Resource utilization charts based on each activity’s earliest start time are said to be based

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Resource Utilization

6

(Premium)

Teaching Strategies

The two vignettes in this chapter reinforce the need think creatively about the constraints of a project. Projects have the potential to make innovative changes and must include concern for the community, culture, and socioeconomic characteristics of the stakeholders.
In the first vignette, project teams need to consider the impact of rules in a region and components of the resource when scheduling. The rules for Singapore and the United States related to ready mix concrete are similar. Scheduling and communication are essential because concrete is a perishable commodity once mixed.
The second vignette portrays various approaches to the same problem – collisions of automobiles with animals on the highway. The levels of challenges have resulted in mixed levels of success Students could review the success and failures of these projects and find other projects that are similar.
Good project management utilizes techniques that work in complex situations. The solution to a project problem can be as simple as a spreadsheet. Solutions are not always complex.
Resource leveling is an important concept discussed in this chapter.
Ask the students why it is important to consider resources when planning and managing a project.
Will the amount of available resources affect the completion date? If you had 2 experienced people building a house, would it take as long as if you had 10 experienced people building a house? What would happen if you started with 10 and half of them quit?
Optional Supplemental Activities

Have students read the real-world vignettes and discuss them
Have students read the chapter and answer all of the Reinforce Your Learning questions and the questions at the end of the chapter.
Have students manually solve the resource leveling and resource-limited scheduling presented in this chapter then solve the problems in Microsoft Project.
Examine the Association for Project Management website with the class and explore the resources.
Have students determine what resources would be best for junior-level project managers versus for more senior-level management.
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Chapter Concepts

Taking resource constraints into account when developing a network diagram

Determining the resource requirements plan for a project

Leveling the use of resources within the required time frame of the project

Determining the shortest project schedule with the limited resources available

Chapter Concepts

Considering how to best utilize limited resources adds another dimension to planning and scheduling.
It is necessary to estimate the types and quantities of resources required to perform each activity.
These resources can include people, materials, equipment, tools, or facilities.
A resource requirements plan illustrates the expected utilization of resources by time period during the time span of the project.
In many projects, several activities may require the same resources at the same time.
There may not be sufficient resources available to satisfy all demands.
These activities compete for the use of the same resources.
If sufficient resources are not available when required, some activities may have to be delayed until a later time when more resources are available.
Resource availability can constrain the project schedule.
They can also be a constraint on completing the project within budget if it is determined that additional resources are needed to complete the project by its required completion time.
This chapter covers several approaches to incorporating resource considerations into the project plan and schedule. Based on the information in this chapter, students will become familiar with:

Taking resource constraints into account when developing a network diagram
Determining the resource requirements plan for a project
Leveling the use of resources within the required time frame of the project
Determining the shortest project schedule with the limited resources available
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Learning Outcomes

Create a network diagram that takes resource constraints into account

Prepare a resource requirements plan

Explain resource leveling

Discuss resource-limited scheduling

Learning Outcomes

After studying this chapter, the student should be able to:

Create a network diagram that takes resource constraints into account
Prepare a resource requirements plan
Explain resource leveling
Discuss resource-limited scheduling
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Project Resource Management
Project Schedule Management

Project Management Knowledge Areas from PMBOK® Guide

Project Management Knowledge Areas from PMBOK® Guide

Concepts in this chapter support the following Project Management Knowledge Areas of the PMI Guide to the Project Management Body of Knowledge (PMBOK® Guide):

Project Resource Management

Project Schedule Management

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Batching Ready Mix Concrete

Components

Common resource for construction projects
Perishable commodity
Communication of specifications to the concrete supplier
Schedule Management

Admixtures retard or accelerate the curing
Demand pull system
Rules related to the delivery vehicle
Component storage
Just-in-time delivery
Satellite tracking
Vignette A: Batching Ready Mix Concrete

Ready mix concrete is a very common resource for construction projects. The project’s resource requirements will have specifications for this perishable commodity to have the cured concrete perform as needed. The project site must communicate those specifications to the concrete supplier. These include the type of mix to be delivered, the permitted type of cement for the function the concrete will serve, the permitted type and maximum size of aggregate to be within the mix, and the proportions of constituents of the concrete mix.

