Resource Leveling

Infrastructure Management
Dr. Mark Hsu

1
 Contents
❑ Introduction to Resources
❑ Resource Allocation
❑ Resource Allocation Calculation
❑ Expediting a Project

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 Introduction to Resources
❑ Construction Resources
▪ Labor
▪ Equipment
▪ Materials

▪ These three types of resources can be translated

into a monetary quantity— a part of financial
resources

3
 Labor
❑ Salaried Staff
▪ Project manager, superintendent, project engineer,
secretary, and others tied to a project but not tied
to one particular activity or work package
▪ Get paid a fixed salary
❑ Hourly Workers
▪ Hired to perform a specific task or activity
▪ Carpenters, masons, ironworkers, electricians,
foremen, etc.
▪ Paid for actual hours worked

4
 Equipment
❑ Construction equipment
▪ Not permanently installed in the project
▪ eg: bulldozers, backhoes, cranes, power
generators, forklifts, etc.
▪ Inexpensive personal tools are usually treated
differently (either as a lump sum for all tools or as
the laborer’s personal property)
❑ Installed equipment
▪ Stays permanently in the project after completion
▪ Heat pumps, air conditioning units, etc.

5
 Materials
❑ Materials used for construction
▪ Formwork, scaffolding, etc.
❑ Installed materials
▪ Concrete, rebars, bricks, floor tile and carpet, etc.

6
 Money
❑ Financial resources used in construction
❑ Two methods are available for assigning
budgets to activities:
▪ Assigning a lump-sum amount to each activity
without specifying how the number is sliced or
which resources are used.
▪ Assigning a number of units of certain resources
to each activity
• eg., one dozer, one foreman, one equipment
operator, two laborers, etc.

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 Resource Allocation
❑ Definition:
▪ Assignment of the required resources to each
activity, in the required amount and timing.
❑ Process:
▪ Identify the resources that need to be assigned
and tracked
▪ Assign critical resources to each applicable
activity
▪ Develop a histogram or table of resource
consumption over time.

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 Resource Allocation Example
ACT Predecessor Crew Daily Plan Qty ACT Days
Size Output
A:Install ext. -- 4 100 LF 280 LF
studs
B:Install ext. -- 4 1200 SF 3200 SF
sheath
C:Install int. -- 2 80 LF 160 LF
studs
D:Plumbing A, B, C 2 58 LF 150 LF
E:Heating A, B, C 2 170 LF 120
F:Electrical A, B, C 2 1300 LF 2600 LF
G:Insulation D, E, F 3 1000 SF 3200 SF

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 Resource Allocation Example
ACT Predecessor Crew Daily Plan Qty ACT Days
Size Output
A:Install ext. -- 4 100 LF 280 LF 3
studs
B:Install ext. -- 4 1200 SF 3200 SF 3
sheath
C:Install int. -- 2 80 LF 160 LF 2
studs
D:Plumbing A, B, C 2 58 LF 150 LF 3
E:Heating A, B, C 2 170 LF 120 1
F:Electrical A, B, C 2 1300 LF 2600 LF 2
G:Insulation D, E, F 3 1000 SF 3200 SF 4

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 Resource Allocation Example
❑ You are asked to:
▪ Schedule these activities, assuming all
relationships are FS
▪ Based on the ES and EF of each activity,
develop
• a crew utilization chart
• a crew utilization graph
• a cumulative crew utilization graph

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Resource Allocation Example
0 3 3 6
A D
3 3

0 0 0 3 3 4 6 10
B E G
Start
3 1 4

0 2 3 5
C F
2 2

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 Resource Allocation Example
❑ Crew Utilization Chart

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 Resource Allocation Example
❑ Crew Utilization Graph
12
10
Number of Workers

8
6
4
2
0
1 2 3 4 5 6 7 8 9 10
Work Day

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 Resource Allocation Example
❑ Cumulative Crew Utilization Graph

15
 Resource Allocation Problems
❑ 1. Unlimited Resource Leveling
▪ Sufficient resources are available to carry out a
project which must be completed by a specified
due date.

