RESOURCE OPTIMIZATION IN CONSTRUCTION OF RESIDENTIAL

BUILDING BY USING PRIMAVERA P6 SOFTWARE

A Major Project report

submitted to the
Jawaharlal Nehru Technological University
In partial fulfillment of the requirement for the award of the degree of

BACHELOR OF TECHNOLOGY
IN
CIVIL ENGINEERING

Submitted by

AASHISH KARKI : 18WJ1A0103

Under the Guidance of

A. Dilip Kumar
Assistant Professor

DEPARTMENT OF CIVIL ENGINEERING

GURU NANAK INSTITUTIONS TECHNICAL CAMPUS(Autonomous)
SCHOOL OF ENGINEERING & TECHNOLOGY
Ibrahimpatnam RR District-501506 (Telangana)
AY 2021-2022
 DECLARATION

I here by declare that the major project work entitled “RESOURCE

OPTIMIZATION IN CONSTRUCTION OF RESIDENTIAL BUILDING BY
USING PRIMAVERA P6 SOFTWARE” carried in the IV year of B.Tech (Civil
Engineering) as per the requirement of Institution / University for further fulfillment
of award of the degree of Bachelor of Technology during the academic year 2021-
2022 in the Department of Civil Engineering, Guru Nanak Institutions Technical
Campus affiliated to Jawaharlal Nehru Technological University Hyderabad, Under
the supervision of A. Dilip Kumar, Assistant professor (GNITC). We are very much
thankful for his contribution in solving the technical queries and document
preparation.

I further declare that the work reported in this project has not been submitted
and will not be submitted, either in part or in full, for the award of any other degree
or diploma in this institute or any other institute or university.
All sources of knowledge used have been duly acknowledged.

AASHISH KARKI : 18WJ1A0103

I
 CERTIFICATE

This is to certify that the major project “RESOURCE OPTIMIZATION IN

CONSTRUCTION OF RESIDENTIAL BUILDING BY USING PRIMAVERA
P6 SOFTWARE” is being submitted by Aashish Karki (18WJ1A0103) in the
partial fulfillment for the award of the Degree of Bachelor of Technological
University is a record of bonafide work carried out by them under my guidance and
supervision.

The results embodied in this main project report have not been submitted to
any other University or Institute for the award of any Degree or Diploma.

A. Dilip Kumar

Assistant professor

Dr. Syed Omar Ballari, B.E., M.E., Ph.D.

External Examiner Prof. & Head of the Department

II
III
 ACKNOWLEDGEMENT

This is acknowledgement of the intensive drive and technical competence of

many individuals who have contributed to the success of our project.

I would like to express my sincere thanks to Dr. H. S. Saini, Managing

Director, and Dr. K. Venkata Rao, Director. Dr. Rishi Sayal, Associate Director.
Guru Nanak Institutions Technical Campus, school of Engineering and Technology,
for providing us with all the necessary facilities and support.

I place on record my sincere thanks to Dr. Syed Omar Ballari, Professor and
Head of Civil Engineering Department for his whole hearted co-operation, provided
excellent Lab facility, continuous monitoring, constant encouragement and unfailing
inspiration.

I also thank my guide A. Dilip Kumar, Assistant Professor of Civil

Engineering Department. I am extremely grateful and indebted to him for his sincere
support and encouragement extended for me.

I take this opportunity to record my sincere thanks to Syed Azhar Hussain,

Professor & Project Coordinator in the department of Civil Engineering GNITC for
giving timely suggestions during the progress of the project work.

The satisfaction and euphoria that accompany the successful completion of

task would be great but in complete with the mention of the people made it possible
with here constant guidance and encouragement crowns all the efforts with the
success. In this context. We would like thank all the staff members teaching and non-
teaching, who have extended their timely help and eased my task.

Finally, I would like to thank my parents who have always encouraged me to

do the best.

IV
 ABSTRACT

Every project is new on its own and to manage the project is the need of the project to meet
a greater efficiency of work, project management is the practice of initiating, planning, executing,
controlling and closing the work of a team to achieve specific goals and meet specific success
criteria at the specified time. Although the construction industry has been seeking innovative
solutions for decades, diverse challenges still exist for making the construction process faster,
safer, cheaper and more accurate.

Resource management is the important feature of the construction project management in

today’s economy. Cost and time factors purely depends on the how the resources are effectively
used in the construction project. Project manager faces the difficulties such as resource allocation
and resource planning in construction projects due to large-scale projects.

Thus, old method of resource management system cannot handle today’s project. To
overcome by the difficulties some software was introduced like primavera can manage the projects
in proper way. This software will help in resource management process of the project and avoids
cost and time over run.

Keywords:- Construction Project, Planning, Scheduling, Resource Optimization, Primavera-P6

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 Table of Contents
Declaration .............................................................................................................................................. i
Certificate................................................................................................................. ii
Acknowledgement .................................................................................................. iii
Abstract.................................................................................................................................................. iv
1. INTRODUCTION ............................................................................................ 1-4
1.1 Objectives of Study ..................................................................................... 2
1.2 Project Management ............................................................................... 3-4
2. LITERATURE REVIEW ............................................................................... 5-6
3. METHODOLOGY......................................................................................... 7-24
3.1 Methodology Designed To Achieve Those Objectives ............................. 7
3.1.1 Collection of Data ............................................................................. 7
3.1.2 Planning using P6 ............................................................................. 7
3.1.3 Scheduling......................................................................................... 8
3.1.4 Resource Allocation .......................................................................... 8
3.1.5 Resource Optimization ..................................................................... 8
3.2 General Introduction to Construction Project ............................................. 9
3.3 Introduction to Resource ..................................................................... 10-14
3.4 Resource Management ........................................................................ 14-20
3.5 Cost ..................................................................................................... 20-24
3.5.1 Introduction ....................................................................................... 20
3.5.2 Classification of Construction Cost .................................................. 21
3.5.3 Control Estimates .............................................................................. 21
3.5.4 Contingency ...................................................................................... 22
3.5.5 Cost-Volume Relationship ................................................................ 23
 3.5.6 Time-Cost Relationship .................................................................... 24
4. RESOURCE SCHEDULING ..................................................................... 25-47
4.1 Introduction .............................................................................................. 25
4.2 Importance of Resource Scheduling ........................................................ 25
4.3 Resource Allocation ........................................................................... 26-27
4.4 Methodology ...................................................................................... 27-34
4.4.1 Resource Smoothing ..................................................................... 28
4.4.2 Resource Levelling ....................................................................... 28
4.4.3 Example to Illustrate ............................................................... 29-34
4.5 Levelling for Different Resource ............................................................. 35
4.6 Resource Planning ................................................................................... 36
4.7 Activity Duration ............................................................................... 37-40
4.8 Manpower Planning & Optimization ....................................................... 40
4.9 Material Planning & Optimization .......................................................... 41
4.10 Relationship Between Activities ...................................................... 41-47
5. RESULTS & DISCUSSION ....................................................................... 48-54
5.1 Resource Curve ........................................................................................ 48
5.1.1 Adding a Resource Curve .............................................................. 49
5.1.2 Assing a Curve to a Resource ........................................................ 49
5.2 Adding Activities ................................................................................ 50-54
6. VIEWING RESOURCE & COST PROFILE/SPREADSHEETS.......... 55-59
6.1 Resource Usage Profile/Spreadsheets ....................................................... 55
6.2 Use the Resource Usage Profile/Spreadsheets To .............................. 55-56
6.3 Activity Usage Profile/Spreadsheet .......................................................... 57
6.4 Customize the Activity Usage Profile/Spreadsheet To ............................ 58
7. CONCLUSION................................................................................................... 60
REFERENCES .......................................................................................................61
 LIST OF FIGURES
Figure No. Figure Name Page No.
1.1 Overview of Project Management Area 4
3.1 Flow Chart for Methodology 7
3.2 Resource Required for Example project 8
3.3 Over Allocated Manpower 9
3.4 The Optimized Manpower 9
3.5 Flow Diagram of Resource Management 15
3.6 Cost-Volume Relationship 23
3.7 Time-Cost Relationship 24
4.1 Schedule Network Diagram 30
4.2 Gantt Chart for Above Activities(Table 4.1) 30
4.3 Histogram for Resource 31
4.4 Gantt Chart Showing Shifted Activities 32
4.5 Final Gantt Chart after Resource Levelling 33
4.6 Resource Histogram after Resource Levelling 33
4.7 Final Gantt Chart after Resource Smoothing 34
4.8 Resource Histogram after Resource Smoothing 34
4.9 Sequence of Steps that Helps with Estimating Activity 37
Duration
4.10 Resource assigned with Fixed Duration & Units 38
4.11 Resource assigned with Fixed Duration & Units/Time 39
4.12 Resource assigned with Fixed Units 39
4.13 Resource assigned with Fixed Units/Time 40
4.14 Relationship Between Two Activities 42
4.15 Terms Representing Relationship 42
4.16 Finish to Start Relationship 43
4.17 Start to Start Relationship 44
4.18 Finish to Finish Relationship 44
4.19 Start to Finish Relationship 45
 4.20 P6 Bottom Layout-min 46
4.21 Relationship Tab-min 46
4.22 Assigning Predecessor-min 47
4.23 Start to Start + 10 days Lag 47
6.1 Resource Usage Spreadsheet 56
6.2 Resource Usage Profile 57
6.3 Activity Usage Spreadsheet 58
6.4 Activity Usage Profile 59

LIST OF TABLES
Table No. Table Name Page No.
3.1 Tabulation Sheet of Manpower 19
3.2 Labour Requirements for Example Project 20
4.1 Activities for Example Project 29
5.1 Activities Involved For G+2 Residential Building 50-54
 1. INTRODUCTION

Oracle Primavera P6 is a project, program and portfolio management tool that is used for
planning, managing and executing your project work. It is designed to handle large and small
projects in a number of diverse industries, such as construction, manufacturing, energy, and IT.
It’s been doing so for more than 30 years in projects across the globe.