Different admixtures retard or accelerate the curing has different levels of workability upon delivery
Concrete deliveries are based on a demand pull system
Scheduling of delivery is dependent upon rules related to the delivery vehicle
Storage of components needs to be considered in scheduling
Just-in-time delivery is a process of receiving supplies on an as needed basis
In order to supply the best service to their customers, the firms in Singapore used satellite tracking, Smart Route, to monitor the location of their revolving drum trucks, track the amount of waiting time at job sites, and to increase the utilization of the trucks. The just-in-time delivery of supplies helped the ready mix concrete firms in Singapore to improve contractor satisfaction by being able to deliver the resources needed just in time.

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Resources to Improve Safe Animal Crossings

Locations

Colorado, USA
Banff National Park, Alberta, Canada
Kootenay National Park, British Columbia, Canada
Sweden
Mixed Results

Small burrowing creatures caused problems
Underpasses and overpasses have reduced collisions
Fences and underpasses prevented crossings
Fleeing animals make gathering data difficult for automobile detection
Vignette B: Resources to Improve Safe Animal Crossings

Collisions between animals and motor vehicles happen frequently. In Australia, vehicles collide with an average of 41 kangaroos daily. The United States reported that 5 percent of all vehicle wrecks (1 out of every 20) involved an animal. Safety engineers and officials have been working to create solutions to improve the safety for the animals and the operators of the vehicles. Much exploration for the resources have led to projects that have been underway around the globe.

Colorado, USA
Project that detected changes in the Earth’s magnetic field as larger animals disrupted the field. Meant to serve as a warning system to motorists.
Small burrowing creatures such as moles, pocket gophers, and prairie dogs have caused great problems.
Banff National Park, Alberta, Canada
82 kilometers (51 miles) of fencing, 38 underpasses, and 6 overpasses have been installed to help improve animal crossing safety.
The number of motor vehicle-animal collisions have been reduced by 80 percent since the adoption of the crossings.
Kootenay National Park, British Columbia, Canada
15 kilometers (9.3 miles) of fence and 9 underpasses helped to prevent the large animals from crossing Highway 93 South.
Over 1,600 successful crossings by medium to large sized animals.
Sweden
Volvo has been working on developing a system to detect animals that were near or crossing the roadway and on engineering a collision avoidance systems in their cars.
Because animals have a tendency to run away when a car approaches, gathering data had been a challenge for the team.
The investments in animal crossing safety, and motor vehicle safety, have used different solutions based upon the resources that were available. There are no definitive choices on if the animals like the overpasses better than the underpasses; therefore, each will be developed in future projects where the landforms are best suited to support either an overpass or an underpass. In an effort to prevent animal-motor vehicle accidents, the animal detection system will be deployed after much testing.

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Technical-Constrained Planning

Serial relationship – performed in that sequence

Technical-Constrained Planning

Network diagrams illustrate the technical constraints between and among activities.
Activities are drawn in a serial relationship because, from a technical standpoint, they must be performed in that sequence.
This figure depicts three house-building activities that must be completed serially.
In addition to showing the technical constraints among activities, the resource-constrained planning can also take into account resource constraints. The sequence of activities in a figure such as the one on this slide reflects the availability of a limited quantity of resources.
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Resource-Constrained Planning

Available resources allow for concurrent tasks

Limited resource availability constrains project

Resource-Constrained Planning

Here you can see two figures that help to illustrate how resource availability allows for tasks to be conducted concurrently.
The figure on the top depicts three activities that could be performed concurrently because there is no technical reason why the start of any one of these activities should depend on the completion of any other one.
The figure on the bottom shows what happens when human resources are limited, such as when there is only one person available to do all the painting.
There is no way that one person can do multiple jobs at the same time.
A network diagram helps to illustrate potential resource allocation problems.
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Resource Requirements Plan

