Resource Allocation in Project Management - Revision history

Tkokotas at 12:47, 18 December 2018

2018-12-18T12:47:15Z

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			''Developed by Davide Paganini''


	=Introduction=		=Introduction=

Davide.paganini at 16:35, 27 September 2016

2016-09-27T16:35:04Z

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Davide.paganini at 15:25, 27 September 2016

2016-09-27T15:25:41Z

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	The process or resource allocation can be described as the company activity of placing in the best possible way its scarce resources. The strategy is to bring to customers, goods and services, whose fully satisfy the expressed request, by matching matching their preferences utilizing the lowest possible production cost. Resource allocation is an ongoing process through all the project span, it must be kept monitored to ensure efficient use of resource and identify all problems.		The process or resource allocation can be described as the company activity of placing in the best possible way its scarce resources. The strategy is to bring to customers, goods and services, whose fully satisfy the expressed request, by matching matching their preferences utilizing the lowest possible production cost. Resource allocation is an ongoing process through all the project span, it must be kept monitored to ensure efficient use of resource and identify all problems.

	==Annotated Bibliography==		=Annotated Bibliography=

	* Schwalbe, Kathy (2007). Information Technology Project Management 5th Edition.		* Schwalbe, Kathy (2007). Information Technology Project Management 5th Edition.

Davide.paganini at 15:23, 27 September 2016

2016-09-27T15:23:17Z

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	*Gosenheimer, Carol. (2012). “Project Prioritization, A Structured Approach to Working on What Matters Most” - Office of Quality Improvement, University of Wisconsin-Madison, Division of Enrollment Management		*Gosenheimer, Carol. (2012). “Project Prioritization, A Structured Approach to Working on What Matters Most” - Office of Quality Improvement, University of Wisconsin-Madison, Division of Enrollment Management
	**''A clear an concise overview of what is Project Prioritization and how to set priorities''		**''A clear an concise overview of what is Project Prioritization and how to set priorities.''

	=References=		=References=
	<references />		<references />

Davide.paganini at 15:10, 27 September 2016

2016-09-27T15:10:51Z

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	* Schwalbe, Kathy (2007). Information Technology Project Management 5th Edition.		* Schwalbe, Kathy (2007). Information Technology Project Management 5th Edition.
	**''A comprehensive manual of project management, containing different concepts, tools and techniques. The contribution from ~~the book span across the whole article~~.		**''A comprehensive manual of project management, containing different concepts, tools and techniques. The contribution to this article are mostly from Chapter 6,7 and 9.''




			*Gosenheimer, Carol. (2012). “Project Prioritization, A Structured Approach to Working on What Matters Most” - Office of Quality Improvement, University of Wisconsin-Madison, Division of Enrollment Management
			**''A clear an concise overview of what is Project Prioritization and how to set priorities''

	=References=		=References=
	<references />		<references />

Davide.paganini at 15:04, 27 September 2016

2016-09-27T15:04:28Z

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	* Schwalbe, Kathy (2007). Information Technology Project Management 5th Edition.		* Schwalbe, Kathy (2007). Information Technology Project Management 5th Edition.
			**''A comprehensive manual of project management, containing different concepts, tools and techniques. The contribution from the book span across the whole article.

	*The Associated General Contractors of America(AGC) (1976). The Use of CPM In Construction.

	*National Research Council of the National Academies. “The Owner's Rle in Project Risk Management” - Page 52

Davide.paganini at 14:55, 27 September 2016

2016-09-27T14:55:29Z

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	formulation.		formulation.

	Each organization must wisely allocate resources to avoid delays, rework, nonconformity and to ensure a		Each organization must wisely allocate resources to avoid delays, rework, nonconformity and to ensure an
	overall company efficiency in the long run. All companies face the same dilemma at one point, how best		overall company efficiency in the long run. All companies face the same dilemma at one point, how best
	allocate resources. Allocating resources to wrong ideas or projects that eventually fail will lead to wastage.		allocate resources. Allocating resources to wrong ideas or projects that eventually fail will lead to wastage.
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	final goal of each project manager.		final goal of each project manager.

	In this article will be introduced different techniques and approaches to optimize resource allocation. A explanation will be provided to guide PM's on how to best allocate resources.		In this article will be introduced different techniques and approaches to optimize resource allocation. An explanation will be provided to guide PM's on how to best allocate resources.

