Resource allocation

CHAPTER

Software Project Management Slide# 1

 Resource allocation
CHAPTER

Objectives

Identify the resources required for a project;

Make the demand for resources more even throughout
the life of a project;
Produce a work plan and resource schedule.

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 Resource allocation
8.1 Introduction

In general, the allocation of resources to activities will lead us to

review and modify the ideal activity plan. It may cause us to revise
stage or project completion dates.

The final result of resource allocation will normally be a number of

schedules including:
• Activity schedule
• Resource schedule
• Cost schedule

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8.1 Introduction

0
Select Project
1 Identify project
2 Identify project
scope and objective infrastructure
3 Analyze project
characteristics

4 Identify the
Review products and activities

5 Estimate effort
for activity
For each activity
Lower level detail 6 Identify
activity risks

10 Lower level planning

7 Allocate resources

9 Execute plan 8 Review/publicize plan

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8.2 The nature of resources

In general, resources will fall into one of seven categories:

• Labour
• Equipment
• Material
• Space
• Service
• Time
• Money
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8.3 Identifying resource requirements

• First, List the resources that will be required along

with the expected level of demand.
• It is necessary that the resource requirements list
be as comprehensive as possible – it is better that
something is included that may later be deleted as
unnecessary than to omit something essential.

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8.3 Identifying resource requirements
STAGE 1 STAGE 2 STAGE 3 STAGE 4 STAGE 5 STAGE 6

IoE/P/2 20 days IoE/P/7 7 days IoE/P/11 30 days

34 Specify 54 61 Design 68 68 Code/Test 98
39 Module A 59 61 Module A 68 68 Module A 98
25 days 5 days 7 days 0 days 30 days 0 days

IoE/P/1 34 days IoE/P/3 20 days IoE/P/6 2 days IoE/P/8 6 days IoE/P/12 28 days IoE/P/15 6 days
0 Specify 34 34 Specify 49 59 Check 61 61 Design 67 67 Code/Test 95 98 System 104
Overall
0 system 34 44 Module B 59 59 SPECS 61 64 Module B 70 76 Module B 98 98 Integrate 104
34 days 0 days 25 days 10 days 2 days 0 days 9 days 3 days 31 days 3 days 6 days 0 days

IoE/P/4 25 days IoE/P/9 4 days IoE/P/13 15 days

34 Specify 59 61 Design 65 65 Code/Test 80
34 Module C 59 79 Module C 83 79 Module C 98
25 days 0 days 22 days 18 days 33 days 18 days
Key:
IoE/P/5 15 days IoE/P/10 4 days IoE/P/14 25 days Activity Duration
Earliest Earliest
34 Specify 49 61 Design 65 65 Code/Test 90 start Activity finish

44 Module D 59 69 Module D 73 73 Module D 98

Latest description Latest
start finish
34 days 0 days 12 days 8 days 33 days 8 days Activity span Float

IOE precedence network

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8.4 Scheduling resources

• To map the resource requirements list onto the

activity plan to assess the distribution of resources
required over the duration of the project.
• Representing the activity plan as a bar chart and
using this to produce a resource histogram for each
resource.

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8.4 Scheduling resources
Week Number
2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

Specify overall system

Specify module A

Specify module B

Specify module C

Specify module D

2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

Bar chart and resource histogram for analyst-designers

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8.4 Scheduling resources

A A
B B B
B B B
Tester C C C C C C F F H H H
Availability C C C C C C F F H H H
D D D D D D D D D D D D D H
E E E E E E G G G G G G G H H
E E E E E E G G G G G G G J H K K K
E E E E E E G G G G G G G J J J J J J J

Tester
Availability C C C C C C C C C C B B B C D D D D
A A D D D D D D D D B B B F C H H H D
E E E E E E G G G G G G G F F H H H H H
E E E E E E G G G G G G G J F K K K H H
E E E E E E G G G G G G G J J J J J J J

Resource histogram showing demand for staff before

and after smoothing.

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 Resource allocation
8.4 Scheduling resources
Week Number Week Number
2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

Specify overall system Specify overall system

Specify module A Specify module A

Specify module B Specify module B

Specify module C Specify module C

Specify module D Specify module D

2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18

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8.4 Scheduling resources

Prioritizing activities:

• Total float priority

• Ordered list priority
1. Shortest critical activity;
2. Critical activities;
3. Shortest non-critical activity;
4. Non-critical activity with least float;
5. Non-critical activities.

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8.4 Scheduling resources
STAGE 1 STAGE 2 STAGE 3 STAGE 4 STAGE 5 STAGE 6

IoE/P/2 20 days IoE/P/7 7 days IoE/P/11 30 days

34 Specify 54 56 Design 63 63 Code/Test 93
34 Module A 54 56 Module A 63 63 Module A 93
20 days 0 days 7 days 0 days 30 days 0 days

IoE/P/1 34 days IoE/P/3 15 days IoE/P/6 2 days IoE/P/8 6 days IoE/P/12 28 days IoE/P/15 6 days
0 Specify 34 34 Specify 49 54 Check 56 61 Design 67 62 Code/Test 90 93 System 99
Overall
0 system 34 39 Module B 54 54 SPEC 56 64 Module B 70 65 Module B 93 93 Integrate 99
34 days 0 days 20 days 5 days 2 days 0 days 9 days 3 days 31 days 3 days 6 days 0 days