Illustrates the expected resource use by time period

Indicate the amounts and types of resources needed to perform each activity

Resource Requirements Plan

A resource requirements plan illustrates the expected utilization of resources by time period across the time span of the project.
It is necessary to indicate the amounts and types of resources needed to perform each activity.
This figure depicts the estimated resource requirements for the consumer market study project.
Although the project takes 128 days, the amount of work days is 90 days– this is too few days to complete the project as it is currently laid out.
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Example Painting Project: Resource Requirements

Example Painting Project: Resource Requirements

The resource profile for painters is illustrated in the network diagram on the left in this slide, Figure 6.4.
It clearly shows how painters are being utilized unevenly.
The top figure on the right, figure 6.5, depicts the resource requirements for the painters based on the network diagram in Figure 6.4.
Figure 6.6, which is on the lower right, depicts the resource utilization of the painters based on the network diagram in Figure 6.4.
You can see that the pattern is uneven.
Sometimes it is preferable to have a more uniform, or level, application of resources.
This helps to avoid having to pay workers overtime or to pay for time when work is not being performed.
Resource utilization charts based on each activity’s earliest start time are said to be based on an as-soon-as-possible (ASAP) schedule.
Resource utilization charts based on each activity’s latest start time are said to be based on an as-late-as-possible (ALAP) schedule.
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Resource Leveling

Minimize resource requirement fluctuations

Resources applied as uniformly as possible

Attempt to keep project schedule within required time

Delay start of noncritical activities

Use positive slack

Project management information systems assist

If delay beyond slack and on critical path, project will be delayed beyond required completion time

Resource Leveling

Resource leveling, or smoothing, is a method for developing a schedule that attempts to minimize the fluctuations in requirements for resources.
This method seeks to apply resources as uniformly as possible, without extending the project schedule beyond the required completion time.
The start of noncritical activities are delayed beyond their earliest start times (but not beyond their latest start times) in order to maintain a uniform level of required resources.
Activities can be delayed only to the point where all their positive slack is used up. Any further delays would cause the project to extend beyond the project completion time.
Generating a resource-leveled schedule and resource requirements graphs and tables can be highly complex.
Project management information systems can assist with the challenge.
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How to level the painting project?

Student Discussion

Take a look at this figure. How can the resources in the painting project be leveled?

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Possible responses to Student Discussion

How to level the painting project?

In the painters example, resource utilization can be leveled.
“Bathroom” could be delayed up to 2 days.
“Basement Rooms” could be delayed up to 8 days.
“Bedrooms” could be delayed up to 6 days.
All of this can be done without extending the project completion time.
Two alternative actions could be taken to assist in resource leveling:
Alternative 1. Delay the activity with the most positive slack—“Basement Rooms” (+8 days slack)—by 6 days so that it will start after “Bedrooms” is finished.
Figures 6.7 and 6.8, the middle and bottom figures on the right side of the slide, depict the resource-leveled requirements plan for the painting project and the resource leveled utilization for the painters with alternative 1.
Alternative 2. Delay “Bedrooms” so that it will start on day 4, after “Basement Rooms” is completed.
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Resource-Limited Scheduling

Develop shortest schedule

Not exceed fixed available resources

Extend the project completion time if necessary

Give activities with the least slack first priority

Delay lower priority activities

Resource-Limited Scheduling

Resource-limited scheduling is a method for developing the shortest schedule when the number or amount of available resources is fixed and cannot be increased.
This method will extend the project completion time if necessary in order to keep within the resource limits.
When several activities need the same limited resource at the same time, the activities with the least slack have first priority.
The lower priority activities get delayed, but the delaying of activities may delay the project.
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Example Painting Project: Limited Resources

Limit of two painters

Example Painting Project: Limited Resources

The resource availability figure on the top illustrates what would happen if only a limited number of painters—two—were available to finish the painting project.
The larger figure, the resource requirements plan, on the bottom shows that the three activities require a total of four painters to be performed the quickest.
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Example Painting Project: First Resource Allocation

