Managerial Approach
Chapter 9 Resource Allocation
Overview
21-1
Resource Allocation
Some definitions
Resource allocation, loading, leveling
Expediting and crashing projects
31-1
Some Definitions
Resource allocation permits efficient use of
physical assets
Within a project, or across multiple projects
Drives both the identification of resources, and
timing of their application
Additional equipment/material
Extra labor
Negative effects on other projects
Reduced morale, from excessive hours/shifts
Lower quality, from the pressure of time, inexperienced and
tired staff
If you want it bad, youll get it bad . . .
81-1
91-1
Fast-tracking/Concurrency
Pros:
Can shorten project duration
Can reduce product development cycles
Can help meet clients demands
Cons:
Can increase cost through redesigns,
excessive changes, rework, out-ofsequence installation, and more
101-1
111-1
121-1
131-1
141-1
Resource Loading
Describes the amounts of individual
resources an existing schedule requires
during specific time periods
The loads (requirements) of each resource
type are listed as a function of time period
Gives a general understanding of the
demands a project or set of projects will
make on a firms resources
Chapter 9-9
151-1
161-1
171-1
181-1
Resource Leveling
Resource leveling aims to minimize the period-byperiod variations in resource loading by shifting tasks
within their slack allowances
The purpose is to create a smoother distribution of
resource usage
Several advantages include:
Less day-to-day resource manipulation needed
Better morale, fewer HR problems/costs
Leveling resources also levels costs, simplifies budgeting
and funding
191-1
Chapter 9-12
Resource Leveling
When resources are leveled, the associated costs
also tend to be leveled
The project manager must be aware of the cash
flows associated with the project and of the means
of shifting them in ways that are useful to the
parent firm
Resource leveling is a procedure that can be used
for almost all projects, whether or not resources are
constrained
201-1
Chapter 9-13
211-1
221-1
231-1
Chapter 9-14
ASAP
As late as possible (do not engage in anything unless you have to)
SPT (shortest processing time good to reduce congestion)
Most resources first (most requested resources first)
Minimum slack first (critical jobs go first to avoid lead time
delays)
Most critical followers (most critical jobs that go after you, many
jobs depend on that resource)
Most successors
Arbitrary
Combination of the above (compound rules).
251-1
Chapter 9-14
Simulated annealing
Tabu search
Genetic algorithms
Greedy search with branch and bound
In the graduate course Advanced Production Planning
& Scheduling, focuses on scheduling heuristics.
It is good to know that they exist.
261-1
Chapter 9-14
271-1
Chapter 9-21
Chapter 9-21
Chapter 9-21
This doesnt mean that job will be assigned the resource first.
Why? The resource in need may not be available.
You can get first priority to claim it, but you may not get the first
assignment.
You may get preference due to the type of resource that you need.
In case you have multiple projects, you have some way to do it.
301-1
Chapter 9-21
Schedule slippage
2.
Resource utilization
3.
In-process inventory
311-1
Chapter 9-22
Chapter 9-23
Chapter 9-24
Predecessor
Days
(normal, crash)
Cost
(normal, crash)
3, 2
$40, 80
2, 1
20, 80
2, 2
20, 20
d*
4, 1
30, 120
e**
3, 1
10, 80
361-1
Example (contd):
Cost per Day to Crash (Table 9-2)
Activity
$ Saved/
Day (Slope)
40
60
30
70 (2 days)
371-1
2 $60
3 $70
$20
$40
$20
d
- CP: a b e (ET=8)
- Ratios
- Total Cost: $120
- Total Lead Time: 8 days
$30
$ Saved/
Day (Slope)
40
60
30
70 (2 days)
3 $40
Activity
$0
4 $30
$10
Activity
Pred.
Days
(normal,
crash)
Cost
(normal,
crash)
3, 2
$40, 80
2, 1
20, 80
2, 2
20, 20
d*
4, 1
30, 120
e**
3, 1
10, 80
381-1
2 $60
Ratios
b
2
3 $40
$20*
$40
$80*
$ Saved/
Day (Slope)
40
60
30
70 (2 days)
e
2
$0
$10*
$20*
3 $70
Activity
$30*
4 $30
Activity
Pred.
