CENG 6101 Project Management

Resource Allocation and Leveling

Abraham Assefa Tsehayae, PhD

Abraham Assefa Tsehayae (PhD) 1/63

 for a given project network, one common procedure is to try when only activity (R) in the present case study
a series of heuristic rules and then select the schedule with ‘‘Highest’’ priority while all others are set to ‘‘Lowes
minimum duration. This procedure, however, has little diver- this limited change to the original schedule, the proj
sity since the number of effective rules to enumerate is small tion substantially decreased to 46 days (Fig. 1), on

Resource Allocation and Leveling: Problem

and it is not expected that less effective rules will change much
when effective rules are not improving the schedule. There-
fore, without introducing new rules or changing the mechanics
solutions for that particular example obtained by Ta
Patterson (1979) using optimization. This simple ap
therefore proven to provide better results than existin
of heuristic procedures, a simple approach of forcing random tics.
• In practice, basic PERT and CPM scheduling techniques have proven
activity priorities is presented to improve the goodness of the
schedule. The concept is demonstrated on a case study of a
Since it is not possible to readily identify, from
network, which activities to assign higher priorities th
to be helpful only when the project deadline is not fixed and the
project with twenty activities and six resources. The case study
data including activities’ resource requirements and daily re-
to improve the schedule, a simple iterative procedur
used. A flow chart of such a procedure is presented
resources are not constrained by either availability or time.
source limits is presented in Table 1. This data was input to It starts by initializing the scheduling software by s
resource allocation feature to ‘‘Automatic’’ and defin
of heuristic rules, ‘‘activity priority’’ being the lead
TABLE 1. Case Study Data
Afterwards, each activity in the project is selected
Resource Requirements per given ‘‘highest’’ priority over all others, and the co
Duration Day project duration is monitored. If the project duration d
Activity (days) Predecessors R1 R2 R3 R4 R5 R6 at any step in the process, corresponding activity prio
(1) (2) (3) (4) (5) (6) (7) (8) (9) saved and the process continues to improve the sche
ther. It is also possible to automate this procedure b
A 6 — 5 2 2 2 7 4
B 3 — 3 5 2 3 9 6 a simple macro on the scheduling software. Despite
ceived benefit, however, the main shortcoming of th
C
D
4
6
A
—
2
5
4
4
4
3
2
5
3
5
1
4 Case study:
dure is its inability to identify an optimum set of a
E 7 A, B 3 5 2 3 8 0 priorities that reduces project duration the most. Thi
F
G
5
2
C
D
4
4
1
1
4
4
9
3
2
9
5
8
20 activities and
dealt with later using the GA.
H
I
2
2
A, B
G, H
5
3
5
2
4
4
0
3
9
4
1
2 6 resources
IMPROVING RESOURCE LEVELING HEURISTI
USING DOUBLE MOMENTS
J 6 F 1 5 4 6 7 3
K 1 C, E 3 3 2 4 5 1
L 2 E, G, H 3 2 2 8 3 4 In the course of optimizing resource allocation, the
M 4 I, K 2 2 2 2 4 8 repeatedly changes and along with it are the daily de
N 2 F, L 1 4 4 3 4 1 resources. It is the objective of project managers, the
O 3 L 5 5 4 6 2 3 optimize both the allocation and the leveling aspec
P 5 J, M, N 3 2 3 4 7 8 sources. As mentioned previously, the minimum mo
Q 8 O 4 5 4 2 3 4
gorithm has been used as a heuristic approach to ca
R 2 D, O 5 3 3 3 7 8
S 6 P, R 2 4 6 2 3 4 measure of the fluctuations in daily resource demand
T 2 Q 1 6 2 7 5 2 represented in Fig. 3(a), where Histogram 1 and His
Daily Resource Limits 7 10 10 16 18 13 Source:
are two Hegazy
alternative (1999) both havin
resource histograms,
area of 40 resource days (i.e., equal total resource d
168 / JOURNAL OF CONSTRUCTION ENGINEERING AND MANAGEMENT / MAY/JUNE 1999
Abraham Assefa Tsehayae (PhD) Project Management Resource Allocation and Leveling 2/63
Resource Allocation and Leveling: Problem
Case study: 20 activities and 6 resources

FIG. 1. Case Study Project with High Priority Assigned to Task (R)

OF G
n

Mx = Source:
(1 3 Resource Hegazy
Demandj) 3
1 (1999)
Resource Demandj
j =1 2
(1)

Abraham Assefa Tsehayae (PhD) where

Project n = working-day
Management number
Resource of and
Allocation the Leveling
project’s 3/63
finish date.
Or, for comparison reasons, (1) becomes