Primavera P6 can trace its origins to 1983 when it was first established under the name
Primavera Systems. In the next 15 years, it would rapidly gain in popularity. By the late 90’s,
advancements in server technology drove the company to split Primavera systems into two
versions of the software: a desktop application (which is preferred by contractors, suppliers and
manufacturing companies) and a web-based enterprise option. In 2008, Primavera Systems was
bought out by Oracle, which then developed the tool into the version that is used today.

The modern incarnation sells itself as a tool to increase your efficiency when planning,
which reduces the risk of schedule overruns. One way it purports to do this is by providing
visibility into the work, so potential bottlenecks can be identified and resolved before they cause
delays. It claims to work on projects of all sizes.

Resource optimization is a collective term used to describe the methods for ensuring that
labor and non-labor resources are matched to the schedule. Resource optimization is an important
factor of project management in construction industry. Cost and time purely depends upon how
the resources are utilized effectively in the construction project. Project manager faces lot of
difficulties in the resource planning and resource allocation in case of large projects.

Project management carry out the activities of the project as per plan, schedule and
allocation of the resource to these activities at the right time and right place, so each activity will
be completed within time and cost. Commonly CPM/PERT methods is widely used for
scheduling of the project which helps the project management CPM is better compare to PERT
method. CPM method is reliable to management it provides minimum time need to complete the
project and also gives the information about future problems related to delay of project.

1
 Resource scheduling is very important task for the successful completion of the project.
Resource scheduling includes the resource allocation to various activities and leveling the
resources. Resource leveling is a technique to balance over allocated resource of the activities and
resolve the conflicts between different resources.

Primavera P6 is best specified as tool for resource scheduling of residential projects and
any other projects. The assessment of resource optimization for a formulated resources constrained
project schedule is crucial to the successful delivery of a construction project. During detailed
planning such assessment is based on experiences instead of analytical ratios. The assessment of a
resource schedule is based on total project duration resource direct cost.

To make more comprehensive, the ratios on resource optimization are defined to add
knowledge and practice in project management. So a residential building project is used to
demonstrate how to implement the ratios and get optimization of resources. In large scale
industries is very difficult to do accurate planning and scheduling of resource in this case number
of activities is more hence it’s very difficult, thus now days large scale projects planning and
scheduling will be done by software’s (Microsoft project) and PRIMAVERA. PRIMAVERA
software is advanced software than MSP .it is widely used software in the largescale industries.
PRIMAVERA software can manage hundreds of project at a time.

1.1 OBJECTIVES OF STUDY:

➢ To study the importance of resource used in this project.
➢ To understand the importance of resource management.
➢ To study the effects of resource on project
➢ To study how to find out the over allocated resource and how to balance it.
➢ To study PRIMAVERA software, its features and benefits of primavera.
➢ Utilization of PRIMAVERA for resource management in construction project.
➢ To suggest the importance and purpose of monitoring the construction work.
➢ Surveying the techniques or tools, for the evaluation of the management of construction
projects (M.S. Project, Primavera P6, etc.)
➢ To suggest guidelines to contractors for updating the project.

2
 ➢ To determine the activities which are critical and causes major delays in the project,
initially from the point of view of the client and also generally from a broader perspective.
➢ To propose a specification, a structure and suitable components for a general construction
management evaluation system.

1.2. PROJECT MANAGEMENT

1.2.1. Defining Construction Project Management:

Construction project management involves directing and organizing each part of the project
life cycle, from ideation to completion. It’s a holistic practice with the goal of delivering projects
on time and under budget. Construction project management is a complex discipline that requires
addressing many important concerns, including cost control, scheduling, procurement, and risk
assessment. Project managers interact with all team members involved in a construction project,
from architects to owners to contractors.

1.2.2. Defining Construction Projects:

A construction project, sometimes just referred to as a project, is the organized process of
consulting, renovating, refurbishing, etc. a building, structure or infrastructure. The project process
typically starts with an overarching requirement which is developed through the creation of a brief,
feasibility studies, option studies, design, financing and construction.

Construction project means a specifically identified scope of work involving the act, trade,
or process of building, erecting, constructing, adding, repairing, remodeling, rehabilitating,
reconstructing, altering, converting, improving, expanding, or demolishing of a building, structure,
facility, road, or highway.

1.2.3. Meaning of Project Management:

Project management is the application of processes, methods, skills, knowledge and experience to
achieve specific project objectives according to the project acceptance criteria within agreed
parameters. Project management has final deliverables that are constrained to a finite timescale
and budget.

3
 A key factor that distinguishes project management from just 'management' is that it has
this final deliverable and a finite timespan, unlike management which is an ongoing process.
Because of this a project professional needs a wide range of skills; often technical skills, and
certainly people management skills and good business awareness.

Figure 1.1 shows the overview of Project Management knowledge areas and Project Management
process.

Fig 1.1. Overview of project Management Area

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 2.LITERATURE REVIEW

A brief review of the important aspects of the available literature pertaining to project management
and resource levelling are presented in this chapter.

Khaled El-Rayes and Dho (2009) studied “Optimizing Resource Levelling in Construction
Projects”. Construction schedules, generated by network scheduling techniques, often cause
undesirable resource fluctuations that are impractical, inefficient, and costly to implement on
construction sites. This paper presents the development of two innovative resource levelling
metrics to directly measure and minimize the negative impact of resource fluctuations on
construction productivity and cost. An application example is analyzed to illustrate the use of the
model and demonstrate its capabilities. The results of this analysis show that the present model
and metrics are capable of outperforming existing metrics and eliminating undesirable resource
fluctuations and resource idle time.

M. Easa (1989) studied “Resource Levelling in Construction by Optimization”. Resource

levelling is needed in construction to avoid the difficulties associated with the large variations in
resource usage. This paper presents an integer- linear optimization model of resource levelling
(single resource, continuous activities) which guarantees the optimal levelling. The objective
function of the model minimizes the absolute deviations between the resource requirements and a
uniform resource level, between consecutive resource requirements, or between the resource
requirements and desirable non-uniform resource levels The model is applicable to activity-on-
arrow, activity-on-node, and precedence networks and is intended for small- to medium sized
construction projects.

Tarek Hegazy (1999) studied “Optimization of Resource Allocation and Levelling using
Genetic Algorithms”. Resource allocation and levelling are among the top challenges in project
management. Due to the complexity of projects, resource allocation and levelling have been dealt
with as two distinct sub problems solved mainly using heuristic procedures that cannot guarantee
optimum solutions. In this paper, improvements are proposed to resource allocation and levelling
heuristics, and the Genetic Algorithms (GAs) technique is used to search for near-optimum
solution, considering both aspects simultaneously. In the improved heuristics, random priorities

5
are introduced into selected tasks and their impact on the schedule is monitored. The GA procedure
then searches for an optimum set of tasks priorities that produce shorter project duration and better-
levelled resource profiles. One major advantage of the procedure is its simple applicability within
commercial project management software systems to improve their performance. With a widely
used system as an example, a macro program is written to automate the GA procedure.

Dho Heon Jun and Khaled El-Rayes (2011) studied “Multi objective Optimization of Resource
Levelling and Allocation during Construction Scheduling”. Construction scheduling
techniques often generate schedules that cause undesirable resource fluctuations that are inefficient
and costly to implement on site. This paper presents the development of a novel multi objective
optimization model that is capable of measuring and minimizing these undesirable resource
fluctuations to maximize resource utilization efficiency and minimize project duration while
complying with all precedence relationships and resource availability constraints. The model
incorporates three main modules: a start-up module that calculates lower and upper bounds for the
model decision variables; a scheduling module that generates practical schedules and evaluates
their performance; and a multi objective genetic algorithm module that searches for and identifies
optimal schedules. The model is integrated in a commercially available software system to
facilitate its use and adoption by construction planners.

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 3. METHODOLOGY

After identifying the use of IT in civil engineering from literature review and setting the objectives
considering two software’s MS Project and PRIMAVERA.

Fig 3.1 Flow Chart for Methodology

3.1 The following methodology has been carefully designed to achieve these
objectives:

3.1.1 Collection of Data:

Data collection for the project which I have chosen is a very tough task because they don’t
want there project to be researched but having links with project staff I managed to collect the
related data.
3.1.2. Planning using Primavera P6:
After collecting the data verifying the quantities and planning should be done.

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3.1.3. Scheduling:
Process had to be done. It involves creating calendar, work break down structure (WBS) and
allotting duration for each activity.
3.1.4. Resource Allocation:
After scheduling, the resource table is prepared and this prepared resource are assigned to
each activities of the project commonly resource divided labor, Non- labor, and material in the
software. Resources are calculated according to quantity of the activity.

