Tutorial 8 WithSolution

SCHEDULING RESOURCES AND COSTS
Chapter Outline
1. Overview of the Resource Scheduling Problem

2. Types of Resource Constraints
3. Classification of a Scheduling Problem
4. Resource Allocation Methods
A. Assumptions
B. Time-Constrained Projects: Smoothing Resource Demand
C. Resource-Constrained Projects
5. Computer Demonstration of Resource-Constrained Scheduling
A. The Impacts of Resource-Constrained Scheduling
6. Splitting Activities
7. Benefits of Scheduling Resources
8. Assigning Project Work
9. Multiproject Resource Schedules
10. Using the Resource Schedule to Develop a Project Cost Baseline
A. Why a Time-Phased Budget Baseline Is Needed
B. Creating a Time-Phased Budget
11. Summary
12. Key Terms
13. Review Questions
14. Exercises
15. Case: Power Train, Ltd.
16. Appendix 8.1: The Critical-Chain Approach
A. Time Estimates
B. Critical-Chain in Action
C. Critical-Chain versus Traditional Scheduling Approach
D. CCPM and Splitting Tasks
E. Monitoring Project Performance
F. The CCPM Method Today
17. Appendix Summary
18. Appendix Exercises
Chapter Objectives
 To contrast the differences between time and resource constrained projects

 To explain the implications for managing time and resource constrained projects
 To demonstrate an understanding of one heuristic method for scheduling resource constrained
projects
 To explain the potential for hidden critical paths
 To introduce multiproject resource scheduling
 To demonstrate the ability to create a project cost baseline
 To explain how costs are translated from an estimate to a time-phase baseline.
Review Questions
1. How does resource scheduling tie to project priority?
Resource scheduling ties to project priority because resources are limited. Remember, the
priority system ranks projects which then determines which project each resource should work
on first.
2. How does resource scheduling reduce flexibility in managing projects?
Resource scheduling systems usually reduce flexibility because when resources are
considered, computer routines use slack to get an “efficient” schedule. When slack is used up,
flexibility is lost and the risk of delaying the project increases. If the resource conflict occurs
on the critical path, the project is delayed.
3. Present six reasons scheduling resources is an important task.
Several reasons for scheduling resources are to:
 Check if existing resources are adequate and available

 Decide which resources have priority
 Assess the impact if another project is added to the pool
 Determine where the real critical path is. Are there unforeseen dependencies?
 See what happens to the risk of being late if slack is used up developing a schedule
 Decide if outside contractors have to be used
 Decide if an imposed project duration is realistic.
Students should not be limited to these reasons; there are many more reasons for scheduling
resources.
4. How can outsourcing project work alleviate the three most common problems associated
with multiproject resource scheduling?
Outsourcing can be used to reduce project slippage, improve utilization of critical resources,
and avoid resource bottlenecks. For example, project delays can be avoided by contracting
key activities when resources are not available internally. Likewise, hiring consultants to help
with Y2K problems allows critical IT people to work on specific problems, while the outsiders
work on standard programs. Not only does the project get done on time, but the company
avoids hiring IT personnel to meet a short term need.
5. Explain the risks associated with leveling resources, compressing or crashing projects,
and imposed durations or “catch-up” as the project is being implemented.
The risks associated with leveling, crashing, and “catch-up” are similar to those noted in
question 2. Flexibility is decreased and risk of delay is increased. For example, slack is used
up and may cause other bottlenecks later in a sequence of activities. Having time buffers at
merge points before the project begins could help avoid some of the need to crash activities.
Decoupling critical activities can help to cut time if decoupling is possible and resources can
be shifted; however, the risk is typically reduced only slightly.
6. Why is it critical to develop a time-phased baseline?
Other systems do not measure how much work is accomplished for the money spent! Hence,
without time-phasing cost to match your project schedule, it is impossible to have reliable
information for control purposes.
Exercises
1. Given the network plan that follows, compute the early, late, and slack times. What is
the project duration? Using any approach you wish (e.g., trial and error), develop a
loading chart for resources Electrical Engineers (EE), and resource, Mechanical
Engineers (ME). Assume only one of each resource exists. Given your resource schedule,
compute the early, late, and slack times for your project. Which activities are now
critical? What is the project duration now? Could something like this happen in real
projects?
Instead of taking 9 days the duration has been extended to 11 days and all activities are critical.
Resource shortages are common in real projects and this problem demonstrates the impact
resource constraints can have on project schedules.
2. Given the network plan that follows, compute the early, late, and slack times. What is
the project duration? Using any approach you wish (e.g., trial and error) develop a
loading chart for resource resources Carpenters (C) and Electricians (E). Assume only
one Carpenter is available and two Electricians are available. Given your resource
schedule, compute the early, late, and slack times for your project. Which activities are
now critical? What is the project duration now?
Resource constraints extend the project duration from 12 days to 14 days and Activity 2 which
was part of the original critical path is no longer critical path. All other activities are critical
which illustrates the key point that resource constraints tend to increase the sensitivity of
project networks.

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SCHEDULING RESOURCES AND COSTS

1. Overview of the Resource Scheduling Problem

 To contrast the differences between time and resource constrained projects

1. How does resource scheduling tie to project priority?

2. How does resource scheduling reduce flexibility in managing projects?

3. Present six reasons scheduling resources is an important task.

Several reasons for scheduling resources are to:

 Check if existing resources are adequate and available

6. Why is it critical to develop a time-phased baseline?

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