IoE/P/5 15 days IoE/P/10 4 days IoE/P/14 25 days

34 Specify 49 56 Design 60 60 Code/test 85
34 Module D 54 64 Module D 68 68 Module D 93
20 days 5 days 12 days 8 days 33 days 8 days
Key:
IoE/P/4 25 days IoE/P/6a 1 day IoE/P/9 4 days IoE/P/13 15 days Activity Duration
Earliest Earliest
34 Specify 59 59 Check 60 60 Design 64 64 Code/Test 79 start Activity finish

48 Module C 73 73 Spec C 74 74 Module C 78 78 Module C 93

Latest description Latest
start finish
39 days 14 days 15 days 14 days 18 days 14 days 29 days 14 days Activity span Float

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8.5 Creating critical paths

• Scheduling resources can create new critical paths.

• Delaying the start of an activity because of lack of
resources will cause that activity to become critical if this
uses up its float.
• A delay completing one activity can delay the availability
of a resource required for a later activity.

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8.6 Counting the cost

Trying to complete the project by the earliest

completion date with the minimum number of
staff ?

• Using additional staff or lengthening the overall

duration of a project.

• The additional cost of employing extra staff would

need to be compared to the costs of delayed
delivery and the increased risk of not meeting the
scheduled date.

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8.a Expediting a Project (Example)

c
2 4 f
a

d
1 g 6
b e
3 5

Normal Crash Normal

Activity Predecessor Crash cost Cost per Day
Duration Duration cost
a - 6 days 5 days $60.00 $90.00 $30/day
b - 7 4 $50.00 $150.00 $33/day
c a 6 4 $100.00 $160.00 N/A
d a 7 7 $30.00 $30.00 N/A
e b 5 4 $70.00 $85.00 $15/day
f c 9 7 $40.00 $120.00 $40/day
g d,e 7 4 $50.00 $230.00 $60/day

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8.7 Being specific

In allocating individuals to tasks, a number of factors need to be

taken into account:

Availability
Criticality
Risk
Training
Team building

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8.8 Publishing the resource schedule

In allocating and scheduling resources we have used the activity plan

(precedence network), activity bar charts and resource histograms.

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8.8 Publishing the resource schedule
STAGE 1 STAGE 2 STAGE 3 STAGE 4 STAGE 5 STAGE 6

IoE/P/2 20 days IoE/P/7 7 days IoE/P/11 30 days

34 Specify 54 56 Design 63 63 Code/Test 93
34 Module A 54 57 Module A 64 64 Module A 94
21 days 1 days 8 days 1 days 31 days 1 days

IoE/P/1 34 days IoE/P/3 15 days IoE/P/6 2 days IoE/P/8 6 days IoE/P/12 28 days IoE/P/15 6 days
4
0 Specify 34 34 Specify 49 54 Check 56 60 Design 66 66 Code/Test 94 94 System 100
Overall
0 system 34 34 Module B 49 55 Specs 57 60 Module B 66 66 Module B 94 94 Integrate 100
34 days 0 days 15 days 0 days 3 days 1 days 6 days 0 days 28 days 0 days 6 days 0 days

IoE/P/5 15 days IoE/P/10 4 days IoE/P/14 25 days

34 Specify 49 56 Design 60 60 Code/Test 85
15 45 Module D 55 65 Module D 69 68 Module D 93
21 days 6 days 13 days 9 days 33 days 8 days
Key:
IoE/P/4 25 days IoE/P/6a 1 day IoE/P/9 4 days IoE/P/13 15 days Activity Duration
Earliest Earliest
49 Specify 74 74 Check 75 75 Design 79 79 Code/Test 94 start Activity finish

49 Module C 74 74 Spec C 75 75 Module C 79 79 Module C 94

Latest description Latest
start finish
25 days 0 days 1 days 0 days 4 days 0 days 15 days 0 days Activity span Float

Revised precedence network showing scheduled start and completed dates

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8.9 Cost schedules

In general, costs are categorized as follows:

• Staff costs

Estimated weekly cost ($)

• Overheads
• Usage charges Staffing cost

Overhead

Week Number

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8.9 Cost schedules
Example of Cost Schedule:
Cost Schedule
2500

2000

1500

1000

500

0
JAN FEB MAR APR MAY JUN JUL AUG
LABOR 100 150 210 300 210 150 300 100
OVERHEAD 50 50 50 50 50 50 50 50
TOTAL 150 200 260 350 260 200 350 150
ACCU 150 350 610 960 1220 1420 1770 1920

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8.10 The scheduling sequence
Activity plan
Risk Assessment
c
2 4 f
a

d
1 g 6
b e
3 5

Expected date

Resource Allocation
Cost schedule

Cumulative cost
Programmer

Successful project scheduling is not a simple sequence

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8.11 Conclusion

In this chapter we have discussed the problems of allocating resources to

project activities and the conversion of an activity plan to a work schedule.
In particular, we have seen the importance of the following:

Identifying all the resources needed;

Arranging activity starts to minimize variations in resource levels
over the duration of the project;
Allocating resources to competing activities in a rational order of
priority;
Taking care in allocating the right staff to critical activities.

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