a facility • µ facility’s 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) .

• make increasing use of the private sector to supplement public sector resources’. . • improve the professional capacity of the elements of the civil service responsible for fiscal management’.• 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’. and • adopt improved standards for private sector financial disclosure’.

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

Resources Requirement .

962 1647.056 2118.Capital Cost of Project GOP IDA Total Original cost 306.642 1363.767 1056.018 .409 Revised cost 470.

460.Sources and amount of rupee component of Project • Government Sources • Grant • Original: Rs.767 million • Revised: Rs. 468.433 million • Loan • Investment • Direct Government Expenditure for the project will be to the tune of Rs.170 million and provided in the local currency . 306.

HUMAN RESOURCES 1.934.784. Administration Total human resource for administration 194 posts to be filled Total pay per month 4.577.732. IT persons Total IT posts 60 posts to be filled Total pay per month 2.000 Total pay per year 32.632 2.000 .886 Total pay per year 54.

11. Horticulture… @ Rs.910/Say: Rs. Water Supply.Rs.253/Total: Rs.P. =87..135 Million.51.21. @ Rs.Building Cost of Building.1500/-P.34.17.48.P.500/- ii).Sft.92.Sft.530/iii).125.245/Add 5% Contingencies. =10.20.03.55. . Fire Fighting. =10.11.15/-.150/.12.Sft. Rs. Furniture and Furnishing etc.657/Add 8% Departmental Charges.06.215/Total:. @ Rs.06.58. Electrical Equipments.69.412/Total: Rs.65. Rs.

b) Inter net/Electronic Mail facility will be provided by wide area networking to have access to various agencies. 700 PC’s P-IV along with UPS has to be purchased e) Laser Printer.Materials. a) 5 Dot Matrix Printers have been purchased. g) Epson Printers a) 7 printers have been purchased. f) Dot-Matrix Printers. d) PC's a) 667 PC's P-III and P-IV Branded along with UPS have already been purchased with full accessories. Supplies & Equipments a) Power supply 52 25 KWA connections to be provided. 27 servers have to be purchased. a) 134 laser jet printers have been purchased for the implementation of the project. . h) Printronix Printers i) 8 line printers have been purchased for sites. c) Server a) 10 servers Compaq ML-350 have been purchased and installed.

3m 2 1300cc GM (MIS) 1 1.3m 1. Unit cost Total cost 1 1300cc Project Director 1 1. specification Required for No.5m .3m 1.5m 6.3m 3 1000cc DG’s/Director 7 0.7m 4.Transport Facilities Sr.0m total 13 13.9m 4 Toyota Hiace Staff 4 1. no.

Results of the Project .

professionalism. This team brought about fundamental changes in the approach to the project management. aggressive tracking of activities etc.Conclusion • It went through various phases with varying degree of success in terms of satisfactory progress on achievement of objectives. 2000 SAP end users. The key factor that galvanized the project was a professional team having the confidence of the Auditor General. project culture. risk taking. The project has made an impact by training around 22000 DDOs. 400 auditors. . 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. engagement.

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GOLDRATT’S CRITICAL CHAIN • Problems with traditional project management – Thoughtless optimism – Capacity should be set equal to demand – The student syndrome – Parkinson’s Law – Multi-tasking .

the Critical Chain is defined as the longest chain [not path] of dependent tasks. • Project Buffer • Feeding Buffers .CRITICAL CHAIN PROJECT MANAGEMENT (CCPM) • Critical Chain .

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