“First Floor Rooms” has a slack of 0

Other tasks are delayed

Example Painting Project: First Resource Allocation

Let’s take a look at how the completion date for each activity changes when the job finishes with four painters instead of two.
Because “First Floor Rooms” has a slack of 0, the two painters will be allocated to the first floor rooms and will continue to be assigned to that activity until it is finished.
This first resource allocation is shown in the figure on this slide, with the project completion extending from day 12 to day 14.
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Example Painting Project: Second Resource Allocation

Begin “Stairs & Hall” and “Bedrooms”

Need to address limit for days 13 and 14

Example Painting Project: Second Resource Allocation

The second resource allocation is shown in this figure.
If the job only has two painters from start to finish, you can see that the project completion date goes from day 14 to day 16.
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Example Painting Project: Third Resource Allocation

Delay “Bathroom” to days 15 and 16

Project delayed by 4 days

Example Painting Project: Third Resource Allocation

The third resource allocation is shown in this figure, with the project completion date remaining at day 16.
This completion date is satisfactory, even with the resource constraint of only two painters when four would be ideal.
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Resource Requirements For Information Systems Development

Five basic required resources

People, hardware, software, data, and network resources

The more accurate the resource assessment, the more likely the project can be completed on time

Most common problem – Overallocation

Resources assigned to multiple tasks at same time

Conflict results in lengthening the time

Resource Requirements For Information Systems Development

There are five basic required resources for IS development.
People, hardware, software, data, and network resources
The more accurate and detailed the resource assessment is, the more likely the project can be completed on time.
Overallocation of resources is the most common problem in project management.
It happens when resources are assigned to multiple tasks at same time.
The conflict results in lengthening the time needed to complete the project.
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IS Example:
Responsibility Assignment Matrix

IS Example: Responsibility Assignment Matrix

Recall from Chapters 4 and 5 that Beth Smith of ABC Office Designs was assigned as project manager for the development of a Web-based reporting systems project.
Beth has identified the major tasks to be completed and the project schedule.
Management has agreed to the project team’s plan for 60 days to complete the development.
Beth has 14 staff members on the project team. Each staff member has been assigned to have primary responsibility for at least one activity, as shown in the responsibility assignment matrix for the project (this is Figure 4.11 in your text).
Beth Smith begins her resource requirements plan by seeking input from the person assigned primary responsibility for each of the major tasks that need to be accomplished.
Overallocation of resources can be a major problem, and one that Beth needed to look out for.
Beth noticed that if all the resources are allocated for primary and support roles, that resources will be overallocated.
Beth worked out who bore primary responsibility for different tasks and determined the level of effort needed to remove the overallocations.
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IS Example: Resource Requirements

IS Example: Resource Requirements

Once her overallocation problem was fixed, Beth arrived at the following solutions.
Joe and Gerri would be assigned as overtime if Hannah and Maggie needed additional help for Software Development.
Beth and Jim agree that Hannah and Gerri could be removed from Training during the two days of work necessary to complete System Conversion if Beth could not complete the work alone. The plan is to have more training events when Hannah and Gerri are available if Beth needs them.
The report generated by Beth shows the total amount of work is 2,040 hours and is planned to be completed in 60 days.
The figure on this slide depicts the resources assigned to the project, including material and cost resources.
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Project Management Information Systems

Handle resource considerations within a project

Create and maintain a list of resources

Store availability, rate, and costs for resources

Assign resources and calculate cost

Assign calendar to record availability

Resolve overallocations for best solution

Project Management Information Systems

Project management information systems provide excellent features for handling resource considerations within a project.
Most systems allow you to create and maintain a list of resources that can be accessed for all the tasks associated with a project.
The list typically allows you to store the resource name, maximum quantity of units available, standard and overtime rates, and costs.
Because the expenses for resources can be accrued at different times throughout a project, most systems allow you to create charges for a resource at the beginning of its use, at fixed intervals, or at the end of the project.
Each resource can also be assigned a calendar to display its availability over a specified period of time.
Resource overallocations can be resolved either manually, or with automatic processes wherein the information system determines the best solution and whether the project can be delayed to solve the overallocation.
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Critical Success Factors

Resources can constrain the project schedule because the quantities of various types of resources available to perform the project activities may be limited.

