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Group Members• Natasha Zahid

• Saadia Sadique

• Amber Saleem

• Moazma Naseer

Topic of Presentation

Resource Allocation

Critical Path CrashingResource LevelingResource Constrained

SchedulesMulti-project Resource

ManagementCritical Chain

The Resource Allocation Problem

• Resource allocation is a major problem in a project. In general term we define three major resources allocated to the project, which are:

Time Cost Performance

• Critical path method- Crashing a project

• CPM and AON allowed the PM to schedule the physical resources to the project. There are tow time and cost specifications are defined for each activity. One is called Normal and other is called Crash.

What is Crashing / Crunching?

• To speed up, or expedite, a project

• Of course, the resources to do this must be available

• Crunching a project changes the schedule for all activities

• This will have an impact on schedules for all the subcontractors

• Crunching a project often introduces unanticipated problems

• Time requirement of a task must be determined with an assumption about the level of resources devoted to the task.

• We need to know what additional resources are needed to shorten the completion times.

• Slope: while crashing a project, it is the important to consider the relation called slope. It is calculated as:

Steps to follow:

• To crash a project, two steps should be followed.

• Focus on the critical path when trying to shorten the project

• Crashing a noncritical activity will not influence project duration.

Fast Tracking:

• Another method for crashing a project is fast tracking. It seems to be reasonable way to expedite construction projects as well as other types of projects when the early build or carrying out steps are fairly routine and well understood. It is a partial use of the basic concepts in the phase-gate project management and is dependant on effective feed-back and feed-forward communication.

Resource Allocation problem:

• The extreme points of the relationship between time use and resource use are:

• Time limited.

• Resource limited.

Resource loading:

Resource loading is the process of calculating the total load from project task son each resource for each time period of the project’s duration.

It gives a general understanding of the demand, a project or set of project will make on a firm resources.

It is a guide for early project planning and also the first step to reduce excessive demands on certain resources.

The use of the resources on a project is often non linear The project action plan links the schedule directly to specific demands

for resources. It is the job for the project manager to deal with overloading of

resources, either by adding people or by changing the schedule

Resource leveling:

• Resource leveling is concerned with evening out the demand for various resources required in project by shifting tasks within their slake alliances.

• The purpose is to create a smoother distribution of resources usage.

• Managerial implications:• Less management is required if the use of a

given resource is nearly constant over its period of use.

• The PM may be able to use a just-in-time inventory policy without much worry that the quantity delivered will be wrong.

• If the resources being leveled are people, leveling improves morale and results in fever problems in the personal and payroll offices.

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• Cost implications:

• When resources are leveled the associated cost also tends to smooth out.

• If the labor requirements are leveled the organization can save and avoid the hiring and layoff cost.

Resource loading / leveling and uncertainty

• Unexpected delays can occur in the work schedule of a project for multiple reasons.

• The demand can be leveled by moving some resources forward and some back depending upon the flexibility of the production environment.

• Trade off can be made between periods of over capacity and the periods of under capacity.

Constrained resources

• The lack of resources where and when needed is caused due to

• loss or theft

• failure of a supplier to produce and deliver,

• assignment of resources to another activity

Two fundamental approaches to constrained resource allocation are

• Heuristic Model

• Optimization Model

Heuristic Model

• Seek better solutions• Approaches to constrained resource scheduling problems

in wide, general use for number of reasons• Feasible methods of attacking large, non linear, complex

problems• Schedules generated by this approach may not be optimal • PERT/CPM schedule and analyze resource usage period

by period, resource by resource•

Uses priority rule and most common rules include

Example

resource used by activities e, f, g and h in the figure is scarce. To which activity would you assign the resource, based on the following rules?

a. Minimum slackb. Most successorsc. Most critical followersd. Shortest task first

Two events will occur while scheduling heuristic model

• Routine runs out of activities before it runs out of the resources and excess resources are left idle assigned elsewhere in the organization as needed during current period or applied to future tasks

• or it runs out of resources before all activities have been scheduled. If minimum-slack-first rule is used resources used would be devoted to critical activities, delaying those with greater slack.

Optimization Model

• Seek best solution but limited in ability to handle complex solutions and large problems

• Allocation and scheduling of resources depend on sophisticated mathematical and graphical tools

• Two categories to find optimal solution for resource constraints include linear programming, enumeration and combined programming and enumeration methods.

Multi project scheduling and resource allocation

Two common approaches to deal with Scheduling and allocating resources are

• Treat several projects as if they were each element of a single large projects

• Consider all projects completely independent

The important parameters affected by project scheduling are following

Schedule slippage

Resource utilization

In-process inventory

Manufacturing process model

• J = (λ/µ) / (1-λ/µ)

• λ Arrival rate of the job to be processed by a facility

• µ facility’s rate of servicing job

• j average number of jobs

Heuristic technique

• Resource scheduling method

• Dij = Max [ EF – LS]

• Priority = dj ∑ rij

• Greatest resource utilization

• Most possible jobs

A multi project scheduling Heuristic

• The most common approach to scheduling and allocating resources to multiple projects is to treat the several projects as if they were each elements of a single large project

• Another way of attacking the problem is to consider all projects as completely independent

• To describe such a system properly, standards are needed by which to measure scheduling effectiveness

• The most common approach to scheduling and allocating resources to multiple projects is to treat the several projects as if they were each elements of a single large project

• Another way of attacking the problem is to consider all projects as completely independent

• To describe such a system properly, standards are needed by which to measure scheduling effectiveness

• Three important parameters affected by project scheduling are:– Schedule slippage– Resource utilization– In-process inventory

Selected Project

Selected Project

Introduction

• Project for Improvement of Financial Reporting and Auditing (Revised) was started in 1996.