Fig 3.2 Resource Required For Project

3.1.5. Resource optimization:
We can’t optimize or reduce the material resource but we can optimize the man power resource
while levelling the various resource, there are some probabilities in which one can optimize the
resource
In this project different type probabilities are carried out are as follows
➢ Level all the resource with preserving scheduling early and last dates
➢ Level all resource within Float Preserved scheduled early and late dates
➢ Level Particular resource within Float preserving scheduled early and late dates
➢ Level Particular resource within Float Preserving scheduled early and late date

8
 Fig 3.3 Over Allocated Manpower

Fig 3.4 The Optimized Manpower

3.2. General Introduction To Construction Projects:

The term “Construction Project” refers to a high-value, time bound, and special
construction mission with predetermined performance objectives. The project mission is
accomplished within complex project environments, by putting together human and non-human
resources in to a temporary organization headed by the ‘Project Management’.

Project Management is the Planning, Organizing, Directing and controlling of company

resources for a relatively short-term objective that has been established to complete specific goals
and objectives.

9
 Due to the resource-driven nature of construction management, the construction manager
must develop a plan of action for directing and controlling resources of workers, machines and
materials in coordinated and timely fashion in order to deliver a project within the limited funding
and time available. Hence, aside from a technology and process focus, a resource-use focus must
be adequately considered in describing a construction method or operation in a project plan.
In general, construction projects are high value, and they employ huge resources of men, materials
and machines. Major works involve heavy investments, say from a hundred crores of rupees to a
few rupees, require high level of technology and need effective management of resources.

3.3. Introduction to Resource:

A resource is any entity that contributes to the accomplishment of project activities. A resource is
a necessary asset whose main role is to help carry out a certain task or project. A resource can be
a person, a team, a tool, finances, and time. Most projects require many different resources to be
completed. Resources should be assessed and allocated before a project begins.

3.3.1 Importance of Resource In Construction Projects:

The crucial factor in successful implementation of a construction project not only depends on
the quality & quantity of work, but also largely depends on availability of resources. All activities
involved in the project require certain amount of resources to be completed. Each activity is
allocated with a specific resource and completed within the time limit, otherwise implication of
overall duration of the project.

The best combination of resources to use for performing a construction activity is based on
contractor’s ability to identify the interdependencies of the various resources. The time and cost
directly concerns to the availability of resources. The time required may be determined by dividing
the productivity associated with the resources used on the activity into the defined quantity of work
for the activity.

10
3.3.2. Classification of Resource:

Resources are responsible for actually completing the tasks in the project. They can be classified
in various way based on various factors involved in different projects.

3.3.2.1 Based on nature:

Resources can be classified as follows.
Work Resource:

People and equipment resources that perform work to accomplish a task. Work resources
consume time (hours or days) to accomplish tasks.

Material resources:

The supplies or other consumable items used to complete tasks in a project.

3.3.2.2. Based on their Attributes:

Generally, resources in a construction project may be categorized into two groups- namely,
➢ Simple resources
➢ Complex Resources

All resources can be classified as either simple resources or complex resources. Each resource has
its own attributes, such as quantity and capacity. For example, in an earth moving operation, earth
could have quantity and density as its attributes, while truck not only has number and capacity as
its attributes, but also has loading, moving to dump, dumping, and moving load as its methods. In
this example, earth is a simple resource, and truck is a complex resource.
3.3.2.3. Based on Category:

Skilled: Experts in performing their jobs are called skilled. E.g., Carpenter, bar bender, Masons,
Electrician, and Plumber. They cannot involve or perform many activities.

Unskilled: All helpers come under this category. They can help anybody in various activities of
construction. These labor which are not involved in the skilled work. E.g., Earth labor, concreting
labor.
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Semi-Skilled: Person who is not as expert as skilled labor, but can perform the same job in more
duration.

3.3.3. Quantification of Resources:

3.3.3.1. Define Billable and Non-Billable Hours:

The first step to measuring resource utilization accurately is to define the billable and non-billable
activities that your team will execute. Once you define that you can calculate overall utilization,
billable utilization and non-billable utilization.

3.3.3.2. Determine the Available Hours of Each Team Member:

Now you’ll need to determine the available hours for each team member based on their contracts,
which can be either full-time, part-time or unit pricing, among others. Now you have the
information you need to assign work and use timesheets to keep track of resource utilization.

3.3.3.3. Use Timesheets to Measure Resource Utilization:

Timesheets are an essential tool to measure resource utilization because they let you document
your team’s time, use resource utilization formulas and measure your overall resource utilization.

3.3.3.4. Use the Resource Utilization Formula:

Based on your needs, you can choose to measure billable, non-billable or strategic resource
utilization. Simply use the resource utilization formulas above to measure your resource
utilization.

3.3.3.5. Determine Employee’s Productivity:

Based on your resource utilization analysis, you can determine which workers are overallocated,
under-allocated and which of them have a low performance based on a peer comparative analysis
and the work they’ve done in terms of deliverables.

12
3.3.4 Factors Affecting Resources In Construction Projects:
A list of factors affecting Resources in construction projects are categorized into major groups
such as:-

Manpower:

➢ Absenteeism of labours
➢ Lack of Mobilization
➢ Lack of Motivation
➢ Obtaining permits for migrate labours
➢ Personal conflicts among labours
➢ Shortage of labours
➢ Skill of labour and Unqualified work force team

Equipment:

➢ Availability of equipment
➢ Complication of advanced technology equipment
➢ Complication of hire
➢ Disruption of accessories
➢ Idle time of equipment
➢ Maintenance of equipment
➢ Transportation of equipment

Materials:

➢ Damage of material in storage

➢ Damage of sorted materials while they are needed urgently
➢ Delivery of materials, Imported, Ordered materials and Plant items
➢ Manufacturing difficulties of special materials
➢ Material selection and change in types and specifications during construction
➢ Procurement of materials
➢ Proportion of offsite prefabrication
➢ Quality of materials and shortage in construction materials

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Financing:

➢ Cash flow (Inflow & Outflow)

➢ Financing between the owner and contractor
➢ Financing by contractor during construction
➢ Slab of payment during construction
➢ Unavailability of financial incentive

External Factors:

➢ Adverse weather effect on construction activities

➢ Force majeure (Fire, Wind damage, Hurricane, Flood)
➢ Health hazardous in construction site
➢ Obstacles from government, social and cultural factors
➢ Traffic control & restriction near at job site
➢ Extra works (Change orders & Reworks)
➢ Lack of conceptual stage
➢ Lack of training personnel & management support to model the construction operation
➢ Monitoring of projects

3.4. RESOURCE MANAGEMENT

3.4.1. Meaning of Resource Management:
Resource management is one of the most important aspects of project management. Project
resource include the raw materials, equipment and human resource necessary to execute project
tasks, all of which must be managed during any given project.

Resource management is the process of planning, scheduling and allocating resource to

complete a project. Project managers are in charge of overseeing the resource management process
from start to finish. To do so, they need to use resource management tools and techniques.
Resource management involves creating plans and processes to more effectively manage
resources, and you can use spreadsheets, documents, project management software, or a
combination of the three.

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3.4.2. Objectives of Resource Management:

The basic objective of resource management is to supply and support the field operations,
so that a planned time schedule can be met and cost can be optimally controlled. The project
manager is responsible to identify and schedule future requirements, so that field managers may
obtain the resources at an appropriate time and place to employee these in the project. The real key
to the efficient usage of labor and equipment is the consistent achievement of favorable production
rates in the field. In this regard, project management and field supervision play complementary
roles.

The scheduling and allocation of manpower, equipment, materials, finance and time frames
are all interrelated. Resource management is devised to take the appropriate decision among these
interrelating options.

A construction project site is usually far away from other projects and from the head office.
Allocating a resource from one project to another is greatly constrained, and it always involves
extra costs and time losses. These factors must be considered while company-level resource
allocation techniques are studied.

Fig 3.5 Flow Diagram of Resource Management

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3.4.3. Identification of Resources:

A construction operation can be viewed as a collection of processes that interact with each
other through certain strategies to complete its task. The interdependence and inter linkage of the
processes represent the operation logic and utilization of common resources.

First of all, the resources involved in the operation are identified. Typical construction
resources are labor, equipment, materials, time, space, and monitoring information. For example,
in a ready mixed concrete delivery operation, truck, crane, pump, bucket, concrete, labor, concrete
placing crew, foreman, truck driver, crane driver, pump operator, site cleaner, traffic coordinator,
water, etc. can be considered as resources. To analyze and improve the productivity of concrete
delivery, some lesser resources such as drivers, cleaner, and water can be excluded.

3.4.4. Specification of Resources:

The attributes and methods of the resources are customized according to the specific site
conditions. Generally, the following five aspects of information are required.
➢ Quantity of resources
➢ Value of resource attributes
➢ Duration of process
➢ Resource queue discipline
➢ Link draw/release condition and/or amount

3.4.5. Aspects of Resource Management:

The first step in manpower management is to make a compilation of daily labor

requirements, by craft or crew, needed to maintain the normal or expedited project schedule. If it
appears that there will be adequate numbers of workmen available to satisfy these requirements,
the project at least can be manned sufficiently to maintain the established schedule and no
adjustment of the job completion date is likely to be required. However, peaks and valleys in daily
labor needs are usual and some “levelling” or “smoothing” may be in order. The floats of
noncritical activities can be used to advantage in reducing the day-to-day fluctuations in labor
requirements.
16
 If the compilation of labor requisites discloses that the demand will probably exceed the
supply, the situation can become considerably more involved. The “stretch out” of non-critical
activities or the use of overtime or subcontracting on critical activities may make it possible to
maintain the originally established schedule. Otherwise, the manager faces the difficult task of
allocating the available labor to the various activities in such a way as to use it to best advantage
and minimize the project time overrun.