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 Resource Allocation Problems
❑ 2. Limited Resource Allocation
▪ There are definite limitations on the resources
available to carry out the project.
▪ The objective is to meet project due dates insofar
as possible (minimizing the duration of the
projects being scheduled, subject to stated
constraints on available resources)

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 Resource Allocation Problems
❑ The basic approach to be followed in solving
each of these problems is
▪ to first order the activities according to some
criterion
▪ then to schedule the activities in the order listed
as soon as their predecessors are completed and
adequate resources are available.
❑ There are a lot of procedures.

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 Limited Resource Allocation
❑ Example
▪ Schedule the activities in the table using CPM
▪ Assume max. 6 labors, do resource leveling to
improve labor usage profile

Act IPA Dur Lab

A __ 5 2
B __ 7 4
C A 3 3
D A,B 5 3
E C,D 2 2

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 Limited Resource Allocation

Act IPA Dur Lab ES EF LS LF TF

A - 5 2 0 5 2 7 2
B - 7 4 0 7 0 7 0
C A 3 3 5 8 9 12 4
D A,B 5 3 7 12 7 12 0
E C,D 2 2 12 14 12 14 0

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 Limited Resource Allocation
❑ Resource Schedule by Early Start

DAYS 1 2 3 4 5 6 7 8 9 10 11 12 13 14

LABORERS 6 6 6 6 6 7 7 6 3 3 3 3 2 2

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 Limited Resource Allocation
❑ Resource Schedule by Early Start

DAYS 1 2 3 4 5 6 7 8 9 10 11 12 13 14

LABORERS 6 6 6 6 6 4 4 6 6 6 3 3 2 2

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 Limited Resource Allocation
❑ Resource Schedule by Early Start: Optimization

DAYS 1 2 3 4 5 6 7 8 9 10 11 12 13 14

LABORERS 4 4 6 6 6 6 6 6 6 6 3 3 2 2

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 Expediting a Project
❑ Our problem is set in a deterministic world rather
than in a probabilistic one to help avoid unnecessary
arithmetic. (Please remember that in reality all
projects are carried out under conditions of
uncertainty.)
❑ One assumption is that all estimates of task duration,
whether deterministic or probabilistic, are based on
normal or standard resource loading.

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 The Critical Path Method
❑ In traditional PERT/CPM, the rules of “standard
practice” apply and the normal task duration estimate
is made with the normal or standard-practice
resource usage.
❑ Then a second estimate, referred to as the crash
duration, is made based on the resources required to
expedite the task.
❑ More resources of the type already used might be
added; more workers and shovels if there is a ditch to
be dug.

25
 The Critical Path Method
❑ When making estimates for crashing, it is important
to make sure that the resources required to crash the
project are, in fact, available.
❑ There are times when the PM may expedite activities
that have little or no impact on the network’s critical
time, such as when the resources used must be
made available to another project.
❑ Finally, we must remind ourselves that some tasks
cannot be crashed.

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 The Critical Path Method

➢ Activities are charged at the “cost per day” increments shown in the last
column.
➢ The “slope” information for non-or partially segmented activities is normally
given in the slope chart. Activity sloe is computed as follow:

27
 The Critical Path Method
❑ When crashing a project, starting with the normal
schedule for all project activities, crash selected
activities, one at a time, to decrease project duration at
the minimum additional cost.
❑ To crash a project, follow two simple principles:
1. Focus on the critical path(s) when trying to shorten the
duration of a project. (Crashing a non- critical activity will
not influence project duration!)
2. When shortening a project’s duration, select the least
expensive way to do it.

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 The Critical Path Method
It is easier to illustrate the impact of crashing on an activity-
on-arrow (AOA) network than on an activity-on-node (AON)
network.