It is necessary to estimate the types and quantities of resources required to perform each activity.

If sufficient resources are not available when required, some activities may have to be delayed until a later time when resources become available to perform the activities.

Resource leveling, or smoothing, is a method for developing a schedule that attempts to minimize the fluctuations in requirements for resources. It levels the resources so that they are applied as uniformly as possible without extending the project schedule beyond its required completion time.

Resource-limited scheduling is a method for developing the shortest schedule when the quantity of resources is fixed. It will extend the project completion time if necessary.

Critical Success Factors

Resources can constrain the project schedule because the quantities of various types of resources available to perform the project activities may be limited.
It is necessary to estimate the types and quantities of resources required to perform each activity.
If sufficient resources are not available when required, some activities may have to be delayed until a later time when resources become available to perform the activities.
Resource leveling, or smoothing, is a method for developing a schedule that attempts to minimize the fluctuations in requirements for resources. It levels the resources so that they are applied as uniformly as possible without extending the project schedule beyond its required completion time.
Resource-limited scheduling is a method for developing the shortest schedule when the quantity of resources is fixed. It will extend the project completion time if necessary.
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Summary

The consideration of resources adds another dimension to planning and scheduling; resources can constrain a project.

Resources can include people, materials, supplies, equipment, tools, facilities, and other crucial elements to a project.

A resource requirements plan illustrates the expected utilization of resources by time period during the time span of the project.

Resource leveling, or smoothing, is a method for developing a schedule that attempts to minimize the fluctuations in requirements for resources when the project completion time is fixed.

Resource-limited scheduling is a method for developing the shortest schedule when the quantity of available resources is fixed, and may extend the project completion time in order to keep within the resource limits.

Summary

The consideration of resources adds another dimension to planning and scheduling; resources can constrain a project.
Resources can include people, materials, equipment, tools, facilities, and other crucial elements to a project.
A resource requirements plan illustrates the expected utilization of resources by time period during the time span of the project.
Resource leveling, or smoothing, is a method for developing a schedule that attempts to minimize the fluctuations in requirements for resources when the project completion time is fixed.
Resource-limited scheduling is a method for developing the shortest schedule when the quantity of available resources is fixed, and may extend the project completion time in order to keep within the resource limits.
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Chapter Questions

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Question 1

General categories of resources include: people, equipment, machines, tools, facilities and space.

Example for construction project: builder, inspector, bank personnel, building materials, landscaper, architect, blue print, permits, sub-contractors (concrete, electricity, dry wall, painting, flooring, plumbing, cabinet and shelf installation)

Give at least 10 examples of resources.

1. Give at least 10 examples of resources.

Specific examples will vary. General categories of resources include: people, equipment, machines, tools, facilities and space.
Often, students will respond with resources for a specific project rather than more general terms.
Examples for a construction project: builder, inspector, bank personnel, building materials, landscaper, architect, blue print, permits, sub-contractors (concrete, electricity, dry wall, painting, flooring, plumbing, cabinet and shelf installation).
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Question 2

Responses should include more specific descriptions than people, machines, equipment, tools, facilities, and space.

Think about a project that you are currently working on or have worked on. List all of the resources used in this project.

2. Think about a project that you are currently working on or have worked on. List all of the resources used in this project.

Specific answers will vary. Responses should include more specific descriptions than people, machines, equipment, tools, facilities, and space.

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Question 3

Resources need to be considered when developing a schedule because, if sufficient resources are not available, some activities may have to be rescheduled for a later time when resources are available.

This can push back the project completion time.

Discuss why resources need to be considered when developing a schedule.

