Resource Management Planning and Allocation, Explained

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Resource Management Planning and Allocation

Project Management · Chapter 3: Building a Comprehensive Project PlanSection 3.3 · lesson 17 of 7313 min · free with a free account

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Earn 3 college credits for Project ManagementRecommended for credit by NCCRS · Business 230 · self-paced · one payment, lifetime access

In this lesson

Estimating, scheduling and balancing the people and things a project uses.

  • Classify resources by type and as reusable or consumed
  • Estimate effort in person-hours and distinguish it from duration
  • Use resource calendars, an RBS and a histogram to find over-allocation
  • Explain how cross-project conflicts are escalated and what a resource management plan covers

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Transcript

Everything said in the video, section by section (1,701 words). Read along, or search it.

Opening Question

Enough Hours Overall, Too Few Weekly

Picture a network technician on an eight-week office project. The plan asks for 213 hours of her time. Her calendar gives the project 30 hours a week: 240 hours in all. Plenty, it seems. Yet in three of those weeks, the plan asks for more than she can give. How can both be true? Answering that is resource planning: deciding which resources the work needs, how much, in which periods, and how they're obtained and released.

Resource Types

People, Equipment, Materials, Facilities and Tools

A resource is anything a project uses up or occupies to produce its results. They fall into five working groups. People, grouped by skill. An hour from someone who can safely wire a panel, can't be replaced by an hour from someone who can't. Equipment: durable machinery, used and then available again, like a scissor lift or a test rig. Materials become part of the deliverable, or are used up making it, like drywall sheets or paint. Facilities are spaces the work needs: a workshop, a lab, a meeting room. And tools are smaller implements, including software, like a spreadsheet application.

Rule of Thumb

Track Items Two People Could Want

Where equipment ends and tools begin isn't fixed by any rule. A useful test: is the item scarce enough that two people could want it at the same time? A hand drill every worker carries needs no scheduling. One concrete saw shared by three crews does, so the plan tracks it.

Key Distinction

Reusable Versus Consumed Resources

A second distinction cuts across all five groups: reusable or consumed. A reusable resource stays available after use, like a lift, a room, or a person. The question is when it's free, because two jobs in the same period collide. A consumed resource is used up, like paint, drywall or fuel. The question is how much in total, and by what date it must arrive. People are reusable in an unusual way. Their hours are perishable: an hour unused this week can't be stored for next week. That's why people's capacity is always stated per period, such as hours per week.

Estimating

Effort in Person-Hours, Not Duration

With the WBS built, estimating happens at each work package: what kind of resource, how much, and in which period. People's work is measured as effort, in person-hours. One person-hour is one person working for one hour. Effort isn't duration, the calendar time from start to finish. Thirty-two person-hours take one painter four eight-hour days, or two painters about two days. Painting: 80 square meters at 2.5 square meters an hour is 32 person-hours. The paint, a consumed material: 80 square meters at 4 per liter is 20 liters. Rewiring: 8 circuits at 5 person-hours each is 40 person-hours. Estimating each package and adding them up is bottom-up estimating. Record the assumptions, like the area and the rate, so the estimate can be revisited.

Calendars

Project and Resource Calendars

Knowing a package needs forty hours of electrical work doesn't say when the electrician can supply them. The project calendar is the default schedule for everyone: working days, hours per day, and shared holidays. A resource calendar shows when one particular resource is actually available: personal leave, shifts, other commitments, or a lift booked by another team. Available hours equal scheduled hours, minus holidays, minus leave, minus hours committed elsewhere. A test engineer scheduled for 40 hours, in a week with an 8-hour holiday and 6 hours of standing duties, has 26 hours for the project. In a week with three days of approved leave, it's 40 minus 24: 16 hours. Holiday and leave rules depend on the employer, the place and sometimes the law, so those questions go to human resources or counsel.

Resource Breakdown Structure

One Name for Each Skill

To keep resource names consistent, planners use a resource breakdown structure, or RBS. It's a hierarchy of resources: first by category, then by type, then by skill or specification. For a workshop renovation: People, then skilled trades, then electrician, carpenter and painter. Equipment, then lifting equipment, then the scissor lift. Materials, then finishes, then interior paint. The WBS and the RBS are both trees. The WBS asks what has to be done; the RBS asks what the work will use. And it isn't an org chart. Write electrician, wiring technician and electrical crew for one skill, and its demand splits three ways, understated on each. A shared RBS fixes the names.