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 The Critical Path Method

Crash a for 1 day

Crash a for 1 day

and b for 1 day

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 The Critical Path Method

Crash a for 1 day

day, d
for 1 day, and e for
2 days

Crash a for 1 day, b

for 1 day, d for 2
days, and e for 2
days
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 The Critical Path Method
Such data are of great benefit when clients plead for early delivery. If the
client is willing to pay the cost of crashing, or if the firm is willing to
subsidize the client, the PM can afford to listen with a sympathetic ear.

32
 Crashing Activity Times
❑ In the Critical Path Method (CPM) approach to
project scheduling, it is assumed that the normal
time to complete an activity, tj , which can be met
at a normal cost, cj , can be crashed to a reduced
time, tj’, under maximum crashing for an
increased cost, cj’.
❑ Using CPM, activity j's maximum time reduction,
Mj , may be calculated by: Mj = tj - tj'. It is
assumed that its cost per unit reduction, Kj , is
linear and can be calculated by: Kj = (cj' - cj)/Mj.
 Example: EarthMover, Inc.
❑ EarthMover is a manufacturer of road
construction equipment including pavers, rollers,
and graders. The company is faced with a new
project, introducing a new line of loaders.
Management is concerned that the project might
take longer than 26 weeks to complete without
crashing some activities.
 Example: EarthMover, Inc.
Immediate Completion
Activity Description Predecessors Time (wks)
A Study Feasibility --- 6
B Purchase Building A 4
C Hire Project Leader A 3
D Select Advertising Staff B 6
E Purchase Materials B 3
F Hire Manufacturing Staff B,C 10
G Manufacture Prototype E,F 2
H Produce First 50 Units G 6
I Advertise Product D,G 8
 Example: EarthMover, Inc.
❑ PERT Network

D
6
I
B
8
A 4 E
Start Finish
6 3
C G H
3 F 2 6
10
 Example: EarthMover, Inc.
❑ Earliest/Latest Times
Activity ES EF LS LF Slack
A 0 6 0 6 0*
B 6 10 6 10 0*
C 6 9 7 10 1
D 10 16 16 22 6
E 10 13 17 20 7
F 10 20 10 20 0*
G 20 22 20 22 0*
H 22 28 24 30 2
I 22 30 22 30 0*
 Example: EarthMover, Inc.
⚫ Critical Activities

D 10 16
6 16 22 I 22 30
B 6 10 8 22 30
Start
A 0 6 4 6 10 E 10 13 Finish
6 0 6 3 17 20
C 6 9 G 20 22 H 22 28
3 7 10 F 10 20 2 20 22 6 24 30
10 10 20
 Example: EarthMover, Inc.
❑ Crashing
The completion time for this project using
normal times is 30 weeks. Which activities
should be crashed, and by how many weeks, in
order for the project to be completed in 26
weeks?
 Example: EarthMover, Inc.
Normal Crash
Activity Time Cost Time Cost
A) Study Feasibility 6 $ 80,000 5 $100,000
B) Purchase Building 4 100,000 4 100,000
C) Hire Project Leader 3 50,000 2 100,000
D) Select Advertising Staff 6 150,000 3 300,000
E) Purchase Materials 3 180,000 2 250,000
F) Hire Manufacturing Staff 10 300,000 7 480,000
G) Manufacture Prototype 2 100,000 2 100,000
H) Produce First 50 Units 6 450,000 5 800,000
I) Advertising Product 8 350,000 4 650,000
Linear Program for Minimum Cost Crashing
❑ Define the decision variables
Xi = earliest finish time for activity i
Yi = the amount of time activity i is crashed

❑ Objective function (Minimize the total cost)

Note YB and YG cannot be crashed
Coefficient is the cost to crash an activity (A: Normal cost
$80,000; crashed cost = $100,000; difference = $20
thousands)