Days
(normal,
crash)
Cost
(normal,
crash)
3, 21
$40, 80
2, 1
20, 80
2, 2
20, 20
d*
4, 1
30, 120
e**
3, 1
10, 80
391-1
Normal Cost
Ratios
b
2
3 $40
a
$40
$80*
$20$80*
$ Saved/
Day (Slope)
40
60
30
70 (2 days)
e
$0
$10*
$20*
d
- Crash b: (lowest) for 1 day (max)
3 $70
Activity
$30*
4 $30
Activity
Pred.
Days
(normal,
crash)
Cost
(normal,
crash)
3, 2
$40, 80
2, 1
20, 80
2, 2
20, 20
d*
4, 1
30, 120
e**
3, 1
10, 80
401-1
Normal Cost
Ratios
b
2
3 $40
$20 $80*
a
$40
$80*
$30
$ Saved/
Day (Slope)
40
60
30
70 (2 days)
e
$0
$10*
$20*
d
-
3 $70
Activity
4 $30
3 $60*
Activity
Pred.
Days
(normal,
crash)
Cost
(normal,
crash)
3, 2
$40, 80
2, 1
20, 80
2, 2
20, 20
d*
4, 1
30, 120
e**
3, 1
10, 80
411-1
Normal Cost
Ratios
1
3 $70
b
2
3 $40
a
$40
$80*
$20 $80*
Activity
$ Saved/
Day (Slope)
40
60
30
70 (2 days)
e
$0
$10 $80*
$20*
d
$30
4 $30
3 $60*
Activity
Pred.
Days
(normal,
crash)
Cost
(normal,
crash)
3, 2
$40, 80
2, 1
20, 80
2, 2
20, 20
d*
4, 1
30, 120
e**
3, 1
10, 80
421-1
Normal Cost
Ratios
1
3 $70
b
2
3 $40
a
$40
$80*
$0
Activity
$ Saved/
Day (Slope)
40
60
30
70 (2 days)
e
$10 $80*
$20*
4 $30
Activity
Pred.
Days
(normal,
crash)
Cost
(normal,
crash)
3, 2
$40, 80
2, 1
20, 80
2, 2
20, 20
d*
4, 1
30, 120
e**
3, 1
10, 80
431-1
Normal Cost
Ratios
1
3 $70
b
2
3 $40
a
$40
$80*
$0
Activity
$ Saved/
Day (Slope)
40
60
30
70 (2 days)
e
$10 $80*
$20*
4 $30
-LT (a b e ) = 4
$30 3 $60*
-Say that lead time of 5 days is acceptable.
-Can backtrack and undo the earlier crashing at b.
-Add 1 day and $60 back.
-Now (a b e ) and (a d ) have LT =5.
-New Cost*: $320 - $60 = $260
-If 5 days is acceptable, then stop.
Activity
Pred.
Days
(normal,
crash)
Cost
(normal,
crash)
3, 2
$40, 80
2, 1
20, 80
2, 2
20, 20
d*
4, 1
30, 120
e**
3, 1
10, 80
441-1
Normal Cost
Ratios
1
3 $70
b
2
3 $40
a
$40
$80*
Activity
$ Saved/
Day (Slope)
40
60
30
70 (2 days)
e
$10 $80*
$20*
$30
-LT (a b e ) = 5
d
4
-Assume that acceptable lead time is now 4 days.
$30 3 $60
-Crash d for 1 more day.
2 $90*
-Cost*: $260 + $30 = $290
-Crash b again for 1 more day.
-New Cost*: $290 + $60 = $350
-Now (a b e, a c and a d ) have LT =4.
-Addtn. Cost of reducing project from 8 to 4 days: $230
-You could still crash d 1 more day, but it would be a waste of $.
Activity
Pred.
Days
(normal,
crash)
Cost
(normal,
crash)
3, 2
$40, 80
2, 1
20, 80
2, 2
20, 20
d*
4, 1
30, 120
e**
3, 1
10, 80
451-1
461-1
CPM Cost-Duration
471-1
481-1