How can outsourcing project work alleviate the three most common problems associated with multiproject resource scheduling? [You
Reflection and Discussion Forum Week 8
Reflection and Discussion Forum Week 8Assigned Readings:Chapter. 8 Scheduling Resources and CostsInitial Postings: Read and reflect on the assigned readings for the week. Then post what you thought was the most important concept(s), method(s), term(s), and/or any other thing that you felt was worthy of your understanding in each assigned textbook chapter.Your initial post should be based upon the assigned reading for the week, so the textbook should be a source listed in your reference section and cited within the body of the text. Other sources are not required but feel free to use them if they aid in your discussion.Also, provide a graduate-level response to each of the following questions:
- How can outsourcing project work alleviate the three most common problems associated with multiproject resource scheduling?
[Your post must be substantive and demonstrate insight gained from the course material. Postings must be in the student's own words – do not provide quotes!] [Your initial post should be at least 450+ words and in APA format (including Times New Roman with font size 12 and double spaced). Post the actual body of your paper in the discussion thread then attach a Word version of the paper for APA review]
Chapter Eight
Scheduling Resources and Costs
8–1
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8–2
Where We Are Now
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8-2
Project Management 6e.
Learning Objectives
Understand the differences between time-constrained and resource-constrained schedules
Identify different types of resource constraints
Describe how the smoothing approach is used on time-constrained projects
Describe how leveling approach is used for resource-constrained projects
Understand how project management software creates resource-constrained schedules
Understand when and why splitting tasks should be avoided
Identify general guidelines for assigning people to specific tasks
Identify common problems with multiproject resource scheduling
Explain why a time-phased budget baseline is needed
Create a time-phased project budget baseline
8–3
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Chapter Outline
8.1 Overview of the Resource Scheduling Problem
8.2 Types of Resource Constraints
8.3 Classification of a Scheduling Problem
8.4 Resource Allocation Methods
8.5 Computer Demonstration of Resource-Constrained
Scheduling
8.6 Splitting Activities
8.7 Benefits of Scheduling Resources
8.8 Assigning Project Work
8.9 Multiproject Resource Schedules
8.10 Using the Resource Schedule to Develop a Project
Cost Baseline
8–4
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Overview of the Resource Scheduling Problem
Resources and Priorities
Project network times are not a schedule until resources have been assigned.
The implicit assumption is that resources will be available in the required amounts when needed.
Adding new projects requires making realistic judgments of resource availability and project durations.
Cost estimates are not a budget until they have been time-phased.
8–5
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Project Management 6e.
8–6
Project Planning Process
FIGURE 8.1
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Project Management 6e.
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The Resource Scheduling Problem (cont’d)
Resource Smoothing (or Leveling)
Involves attempting to even out varying demands on resources by using slack (delaying noncritical activities) to manage resource utilization when resources are adequate over the life of the project.
Resource-Constrained Scheduling
The duration of a project may be increased by delaying the late start of some of its activities if resources are not adequate to meet peak demands.
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Project Management 6e.
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Types of Project Constraints
Technical or Logic Constraints
Constraints related to the networked sequence in which project activities must occur
Physical Constraints
Activities that cannot occur in parallel or are affected by contractual or environmental conditions
Resource Constraints
The absence, shortage, or unique interrelationship and interaction characteristics of resources that require a particular sequencing of project activities
People, materials, equipment
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Project Management 6e.
8–9
Constraint Examples
FIGURE 8.2
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Project Management 6e.
8–10
Classification of a Scheduling Problem
Classification of Problem
Using a priority matrix will help determine if the project is time or resource constrained.
Time-Constrained Project
Must be completed by an imposed date.
Time is fixed, resources are flexible: additional resources are required to ensure project meets schedule.
Resource-Constrained Project
Is one in which the level of resources available cannot be exceeded.
Resources are fixed, time is flexible: inadequate resources will delay the project.
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8-10
Project Management 6e.
8–11
Resource Allocation Methods
Limiting Assumptions
Splitting activities is not allowed—once an activity is start, it is carried to completion.
Level of resources used for an activity cannot be changed.
Risk Assumptions
Activities with the most slack pose the least risk.
Reduction of flexibility does not increase risk.
The nature of an activity (easy, complex) doesn’t increase risk.
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8-11
Project Management 6e.
8–12
Resource Allocation Methods (cont’d)
Time-Constrained Projects
Must be completed by an imposed date.
Require use of leveling techniques that focus on balancing or smoothing resource demands.
Use positive slack (delaying noncritical activities) to manage resource utilization over the duration of the project.
Peak resource demands are reduced.
Resources over the life of the project are reduced.
Fluctuation in resource demand is minimized.
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8-12
Project Management 6e.
8–13
Botanical Garden
FIGURE 8.3
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Project Management 6e.
8–14
Resource Allocation Methods (cont’d)
Resource Demand Leveling Techniques for Time-Constrained Projects
Advantages
Peak resource demands are reduced.
Resources over the life of the project are reduced.
Fluctuation in resource demand is minimized.
Disadvantages
Loss of flexibility that occurs from reducing slack
Increases in the criticality of all activities
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Project Management 6e.
8–15
Resource Allocation Methods (cont’d)
Resource-Constrained Projects
Resources are limited in quantity or availability.