	=Resource Allocation=		=Resource Allocation=

	The process of assigning and managing assets ~~in order~~ to support an organization's strategic goals is called resource allocation. In project Management, is the scheduling of activities and resources required by those activities taking into consideration both the project time and the resource availability. It involves balancing competing commitments and priorities in order to determine the most effective course of action to best utilize a limited pool of resources and maximize the return on investment.		The process of assigning and managing assets to support an organization's strategic goals is called resource allocation. In project Management, is the scheduling of activities and resources required by those activities taking into consideration both the project time and the resource availability. It involves balancing competing commitments and priorities in order to determine the most effective course of action to best utilize a limited pool of resources and maximize the return on investment.

	==Resource Allocation Process & Strategies==		==Resource Allocation Process & Strategies==
	Resource allocation begins with strategic planning. A company ~~should formulates~~ and agree on its vision and goals, and proceed in accomplishing them through setting objectives and working towards their achievement. Once a strategy is drawn it will be necessary to allocate sufficient resources to accomplish it. Project budgeting comes into play at this stage, each department will use an agreed budgeted fund to allocate resource for specific purposes, such as buying raw materials, hiring employees, etc. Resource will have to be moved where they are needed the most, that is why resource allocation is at the core of each projects and why without a proper allocation projects are destined to fail~~. In the next paragraph it will be explained the different resources a project manager have to keep in consideration while starting up allocations~~.		Resource allocation begins with strategic planning. A company shall formulate and agree on its vision and goals, and proceed in accomplishing them through setting objectives and working towards their achievement. Once a strategy is drawn it will be necessary to allocate sufficient resources to accomplish it. Project budgeting comes into play at this stage, each department will use an agreed budgeted fund to allocate resource for specific purposes, such as buying raw materials, hiring employees, etc. Resource will have to be moved where they are needed the most, that is why resource allocation is at the core of each projects and why, without a proper allocation, projects are destined to fail.

	===Core Resources===		===Core Resources===
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	* Schwalbe, Kathy (2007). Information Technology Project Management 5th Edition.		* Schwalbe, Kathy (2007). Information Technology Project Management 5th Edition.

	*The Associated General Contractors of America(AGC) (1976). The Use of CPM In Construction.		*The Associated General Contractors of America(AGC) (1976). The Use of CPM In Construction.

	*National Research Council of the National Academies. “The Owner's Rle in Project Risk Management” - Page 52		*National Research Council of the National Academies. “The Owner's Rle in Project Risk Management” - Page 52



	=References=		=References=
	<references />		<references />

Davide.paganini: /* Contingency */

2016-09-27T14:39:42Z

Contingency

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	Determine the contingency fund requires an agreement between the project manager and the project owner. The first usually wants the contingency to be set high in order to permit great flexibility and be protected from uncertainty, on the other hand, the second, wants it to be set low to maintain control over the project. If the contingency is set too high PM's may not be sufficiently involved, on the contrary, if set too low will eventually bring managers to micromanage the project.		Determine the contingency fund requires an agreement between the project manager and the project owner. The first usually wants the contingency to be set high in order to permit great flexibility and be protected from uncertainty, on the other hand, the second, wants it to be set low to maintain control over the project. If the contingency is set too high PM's may not be sufficiently involved, on the contrary, if set too low will eventually bring managers to micromanage the project.

	As stated above, determine the right amount of contingency is not simple. If a project belongs to a category that the company knows well it is possible to use historical data to calculate it. If a project is brand new, with new technologies and innovative procedures, it is more probable that it would come with a higher risks, this would generate great uncertainty and might require a more structured approach to define the amount of contingency. To overcome such problems contingency can be calculated at a major task level instead of project level. Defining the amount to allocate this way would be ~~much~~ easier as riskier tasks would require more money.<ref> National Research Council of the National Academies. “The Owner's Rle in Project Risk Management” - Page 52</ref>		As stated above, determine the right amount of contingency is not simple. If a project belongs to a category that the company knows well it is possible to use historical data to calculate it. If a project is brand new, with new technologies and innovative procedures, it is more probable that it would come with a higher risks, this would generate great uncertainty and might require a more structured approach to define the amount of contingency. To overcome such problems contingency can be calculated at a major task level instead of project level. Defining the amount to allocate this way would be easier as riskier tasks would require more money.<ref> National Research Council of the National Academies. “The Owner's Rle in Project Risk Management” - Page 52</ref>


