Resource Allocation in Project Management

In project management exists a tight connection between results and resources optimization. An inadequate planning of resource allocation might lead to a non-manageable or non-reasonable budget formulation.

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 allocate resources. Allocating resources to wrong ideas or projects that eventually fail will lead to wastage. On the other hand, not allocating resources in the right ones can lead to even greater opportunity costs. Under and over allocation are the main problems that arise in a non-planned resource allocation scenario.

Is critical to have a planned approach in RA to manage a project portfolio effectively. Being able to allocate the correct resources, in terms of skills and quantity, to the right ideas, projects and products should be the final goal of each project manager.

Resource Allocation

Resource allocation is used to assign available resources in a economic way. In project Management, is the scheduling of activities and the resources required by those activities while taking into consideration both the resource availability and the project time.