Optimizing Resource

Schedule
(Resource Leveling)
Introduction
✣ Resource planning and scheduling are critical to the successful
completion of any project. Labor, materials, and equipment must
be considered when establishing planned activity durations and
developing network logic.
✣ Resource planning and scheduling are broken into the following
five categories, which correspond to successively more complex
resource planning techniques:
• Resource loading Some or all of these resource
planning and scheduling techniques
• Resource aggregation are supported by most project
• Resource availability analysis management software used in the
construction industry
• Resource-constrained scheduling
• Resource leveling
• Resource optimization
Importance of Resource Planning and
Scheduling
✣ Project work cannot be accomplished on schedule without the
following three resources being available in sufficient quantities
at the time they are needed:
• Labor
• Equipment
• Materials
The process of determining what resources are needed and the
quantity and timing of resource application to accomplish the work is
referred to as resource planning and scheduling.
When developing a network schedule for a construction
project, resource availability and allocation among
activities are not always taken into account. A network
schedule that does not include resource constraints
assumes that an unlimited quantity of resources is
available to the project. The only restraints between
activities are physical, safety, or preferential. Therefore,
schedules developed without resource constraints may not
be feasible or realistic when actual resource availability is
considered.
Ignoring resource constraints in the planning and
scheduling of a construction project can render the
schedule useless as a management tool. Decisions by the
project team based on the information contained in an
unrestrained construction schedule can cause problems
both in time and money. Certain resources were
considered when the contractor prepared the bid for the
project. The bid resources should become the budget for
the project. Ignoring bid resources when planning and
scheduling a project can lead to serious cost overruns.
“ unfortunately, much of the float time shown in
conventionally prepared schedules does not
truly exist. Much of it will be needed to
reschedule activities when it is finally
recognized that insufficient resources are
available to start them [activities] at their
calculated early start dates.” Professor John
Fondahl
Resource Loading

✣ Resource loading allows the planner to assign resources

such as labor, materials, and equipment to each activity in
the project schedule.
Example
✣ Consider the following project schedule
Activity Duration Predecessor Labor
(working days) /day
A 4 - 6

B 8 A 4

C 3 A 2

D 2 A 3

E 7 B, C, D 2

F 5 C, D 4

G 1 E, F 6
 Activity resource loading in a
B network schedule
4
8
E
2
7
A C G
6 2 6
4 3 1

D F
ES EF
3 4 TF

2 5 Activity ID
Resource Units
Duration
FF
LS LF
Resource Aggregation
✣ Resource aggregation totals each type of resource used in the
schedule for each time unit between scheduled project start and
finish. The total for each resource included in the schedule will
allow the project team to determine when and what amount of
resources need to be available at any project time.
✣ The schedule dates used for resource aggregation are important.
Resource requirements can be totaled using either of the
following networks schedule dates:
• Early-start schedule.
• Late-start schedule
• Target schedule
 4 12 Network schedule
B 0 calculations
4
0 8 12 19
4 12 E 0
2
0 4 4 7 0 7 19 20
A 0 C 5 12 19 G 0
6 2 6
0 4 0 3 0 1
0 4 9 12 19 20

4 6 7 12
D 6 F 7
ES EF
3 4 TF

1 2 7 5 Activity ID
10 12 14 19 Resource Units
Duration
FF
LS LF
Early-Start Schedule
Workday
Activity
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Description
Activity A 6 6 6 6

Activity B 4 4 4 4 4 4 4 4
Early Start
Activity E 2 2 2 2 2 2 2
Resource Usage
Activity G 6

Activity C 2 2 2

Activity D 3 3

Activity F 4 4 4 4 4

6 6 6 6 9 9 6 8 8 8 8 8 2 2 2 2 2 2 2 6

9
Daily Resource Usage

8
7
6
5 Early Start
4
3 Resource Usage
2
1
Histogram
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Workday
Early-Start Schedule
✣ Early start resource usage histogram shows that the
requirements fluctuate throughout the project.
✣ Further, a much larger quantity of resources is required at the
beginning of the project than at the end.
✣ As a result of this usage profile, the implementation of the early
start schedule may result in problems for the project team.
✣ If sufficient resources are not available, the early start schedule
will not be achievable. On the other hand, if resources are
available, there may be productivity loss due to crowding,
interference, and diluted supervision.
✣ From a resource standpoint, the early start schedule may not be
the best schedule to implement.
Early-Start Schedule
120