Min 20YA + 50YC + 50YD + 70YE + 60YF + 350YH + 75YI

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Linear Program for Minimum Cost Crashing

❑ Constraints
Amount of time activity i can be crashed
YA < 1; YC < 1; YD < 3; YE < 1; YF < 3; YH < 1; YI < 4
YB < 0; YG < 0

Earliest finish time for activity i

XA > 0 + (6 - YA); XB > XA + (4 - YB); XC > XA + (3 - YC)
XD > XB + (6 - YD); XE > XB + (3 - YE); XF > XB + (10 - YF)
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Linear Program for Minimum Cost Crashing

❑ Constraints
Earliest finish time for activity i
XF > XC + (10 - YF); XG > XE + (2 - YG); XG > XF + (2 - YG)
XH > XG + (6 - YH); XI > XD + (8 - YI); XI > XG + (8 - YI)
XH < 26; XI < 26

Non-negativity for all activity i

Xi, Yi > 0 for all i
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Linear Program for Minimum Cost Crashing
Let: Xi = earliest finish time for activity i
Yi = the amount of time activity i is crashed

Min 20YA + 50YC + 50YD + 70YE + 60YF + 350YH + 75YI

s.t. YA < 1 XA > 0 + (6 - YA) XG > XF + (2 - YG)
YC < 1 XB > XA + (4 - YB) XH > XG + (6 - YH)
YD < 3 XC > XA + (3 - YC) XI > XD + (8 - YI)
YE < 1 XD > XB + (6 - YD) XI > XG + (8 - YI)
YF < 3 XE > XB + (3 - YE) XH < 26
YH < 1 XF > XB + (10 - YF) XI < 26
YI < 4 XF > XC + (10 - YF)
XG > XE + (2 - YG) Xi, Yi > 0 for all i
D 10 16
6 16 22 I 22 30
B 6 10 8 22 30
Start
A 06 4 6 10 E 10 13 Finish
6 0 6 3 17 20
C 6 9 G 20 22 H 22 28
3 7 10 F 10 20 2 20 22 6 24 30
10 10 20
Linear Program for Minimum Cost Crashing

⚫ Lingo
 Lingo Results
Objective value:
200.0000
Activity Time in Weeks
A 5 (Crash 1 week)
B 4
C 3
D 6
E 3
F 7 (Crash 3 week)
G 2
H 8
I 6

D 10 16
6 16 22 I 22 30
B 6 10 8 22 30
Start
A 06 4 6 10 E 10 13 Finish
6 0 6 3 17 20
C 6 9 G 20 22 H 22 28
3 7 10 F 10 20 2 20 22 6 24 30
10 10 20
Example 2: Two Machine Maintenance
A two-machine maintenance project consists
of five activities. The length of the critical path,
and thus the total time required to complete
the project, is 12 days. Now suppose that
current production levels make completing the
maintenance project within 10 days
imperative.
Example 2: Data
Example 2: Activity Network
Example 2: Critical Path
Example 2: Time-Cost Tradeoffs
Example 2: Linear Program Formulation (1)

⚫ Define the decision variables

xi = earliest finish time for activity i, i=A,B,C,D,E
yi = the amount of time activity i is crashed , i=A,B,C,D,E

Min 100yA + 150yB + 200yC + 150yD + 250yE

Example 2: Linear Program Formulation (2)

⚫ Constraints
Earliest finish time for activity i
Finish time >= Earliest start time + Activity time
xA > 0 + (7 - yA)
xC > 0 + (6 - yC)
xB > xA + (3 - yB)
xD > xC+ (3 - yD)
xE > xB + (2 - yE)
xE > xD + (2 - yE)
xE < 10
Amount of time activity i can be crashed
yA < 3; yB < 1; yC < 2; yD < 2; yE < 1;
Non-negativity for all activity i xi, yi > 0 for all i
Example 2: Linear Program Formulation (3)