	==Other Techniques==		==Other Techniques==

Davide.paganini at 14:39, 27 September 2016

2016-09-27T14:39:04Z

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	The technique is applied to resolve conflicts and to create a smoother distribution of resources, determine the correct resource requirements to ensure availability at any given time and to schedule the activities in order to secure the smoothest achievable transition across usage levels. In other words, resource leveling operate to allocate resource efficiently to complete a project in in the given time period.		The technique is applied to resolve conflicts and to create a smoother distribution of resources, determine the correct resource requirements to ensure availability at any given time and to schedule the activities in order to secure the smoothest achievable transition across usage levels. In other words, resource leveling operate to allocate resource efficiently to complete a project in in the given time period.


	In resource leveling, resources, should be assigned to those activities with:		In resource leveling, resources, should be assigned to those activities with:
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	*Most amount of successor tasks		*Most amount of successor tasks
	*Highest resources requirement		*Highest resources requirement

			[[File:res_lev.jpg‎‎\|thumb\|center\|520px\|sub\|Figure 9 - Resource Leveling]]

	====Steps====		====Steps====
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	<ref> Bonacorsi, Steven. (2011). “7 Steps to Using Prioritization Matrices” - PEX, Process Excellence Network - http://www.processexcellencenetwork.com/lean-six-sigma-business-transformation/articles/process-excellence-methodologies-using-prioritizat - Online, Checked on 16/09/2016</ref>		<ref> Bonacorsi, Steven. (2011). “7 Steps to Using Prioritization Matrices” - PEX, Process Excellence Network - http://www.processexcellencenetwork.com/lean-six-sigma-business-transformation/articles/process-excellence-methodologies-using-prioritizat - Online, Checked on 16/09/2016</ref>

			==Contingency==

			In resource allocation is often critical to have a contingency plan. Contingency is a way to cope with uncertainty, when estimating resources is important to set a fund aside of the project to be used in case of need. The amount of the fund should be determined based on the level of risk that the project faces and on the project budget itself.
			This contingency fund will be used to cover unforeseen increases in costs by absorbing impacts of project uncertainty. Contingency shouldn't be used as primary alternative in mitigating risk, it should only be part of a complete and structure risk mitigation plan.

			Determine the contingency fund requires an agreement between the project manager and the project owner. The first usually wants the contingency to be set high in order to permit great flexibility and be protected from uncertainty, on the other hand, the second, wants it to be set low to maintain control over the project. If the contingency is set too high PM's may not be sufficiently involved, on the contrary, if set too low will eventually bring managers to micromanage the project.

			As stated above, determine the right amount of contingency is not simple. If a project belongs to a category that the company knows well it is possible to use historical data to calculate it. If a project is brand new, with new technologies and innovative procedures, it is more probable that it would come with a higher risks, this would generate great uncertainty and might require a more structured approach to define the amount of contingency. To overcome such problems contingency can be calculated at a major task level instead of project level. Defining the amount to allocate this way would be much easier as riskier tasks would require more money.<ref> National Research Council of the National Academies. “The Owner's Rle in Project Risk Management” - Page 52</ref>


			==Other Techniques==

	===Linking Tasks===		===Linking Tasks===

	Linking similar task to different projects. If a resource have been allocated to a task which is similar across different projects it is possible to link these task. In this way a resource that appears to be over-allocated with tasks, can actually work at the same time with activities that shares common similarities.		Linking similar task between different projects. If a resource have been allocated to a task which is similar across different projects it is possible to link these task. In this way a resource that appears to be over-allocated with tasks, can actually work at the same time with activities that shares common similarities.