Requirements Table

What Each Work Package Needs and When

The resource requirements table lists, for each work package, the resources it needs, how much, and when. The names come from the RBS. Clearing out: 24 hours of general labor, and a debris bin, in week one. Rewiring: 40 electrician hours over weeks two and three, and the scissor lift for 3 days in week two. Drywall: 56 carpenter hours and 48 sheets. Painting: 32 painter hours and 20 liters of paint. Units differ, so add only like with like: electrician hours to electrician hours, never to drywall sheets. The lift is reusable, so another project wanting it in week two collides with this one. The paint only has to arrive by its week.

Worked Example

Reading a Resource Histogram

Back to the technician. A resource histogram shows, for one resource, how much the plan demands in each period, against a line for what's available. Demand sums the requirement rows for each week. Capacity comes from her resource calendar: thirty hours a week. Utilization is demand divided by capacity, times 100 percent. Anything above 100 percent is over-allocation. Adding her work packages week by week gives twelve, twenty-four, twenty-eight, thirty-six, twenty-eight, thirty-three, thirty-six, and sixteen hours. Week four is 36 over 30: 120 percent. Week six, 110 percent. Week seven, 120 percent again. Those three weeks are over by 6, 3 and 6 hours: 15 in all. Yet the total, 213 hours against 240, fits. The problem is entirely timing: idle capacity in weeks one and eight, too little in four, six and seven. So examine demand period by period, never only in total. And a histogram shows one skill at a time; it reveals overload without repairing it.

Quick Check

Finding the Over-Allocated Week

Quick check. A designer gives a project 25 hours a week. The plan asks for 20, 30 and 15 hours in weeks one to three. Which week is over-allocated? Pause, and decide. The middle week. Thirty divided by twenty-five is 1.2, or 120 percent. Weeks one and three sit at 80 and 60 percent, even though the three weeks together need 65 hours, against 75 available.

Allocation Conflict

A Double-Booked Database Specialist

Most specialists don't belong to one project. An allocation conflict arises when two projects claim the same resource in the same period, beyond what it can supply. A database specialist has thirty hours a week across the whole organization. Project North needs 20 hours in week four and 24 in week five: about 67 and 80 percent. Fine. Project South needs 16 and 12: about 53 and 40 percent. Also fine. Together, it's 36 hours in both weeks: 120 percent. The specialist is double-booked. Each project looked healthy, because each manager saw only their own histogram. The conflict shows only on one combined chart.

Escalation

Taking Conflicts Upward With Evidence

The plan can make the conflict visible. It can't decide it, because neither project manager owns the specialist's time. So the matter is escalated: referred upward, to someone with authority, along with the evidence. Often that's the functional manager, who runs the specialist's department and controls its assignments. In some organizations it's the project management office, which may hold a resource pool of shared specialists. The escalation carries the combined histogram and the options: move demand to another period, add capacity, or accept a later finish for one project.

Debate

Central Pool or Project Control

Should specialists sit in a central pool, or with the projects that use them? Both sides have a strong case. For pooling: skilled people are scarce. One body that sees all the demand can place them where need is greatest, and stop defensive double-reserving. For project-held control: accountability needs authority. A manager answerable for a result should control its inputs, and dedicated people learn the project. The empirical part asks what actually happens: does pooling raise the use of specialist hours, shorten waits, or change results? An organization's own records answer that. The normative part asks what should come first: organization-wide efficiency, or each project's autonomy. Evidence informs the first part, but can't settle the second.

RACI Link

Answerability Versus Hours

The responsibility chart, or RACI, records who is responsible and accountable for each piece of work. It's about answerability, not hours. A site supervisor may be accountable for the drywall package, while three carpenters do the framing and hanging. The supervisor sits in the RACI. The carpenters' hours sit in the requirements table, and the supervisor's only as far as oversight takes real time. Two checks follow. Every package with performing resources needs a named, answerable person in the RACI. And every role the RACI names as doing work must appear as a skill in the requirements table. Otherwise the chart promises a performer the plan never schedules.

Quick Check

Two Tilers, Forty-Eight Hours

Quick check. Tiling a floor takes 48 person-hours. Two tilers work side by side, eight hours a day, at equal speed. About how many working days will it take? Pause, and decide. Three days. Two tilers give sixteen hours a day, and forty-eight divided by sixteen is three. The effort stays forty-eight person-hours; only the duration shrinks. Six days would be one tiler working alone.