100
Cumulative Resource Usage

Early Start
80

60

40

20

0
0 5 10 15 20
Workday

Early Start Cumulative Resource Usage

 Early-Start Schedule
✣ The daily cumulative total resource requirement for the project indicates the
quantity of the resource that is planned to be expended at any time during
the project.
✣ The planned total resource usage for the project should equal the quantity
of this resource included in the bid estimate. If they are not equal, then the
schedule and bid estimate resource requirements should be reviewed to
reconcile the difference.
✣ The cumulative resource usage curve shows that the slope of the curve is
greater at the beginning of the project, indicating a higher rate of resource
usage, than at the end of the project, where the slope of the curve flattens
out, indicating a reduced level of activity. This is indicative of an early-start
schedule, and the project team would need to determine if the high rate of
resource usage at the beginning of the project could be met. Depending on
the resource being analyzed, such things as local labor conditions,
equipment availability, supplier production, or shipping capacity would need
to be taken into account.
Late-Start Schedule
Workday
Activity
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Description
Activity A 6 6 6 6

Activity B 4 4 4 4 4 4 4 4
Late Start
Activity E 2 2 2 2 2 2 2
Resource Usage
Activity G 6

Activity C 2 2 2

Activity D 3 3

Activity F 4 4 4 4 4

6 6 6 6 4 4 4 4 4 6 9 9 2 2 6 6 6 6 6 6

9
Daily Resource Usage

8
7
6
5 Late Start
4
3 Resource Usage
2
1
Histogram
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20

Workday
Late-Start Schedule
✣ Late start resource usage histogram shows that the requirements
fluctuate throughout the project.
✣ Further, a much larger quantity of resources is required at the
end of the project than at the beginning.
✣ As a result of this usage profile, the implementation of the late
start schedule may be risky for the project team.
✣ If sufficient resources are not available, the late start schedule
will not be achievable, which may result in a delay in project
completion.
Late-Start Schedule
120

100

Late Schedule
Cumulative Resource Usage

80

60

40

20

0
0 2 4 6 8 10 12 14 16 18 20
Workday

Late Start Cumulative Resource Usage

 Late-Start Schedule
✣ The daily cumulative total resource requirement for the late-start
schedule shows that the slope of the curve is greater at the end of
the project, indicating a higher rate of resource than at the beginning
of the project, where the curve is flat, indicating a lower level of
construction activity.
✣ If the late-start schedule is to be implemented, the project team
would need to determine if there are sufficient resources available to
meet the rate of resource usage at the end of the project to
complete the project on time.
Target Schedule
✣ An activity can be started and carried out any time between the
activity’s early-start and late-finish times. For non-critical
activities with total float, this means that the project team has
leeway as to when an activity can be performed without affecting
the planned project completion date.
✣ The total float associated with non-critical activities provides the
project team with the ability to develop a target schedule that lies
somewhere between the early- and late-start schedules. This
target schedule can level resource usage, resulting in higher
resource productivity, lower costs, and the avoidance of many of
the risks inherent in the early- and late-start schedules.
Target Schedule
✣ Any target schedule developed by the project team that shifts
non-critical activities based on their total float will have a
cumulative resource usage curve that falls somewhere within the
envelope.
✣ The target schedule developed by the project team will usually
be more realistic and less risky than either the early- or late-start
schedules.
Resource Availability Analysis
✣ Resource availability analysis compares the amount of resources
required against the maximum amount of resources available for use.
✣ This analysis alerts the project team whenever the total amount of
resources assigned to activities for a particular day or period of time
exceeds the maximum amount of resources available.
✣ When the assigned resources exceed those available, the project
team must take one of the following actions:
• Shift non-critical activities within the schedule to develop a target
schedule where the demand for resources does not exceed available
resources.
• Obtain more resources for the times when the demand for resources
exceeds available resources.
• Extend the planned schedule completion date to lower the demand
for resources below the level of available resources.
Resource Leveling
✣ Resource leveling attempts to keep the requirements for a
construction resource as constant as possible over the duration
of the project, making construction more economical.
✣ Resource leveling: reschedule the non-critical activities to
smooth resource requirements.
✣ Leveling resources takes advantage of the learning curve for
labor and provides work force continuity, avoids costly multiple
mobilization and demobilization of construction equipment, and
helps stabilize material inventories while minimizing procurement
and handling charges.
Resource Leveling
Advantages/Applications of Resource Leveling
1. Maintain the lowest uniform number of employees to perform
the work.
2. Establishing plans for material delivery.
3. Reducing the daily demand for dollars.
✣ Resource leveling can be done for multiple resources and across
multiple projects.
✣ Resource leveling may result in delaying the project when
resource availability is limited.
Resource Leveling Algorithms
✣ The objective function of resource leveling is to minimize ∑ 
✣ Different algorithms exist for Resource Leveling:
• Some start at the early schedule and proceed forward.
• Other start with the late schedule and proceed backward.
• A combination of both techniques may be useful (forward
leveling followed by backward leveling).
✣ Regardless of the different algorithms, they all employ one or
combination of:
1. Delaying none critical activities,
2. Stretching none critical activities,
3. Crunching activities, and
4. Splitting none critical activities.
Delaying Non-Critical Activities
Activity
1 2 3 4 5 6 7 8 9 10
Description
Activity A 4 4 4 4 4 B had TF of 5 days and
FF of 2 days
Activity B 4 4
C depends on both A and B
Activity C 4 4 4 Resource limit 4/day

