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## PowerPoint Slideshow about ' Resource Allocation' - thane-harrington

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Introduction

- Projects Compete With One Another for Resources
- resources that are not consumed
- resources that are consumed

- Goal of Resource Allocation is to Optimize Use of Limited Supply
- Requires making trade-offs
- time constrained
- resource constrained

Expediting a Project

- Time-Cost Trade-off Model
- A model that develops the relationship between direct project costs, indirect costs, and time to complete the project by minimizing the sum of direct and indirect costs.

- Crash Costs
- The additional costs of an activity when time to complete it is shortened.

Minimum Cost Scheduling

Step 1:Prepare CPM-type network diagram.

a. Normal cost (NC)

b. Normal time (NT)

c. Crash time (CT)

d. Crash Cost (CC)

Step 2: Determine the cost per unit of time to expedite (or crash) each activity.

Step 3: Compute the critical path.

Step 4: Shorten the critical path at the least cost.

Step 5: Plot project direct, indirect, and total-cost curves and find the minimum-cost schedule.

Calculation of Cost Per Day to Expedite Each Activity

Critical Path?

- A-B-D
2+5+3=10

- A-C-D
2+4+3=9

“Crash” A-B-D path by 1

- Where exactly do we want to crash?

Critical Path?

- A-B-D
2+5+2=9

- A-C-D
2+4+2=8

Crash A-B-D by 1

- Where do we want to crash?

Critical Path?

- A-B-D
2+5+1=8

- A-C-D
2+4+1=7

Crash A-B-D by 1

- Where do we want to crash?

Critical Path?

- A-B-D
2+4+1=7

- A-C-D
2+4+1=7

Crash both paths by 1

- Where do we want to crash?
- Do we want to crash C?

Critical Path?

- A-B-D
1+4+1=6

- A-C-D
1+4+1=6

Crash both paths by 1

- Where do we want to crash?
- Do we want to crash C only?

Cost per day to Expedite

- Can we continue?

Example 2

- Can we use Excel Solver?

Using Excel Solver to Crash a Project

- Objective
- minimize crashing costs

- Decision Variables
- amount to crash activities
- time events occur, or EST’s

- Constraints
- amount each activity can be crashed
- precedence relationships
- complete project by specified time
- nonnegativity

Resource Loading

- Amount of specific resources that are scheduled for use on specific activities or projects at specific times.
- Usually a list or table.

Last week

- We evaluated project durations only in terms of time.
- We have to consider when and for what purposes:
- People
- Equipment
- Material
- Facilities

- are used.

Resource Leveling

- Overallocation must be resolved.
- Move activities so that resources do not exceed their capacities.
- Without extending the project duration if possible

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