RESOURCE ALLOCATION

Resource Allocation:

Used to assign available resources in an

economic way

Scheduling of activities and resources Plan for using available resources to achieve goals

RESOURCE ALLOCATION
Types of resources:

Financial

Physical
Human Technological

RESOURCE ALLOCATION
Importance:

Increasing demand for services and rising

costs to provide these services

Constant upgrading of facilities Minimizing risk exposure

RESOURCE ALLOCATION
Factors that affect resource allocation:

Overprotection of resources Emphasis on short-run financial criteria Organizational politics Vague strategy targets

Reluctance to take risks

Lack of sufficient knowledge

METHODOLOGY
1. 2. 3. 4.

Identify Problem/Risks Prioritize the problem Design Alternative Options Determine Best Alternatives based on

Environmental and Organizational Constraints

METHODOLOGY
Identify Problems/Risks Qualitative

Walkthroughs Interviews with workers Reviews of reports (audits, accident) Quantitative

Exposure monitoring
Analysis of accidents/trends

METHODOLOGY
Prioritizing the Problem:

Combination of inductive analysis and risk assessment matrix

Inductive

Job Hazard Analysis (JHA)

Hazard and Operability Study (HAZOP)

METHODOLOGY
Risk Assessment Matrix Example:

METHODOLOGY
Design Alternative Options:
Engineering Controls Design/redesign Substitution Isolation Enclosure Ventilation Administrative Controls Written programs Training Job rotation Medical surveillance Limited exposure time

METHODOLOGY
Determine Best Alternative:

Compliance with organizations missions

and objectives

Most economical Environmentally Safe

TECHNIQUES
Budgeting:

Numerical plan for resource - revenue budget - expense budget

- cash budget
Scheduling:

Involves list of activities, order of completion, time for completion

- Gantt Charts - Program Evaluation and Review Technique (PERT)

TECHNIQUES
Breakeven Analysis

Point at which total revenue is sufficient to cover total costs

Linear Programming

Mathematical technique

Quantitative tool to allocate limited resources

CASE STUDY COMPARISON

BHP Petroleum (Australia) Identify HAZID Flowchart Audits Interviews with Workers Inspection Reports BGTT Problem/Risks Audits Inspection Reports

Baroid Trinidad Services Audits and Inspection MSDS Interviews with Lab Technicians

Reviews of Accident Walkthroughs by

Reports Prioritizing Problem/Risk Risk Assessment Matrix Risk Assessment Matrix Fault Tree Analysis Supervisors Risk Assessment Matrix

CASE STUDY COMPARISON

BHP Petroleum (Australia) Design Alternative Option Design/redesign Isolation Written Programs BGTT Design/redesign Isolation Written Programs Baroid Trinidad Services Design/redesign Isolation Written Programs Training

Techniques
Used

Scheduling
Expense Budgets Breakeven Analysis

Scheduling
Breakeven Analysis Scheduling Financial Human Physical

Scheduling
Breakeven Analysis

Types of Resources Allocates

Financial Human Physical

Human Physical Financial

Technological

CONCLUSION

Companies show many similarities in the resource allocation process

Differences mainly due to:

- Managements decision
- Company policies - Profitability - Ease of availability of resources