3. Discuss why resources need to be considered when developing a schedule.

Resources need to be considered when developing a schedule because, if sufficient resources are not available, some activities may have to be rescheduled for a later time when resources are available.
This can push back the project completion time.
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Question 4

If three resources are needed for three activities and available simultaneously, the three activities can be performed simultaneously.

However, if three resources are needed but only available sequentially, the three activities must be done sequentially.

The diagram should be drawn to reflect these relationships.

Describe how resources can be considered when creating a network diagram.

4. Describe how resources can be considered when creating a network diagram.

If three resources are needed for three activities and available simultaneously, the three activities can be performed simultaneously.
However, if three resources are needed but only available sequentially, the three activities must be done sequentially.
The diagram should be drawn to reflect these relationships.
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Question 5

Technical constraints are activities that must be performed in a certain order to meet the project objective.

For example, three house-building activities—build foundation, build frame, and put on roof—must be performed in that sequence

What are technical constraints? Give some examples.

5. What are technical constraints? Give some examples.

Technical constraints are activities that must be performed in a certain order to meet the project objective.
For example, three house-building activities—build foundation, build frame, and put on roof—must be performed in that sequence.
Students are welcome to come up with other specific examples.
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Question 6

Resource constraints are resources that are limited and available in a particular timeframe.

For example, if three rooms of a house need to be painted, but only one painter is available, the project is constrained by the “personnel” resource.

What are resource constraints? Give some examples.

6. What are resource constraints? Give some examples.

Resource constraints are resources that are limited and available in a particular timeframe.
For example, if three rooms of a house need to be painted, but only one painter is available, the project is constrained by the “personnel” resource.
Encourage students to think of their own examples.
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Question 7

Resource leveling, or smoothing, is a method for developing a schedule that attempts to minimize the fluctuations in requirements for resources.

This method levels the resources so that they are applied as uniformly as possible without extending the project schedule beyond the required completion time.

It is used when variation in resource requirements exists between different activities.

Describe what is meant by resource leveling or smoothing.

Why is it used?

When is it used?

7. Describe what is meant by resource leveling or smoothing. Why is it used? When is it used?

Resource leveling, or smoothing, is a method for developing a schedule that attempts to minimize the fluctuations in requirements for resources.
This method levels the resources so that they are applied as uniformly as possible without extending the project schedule beyond the required completion time.
Resource leveling is used when variation in resource requirements exists between different activities.
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© 2018 Cengage®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.

Question 8

Resource leveling keeps the project on schedule because activities are delayed only to the point where all their positive slack is used up.

Any further delays would cause the project to extend beyond the project due date.

Does resource leveling keep a project on schedule? If so, how?

8. Does resource leveling keep a project on schedule? If so, how?

Resource leveling keeps the project on schedule because activities are delayed only to the point where all their positive slack is used up.
Any further delays would cause the project to extend beyond the project due date.
*

© 2018 Cengage®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.

Question 9

Resource-limited scheduling is a method for developing the shortest schedule when the quantity of available resources is fixed and cannot be exceeded.

This method will extend the project completion time if necessary in order to keep within the resource limits.

Describe what is meant by resource-limited scheduling.

Why is it used?

When is it used?

9. Describe what is meant by resource-limited scheduling. Why is it used? When is it used?

Resource-limited scheduling is a method for developing the shortest schedule when the quantity of available resources is fixed and cannot be exceeded.
This method will extend the project completion time if necessary in order to keep within the resource limits.
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© 2018 Cengage®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.

Question 10

Resource-limited scheduling does not necessarily keep a project on schedule.

It may extend the schedule in order to keep within the resource limits.

Does resource-limited scheduling keep a project on schedule? If so, how?

10. Does resource-limited scheduling keep a project on schedule? If so, how?

Resource-limited scheduling does not necessarily keep a project on schedule.
It may extend the schedule in order to keep within the resource limits.
*

© 2018 Cengage®. May not be scanned, copied or duplicated, or posted to a publicly accessible website, in whole or in part, except for use as permitted in a license distributed with a certain product or service or otherwise on a password-protected website or school-approved learning management system for classroom use.