• Authorities responsible for:

(i) Sponsoring: Ministry of Finance

(ii) Execution : Office of the Auditor General, Ministry of Finance/CGA

(iii) Operation and maintenance: Office of the Auditor General, Ministry of Finance/CGA

• Time required for completion of project :120 Months (10 years)

• adopt and implement a modern accounting system designed according to recognized accounting principles and standards and based on modem information technology’;

• implement a governance structure and legal framework for an independent and effective audit function’;

• improve the professional capacity of the elements of the civil service responsible for fiscal management’;

• make increasing use of the private sector to supplement public sector resources’; and

• adopt improved standards for private sector financial disclosure’.

Objectives/ Benefits

• Modernized government audit procedures and adoption of internationally accepted auditing standards will eradicate program oversights and improve evaluation capabilities.

• Effective accounting and reporting systems will enable the government to better formulate, control, and monitor its budget.

• Strengthened financial management practices will increase the impact of development programs and related external assistance.

• Financial information generated by the improved accounting and information systems will be more useful, complete, reliable and timely. Improved data will facilitate program management by government decision-makers.

• Tighter internal controls will lessen the occurrence of errors and irregularities in the processing of payments and receipts.

• Related training programmes will build staff capabilities and enhance utilization of human resources.

Resources Requirement

Capital Cost of Project

GOP IDA Total

Original cost 306.767 1056.642 1363.409

Revised cost 470.962 1647.056 2118.018

Sources and amount of rupee component of Project

• Government Sources• Grant

• Original: Rs. 306.767 million• Revised: Rs. 468.433 million

• Loan• Investment• Direct Government Expenditure for the project will be to

the tune of Rs.460.170 million and provided in the local currency

HUMAN RESOURCES

Total human resource for administration

194 posts to be filled

Total pay per month 4,577,886

Total pay per year 54,934,632

1. Administration

2. IT persons

Total IT posts 60 posts to be filled

Total pay per month 2,732,000

Total pay per year 32,784,000

Building

Cost of Building, Water Supply,

Fire Fighting, Furniture and

Furnishing etc. @ Rs.1500/-P.Sft. =10,06,21,500/-

 

ii). Electrical Equipments.

@ Rs.150/- P.Sft. =87,20,530/-

iii). Horticulture… @ Rs.15/-- P.Sft. =10,06,215/-

Total:- Rs.11,03,48,245/-

Add 5% Contingencies.. Rs.55,17,412/-

Total: Rs.11,58,65,657/-

Add 8% Departmental Charges. Rs.92,69,253/-

Total: Rs.12,51,34,910/-

Say: Rs.125.135 Million.

Materials, Supplies & Equipments

a) Power supply 52 25 KWA connections to be provided.

b) Inter net/Electronic Mail facility will be provided by wide area networking to have access to various agencies.

c) Servera) 10 servers Compaq ML-350 have been purchased and installed. 27 servers have to be

purchased.

d) PC'sa) 667 PC's P-III and P-IV Branded along with UPS have already been purchased with full

accessories. 700 PC’s P-IV along with UPS has to be purchased

e) Laser Printer.a) 134 laser jet printers have been purchased for the implementation of the project.

f) Dot-Matrix Printers.a) 5 Dot Matrix Printers have been purchased.

g) Epson Printers a) 7 printers have been purchased.

h) Printronix Printers

i) 8 line printers have been purchased for sites.

Transport Facilities

Sr. no. specification Required for No. Unit cost Total cost

1 1300cc Project Director

1 1.3m 1.3m

2 1300cc GM (MIS) 1 1.3m 1.3m

3 1000cc DG’s/Director 7 0.7m 4.9m

4 Toyota Hiace Staff 4 1.5m 6.0m

total 13 13.5m

Results of the Project

Conclusion

• It went through various phases with varying degree of success in terms of satisfactory progress on achievement of objectives. The key factor that galvanized the project was a professional team having the confidence of the Auditor General. This team brought about fundamental changes in the approach to the project management; professionalism, project culture, engagement, risk taking, aggressive tracking of activities etc. The project has made an impact by training around 22000 DDOs, 400 auditors, 2000 SAP end users. One of the key success parameters is that the project has made its presence conspicuous to a point where it is high on Government agenda.

GOLDRATT’S CRITICAL CHAIN

• Problems with traditional project management– Thoughtless optimism– Capacity should be set equal to demand – The student syndrome– Parkinson’s Law– Multi-tasking

CRITICAL CHAIN PROJECT MANAGEMENT (CCPM)

• Critical Chain - the Critical Chain is defined as the longest chain [not path] of dependent tasks.

• Project Buffer 

• Feeding Buffers