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1.5.3 Managing Project Resources

Master resource allocation, optimization, and management strategies

📚 Key Concepts & Definition

Managing Project Resources is the process of ensuring that the physical resources assigned and allocated to the project are available as planned, as well as monitoring the planned versus actual utilization of resources and taking corrective action as necessary.

🔑 Exam Keywords

Resource Optimization Resource Leveling Resource Smoothing Critical Path Resource Allocation Resource Utilization Fast Tracking Crashing Resource Availability Resource Calendar Resource Breakdown Structure Resource Histogram

🔄 Process Overview

Inputs

  • Project Management Plan - Resource management plan, schedule baseline
  • Project Documents - Activity list, activity attributes, resource calendars, resource requirements
  • Work Performance Data - Resource utilization, progress status
  • Agreements - Vendor contracts, service level agreements
  • Organizational Process Assets - Resource management policies, procedures

Tools & Techniques

Data Analysis

  • Alternative analysis
  • Cost-benefit analysis
  • Performance reviews
  • Trend analysis

Problem Solving

  • Root cause analysis
  • Issue identification
  • Solution development
  • Implementation planning

Interpersonal Skills

  • Negotiation
  • Influencing
  • Team building
  • Conflict management

Project Management IS

  • Resource management software
  • Scheduling tools
  • Tracking systems
  • Communication platforms

Outputs

  • Work Performance Information - Resource utilization analysis
  • Change Requests - Schedule changes, resource adjustments
  • Project Management Plan Updates - Resource management plan, schedule baseline
  • Project Documents Updates - Activity list, assumption log, lessons learned register

🎯 Resource Optimization Techniques

1. Resource Leveling

Purpose: Smooth out resource demand over time

Method: Delay activities to avoid resource over-allocation

Impact: May extend project duration

Use when: Resources are limited and cannot be increased

2. Resource Smoothing

Purpose: Adjust activities within float to smooth resource usage

Method: Move activities within available float

Impact: Does NOT change critical path or project duration

Use when: You want to optimize resource usage without changing end date

Schedule Compression Techniques

Technique Method Cost Impact Risk Impact Best Used When
Crashing Add resources to critical path Increases cost Moderate risk Budget available, resources can be added
Fast Tracking Do activities in parallel May increase cost Increases risk Activities can be done simultaneously

📊 Resource Management Formulas

Resource Utilization Rate

Utilization = (Actual Hours Worked / Available Hours) × 100%

Resource Efficiency

Efficiency = (Planned Hours / Actual Hours) × 100%

Resource Productivity

Productivity = Work Output / Resource Input

💡 Critical Exam Tips

🎯 Key Exam Strategies

  • Resource Leveling vs Smoothing: Leveling can extend duration, smoothing cannot
  • Crashing vs Fast Tracking: Crashing adds resources, fast tracking changes sequence
  • Critical Path Focus: Resource optimization should focus on critical path activities
  • Always consider alternatives: Look for creative solutions before adding resources
  • Monitor continuously: Resource management is ongoing throughout project

🚨 Common Exam Traps

  • Don't confuse: Resource smoothing with resource leveling
  • Remember: Fast tracking increases risk and may require rework
  • Know that: Crashing should be done on activities with lowest cost per time unit
  • Understand: Virtual teams may require different resource management approaches
  • Consider: Resource calendars affect availability and scheduling

🎓 Sample Exam Questions

Question 1:

The project schedule shows that electrical engineers are over-allocated during weeks 3-5. The project end date cannot change. What should the project manager do?

A) Use resource leveling to smooth the allocation
B) Use resource smoothing to adjust within float
C) Crash the schedule by adding more engineers
D) Fast track the electrical activities

Answer: B - Resource smoothing works within float and doesn't change end date

Question 2:

To reduce project duration, the project manager decides to perform testing activities in parallel with development activities. This is an example of:

A) Resource leveling
B) Resource smoothing
C) Crashing
D) Fast tracking

Answer: D - Fast tracking involves doing activities in parallel

Question 3:

A critical path activity needs 100 hours and costs $50/hour. It can be crashed by adding resources to complete in 80 hours at $60/hour. What is the crash cost per hour saved?

A) $10
B) $50
C) $60
D) $85

Answer: D - Crash cost = (80×$60 - 100×$50) ÷ (100-80) = $1700 ÷ 20 = $85

Question 4:

Resource utilization shows 120% allocation for the development team. The project manager should:

A) Continue as planned since the team is highly productive
B) Immediately implement resource leveling
C) Add more resources to the team
D) Fast track other activities to balance the load

Answer: B - 120% allocation indicates over-allocation requiring leveling

📋 Must-Remember Points

🔍 Resource Management Best Practices

Planning Phase

  • Create detailed resource breakdown structure
  • Identify resource constraints early
  • Plan for resource ramp-up and ramp-down
  • Consider skill mix and experience levels

Execution Phase

  • Monitor resource utilization regularly
  • Address over/under-allocation quickly
  • Communicate resource needs proactively
  • Track actual vs. planned resource usage

Control Phase

  • Implement corrective actions promptly
  • Update resource forecasts regularly
  • Document lessons learned
  • Prepare for resource release
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