O
n

Mx = (Resource Demandj)2 (2)

 to
199
to
larg

Resource Allocation and Leveling: Problem intelligence, GAs, is used. Analogous G

genetics in reproduction, GAs have spi
to solve many science and engineering
be
evo
1997; Hegazy and Moselhi 1994). GAs cat
to be an efficient means for searching
Case study: 20 activities and 6 resources large problem domain such as the one
GAs are, in essence, optimization
rep
tim
spired by the biological systems’ cal im
intelligence, GAs, is used. Analogous
evolution. GAs to natural
employ selection and
a random-yet
genetics in reproduction, GAs have been successfully
me
cating the globally optimaladopted
solution.me T
to solve many science and representation
engineering problems scheme (Feng to encode et al.feasi
1997; Hegazy and Moselhi timization1994). GAs also have
problem. been proven
Usually this is don
min
to be an efficient means for searching
called optimal solutions
a chromosome (or gene). tive
in a Eac
large problem domain suchmember, as the one at hand.
i.e., one solution, that is bet pro
GAs are, in essence, optimization
members in search procedures
a population. The in- tha
fitness
spired by the biological systems’ mined byimproved evaluatingfitness through mo
its performance w
evolution. GAs employ a random-yet-directed
tive function. To simulate searchthe fornatural
lo-
cating the globally optimal process,solution.best Typically, GAs require a
is c‘
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representation scheme to encode that arefeasible
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than in thethe form in
others of the populatiI
a string
called a chromosome (or is continued
gene). Each for genea large numberone
represents of inv
off
an optimum gene
member, i.e., one solution, that is better or worse than other decis arrived at.
members in a population. The Implementing
fitness of each the geneGA technique
is deter- gen fo
involved five primary
mined by evaluating its performance with respect to an objec- spr steps: (1) Setting
tive function. To simulate the deciding
naturalthe gene evaluation
‘‘survival criteria (
of the fittest’’
generating an initial population a c
of gen
process, best genes exchange information to produce offspring
that are evaluated in turn and spring
can generation
be retainedmechanism;only if theyand stri
are (5)
more fit than the others in the a computer
population. program.
UsuallyFirst, the gene
the process sig
string of elements,
is continued for a large number of offspring generations until rep each corresponding
an optimum gene is arrivedsigned at. to an activity, as shown in Fig. gen
represents
Implementing the GA technique for onethe possible
problem solution
at hand to th
genes, an objective function can be thec
involved five primary steps: (1) Setting the gene structure; (2) For
the user’s preference (or weights) amo
deciding the gene evaluation criteria (objective function); (3) ect
For example, assume a project with (r
generating an initial population of genes;
ect duration D0(4) selectingby
determined ananyoff-reso
spring generation mechanism; and (5) coding the procedure rule
rule, initial Mx moment of every (inj)M res
a computer program. First,Mthe gene structure was set as a y
y moment of every ( j) resource (Myj0
string of elements, each Source:
signed to an activity, as shown
and MHegazy
corresponding to a (1999)
yj0’s are therefore
in provided
Fig. 4. Asbysuch,
priorityconstants
level as-asso and
gene luti
FIG. 3.Calculations
Resource Histogram lution
and Moment Calculationsthe each
scheduling so
FIG. 3. Resource Histogram and Moment represents one possible solution to the problem. To evaluate
procedure is applied. The user thenpro ne
genes, an objective function Wd canof hisbe preference
constructedinbyminimizing eliciting Wp d
Having the moment calculations defined,
Having
Abraham Assefa Tsehayae (PhD) Project a
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Resource Allocation among
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Resource Allocation and Leveling
Resource Allocation vs. Leveling
Availability of resources superimposed on CPM project
duration under two conditions:
1. Limited resources (and variable project duration)
• Evaluate impact on project duration of limited
resources and keep the impact to the minimum
→ Resource Allocation or Constrained resource
scheduling.
2. Unlimited resource (and fixed project duration)
• no constraints on availability
• What is optimal level of resources, while maintaining
the original project completion duration?
→ Resource leveling or Resource smoothing.