With respect to equipment, most of the major decisions concerning how the job it is too
equipped were made at the time the job was priced. Nevertheless, it is the responsibility of the
project manager to see that the project is properly and adequately equipped. In a manner analogous
to the checking of labor needs, a compilation of equipment requirements must be made, with these
needs identified in terms of calendar dates.

3.4.6. Assumption of Resource Availability:

The planning and scheduling methods developed so far have given only limited attention
to the resources required to accomplish the work. Only the matter of resource availability when
required has been considered, this through the medium of resource restraints. To the maximum
extent possible, these constraints have already been built into the project plan and schedule.
However, it is not usual that all applicable constraints can be identified during the planning phase.
As a result, restraints that subsequently develop must often be incorporated into later network
revisions. In any event, restraints are only restrictions as to the times that certain resources will
become available on the job site.

It has been tacitly assumed that the resources needed to accomplish each activity within its
estimated duration would be obtainable as required. Up until the present time, it has been taken for
granted that skilled tradesmen and equipment can be furnished to the job site in the requisite
quantities and at any desired time. This time schedule of resource requirements can then be
examined to determine whether it can be sustained or if remedial measures are required.

17
3.4.7. Availability Resources:

The availability of resources defines the production capability of a contractor. In general,

a construction company can access two categories of resources: 1) Internal resources, which the
company owns; and 2) external resources, which the company can obtain from the open market at
a price. The common objective is to maximize the usage of the company’s internal resources and
use market to balance the company’s operation. Given that construction projects are transient in
nature, different lengths of time periods, and require different resources, it is usually very difficult
to achieve a balance between the production capability and the actual workload on hand for a
construction enterprise all the time. In practice, a construction company has various ways to adjust
its operations to approach such a balance.

For instance, when the company does not have enough jobs, it may rent out some of its
owned equipment and may bid lower prices on new projects. On the other hand, the contractor
may rent outside equipment, recruit personnel, or request its employees to work overtime.

3.4.8. Labor Requirements:

The management of construction manpower begins with the tabulation of labor requirements by
trade for each project activity. Normally, an activity shown in a network can be further divided
into a number of sub-activities to facilitate a labor estimate. The labor requirements to complete
each activity are mainly filled up by estimates made by experienced professionals. Interviews with
foremen, site engineers are helpful guides to estimate the manpower requirement.

There are different types of labors that are required for the construction:

➢ Skilled labor

➢ Semi-skilled labor

➢ Unskilled labor

References like All India Standard Schedule of Rates by National Building Organization can also
be used to estimate the manpower.

18
 An example of a tabulation sheet is presented in Table.3.1.

Time Manpower
Activity Sub-activity Unit Quantity
(days)
Unskilled Skilled

Column base No. 52 6 5 5

Column
Steel work MT 11.8 6 5 5
casting
Shuttering Sqm 289.69 6 4 4
in
Casting Cum 34 6 28 -
second
DE shuttering Sqm 3 2 2
floor
Curing No. 7 2 2 -

3.4.9. Restricted Manpower Supply:

The basic assumption of a labour shortage is that the durations of certain activities must
inevitably be extended beyond their normal values if the manpower deficiency cannot be overcome
by subcontracting the work or working the available men overtime. Subcontracting may well be
the best answer but it depends upon circumstances. In any activity, a restricted supply of manpower
may or may not affect the overall project duration.

First thing to check when a craft shortage is expected is the requirement for particular
labour specialty by the critical activities. For example, four critical activities require 5 carpenters
each for their accomplishment in normal 8-hours working days. At this point, the contractor must
make a decision. If the four critical activities are now manned with 4 carpenters, and if usual
activity will be increased by 1 working day and the project completion will be delayed by 4 days.
On the other hand, the project duration will be unaffected if 4 carpenters work 10-hour days (2hour
overtime) while engaged on the four critical activities. Some of labourers and ironworkers would
probably also have to work overtime with the carpenters to keep the work in phase.

19
 Deficiencies of labour on non-critical activities are next considered, scheduling these
activities in order of increasing float. The first action in this regard is to “stretch out”, the duration
of each activity is moved sufficiently to keep the labour requirement within the supply. However,
when the extensions of non-critical activities equal or exceed the available floats, the contractor
must again seriously consider the use of over time; otherwise possibly succeed the original critical
path and proportionate delaying the entire project.

Table 3.2: Example project, carpenter labour requirements

Critical Duration with 5 Man Man Duration with 4 Duration with 4

Activity Carpenters (8- (Days) (Hours) Carpenters (8- Carpenters (10-
Hour Days) Hour Days) Hour Days)
A 4 20 160 5 4
C 4 20 160 5 4
E 4 20 160 5 4
F 4 20 160 5 4

3.5. COST

3.5.1 Introduction:
Cost estimate is one of the most important aspects of construction management. Several
types of estimates depending upon the objectives and resources of the decision maker can be
prepared. As expected, the accuracy of a cost estimate is proportional to the time and funds
deployed.

Construction cost planning encompasses planning judgment, costing techniques an

accounting discipline for developing standard costs, financial forecasts, project budget, and cost
control measures with the ultimate goal of achieving project profit/cost objectives. It uses standard
cost concepts for costing work-packages, work-items or activities. The work-packages’ standard
costs facilitate planning and controlling of costs. Financial forecasts indicate the trends of expected
scales, production expenses, profit and cash flow at specified intervals of time. Project budget
quantities the project plans in monetary terms and outlines the financial plan for implementation.

20
3.5.2. Classification Of Construction Cost:
The cost of a work-unit, which may be an activity, a work-item or a work-package, is
composed of one or more cost elements. These cost elements include labor costs, material costs,
plant and machinery costs, administration costs and other expenses. The process of cost estimation
(termed costing) would be if it were possible to directly correlate various cost elements to the
activity that incurs them. These costs can then provide a clear picture of the construction costs and
thus simplify planning, forecasting, accounting and controlling costs.

Construction cost can be classified in two general categories:

a) Direct Costs also known as Variable Costs
b) Indirect Costs, sometimes referred to as Fixed Costs

Direct Costs:
Direct costs are those expenditures, which are directly chargeable to and can be identified
specifically with the activities of the project. These include costs of materials, labor and equipment
etc.
Indirect Costs:
Indirect costs on a project are those expenditures, which cannot be apportioned or clearly
allocated to the individual activities of a project, but are assessed as a whole. The indirect cost
includes the expenditure related to administrative and establishment charges, overhead,
supervision, expenditure on a central store organization, loss of revenue, lost profit, penalty etc.

3.5.3. Control Estimates:

During the actual execution of the construction, detailed analyses of costs are required to
be made. The cost estimates prepared during the design stage may not be sufficient or applicable
during the execution stage. During the execution stage, the control estimate system serves two
useful purposes.
➢ It develops the production information for materials, labour and equipment that can be used
as input for future estimates.
➢ It generates information so that one may study to take corrective measures to minimize the
cost at any step.

21
In case of control estimates, overheads may be divided into a number of indirect cost estimates for
monitoring purposes.

3.5.4. Contingency:
Contingency is cushion of cost to deal with the uncertainties. It has become complicated
because of the different definitions assumed by various parties.

a) To the top management: Contingency is the money, which would not be expended and would
be returned as profit at the end of the project.

b) To engineers: Contingency is a savings account that can be drawn on to cover the additional
costs of add-on features to the project.

c) To construction managers: Contingency is an indirect cost like a social party and gifts that
cannot be charged directly to the project.

Contingency, in principle, is intended to reduce the risk of an over-run for a project

executed under expected conditions. A few of the factors that belong to contingency are minor
design changes, underestimate of cost and quantities, lack of experience, unanticipated price
changes, corrections of minor erroneous assumptions, items not identified fully in the estimating
stage and some unforeseen regulations and safety problems social welfare to the labors/workmen
at site.

Contingency may or may not include escalation and allowances. Escalation is a provision
in the estimated cost for inflation or continuing price level increase over time. Allowance is a fund
included in the estimate for items that are known but cannot be defined to the extent to estimate
the cost.

The method for developing contingency depends on the organization, type and duration of
the project, type of estimate and the phase of the project.

22
 The percentage difference between an estimated and an actual cost of past projects
provides a better idea of probable contingencies.

For large projects with different types of works, a weighted average of contingencies for
each type of work may be used for the total project. The contingency is generally included under
a separate head in the project cost.

3.5.5. Cost-Volume Relationship:

As the name suggests, the cost-volume relationship examines the relation-ship among cost,
volume and profit.