4 8 8 4 4 4 4

Activity
1 2 3 4 5 6 7 8 9 10
Description B is delayed by 4 days
Activity A 4 4 4 4 4 beyond the FF by 2 days
Activity B 4 4 as a result
C is delayed by 2 days
Activity C 4 4 4

4 4 4 4 4 4 4 4 4 4
Stretching Non-Critical Activities
Activity
1 2 3 4 5 6 7 8
Description
Activity A 4 4 4 4 4
B had TF of 2 days and
FF of 2 days
Activity B 4 4 C depends on both A and B
Resource limit 6/day
Activity C 4 4 4

4 8 8 4 4 4 4

Activity
1 2 3 4 5 6 7 8 B is stretched from 2 to 4
Description
Activity A 4 4 4 4 4 days
The TF of B consumed totally
Activity B 2 2 2 2
i.e. B becomes Critical
Activity C 4 4 4

4 6 6 6 6 4 4 4
Crunching Activities
Activity
1 2 3 4 5 6 7 8 B had TF of 2 days and
Description
Activity A 2 2 2 2 FF of 2 days
A and C are Critical
Activity B 2 2 2 2 2 2 Resource limit 5/day

Activity C 5 5 5 5

4 4 4 4 7 7 5 5

Activity
1 2 3 4 5 6 7 8
Description
Activity A 2 2 2 2 B is crunched from 6 to 4
days
Activity B 3 3 3 3 The TF and FF of B increase

Activity C 5 5 5 5 from 2 to 4 days

5 5 5 5 5 5 5 5
Splitting Non-Critical Activities
Activity
1 2 3 4 5 6 7 8 9 10 11 12
Description
Activity A 2 2 2 2 2 B had TF of 5 days and
FF of 5 days
Activity B 2 2 2 2 2 2 2 A and C are Critical
Resource limit 4/day
Activity C 4 4 4 4

4 4 4 4 4 6 6 4 4 0 0 0

Activity
1 2 3 4 5 6 7 8 9 10 11 12
Description
Activity A 2 2 2 2 2 Split B until C is finished
The last 2 days of B
Activity B 2 2 2 2 2 2 2
can be crunched to 1
Activity C 4 4 4 4 day

4 4 4 4 4 4 4 4 4 2 2 0
Example Revisited
✣ Starting at the early schedule profile
Workday
Activity
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Description
Activity A 6 6 6 6
Activity B 4 4 4 4 4 4 4 4
Activity E 2 2 2 2 2 2 2
Activity G 6
Activity C 2 2 2

Activity D 3 3

Activity F 4 4 4 4 4

6 6 6 6 9 9 6 8 8 8 8 8 2 2 2 2 2 2 2 6

1. Resource overload on days 5 and 6 caused by concurrent work on

activities B, C, and D
Options: Decide to delay either of the non-critical activities D or C
Decision: Delay D because it has more TF and later LS
* D is delayed beyond the FF by 2 days. In consequence, F is delayed by 2
days.
 Workday
Activity
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Description
Activity A 6 6 6 6
Activity B 4 4 4 4 4 4 4 4
Activity E 2 2 2 2 2 2 2
Activity G 6
Activity C 2 2 2

Activity D 3 3

Activity F 4 4 4 4 4

6 6 6 6 6 6 6 7 7 8 8 8 6 6 2 2 2 2 2 6

2. Resource overload on days 8 and 9 caused by concurrent work on

activities B and D
Options: D cannot be delayed beyond the completion of B
Decision: Stretch D from 2 to 3 days. Resources of B = 6 will be
distributed over 3 days instead of 2 days
* D is delayed beyond the FF by 1 day. In consequence, F is delayed
by 1 day.
 Workday
Activity
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
Description
Activity A 6 6 6 6
Activity B 4 4 4 4 4 4 4 4
Activity E 2 2 2 2 2 2 2
Activity G 6
Activity C 2 2 2