Activities are scheduled using heuristics (rules-of-thumb) that focus on:
Minimum slack
Smallest (least) duration
Lowest activity identification number
The parallel method is used to apply heuristics
An iterative process starting at the first time period of the project and scheduling period-by-period the start of any activities using the three priority rules.
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8-15
Project Management 6e.
8–16
Resource-Constrained Schedule through Period 2–3
FIGURE 8.4
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Project Management 6e.
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Resource-Constrained Schedule through Period 2–3
FIGURE 8.4 (cont’d)
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Project Management 6e.
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Resource-Constrained Schedule through Period 2–3
FIGURE 8.4 (cont’d)
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8-18
Project Management 6e.
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Resource-Constrained Schedule through Period 5–6
FIGURE 8.5
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Project Management 6e.
8–20
Resource-Constrained Schedule through Period 5–6
FIGURE 8.5 (cont’d)
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Project Management 6e.
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Resource-Constrained Schedule through Period 5–6
FIGURE 8.5 (cont’d)
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Project Management 6e.
8–22
Computer Demonstration of Resource-Constrained Scheduling
EMR Project
The development of a handheld electronic medical reference guide to be used by emergency medical technicians and paramedics
Problem
There are only eight design engineers who can be assigned to the project due to a shortage of design engineers and commitments to other projects.
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Project Management 6e.
8–23
EMR Project: Network View Schedule before Resources Leveled
FIGURE 8.6
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Project Management 6e.
8–24
EMR Project before Resources Added
FIGURE 8.7
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Project Management 6e.
8–25
EMR Project—Time Constrained Resource Usage View, January 15–23
FIGURE 8.8A
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Project Management 6e.
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Resource Loading Chart for EMR Project, January 15–23
FIGURE 8.8B
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Project Management 6e.
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EMR Project Network View Schedule after Resources Leveled
FIGURE 8.9
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Project Management 6e.
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EMR Project Resources Leveled
FIGURE 8.10
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Project Management 6e.
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The Impacts of Resource-Constrained Scheduling
Reduces slack; reduces flexibility
Increases criticality of events
Increases scheduling complexity
May make the traditional critical path no longer meaningful
Can break sequence of events
May cause parallel activities to become sequential
Activities with slack may become critical
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8-29
Project Management 6e.
8–30
Splitting
Splitting
A scheduling technique for creating a better project schedule and/or increase resource utilization
Involves interrupting work on an activity to employ the resource on another activity, then returning the resource to finish the interrupted work.
Is feasible when startup and shutdown costs are low.
Is considered the major reason why projects fail to meet schedule.
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Project Management 6e.
8–31
Splitting Activities
FIGURE 8.11
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Project Management 6e.
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Benefits of Scheduling Resources
Leaves time for consideration of reasonable alternatives:
Cost-time tradeoffs
Changes in priorities
Provides information for time-phased work package budgets to assess:
Impact of unforeseen events
Amount of flexibility in available resources
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8-32
Project Management 6e.
Assigning Project Work
Reasons why we should not always assign the best people the most difficult tasks
Best people: resent to the fact that they are always given the toughest assignments
Less experienced participants: resent to the fact that they are never given the opportunity to expand their skill/knowledge base
Factors to be considered in deciding who should work together
Minimize unnecessary tension; complement each other
Experience: veterans team up with new hires
8–33
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8–34
Multiproject Resource Schedules
Multiproject Scheduling Problems
Overall project slippage
Delay on one project create delays for other projects.
Inefficient resource application
The peaks and valleys of resource demands create scheduling problems and delays for projects.
Resource bottlenecks
Shortages of critical resources required for multiple projects cause delays and schedule extensions.
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Project Management 6e.
8–35
Multiproject Resource Schedules (cont’d)
Managing Multiproject Scheduling:
Create project offices or departments to oversee the scheduling of resources across projects
Use a project priority queuing system: first come, first served for resources
Centralize project management: treat all projects as a part of a “megaproject”
Outsource projects to reduce the number of projects handled internally
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8-35
Project Management 6e.
Using the Resource Schedule to Develop a Project Cost Baseline
Why a Time-Phased Budget Baseline Is Needed
To determine if the project is on, ahead, or behind schedule and over or under its budgeted costs?
To know how much work has been accomplished for the allocated money spent—the project cost baseline (planned value, PV)
Creating a Time-Phased Budget
Assign each work package to one responsible person or department and deliverable
Compare planned schedule and costs using an integrative system called earned value
8–36
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Project Management 6e.
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Direct Labor Budget Rollup ($000)
FIGURE 8.12
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Project Management 6e.
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Time-Phased Work Package Budget (Labor Cost Only)
FIGURE 8.13
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Project Management 6e.
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Two Time-Phased Work Packages (Labor Cost Only)
FIGURE 8.14
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Project Management 6e.
8–40
Patient Entry Project Network
FIGURE 8.15
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Project Management 6e.
8–41
Patient Entry Time-Phased Work Packages Assigned
FIGURE 8.16
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Project Management 6e.
8–42
CEBOO Project Monthly Cash Flow Statement
FIGURE 8.17
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8-42
Project Management 6e.
8–43
CEBOO Project Weekly Resource Usage Schedule
FIGURE 8.18
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Project Management 6e.
8–44
Key Terms
Heuristics
Leveling
Planned value (PV)
Resource-constrained projects
Resource smoothing
Splitting
Time-constrained projects
Time-phased budget baseline
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Project Management 6e.
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