The cost is divided into fixed and variable components. The analysis plots the cost and
revenues against the volume of business. The revenue per unit exceeds the variable cost per unit
and is able to make some contribution towards recovering fixed cost. The volume at which all of
the fixed costs as well as the variable costs are recovered is the breakeven point. An example is
presented below:

Fig 3.6 Cost-Volume Relationship

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3.5.6. Time-Cost Relationship:
Estimates of resource requirements and costs for each activity may also be written against
the appropriate arrow in the network if desired. When the estimates have been written on the
network diagram the diagram is then ready for analysis.
To give a simple example, if the staff in a project normally work an eight-hour shift, one can speed
up the work on the project by having the staff work an additional shift or a few extra hours), but
they will have to be paid extra wages, often at enhanced over-time rates. Thus, the project duration
can be shortened, but the direct cost would have increased. The time to perform any activity in the
project is variable, depending on the amount of effort or resources applied to it.

Fig 3.7 Time-Cost Relationship

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 4. RESOURCE SCHEDULING

4.1. Introduction:
Resource scheduling is the most crucial part of the resource management process. It
involves identifying and allocating resources for a specific period to various types of activities.
These are related to project work or non-project work, i.e., BAU, Support, admin, operation, etc.
Project managers estimate the resource requirements needed to meet the deliverables and request
the same from resource managers who complete the initial allocation.

Resource scheduling is a process used by teams to organize and structure their employees
so the tasks they need to complete are scheduled based on availability and capability. Using this
process, team leaders can allocate and assign people tasks without over (or under) allocating their
schedules. In return, team members are always working on an optimized schedule (without being
pushed to their limits), and project managers have greater flexibility should something go awry.

4.2. Importance of Resource Scheduling:

Every project is an integration of multiple tasks that require certain niche skills to produce
tangible results. The onus is on project and resource managers to ensure that the right resource is
working on the right task. Or else, it may deteriorate the project quality and also reduce employee
productivity.

At the same time, the manager has to keep in check the availability of the workforce. For
instance, if one critical resource is booked for multiple projects simultaneously, it will cause over-
utilization, eventually leading to burnout. Adding to that, if the resource’s skills do not align with
the project tasks, it will compromise the project’s quality and lead to employee dissatisfaction.
These factors contribute to a low resource health index.

Moreover, every project has a definite timeline, and it’s the project
manager’s responsibility to ensure that the project is delivered on time and within budget. If the
resources are not scheduled before the project initiates, it will result in delays in task execution
and, in worse cases, may even bring the project to a halt.

25
 However, suppose managers take a systematic approach to schedule the resources. It will
ascertain that resources’ skillset is in-line with their tasks and their utilization is as per their
capacity. This will also enable project managers to document a well-defined work breakdown
structure with a systematic resource plan in place.

In addition to this, modern resource scheduling solutions provide data-driven foresight into
various resource metrics like resource availability, capacity vs. demand gap, utilization, and more.
Based on this, managers can implement the right resourcing measures and eliminate potential
bottlenecks.

4.3. RESOURCE ALLOCATION

4.3.1. Introduction:

Resource allocation is another way to speak of resource management or resource

scheduling, which is the scheduling of tasks and the associated resources that those tasks require
to be completed. Part of resource allocation is knowing the availability of your resources and
scheduling them to coincide with your project timeline.

When allocating resources, it can be for the project or non-project activities, such as
administration, support, operations, etc. These resources can be either fully or partially available,
which has to be taken into account when scheduling resources. When the project scope changes
or project requirements change, resource allocation must also pivot to accommodate these
changes.

Every job requires time and resources for its execution. The resources can be variable
quantities of Materials, Men, Money and Machinery or space required for carrying out a job. So it
is important that

➢ The project be allocated with adequate resource

➢ The available resources are utilized in an optimal way.

26
4.3.2. The Need for Resource Allocation:
In the delivery of any project, poor allocation of resources will have a knock-on impact on
overall performance. Without the right skills or knowledge on a project, efficiency, time,
confidence, and motivation can be lost along the way.

In accounting, an optimal resource allocation process is key in order to empower teams,

prevent burnout, and ensure engagement performance. In this context, resource allocation is not
only an essential resource management process, it is also a critical lever for growth and success.
The ability to effectively and consistently allocate the right resources to the right task, at the right
time is at the core of every successful and profitable client engagement. When a firm allocates its
resources, it’s actually matching the resources that will be dedicated to achieving client and
business objectives.

The preliminary schedule focuses on the correct logical sequence of various activities in
the project considering the technical and practical feasibility. Certain assumptions were made on
the requirement of resources. But the actual demand for resources during the execution of project
may vary considerably between very low and very high values due to fluctuations in every stage
of operations and availability of resources and it would be difficult or uneconomical to arrange
resource as per the initial requirement. Thus the resource allocations are a must.

4.4. Methodology:
The basic methodology of scheduling resources consists of identifying periods of high and low
demands from resource profile and rescheduling activities to clip off the peaks and level the
valleys. Depending upon the limitations, the resource allocation can be done by two ways.

➢ Resource Smoothing
➢ Resource Leveling

4.4.1. Resource Smoothing:

Resource smoothing is one of the project management tools used in the resource
optimization techniques. It is defined as a technique that adjusts the activities of a schedule
model so that all requirements for the resources do not go beyond the resource limits already pre-
defined during the planning.

27
 There are only a few reusable resources that are limitless thus the time schedules have to
be imposed and adjusted to manage the limited availability of the resources in a given time.
Resource smoothing is one of the tools used to reconcile the limited resources and time but a
different approach than resource leveling.

It is used when the time constraint takes important priority in project planning. The
objective of this project management tool is to complete the work or activity within the required
date and, at the same time, avoiding peaks and troughs or the resource demand.

A smooth resource profile is usually achieved by delaying some tasks or works. This will
reduce the flexibility of the schedule when it comes to dealing with delays but it is very cost
effective in managing and using the resources.

4.4.2. Resource Levelling:

Resource leveling is a technique in project management that overlooks resource allocation

and resolves possible conflict arising from over-allocation. When project managers undertake a
project, they need to plan their resources accordingly.

This will benefit the organization without having to face conflicts and not being able to deliver on
time. Resource leveling is considered one of the key elements to resource management in the
organization.

An organization starts to face problems if resources are not allocated properly i.e., some
resource may be over-allocated whilst others will be under-allocated. Both will bring about a
financial risk to the organization.

As the main aim of resource leveling is to allocate resource efficiently, so that the project
can be completed in the given time period. Hence, resource leveling can be broken down into two
main areas; projects that can be completed by using up all resources, which are available and
projects that can be completed with limited resources.

Projects, which use limited resources can be extended for over a period of time until the
resources required are available. If then again, the number of projects that an organization
undertakes exceeds the resources available, then it's wiser to postpone the project for a later date.

28
4.4.3. Example to illustrate the difference between Resource leveling and Resource
smoothing:

Now, let us look at an example and try to understand how resource leveling and resource
smoothing works in a project.

Consider a project with 7 activities as shown in the table below. The predecessors of each activity
and the duration of the activities are given. The number of compressors (consider it as a resource)
required by each activity is also listed. The organization has only 6 compressors available with
them.

Table 4.1. Activities of Project

29
The first step is to draw the schedule network diagram and determine the critical path.

Fig 4.1. Schedule Network Diagram

From the schedule network diagram, you can understand the critical path is A-B-C-E-G and the
total duration of the project is 20 days.

The problem with the critical path method is it does not consider the availability of resources. So,
now we need to check whether there are any resource conflicts in the schedule created by the
critical path method.

It will be easier if we present the schedule in the Gantt chart/ bar chart format to understand the
resource usage over time periods.

Fig 4.2. Gantt Chart for Example Above Activities

30
With the bar chart representation, it is easier for us to calculate the compressors needed on each
day. For example, we know that from day 1 to 3, only activity A is in progress; so, we need 6
compressors on each of these days. However, from day 6 to 9, activity C and activity D are running
in parallel. So, you need 7 compressors (5 for activity C and 2 for activity D) on each of these
days.

Let us plot the resources required as a histogram.

Fig 4.3. Histogram for Resource

By drawing a line to show the resource limit, we can clearly see the days on which the resource
conflict occurs. You can see that the schedule requires more compressors than available on six
days; Day 6, 7, 8, 9, 11 and 12.

Now, let us see how the application of resource leveling and resource smoothing helps to remove
the resource conflicts on these six days.

31
Application of Resource Leveling to the Sample Project:

As we have seen earlier, resource leveling looks at removing all resource conflicts without
worrying too much about extending the project duration.

Let us look at the first conflict, which happens between activities C and D. To avoid the
conflict, we need to delay either activity C or activity D. Since activity C is on the critical path, it
is prudent to delay activity D.

We have to delay the activity D until activity C completes. This means, activity D has to
be shifted to start on Day 11. By doing this, the resources required on days 6 to 9 comes down to
only 5 compressors. Since there is a float in activity D, everything looks fine.

But, when we move an activity, we have to see how it affects the other successor activities.
In this case, since F depends on the completion of activity D, it also has to be shifted.

Fig 4.4. Gantt Chart showing shifted Activities

Now, you can see that there is no resource conflict from day 1 to day 14. But, there is a
conflict on days 15 and 16; activity E needs 4 compressors and activity F also needs 4
compressors.

So, we have to delay either activity E or activity F to avoid this conflict. Since activity F is
not on the critical path, let us delay this activity.

We have to delay it until the completion of activity E. It means activity F can start only on
day 20. However, it also leads to the shifting of activity G since activity F is its predecessor.

