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10 Lessons for New Managers
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Resource allocation

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Resource allocation

  1. 1. RESOURCE ALLOCATION By: Kemuel Bryan G. Luciaja
  2. 2. Resource An economic or productive factor required to accomplish an activity, or as means to undertake an enterprise and achieve desired outcome.
  3. 3. The Three Most Basic Resources Land Includes all natural resources (“gifts of nature”) used in the production process, such as arable land, forests, mineral and oil deposits, and water resources. Labor Consists of the physical and mental talents of individuals used in producing goods and services. Capital Refers not to money but to tools, machinery, and other productive equipment.
  4. 4. Other Resources •Energy •Entrepreneurship •Information •Expertise •Management •Time
  5. 5. Resources in Project Management anything used up to execute the project •Budget •People •Technology •Time •Space •Tools •Equipment •and etc.
  6. 6. Resource Allocation Resource allocation is used to assign the available resources in an economic way. In project management, resource allocation is the scheduling of activities and the resources required by those activities while taking into consideration both the resource availability and the project time.
  7. 7. Resource Allocation Plan 1.Basic Allocation Decision 2.Contingency mechanisms
  8. 8. 1. Basic allocation decision • The choice of which items to fund in the plan • What level of funding it should receive • Which to leave unfunded • The resources are allocated to some items, not to others
  9. 9. 2. Contingency mechanisms A.There is a priority ranking of items excluded from the plan, showing which items to fund if more resources should become available. B.There is a priority ranking of some items included in the plan, showing which items should be sacrificed if total funding must be reduced.
  10. 10. Example of Resource Allocation for Jobs Assume that the active resource plan is called “Night Plan”. 3 Job classes: DW Consumer Group OLTP Consumer Group Other Consumer Group
  11. 11. Resource leveling A project management technique used to examine unbalanced use of resources (usually people or equipment) over time, and for resolving over-allocations or conflicts. Leveling resources involves redistributing an imbalance of allocated work. It assists project team members by keeping them from becoming overwhelmed, working overtime, or running into project burnout.
  12. 12. Resource leveling If DW Consumer Group do not fully use the allocated 60%, the unused portion is available for use by jobs in OLTP and Other Consumer Group.
  13. 13. Resource leveling The Two Key Elements of Resource Leveling: 1. As the main aim of resource leveling is to allocate resource efficiently, so that the project can be completed in the given time period. Hence, resource leveling can be broken down into two main areas; projects that can be completed by using up all resources which are available and projects that can be completed with limited resources. 2. Projects which use limited resources can be extended for over a period of time until the resources required are available. If then again, the number of projects that an organization undertakes exceeds the resources available. Then it's wiser to postpone the project for a later date.
  14. 14. Resource Over-allocation Over-allocation of a resource is when a resource has been assigned more work than can be completed during normal work hours. Resource allocation often leads to overtime and overspending on financial resources.
  15. 15. Techniques for Avoiding Resource Overload 1. Resource Leveling 2. Prioritize Projects 3. Linking Tasks 4. Leaving Breathing Room 5. Avoid the “Putting out fires” approach to project management
  16. 16. Techniques for Avoiding Resource Overload 1. Resource Leveling In this method, the project manager can either level resources by hand (complicated, but perhaps more sound) or use a software program such as Microsoft Project to level resources for you.
  17. 17. Techniques for Avoiding Resource Overload 2. Prioritize Projects By prioritizing projects, when a resource allocation overload is apparent or a task conflict exists, it can be resolved without piling pressure on the individual or team (or requiring the individual or team to put in a couple twelve-hour days).
  18. 18. Techniques for Avoiding Resource Overload 3. Linking Tasks Linking tasks is more of a logistical solution. If the resource has been assigned to research the markets for project A and project B, these tasks could be linked. In this manner, when it appears that a resource has been over- allocated, really the tasks are similar enough to count for two projects. By linking these tasks from the different projects, the problem can be resolved.
  19. 19. Techniques for Avoiding Resource Overload 4. Leaving Breathing Room When scheduling the project, it is vital to leave breathing room between tasks. However, it is important to not under-allocate resources as this could lead to a loss of budget monies meaning resource allocations problems will affect your project's health. A fine balance must be achieved between breathing room and not moving forward quickly enough.
  20. 20. Techniques for Avoiding Resource Overload 5. Avoid the “Putting out fires” approach to project management If your team is consistently putting out fires, it makes it difficult to focus on the project. Moreover, by putting out fires, the team becomes knee-deep in ash, while project tasks pile up. This is where project management techniques such as Scrum come in handy.
  21. 21. Thank you!

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