Resource Optimization

Resource optimization is the set of processes and methods to match the available resources

(human, machinery, financial) with the needs of the organization in order to achieve

established goals. Optimization consists in achieving desired results within a set timeframe and

budget with minimum usage of the resources themselves. The need to optimize resources is

particularly evident when the organization’s demands tend to saturate and/or exceed the

resources currently available.

When a company is managed using the philosophy of Intelligent Managementthen resource

optimization is strictly linked to the concept of constraint and asystemic vision of the

company. Indeed, without a systemic vision of the company we are unable to identify

the global effectiveness of resource allocation and we run the risk of using resources available

mainly to respond to emergencies that daily occur in the various parts of the organization.

Intelligent Management sees the structure of an organization as a network of projects which

cut across company “functions”, in contrast with the hierarchical view of a company divided

up into silos unable to recognize precise patterns and rules of interdependencies.

When we manage a company as a network of projects we must be able to allocate the

resources available in the most efficient way possible, always bearing in mind that we have to

achieve the global goal.

A project is itself a system: a network of elements (tasks) that are interconnected and

interdependent, that work together to achieve a precise goal. The fact that the tasks are carried

out by a pool of finite resources means that optimizing the sequence of tasks is a matter of

considerable complexity. (cf. the well-known problem of P vs NP).

A further level of complexity is due to the human factor connected with determining the length

of individual tasks. It is well known that if we are asked by our boss how long it takes us to

complete a certain task, we tend to protect ourselves by asking for considerably more time than

is strictly necessary. This is made worse by multitasking (the tendency to do several things in

parallel). While multitasking is very useful for computers it is decidedly counterproductive for

the human mind. Finally, there is the effect of the so-called student syndrome, in other words

whenever we have more time than we need to do something we will always put it off until the

last minute.

An efficient use of resources to carry out a project requires us to:

Have a shared vision of the global goal to be achieved (remove unnecessary protection from

individual tasks)

Eliminate multitasking (increased effectiveness in the tasks)

Identify the constraint (the critical chain) and protect it with a buffer of time (thus

protecting the project from variation)

Carefully manage the operational phases of the project (capitalize on time gained)

Carry out a statistical analysis of the project buffer consumption using Statistical Process

Control (SPC) (more effective project management)

The situation becomes more complex when multiple projects have to be managed, and

possibly by different people. When a resource becomes unavailable, let’s say they are ill, ways

to take corrective actions must be available other than just delaying the related tasks. Although

ultimately the decision is taken by the project manager, the Information System can provide

useful information to support such decisions. The correct way to handle multi-projects is to

have a pool of resources with some degree of interchange ability and a way to communicate

through different projects so as to be able to do a partial reallocation of the tasks.