32
Let us look at the final Gantt chart and the resource usage histogram.

Fig 4.5. Final Gantt Chart after Resource Levelling

Fig 4.6. Resource Histogram after Resource Levelling

It’s good. All resource conflicts are removed. Now, the maximum compressors required is only
six numbers on any day.

However, in the process, the project gets delayed by two days. The total duration of the project is
22 days now.

The critical path also has changed. Activity F is part of the critical path now. So, the new critical
path is A-B-C-E-F-G.

33
Application of Resource Smoothing to the Sample Project:

Resource smoothing looks at removing as much resource conflicts as possible without delaying
the total project duration.

Let us again start to adjust the original CPM schedule to avoid resource peaks.

Fig 4.7. Final Gantt Chart after Resource Smoothing

Fig 4.8. Resource Histogram after Resource Smoothing

Activity D is shifted from day 6 to day 11. This removes the resource peaks from day 6 to 9.

However, there is still resource conflicts on day 15 and day 16. This conflict cannot be removed
without delaying the total project duration. So, resource smoothing will stop here.

Out of the six days of conflict, resource smoothing managed to remove 4 days of conflict.
However, if the organization wants to stick to the original schedule, they should bring additional
resources on day 15 & day 16.

34
4.5. Levelling For Different Resources:
To meet the physical limits of construction resources, to avoid day-to-day fluctuation in
resource demands, and to maintain an even flow of application for construction resources, resource
levelling is needed in the construction industry. Traditional resource levelling models assume
activity durations to be deterministic. Nevertheless, activity duration may be uncertain, owing to
variations in the overall environment, such as weather, site congestion, and productivity level.

The main objective in resource levelling problem is to reduce peak resource requirements
and smooth out period-to-period assignment within the required project duration. The construction
contractor is not always constrained by the limited existence of a required type of project resource
when building a construction project. For example, the contractor may often consider various types
of required labour to be somewhat unlimited in supply, since available labour at the local union
hall may far exceed any feasible demand for labour the contractor may have.

When the contractor does have access to unlimited project resources, he may build the
project in a duration determined by technological constraints of the project activities. In fact, when
the contractor has access to unlimited project resources, he may build the project using any of the
many project schedules, which may be constructed consistent with such duration. This includes
the earliest start time schedule and the latest start time schedule for the project. Many other
schedules may be constructed by shifting activities within their allowable float times. The amount
of resource required for a project varies over the project duration or time may result in added
contractor cost, lower productivity, or inability to profitably obtain the resources in such a fashion.

The optimal project resource plan is a function of the contractors overall resource allocation
objective. Naturally, such a resource allocation objective should be consistent with the contractor’s
maximum profit or rate of return project objective. It is difficult to suggest an all-encompassing
optimal contractor resource allocation plan. The type of project, and the contractor’s opportunities
regarding other projects, dictate the optimal resource allocation plan.

35
4.6. Resource Planning:
Resource planning organizes, identifies and lists the resources required to complete a
project successfully. Resources are assets that are required to execute a project; a resource is a
broad category and includes equipment, tools, supplies, materials, time and people.

Resource planning is the process of making sure resources are available as required to
execute the project according to schedule. Two types of resource planning problems exist while
preparing schedule. In one, the project faces a scarcity of resources, and the activities on network
must be arranged in such a way that the requirement of resources does not exceed availability. In
case such an arrangement is not feasible, the one, which gives the minimum additional requirement
of resources, is chosen. The resources are allocated among competing activities in the order of
their importance. In the other type of resource planning problem the scarcity condition is relaxed,
and what is needed is to level up the highly fluctuating demand for resources at different times,
primarily to facilitate project supervision and enhance efficiency.

In all resource planning problems the sequence of activities and the method of working are
not generally altered. The objective is to complete the project within optimal time with requirement
of resources maintained within availability level. Where this is not possible the objective to find
out minimum extra resources to complete the project within the given period. Sometimes, several
different alternative plans can be studied by assuming different levels of resources as being
available to study the impact of resource constraint on project schedule.

For various reasons analytical treatment of resource planning problems is often complex
and difficult. It is not always possible to determine the functional relationships between resources
and activity durations and costs. The objective of the planner may be to get the minimum total
project cost assuming a linear relationship between time and cost. The choice in this case may exist
between small resource capacities with long activity durations, and large resource capacities with
short activity durations – both combinations giving identical costs. The possibility of sub dividing
some activities and distribution the sub-divisions over the available float is likely to give rise to
combinational problems of large magnitudes.

36
4.7. Activity Duration:
Project Management has been previously described as the systematic allocation of
resources to accomplishment project completion at maximum efficiency of time and cost. The
knowledge of available resources is essential to assess the activity duration. As is well known,
resources vary with place, environment and projects. It is management responsibility to allocate
available resources for activities to avoid or minimize the accomplishing adverse effects.

Activity duration directly varies with the assessed human and non-human resources. To the
maximum extent possible activity duration should be assessed using the available resources as of
the time-cost trade-off and the project plan must be formulated as change in activity circumstances
occur. While allocation of resources care should be taken for not delaying critical activities will
not be delayed such that the overall project should meet project time line.

Fig 4.9. Sequence of steps that helps with estimating activity duration

37
4.7.1. Types of Activity Duration:
Primavera P6 lets you control these settings by way of 4 Duration Types, as follows:
➢ Fixed Duration and Units
➢ Fixed Duration and Units/Time
➢ Fixed Units
➢ Fixed Units/Time

Fixed Duration and Units:

Fixed Duration & Units should be used when the duration and the amount of the resources
are known and supposed to remain fixed in the schedule. This will keep the duration of the activity
and units needed to complete it fixed even as additional resources are added to the schedule. This
is the recommended duration type to use for time and budget constrained projects.

Fig 4.10. Resource assigned with Fixed Duration & Units

Fixed Duration and Units/Time:

Fixed Duration and Units/Time will keep the duration of the activity and the resource’s
units/time fixed. This duration type is best used for activities that are supposed to be completed
within a certain, fixed time frame, regardless of how many resources will be assigned to the
activity. For Task Dependent activities, this duration type is most often used.

38
 Fig 4.11. Resource assigned with Fixed Duration & Units/Time

Fixed Units:
Fixed Units will keep the Units for the activity fixed, even as additional resources are
assigned. This duration type is best used for activities where the amount of work that needs to be
completed is fixed and resource dependent. Essentially, as additional resources are added to the
activity, the duration will decrease – more hands on deck means that the work can be completed
faster.

Fig 4.12. Resource assigned with Fixed Units

Fixed Units/Time:
Fixed Units/Time will fix the units/time needed for the activity to be completed.This
duration type is supposed to be used when the user would like the resource units per time to remain
unchanged while the activity duration or units change. If you have an activity, for example, that

39
uses machinery that requires two workers to operate, Fixed Units/Time might be the right choice.
This type is most often used if the user uses resource-dependent activities.

Fig 4.13. Resource assigned with Fixed Units/Time

4.8. Manpower Planning and Optimization for an Activity:

The manpower requirements are determined separately for each activity. Practically in any
activity duration time is the manpower estimate. For example if an activity ‘X’ takes 5 weeks, it
must be based on a given number, say 10, of persons of any particular skill. It is possible that by
employing 20 men, this activity could be completed in 3 weeks. One has to see whether employing
20 men for 3 weeks will be more economical or 10 men for 5 weeks. This will, of course, depend
on whether the activity ‘X’ is on critical path and what the time-cost trade is off.

Therefore, in manpower planning and optimization there will be two considerations.

➢ Optimum number of men to be employed for each activity depending upon the cost trade
off.
➢ Manpower loading or levelling so as to employ uniform labour force and scheduling of
activities on that basis.

40
4.9. Material Planning and Optimization for an Activity:
The first step in Materials Planning is determination of the requirements for major materials
(particularly the scarce items) and common project equipment which is followed by the
procurement plan to ensure their availability by required dates. Where necessary, an allocation
system may also have to be developed when the total availability is less than total requirements.
Generally, the items to be covered would be:

➢ Cement
➢ Steel
➢ Imported items
➢ Costly items like Joinery, Flooring, Plumbing, Fitting, Fixtures, Electrical/Mechanical
equipments
➢ Other inputs for construction / execution and etc.

The requirements for the Materials will be derived from the activities of the Network Chart. When
an activity with time duration is drawn on the Network, it indicates the use of certain materials,
manpower, money, equipment and other inputs.

For example, if the scheduled starting dates of 5 activities, A, B, C, D, and E, falls in Qr. I and
Latest Allowable dates of start of A, B and C are in the beginning of Qr. I and D & E in Qr. II then
the sum of quarterly requirements of say, cement, for A, B, C, D, and E will represent the Normal
cement requirements for Qr. I while sum of the quarterly requirements of only A, B, & C will give
us the minimum cement requirements for Qr. I.

4.10. Relationship Between Activities:

4.10.1. Introduction To Relationship:

In Primavera P6, a relationship refers to a link between two activities. This link describes
the flow of work between tasks, as shown in Figure 1.17. Relationships can either be a driving
relationship or a non-driving relationship. In Primavera P6, driving relationships specify the start
date of the successor. Non-driving relationships do not specify the start date of the successor.

41
Relationships are the logic ties or network connectors that hold the activities in a project network
diagram. Predecessor and Successor activities are tied logically to represent the real task sequence
in a work schedule.

