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SPM-UNIT IIIRISK MANAGEMENT
RESOURCE ALLOCATION
Prof. Kanchana Devi
Prof. Kanchana Devi
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Resource Allocation- Introduction
Helps in reviewing and modifying the ideal activity plan.
Helps in revise stage or project completion dates
The final result of resource allocation involves schedules like
Activity Schedule Resource Schedule Cost Schedule
Prof. Kanchana Devi
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Nature of Resources A resource is any item or person required for
the execution of the project In general resource will fall into one of the
seven categories Labor Equipment Materials Space Service Time Money
Prof. Kanchana Devi
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Identifying Resource Requirements
The first step in resource allocation plan is to list the resources that will be required along with the expected level of demand.
This can be done by considering each activity in turn and identifying the resources required.
Prof. Kanchana Devi
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Identifying Resource Requirement
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Resource Requirement List
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Scheduling Resources After identifying resource requirement
list, next is to map this list to activity plan to assess the distribution of resources required over the duration of the project.
Can be done by representing the activity plan as a bar chart and produce a histogram for each resource.
Prof. Kanchana Devi
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Total Float
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Problem
Prof. Kanchana Devi
It causes two analyst/designers to be idle for twelve days
One for seven days One for two days between specification
and design Another problem in uneven histogram is
it is that more likely to call for levels of resource beyond those available.
Prof. Kanchana Devi
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Prof. Kanchana Devi
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Smoothing By adjusting the start date of some
activities and splitting others, a resource histogram can subject to constraints such as precedence requirement, be smoothed to contain resource at available levels.
By delaying the start of some activities, reduces the maximum level of demand for the resource.
Non-critical activities can be split, they can provide a useful way of filling.
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Two ways of prioritizing Total float priority
Activities are ordered according to the total float Smallest total float has higher priority(Like Ranking)
Ordered list priority Activities that can be proceed at the same time are
ordered according to a set of simple criteria. Burman’s Priority list:
Shortest Critical Activities Critical Activities Shortest Non-Critical Activities Non-Critical Activities with Least Float Non- Critical Activities
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Creating Critical Paths Scheduling resources can create new
critical paths. Delaying the start of an activity due to
lack of resources will cause that activity to become critical
Delay in completing one activity can delay the availability of a resource required for later activity.
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Allocating Individuals Availability Criticality Risk Training Team Building
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Cost Schedule Categories of cost
Staff cost Staff Salary
Overheads Expenditure of organization
Usage Charges Charge for use of resource