Let: xi = earliest finish time for activity i

yi = the amount of time activity i is crashed

Min 100yA + 150yB + 200yC + 150yD + 250yE

s.t. yA < 3 xA > 0 + (7 - yA)

yB < 1 xB > xA + (3 - yB)
yC < 2 xC > 0 + (6 - yC)
yD < 2 xD > xC+ (3 - yD)
yE < 1 xE > xB + (2 - yE) xE > xD + (2 - yE)
xE < 10

xi, yi > 0 for all i

Lingo
 Lingo Results (1)

Objective value:
350.0000

Activity Time in Days

A 6 (Crash 1 day)
B 3
C 6
D 3
E 6 (Crash 1 day)
Lingo Results (2)
 Project Expediting in Practice
❑ Three different ways:
1. The PM may know ahead of time that this is a time-
critical project and will need to take steps to finish
the project as early as possible.
2. PM may get the word during the execution of the
project that the due date has had to be moved up.
3. Something happens during the project to delay some
activities so that the due date is going to be missed.

58
Construction Planning
and Scheduling
Resource Planning and Analysis

Dr. Mark Hsu

 Contents
❑ Resource Definition
❑ Resource Assignment
❑ Resource Allocation Review
❑ Resource Leveling

60
 Contents
❑ Resource Definition
❑ Resource Assignment
❑ Resource Allocation Review
❑ Resource Leveling

61
 Resource definition
❑ MS Project deals with four types of
resources: work, material, cost, and
financial resources.
❑ Work resource includes people and
equipment.
▪ People includes individuals or a group of people.

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Resource definition

63
Resource definition

64
Resource definition

65
Resource definition

66
Resource definition
❑ If you want to
change
assignment
unit from %
to Decimal
numbers, go
to options.

67
Resource definition

68
 Contents

❑ Resource Definition
❑ Resource Assignment
❑ Resource Allocation Review
❑ Resource Leveling

69
Assigning Resources to tasks

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 Resource assignment
❑ An assignment is the matching of a
resource to a task to do work.

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 Resource assignment
❑ The default of MS project is effort
driven.
❑ The default usage rate for resource
is 100%, or one unit of resource per
task.
❑ MS Project’s scheduling formula:
▪ Duration X Units=Work

72
 Resource assignment
❑ Very often, we want to change the default
effort-driven schedule.

73
Resource assignment

74
Resource assignment

75
 Resource Assignment
❑ An assignment is the matching of a
resource to a task to do work.

76
 Resource assignment
❑ For each activity, it is very important to
assign all of your resources at once.
❑ Also, allow MS Project to change the task’s
work to match your resource assignment.

77
Resource assignment

78
Resource assignment

79
Assigning resources

80
Assigning resources

81
 Contents

❑ Resource Definition
❑ Resource Assignment
❑ Resource Allocation Review
❑ Resource Leveling

82
Resource allocation review

❑ Over Allocation
❑ Optimization

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Resource allocation review

84
Resource allocation review

❑ Over Allocation
❑ Optimization

85
Resource allocation review

❑ Over Allocation
❑ Optimization

86
Resource allocation review

❑ Over Allocation
❑ Optimization

87
Resource allocation review

❑ Over Allocation
❑ Optimization

88
Resource allocation review

❑ Over Allocation
❑ Optimization

89
Resource allocation review

❑ Over Allocation
❑ Optimization

90
 Contents

❑ Resource Definition
❑ Resource Assignment
❑ Resource Allocation Review
❑ Resource Leveling

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 Resource leveling

❑ Ms Project can level overallocated

resource by splitting or delaying a
task/tasks that utilizes that resource.

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Leveling overallocated recourse

❑ Over Allocation
❑ Optimization

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Leveling overallocated resource

❑ Over Allocation
❑ Optimization

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Leveling overallocated recourse

❑ Over Allocation
❑ Optimization

95
Leveling overallocated recourse

❑ Over Allocation
❑ Optimization

96