Activity D 2 2 2

Activity F 4 4 4 4 4

6 6 6 6 6 6 6 6 6 6 8 8 6 6 6 2 2 2 2 6

3. Resource overload on days 11 and 12 caused by concurrent work

on activities B and F
Options: Delay F by 2 days, or stretch work on F by assigning 2
resources to F on days 11 and 12
Decision: Stretch F by 1 day. Lost work on days 11 and 12 will be
compensated by full swing work load on day 16.
 The Final Schedule
Workday
Activity
Description
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 – Final –
Activity A 6
Activity B
6 6 6
4 4 4 4 4 4 4 4
– Baseline –
Activity E 2 2 2 2 2 2 2 – Target –
Activity G 6
Activity C 2 2 2 Schedule is the
Activity D 2 2 2
one to be
APPROVED and
Activity F 2 2 4 4 4 4
IMPLEMENTED
6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 6 2 2 2 6

7
6
5
4
3
2
1
1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20
 4 12 Modified Network
B 0 (Target)
4
0 8 12 19
4 12 E 0
2
0 4 4 7 0 7 19 20
A 0 C 5 12 19 G 0
6 2 6
0 4 3 3 0 1
0 4 9 12 19 20

7 10 10 16
D 2 F 3
ES EF
3 4 TF

0 3 3 6 Activity ID
9 12 13 19 Resource Units
Duration
FF
LS LF
Example
For the project schedule shown below, make resource leveling and
find target schedule.
✣ Resource limit = 2 /day,
✣ Each activity requires one resource unit /day
✣ Liquidated damages $50/day
✣ Additional labors costs $80/labor/day
 1 3 3 7 7 8
B E H
2 4 1
4 6 6 10 10 11

0 1 1 3 3 8 11 12
A C F J
1 2 5 1
0 1 4 6 6 11 11 12

1 4 4 8 8 11
D G I
ES EF
3 4 3
Activity ID
1 4 4 8 8 11
Duration

LS LF
Example

For the following project Schedule, make resource leveling

and find target Schedule.
 B G
(RU=1) (RU=2)
4 3

A C E H I
(RU=6) (RU=8) (RU=7) (RU=4) (RU=2)
7 4 8 5 6

NTP D F Project
(RU=0) (RU=3) (RU=3) complete
0 2 8 (RU=0)
0

J
(RU=5)
15

K M N
(RU=6) (RU=2) (RU=5)
5 4 3

Activity ID
Resource Units
L Duration
(RU=3)
10
 Workday
Activity ID 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30

Activity A 6 6 6 6 6 6 6

Activity B 1 1 1 1

Activity C 8 8 8 8

Activity D 3 3

Activity E 7 7 7 7 7 7 7 7

Activity F 3 3 3 3 3 3 3 3

Activity G 2 2 2

Activity H 4 4 4 4 4

Activity I 2 2 2 2 2 2

Activity J 5 5 5 5 5 5 5 5 5 5 5 5 5 5 5

Activity k 6 6 6 6 6

Activity L 3 3 3 3 3 3 3 3 3 3

Activity M 2 2 2 2

Activity N 5 5 5

Daily Total 12 12 12 12 12 12 12 12 12 12 12 12 12 12 12 12 12 12 12 12 12 12 12 12 12 12 12 12 12 12
Example
In the given project only 9 resources are available per day.
Reschedule the project ( do resource leveling) and find target
schedule.
Activity Depends upon Duration Resources
required
A - 5 6
B A 4 2
C A 5 4
D A 6 3
E B 6 3
F C 6 2
G D 4 3
H E, F 7 3
I G 5 4
J G 3 2
K H, I, J 5 5
Example
For the project schedule shown below, make resource leveling and
find target schedule.
✣ Resource limit = 3 workers/day,

Activity Depends on Duration Workers/day

A - 2 2
B - 3 2
C A 3 2
D A, B 4 1
E B 2 2
F C, D, E 1 2
Example
For the project schedule shown below, make resource leveling and
find target schedule.
✣ Resource limit = 8 workers/day,
✣ Liquidated damages $50/day
✣ Additional labors costs $70/labor/day
Activity Depends on Duration Workers/day
A B 3 3
B - 5 2
D B 5 5
F B 3 2
E D, F, A 4 2