	===Leaving Breathing Room===		===Leaving Breathing Room===
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	* Schwalbe, Kathy (2007). Information Technology Project Management 5th Edition.		* Schwalbe, Kathy (2007). Information Technology Project Management 5th Edition.
	*The Associated General Contractors of America(AGC) (1976). The Use of CPM In Construction.		*The Associated General Contractors of America(AGC) (1976). The Use of CPM In Construction.
			*National Research Council of the National Academies. “The Owner's Rle in Project Risk Management” - Page 52

	=References=		=References=
	<references />		<references />

Davide.paganini at 13:41, 27 September 2016

2016-09-27T13:41:48Z

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	The aim of leveling resources is to minimize the variations in resource loading by "Shifting tasks within their slack allowances". <ref> Schwalbe, Kathy (2007). Information Technology Project Management 5th Edition.</ref>		The aim of leveling resources is to minimize the variations in resource loading by "Shifting tasks within their slack allowances". <ref> Schwalbe, Kathy (2007). Information Technology Project Management 5th Edition.</ref>

	The technique is applied to resolve conflicts and to create a smoother distribution of resources, determine the correct resource requirements to ensure availability at any given time and to schedule the activities in order to secure the smoothest achievable transition across usage levels.		The technique is applied to resolve conflicts and to create a smoother distribution of resources, determine the correct resource requirements to ensure availability at any given time and to schedule the activities in order to secure the smoothest achievable transition across usage levels. In other words, resource leveling operate to allocate resource efficiently to complete a project in in the given time period.

	In resource leveling resources should be assigned to those activities with:		In resource leveling, resources, should be assigned to those activities with:
	*Minimum slack <ref> Scheduling projects: How to determine the critical path using activity slack calculations? - http://www.pmknowledgecenter.com/dynamic_scheduling/baseline/scheduling-projects-how-determine-critical-path-using-activity-slack-calculations - Online, Checked on 15/09/2016 </ref>		*Minimum slack <ref> Scheduling projects: How to determine the critical path using activity slack calculations? - http://www.pmknowledgecenter.com/dynamic_scheduling/baseline/scheduling-projects-how-determine-critical-path-using-activity-slack-calculations - Online, Checked on 15/09/2016 </ref>
	*Shortest duration		*Shortest duration
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	\|}		\|}

	*1- Agree on the ~~objective~~ to be reached and identify the key project stakeholders		*1- Agree on the objectives to be reached and identify the key project stakeholders
	It is necessary to ensure that the whole team, working on the matrix, is fully aligned on the ultimate goal to achieve		It is necessary to ensure that the whole team, working on the matrix, is fully aligned on the ultimate goal to achieve

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	*7- Compare the final result		*7- Compare the final result
	Once all the scores are added up for each project is possible to outline which ones should be prioritize. In the given example it is ~~possible~~ to see how the most important project will be Project 2, with a score of 69 and the least important, Project 4, with a score of 17.		Once all the scores are added up for each project is possible to outline which ones should be prioritize.
			In the given example the result is:

			*Rank 1- Project 2
			*Rank 2- Project 1
			*Rank 3- Project 7
			*Rank 4- Project 3
			*Rank 5- Projects 5 & 6
			*Rank 7- Project 8
			*Rank 8- Project 4

			It's immediate at this point to see how the most important project will be Project 2, with a score of 69 and the least important, Project 4, with a score of 17. During resource allocation it will be possible to distribute resources based on the priority of each projects compared to the others.
	<ref> Jain, Ankur. “Using a Criteria-Based Matrix to Prioritize IT Projects” - I, Six Sigma - https://www.isixsigma.com/operations/information-technology/applying-criteria-based-matrix-prioritize-it-projects/ - Online, Checked on 16/09/2016</ref>		<ref> Jain, Ankur. “Using a Criteria-Based Matrix to Prioritize IT Projects” - I, Six Sigma - https://www.isixsigma.com/operations/information-technology/applying-criteria-based-matrix-prioritize-it-projects/ - Online, Checked on 16/09/2016</ref>
	<ref> Bonacorsi, Steven. (2011). “7 Steps to Using Prioritization Matrices” - PEX, Process Excellence Network - http://www.processexcellencenetwork.com/lean-six-sigma-business-transformation/articles/process-excellence-methodologies-using-prioritizat - Online, Checked on 16/09/2016</ref>		<ref> Bonacorsi, Steven. (2011). “7 Steps to Using Prioritization Matrices” - PEX, Process Excellence Network - http://www.processexcellencenetwork.com/lean-six-sigma-business-transformation/articles/process-excellence-methodologies-using-prioritizat - Online, Checked on 16/09/2016</ref>