Resource Management Plan

Six Core Topics of the Plan

All of this goes into the resource management plan: how resources will be estimated, acquired, managed and released. Six topics form its core. Roles: the duties, skill and authority each role needs, linked to the RACI and the RBS. Acquisition: assigned from a pool, hired, borrowed, rented or bought, with lead times. A specialist who takes six weeks to hire can't start in week one. Calendars, the source of every capacity line. And training, to close skill gaps, remembering that time spent learning isn't spent on the work. Release: when each person goes back to their manager, or a rented machine is returned. And recognition, planned in advance from what the organization can actually offer. Overload found in the plan is resolved during execution, by leveling and smoothing the schedule, which come later in the course.

Key Takeaways

Kind, Amount and Period

To recap. Plan each resource by kind, amount and period, using consistent names from the RBS. Effort, in person-hours, is not duration. Check demand against each resource's calendar, period by period, not only in total. And make cross-project conflicts visible, then escalate them with the evidence.

About Project Management at UPI Study

Project Management (Business 230) is a self-paced online course of 73 video lessons in 12 chapters, from starting and defining a project to planning, budgets, scheduling tools, proposals, contracts, execution, monitoring, closure, teams and certification. It carries a NCCRS credit recommendation for 3 semester credits.

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Why take it here

Why students take Project Management with UPI Study

How projects are planned, run and closedProject Management teaches how to deliver work on time and on budget: scope, schedules, the critical path, budgets and earned value, risk, contracts, monitoring and closing a project, and leading the team. It is a common course in business, management and engineering degrees.
Credit at a fraction of the priceThe same 3 credits can cost $750 or more at a US college. Here it is one payment, self-paced, with lifetime access.
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130,000+students helped with college creditsACE and NCCRS have over 2,100 cooperating colleges that will consider accepting credits; the final decision is with the universities.

Where the credit goes

Universities that work with NCCRS

Project Management carries a NCCRS credit recommendation. These universities work with NCCRS; some are UPI Study's signed partners. ACE and NCCRS have over 2,100 cooperating colleges that will consider accepting credits; the final decision is with the universities.

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FAQ

Questions students ask us

About Resource Management Planning and Allocation

What is the difference between effort and duration in project management?
Effort is the amount of work measured in person-hours, while duration is the calendar time from start to finish. Tiling a floor at 48 person-hours takes one tiler six eight-hour days, but two tilers working side by side about three days. The effort stays 48 person-hours; only the duration changes when more people share the work.
What is a resource histogram used for?
A resource histogram shows how much the plan demands of one resource in each period against a line for what is available. Utilization is demand divided by capacity, times 100, and anything above 100 percent is over-allocation. A technician with 30 hours a week asked for 36 hours is at 120 percent, even if total demand fits total capacity.
What is a resource breakdown structure?
A resource breakdown structure, or RBS, is a hierarchy of resources organized by category, then type, then skill or specification, such as People, skilled trades, electrician. The WBS asks what must be done, while the RBS asks what the work will use. Consistent RBS names prevent one skill being split across several labels, which would understate its demand.
How do you calculate a team member's available hours for a project?
Available hours equal scheduled hours minus holidays, minus leave, minus hours committed elsewhere, taken from the person's resource calendar. An engineer scheduled for 40 hours in a week with an 8-hour holiday and 6 hours of standing duties has 26 hours for the project. Because people's hours are perishable, capacity is stated per period, such as per week.

About the Project Management course

How many college credits is Project Management?
Project Management (Business 230) carries a NCCRS credit recommendation for 3 semester credits. ACE and NCCRS have over 2,100 cooperating colleges that will consider accepting credits; the final decision is with the universities.
How much does Project Management cost and what is included?
$250, paid once, with lifetime access: all 73 video lessons, a practice quiz after each, the graded work and final exam, and an official transcript when you finish. Students who want several courses choose UPI Study PRO instead.
Which universities accept UPI Study credits?
UPI Study has signed partner agreements with universities such as Thomas Edison State University, University of the People and Charter Oak State College, and works with universities such as Penn State, SNHU and SUNY. ACE and NCCRS have over 2,100 cooperating colleges that will consider accepting credits; the final decision is with the universities. Use "Find my college" on this page to check yours.
How long does Project Management take?
It is self-paced with no deadlines. The 73 lessons total about 15 hours of video; most students add reading and practice time and finish in a few weeks to a few months, on their own schedule.
How are the exams done?
Quizzes and assignments are online in the course. The final exam is taken online with proctoring; a person on the UPI Study team checks assignments, usually within two days.
How do my credits reach my college?
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