Fig 4.14. Relationship between two activities

Primavera P6 uses the terms predecessor and successor to describe the relationship between two
activities, as shown in Figure 4.14.

Fig 4.15. Terms Representing Relationship

Predecessor Activity: The activity that controls the start date of the following activity or
activities.

Successor Activity: The activity that is controlled by the predecessor activity or activities.

Lead: Lead means the beginning of a successor activity before the completion of its predecessor.

Lag: Lag is the delay of the successor activity. The successor activity cannot start right after the
end of the predecessor activity.

42
4.10.2. Types of Relationship:
Basically, there are four types of relationships in Primavera P6.

➢ FS (Finish to Start)
➢ SS (Start to Start)
➢ FF (Finish to Finish)
➢ SF (Start to Finish)

4.10.2.1 FS (Finish to Start):

The most commonly used relationship is (FS).

Fig 4.16. Finish to Start Relationship

4.10.2.2 SS (Start to Start):

SS is used to describe a starting dependency between tasks.

43
 Fig 4.17. Start to Start Relationship

4.10.2.3. FF (Finish to Finish):

FF is used to describe a Finishing dependency between tasks. One activity cannot Finish until
another activity Finishes.

Fig 4.18. Finish to Finish Relationship

44
4.10.2.4. SF (Start to Finish):

This type of activity is commonly used with Start milestones.

Fig 4.19. Start to Finish Relationship

4.10.3. Defining Activity Relationships in Primavera P6:

Relationships can either be a driving relationship or a non-driving relationship. In
Primavera P6, driving relationships specify the start date of the successor. Non-driving
relationships do not specify the start date of the successor.

Let’s assume that you have a sample project schedule with 4 activities. Open the Activity
Details by selecting View | Show on Bottom | Details from the main drop-down menu at the top
of the screen as shown in Figure 4.21.

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 Fig 4.20. P6 Bottom Layout-min

Click on one of the activities and select “Assign” from the “Relationships” tab existing on the
Activity Details at the bottom of the screen.

Fig 4.21. Relationship Tab-min

46
You will see that the “Relationships” tab is divided into two sections. Predecessor and Successors
sections are used to assign predecessor and successor relationships.

Now click on the “Construction Activity” and assign the “Procurement activity as the predecessor.

Fig 4.22. Assigning Predecessor-min

Assume that the Construction activity will start 10 days after the starting of the Procurement
activity. So the relationship is SS + 10.

Fig 4.23. Start to Start + 10 days Lag

47
 5. RESULTS & DISCUSSION

5.1. Resource Curve:

I. Resource/cost distribution curves enable you to specify how you want resource units or
costs spread over the duration of an activity. Resource units and costs are distributed evenly
during an activity unless you specify nonlinear distribution using curves.

II. You can assign a resource distribution curve to any resource or role assignment on
activities with a duration type of Fixed Duration and Units/Time or Fixed Duration &
Units. Assign the appropriate curve to a resource or role assignment by selecting a curve
in the Curve column in the Resource Assignments window. You can also assign a resource
curve in the Resources tab in the Activity Details.

III. If timesheet data exists for the actuals, curves are ignored for the actuals and are spread
using the timesheet data. Activities with timesheet data continue to spread the remaining
units using the curve.

IV. In order to use curves to calculate the Actual Units/Cost and EV Units/Costs, the new
project setting that uses duration percent complete to calculate actuals should be marked.

V. Resource curves do not support expenses. The Accrual Type will continue to spread the
expenses. Resource lag is taken into consideration. The curve should begin on the "lagged
start date." Resource curves are reflected in the Resource Usage Profile and Resource
Usage Spreadsheet.

48
5.1.1. Adding A Resource Curve:

➢ Choose Enterprise, Resource Curves.

➢ Click Add.
➢ Select an existing curve from which to copy the curve value percentages, then click Select.
➢ Type a name for the new resource curve. You can type up to 6 alphanumeric characters.
You must enter a resource curve name.
➢ Click Modify to define the curve's distribution. Edit the curve value percentages to create
a curve that indicates how your costs/units should distribute over time. Curves are defined
by 21 points (5% intervals from to 1).
➢ Click Prorate to make the total of the distribution values equal to 1% while maintaining the
shape you specified.
➢ Click OK, and then click Close.

Note: You can define an unlimited number of global resource curves.

5.1.2. Assigning A Curve To A Resource OR Role Assignment:

➢ You can assign a resource distribution curve to any resource or role assignment on
activities with a duration type of Fixed Duration and Units/Time or Fixed Duration &
Units. Resource usage and costs are distributed evenly during an activity unless you
specify nonlinear distribution using curves.
➢ Choose Project, Resource Assignments.
➢ Select the resource/role assignment to which you want to assign a resource curve.
➢ Double-click in the Curve column and select the curve you want to assign to the
resource/role assignment, and then click Select.
➢ To display the Curve column, click the Display Options bar, then choose Columns,
Customize.
➢ Select Curve from the General group and click to add the column to the Selected
Options.

49
5.2. Adding Activities:

➢ To add activities click on “Activities” in the HOME page or “Project/Activities”.

➢ Organize the layout based on WBS & SORT by Activity ID.
➢ Add activities to respective WBS level by clicking on ADD on Command Bar Button
Text.
➢ For Auto-numbering activities and increment select the project in the “Project View”
and select “Default Tab” in the detail form and give activity prefix, suffix and increment.

Table 5.1. Activities Involved For G+2 Residential Building

Activity Activity Original Remaining Start Finish

ID Name Duration Duration
A1000 Start of the 0 0 01-Jun-22 01-Jun-22
project
A1010 Marking 2 2 01-Jun-22 02-Jun-22
Boundaries
A1020 Surveying 3 3 03-Jun-22 05-Jun-22
A1030 Site Office 1 1 06-Jun-22 06-Jun-22
A1040 Water 1 1 08-Jun-22 08-Jun-22
Arrangements
A1050 Electricity 1 1 09-Jun-22 09-Jun-22
Arrangements
A1060 Steel yards 2 2 10-Jun-22 11-Jun-22
and go down
A1070 Main gate and 2 2 12-Jun-22 13-Jun-22
fencing
A1080 Building line 3 3 15-Jun-22 17-Jun-22
out
A1090 Excavation 7 7 18-Jun-22 25-Jun-22
A1100 Preparation of
PCC works-
4 4 26-Jun-22 30-June-22
compaction

A1110 Soiling 5 5 01-Jul-22 06-Jul-22

A1120 Shuttering for 3 3 07-Jul-22 09-Jul-22
PCC

50
A1130 Pouring of 2 2 10-Jul-22 11-Jul-22
PCC
A1140 De-shuttering 1 1 13-Jul-22 13-Jul-22
A1150 Layout 3 3 14-Jul-22 16-Jul-22
Marking
A1160 Laying of 10 10 17-Jul-22 28-Jul-22
Reinforcement
A1170 Shuttering for 3 3 29-Jul-22 31-Jul-22
Raft
Foundation
A1180 Pouring of 2 2 01-Aug-22 03-Aug-22
concrete
A1190 De-shuttering 3 3 04-Aug-22 06-Aug-22
A1200 Setting up 2 2 07-Aug-22 08-Aug-22
level for
Plinth
A1210 Plinth beam 3 3 10-Aug-22 12-Aug-22
bottom
shuttering
A1220 Laying of 4 4 13-Aug-22 17-Aug-22
reinforcement
A1230 Side 2 2 18-Aug-22 19-Aug-22
shuttering for
beams
A1240 Pouring of 2 2 20-Aug-22 21-Aug-22
concrete
A1250 De-shuttering 2 2 22-Aug-22 24-Aug-22
A1260 Backfilling 2 2 25-Aug-22 26-Aug-22
upto plinth
beam bottom
A1270 Compaction 3 3 27-Aug-22 29-Aug-22
of soil
A1280 Laying of 2 2 31-Aug-22 01-Sep-22
PCC
A1290 Laying of 2 2 02-Sep-22 03-Sep-22
DPC
A1300 Staircase 2 2 04-Sep-22 05-Sep-22
shuttering
A1310 Staircase bar 2 2 07-Sep-22 08-Sep-22
bending
A1320 Staircase 2 2 09-Sep-22 10-Sep-22
waist slab
concrete

51
A1330 Column 8 8 11-Sep-22 19-Sep-22
raising upto
roof level
A1340 Roof 9 9 21-Sep-22 30-Sep-22
shuttering
A1350 Roof bar 8 8 01-Oct-22 09-Oct-22
bending
A1360 Roof Concrete 3 3 10-Oct-22 13-Oct-22
A1370 De-shuttering 6 6 14-Oct-22 20-Oct-22
A1380 Ceiling 8 8 21-Oct-22 29-Oct-22
Plastering
A1390 Brickwork 10 10 30-Oct-22 10-Nov-22
upto lintel
level
A1400 Rubble 2 2 11-Nov-22 12-Nov-22
Soiling
A1410 Laying of 3 3 13-Nov-22 16-Nov-22
PCC
A1420 Laying of 2 2 17-Nov-22 18-Nov-22
DPC
A1430 Column 8 8 19-Nov-22 27-Nov-22
raising upto
roof level
A1440 Staircase 2 2 28-Nov-22 30-Nov-22
shuttering
A1450 Staircase bar 2 2 01-Dec-22 02-Dec-22
bending