Abraham Assefa Tsehayae (PhD) Project Management Resource Allocation and Leveling 5/63
Resource Allocation

Two methods of allocating limited resources: constrained

resource scheduling

1. Heuristic Rules
− priority rules and a procedure for allocating resources.

2. Optimal Procedures
− Designed to produce best (optimal, shortest) schedules
(with limited resources).

Abraham Assefa Tsehayae (PhD) Project Management Resource Allocation and Leveling 6/63
Resource Allocation
1. Heuristic Rules

e.g. Allocate resources to activity that:

− has earliest start time

− least float
− largest duration
− shortest duration
− most successors

Abraham Assefa Tsehayae (PhD) Project Management Resource Allocation and Leveling 7/63
Resource Allocation
no way to tell what is best combination of rules (differs
for different schedules).
several planners have concluded that minimum float
heuristic gives shorter duration than rest of rules.
need to use trial and error of different heuristics for same
network and compare ~6 gets nearly optimal solution
(shortest schedule).
− Heuristic approach produces good resource feasible
schedules.

Abraham Assefa Tsehayae (PhD) Project Management Resource Allocation and Leveling 8/63
Resource Allocation
Priority rules for heuristic method of allocating limited
resources:
1. Allocate resources to the activity having the least float.
2. Allocate to activity requiring the largest number of
resource days.
3. Allocate to activity using largest number of resources
(people or machines).
4. Allocate to an activity that precedes the largest
remaining resource days requirement.
5. If a tie, allocate to the activity with the lowest sequence (i
– j value).

Abraham Assefa Tsehayae (PhD) Project Management Resource Allocation and Leveling 9/63
Resource Allocation

2. Optimal procedures
designed to produce best (i.e., optimal, shortest)
schedules (with limited resources). Options include:
1. Procedures based on Linear Programming (LP).

2. Procedures based on enumerative (heuristic) and

other mathematical and artificial intelligence based
techniques.
need to go through all possible solutions.

used only for large networks or projects where large

number of resources are required.

Abraham Assefa Tsehayae (PhD) Project Management Resource Allocation and Leveling 10/63
Resource Allocation and Leveling: Problem
• Case study: Results
• No resource constraints CPM: 32 days.
• MS Project:
• Using resource-leveling feature (leveling is used in the
software’s terminology for both allocation and leveling)
with ‘‘Automatic’’ setting, total project duration was
extended to 49 days, avoiding resource over-
allocations.
• This solution was obtained using the software’s
‘‘standard’’ set of heuristic rules, which maintains logical
relationships and applies the ‘‘minimum total slack’’ rule
to resolve conflicts.

Source: Hegazy (1999)

Abraham Assefa Tsehayae (PhD) Project Management Resource Allocation and Leveling 11/63
Resource Allocation and Leveling: Problem
• Case study: Results
• Primavera:
• The same results were also obtained using the
‘‘minimum total slack’’ rule.
• Several other heuristic rules were also tried on
Primavera software, without improving the schedule.
• A project duration of 49 days is, therefore, the best
result that can be obtained from widely used
commercial software.
• It is noted that this result is obtained when all project
activities have the same priority level.

Source: Hegazy (1999)

Abraham Assefa Tsehayae (PhD) Project Management Resource Allocation and Leveling 12/63
Resource Allocation and Leveling: Problem
• Hegazy (1999): Using Genetic Algorithm
TABLE 2. Results of Genetic Algorithm Experiments

AbrahamPERFORMANCE
COMMENTS ON ALGORITHM Assefa Tsehayae (PhD) Project
of software.Management
The formulation of theResource
GA procedureAllocation
and its and Leveling 13/63
objective function, therefore, have costs implied by the
The proposed GA procedure is, in essence, a heuristic search
calculated moments, without requiring additional user in-
algorithm that attempts to optimize the schedule. It has been
put.
demonstrated to have several interesting characteristics, in-
• The GA approach and its objective function can be mod-
cluding the following:
ified to incorporate other objectives — for example, those
Resource Allocation
• Basic allocation procedure is method of scheduling work
by balancing need with availability of resources at a given
time.

• An approach to allocating resources (limited or unlimited

resources):

Series Method:

→ allocate resources to activities in series – one activity at a

time from start to finish.

Abraham Assefa Tsehayae (PhD) Project Management Resource Allocation and Leveling 14/63
Resource Allocation

Series Method of Allocating Limited Resources

Abraham Assefa Tsehayae (PhD) Project Management Resource Allocation and Leveling 15/63
Resource Allocation

Series Method of Allocating Limited Resources

TABLE 9.1 Single Resource Allocation Table: Limit of Six Resources per Day: Series Method
PROJECT
CLOCK
RESOURCE EARLIEST TOTAL
ACTIVITY DURATION RESOURCES PRIORITY
DAYS START FLOAT 0 2 4 6 8 10 12 14 16 18 20
1-2 3 4 12 05 2 -3 21 4 4 4