A1460 Staircase 2 2 03-Dec-22 04-Dec-22

waist slab
concrete
A1470 Roof 9 9 05-Dec-22 15-Dec-22
shuttering
A1480 Roof bar 8 8 16-Dec-22 24-Dec-22
bending
A1490 Roof concrete 3 3 25-Dec-22 28-Dec-22
A1500 De-shuttering 6 6 29-Dec-22 04-Jan-23
A1510 Ceiling 8 8 05-Jan-23 13-Jan-23
Plastering
A1520 Brick work 10 10 14-Jan-23 25-Jan-23
upto lintel
level

52
A1530 Lintel& 6 6 26-Jan-23 01-Feb-23
sunshade
shuttering
work
A1540 Lintel & 6 6 02-Feb-23 08-Feb-23
sunshade bar
bending work
A1550 Lintel & 4 4 09-Feb-23 12-Feb-23
sunshade
concrete
A1560 Brick work 8 8 13-Feb-23 22-Feb-23
upto roof level
A1570 Fixing of door 3 3 23-Feb-23 25-Feb-23
& window
frames
A1580 Laying of stub 3 3 26-Feb-23 28-Feb-23
column
reinforcement
A1590 Stub column 2 2 29-Feb-23 30-Feb-23
shuttering
A1600 Pouring of 2 2 02-Mar-23 03-Mar-23
concrete
A1610 De-shuttering 2 2 04-Mar-23 05-Mar-23
A1620 Fixing of 1 1 06-Mar-23 06-Mar-23
terrace door
frame
A1630 Erection of 2 2 08-Mar-23 09-Mar-23
scaffolding
A1640 Wall 10 10 10-Mar-23 20-Mar-23
Plastering
A1650 Water 3 3 21-Mar-23 23-Mar-23
proofing
A1660 Pipe works 7 7 24-Mar-23 01-Apr-23
A1670 Terrace 2 2 02-Apr-23 03-Apr-23
looping
A1680 Sanitary ware 4 4 04-Apr-23 08-Apr-23
fixtures
A1690 Wiring 4 4 09-Apr-23 12-Apr-23
A1700 Installation of 2 2 13-Apr-23 14-Apr-23
panels
A1710 Earthing 2 2 15-Apr-23 17-Apr-23
A1720 Switches & 2 2 18-Apr-23 19-Apr-23
Fixtures

53
A1730 Doors & 5 5 20-Apr-23 25-Apr-23
Windows
shutter fixing
A1740 Fixing of 3 3 26-Apr-23 28-Apr-23
staircase
railing
A1750 Leveling of 5 5 29-Apr-23 04-Apr-23
floor
A1760 Laying of tiles 10 10 05-May-23 15-May-23
A1770 Polishing 12 12 16-May-23 28-May-23
A1780 Laying of 7 7 29-May-23 05-Jun-23
Mortar bed
A1790 Applying 6 6 06-Jun-23 12-Jun-23
putty on joints
A1800 Applying 8 8 13-Jun-23 21-Jun-23
primer
A1810 Applying 1st 10 10 22-Jun-23 01-Jul-23
coat of paint
A1820 Applying 2nd 10 10 02-Jul-23 12-Jul-23
coat of paint
A1830 Site clearance 2 2 13-Jul-23 14-Jul-23
A1840 Handing over 1 1 15-Jul-23 15-Jul-23
to client

54
 6. VIEWING RESOURCE & COST PROFILE/
SPREADSHEETS

6.1. Resource Usage Profile/Spreadsheet:

Use the Resource Usage Profile/Spreadsheet to analyze quantity or cost usage for
resources or roles. You can view a resource's or role's cost and quantity data for a specific
project or for all projects across the enterprise (total allocation).

Define the Profile/Spreadsheet to specify whether you want to display cost or quantity
information and set the timescale for displaying data values. Choose to display vertical bars to
represent costs or units allocated to your resources for each time period, and include cumulative
curves/units to represent accumulated units and costs over time.

6.2. Use the Resource Usage Profile/Spreadsheets to:-

➢ Determine how many hours each resource is scheduled to work.
➢ Identify overloaded resources.
➢ Track expenditures per time period.
➢ Determine resource usage by late dates.
➢ Display a "banana" curve to compare early and late dates.
➢ Display different colours or patterns on the histogram bars when showing the stacked
histogram. In addition to customizing data, you can customize the look of the profile by
specifying display options, for example, bar colour, background line type, or averaging.
You can also save a customized profile so that you can always access the same set of
activity information or share the Resource Usage Profile with someone else.
➢ The Resource Usage Profile is available only in the bottom layout of the Activities
window. The bottom layout window is divided into two panes.
➢ The left pane lists all the resources or roles stored in the hierarchy, depending on your
current view. In the stacked histogram view, the left pane lists all the resource or role
filter/group names in the hierarchy.

55
 ➢ The right pane displays the values for the activities assigned to each resource or
role in the histogram, or resource or role filter/group name in the stacked
histogram.

Note:
➢ If you do not want the resource unit/cost values spread evenly, use resource curves to
distribute those values nonlinearly. The Resource Usage Profile reflects the resource
curves.
➢ When displaying units, bars do not display for summary rows if your selection contains mixed
units of measure or a mixture of labor/non-labor and material type resources.
➢ Bars and cumulative curves with negative values do not display in the profile. You can
view the negative values in the profile details. Double-click in the profile area to view the
profile details.

Fig 6.1 Resource Usage Spreadsheet

56
 Fig 6.2 Resource Usage Profile

6.3. Activity Usage Profile/Spreadsheet:

➢ Use the Activity Usage Profile/Spreadsheet to view cost or unit values for activities
in the open project over time according to a timescale you specify. The Activity
Usage Profile/Spreadsheet displays resource allocations for all activities or for the
activities you select in the Activity Table, Activity Usage Spreadsheet, Gantt chart,
or the Activity Network.
➢ The Activity Usage Profile/Spreadsheet can display labor, non-labor, material, and
expense costs and labor and non-labor units allocated to the activities in your project
over time. Costs and units allocated to activities for each period in the timescale are
represented as vertical bars. You can also display curves for charting cumulative costs
or units over time.

57
6.4. Customize the Activity Usage Profile/Spreadsheet To:
➢ Specify the type of information you want to display.
➢ Change the timescale.
➢ Customize the bars and background.
➢ Save any of these changes so that you can always access the same set of activity
information, or share your Activity Usage Profile with someone else.
➢ You can filter the Activity Usage Profile to include all activities displayed in the top
layout, or to include only the activities you select in the top layout. You can also filter
the top layout to display only those activities that correspond to the time period you
select in the bottom layout.

Tip:
➢ If you apply activity filters to the Activity Table, Gantt chart, Activity Usage Spreadsheet,
or the Activity Network, these filters also apply to the Activity Usage Profile.
➢ Resource Units per day = Budgeted Quantity / Original Duration

Fig 6.3. Activity Usage Spreadsheet

58
Fig 6.4 Activity Usage Profile

59
 7. CONCLUSION

The objective of this study is on the resource used in the construction industry is to optimize
or reduce or to avoid on wastages of the resource in construction project. Resource optimization
has been done by using project management software like primavera p-6. Here man power resource
like mason, mason helper, carpenter, carpenter helper, painter, painter helper have been taken in to
consideration for optimization because they are most commonly used resources were found as an
over allocated resources for some activities. Hence optimization was done to this resource and by
modifying predecessors without affecting the duration of the project. These resources were leveled
in such way that their allocation is well within maximum availability. Therefore resource
optimization was complete to these resource materials and by changing the predecessors devoid
of upsetting the interval of the project.

The total project concludes the following grades.

❖ Resource optimization has been done by using Primavera P-6 software using the technique
Resource Levelling & Resource Smoothing.
❖ The construction project resource allocation like to labours, unskilled labours, wood
worker, collaborator, water colourist, carpenter collaborator, painter collaborator in this
case revision has been optimized. In such a way that they are not over outstanding of any
of the activities in the project.
❖ Resource allocation as optimized can be completed devoid of changing the project period
❖ Resource allocation as Optimization can be done to all other resources which are used in
construction project and can reduce the project cost.
❖ Over allocated resource are reduced from the activities.

60
 REFERENCES

1. Efficient planning, scheduling and delay analysis of residential project by Prof, DD Shelke,
Prof. P M Attarde, Mrs. P A Chavan and Ms. S Bhamre,[volume12, Issue 3 version I May-
June 2015]

2. Resource planning and resource allocation in the construction industry by Charles E

Mendoza, [Summer 1995]

3. Optimal construction resource utilization: Reflection of site managers attributes by Julius

AyodejiFapohundaa Prof. Paul Stephenson, [volume 11, number-2010]

4. Resource optimization in casting of segments on bridge construction by Abhaysinha G

Shelake and Rohit R Salgude, [Shelake, 4(6): june-2015]

5. Developing an Efficient Schedule in primavera P6: Significance of activity ID and

Description by Satinderchopra and A Dewangan, [Volume 3, Issue7, July-2014]

6. Towards project Portfolio management for substantial outcomes in the construction industry
by Hiyan Al- kilidar, Steven Davis, cat kutay and Catherine Killen [August-2011]

7. Planning, scheduling and Tracking of a residential project using primavera software by

Unmesh Y Polekar and Rohit R Salgude [Volume 3, Issue 5, May 2015]

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