1-3 2 4 8 058 6 1 -2 322 4 4

1-5 5 4 20 0 0 1 4 4 4 4 4

2-5 0 0 0 38 2 -3 T

2-6 3 2 6 3 8 10 14 5 0 -2 -6 321 2 2 2

3-4 4 3 12 2 10 6 -2 1 3 3 3 3

3-7 4 1 4 2 10 80 3 1 1 1 1

4-7 2 2 4 6 14 6 -2 2 2 2

5-6 6 2 12 58 0 -3 1 2 2 2 2 2 2

6-7 3 2 6 11 0 1 2 2 2

Abraham Assefa Tsehayae (PhD) Project Management Resource Allocation and Leveling 16/63
Resource Allocation
Series Method of Allocating Limited Resources
Resource days = resources required x duration of activity

Step 1: Calculate number of resources in resource pool

Sum total number of resource days for project (e.g. for a

resource such as workers).

→ Total number of worker-days necessary to complete

project.

Abraham Assefa Tsehayae (PhD) Project Management Resource Allocation and Leveling 17/63
Resource Allocation
Series Method of Allocating Limited Resources
Divide total by project duration

→ average number of workers required per day.

* May not meet requirements of all activities but provides good
starting point.

* Average number should not be less than number of

resources required by single activity on a given day (otherwise
activity can not be done) and should always be an integer
(round up).

Abraham Assefa Tsehayae (PhD) Project Management Resource Allocation and Leveling 18/63
Resource Allocation

Series Method of Allocating Limited Resources

Step 2: Two things to keep track of

A. When resources are allocated
determines start time of an activity.

\ Maintain a project clock – Denoted by placed over

day.
Clock initially set to time zero and reset to time where it
stops.

Abraham Assefa Tsehayae (PhD) Project Management Resource Allocation and Leveling 19/63
Resource Allocation
Series Method of Allocating Limited Resources
Clock moves forward when either:
1. No Resources left to be allocated.
2. No activities to which resources can be allocated.

Clock stops when:

1. Resources available for allocation.
2. Activities available to which resources can be allocated.
• When clock stops, start times and floats of all eligible
activities that have not been scheduled are updated (start ≥
clock setting).
• [Update all activities in network].

Abraham Assefa Tsehayae (PhD) Project Management Resource Allocation and Leveling 20/63
Resource Allocation
Series Method of Allocating Limited Resources

B. Number and availability of resources

− resource pool established with available (or given) level
of resources.
− number of resources is decreased by quantity allocated
to activities.
− resource pool is replenished by resources returned from
completed activities.

Abraham Assefa Tsehayae (PhD) Project Management Resource Allocation and Leveling 21/63
Resource Allocation
Series Method of Allocating Limited Resources

* Assign resources according to priority rules applied to all

activities that can start immediately.

* Dummy activities assigned top (T) priority, so they do not

delay other activities (since dummy activities do not use any
resources).

Abraham Assefa Tsehayae (PhD) Project Management Resource Allocation and Leveling 22/63
Resource Allocation

Example 1
TABLE 9.1 Single Resource Allocation Table: Limit of Six Resources per Day: Series Method
PROJECT
CLOCK
RESOURCE EARLIEST TOTAL
ACTIVITY DURATION RESOURCES PRIORITY
DAYS START FLOAT 0 2 4 6 8 10 12 14 16 18 20
1-2 3 4 12 05 2 -3 21 4 4 4

1-3 2 4 8 058 6 1 -2 322 4 4

1-5 5 4 20 0 0 1 4 4 4 4 4

2-5 0 0 0 38 2 -3 T

2-6 3 2 6 3 8 10 14 5 0 -2 -6 321 2 2 2

3-4 4 3 12 2 10 6 -2 1 3 3 3 3

3-7 4 1 4 2 10 80 3 1 1 1 1

4-7 2 2 4 6 14 6 -2 2 2 2

5-6 6 2 12 58 0 -3 1 2 2 2 2 2 2

6-7 3 2 6 11 0 1 2 2 2

Abraham Assefa Tsehayae (PhD) Project Management Resource Allocation and Leveling 23/63
Resource Allocation

Example 1
Series method of allocating limited resources
(Figure 9.3, Table 9.1)

1) 84 resource days
= 6 resources in pool
14 days project duration

Consider project network as a subnetwork of all

activities that use the resource in question.

Abraham Assefa Tsehayae (PhD) Project Management Resource Allocation and Leveling 24/63
Resource Allocation

Series Method of Allocating Limited Resources

Abraham Assefa Tsehayae (PhD) Project Management Resource Allocation and Leveling 25/63
Resource Allocation

Series Method of Allocating Limited Resources

TABLE 9.1 Single Resource Allocation Table: Limit of Six Resources per Day: Series Method
PROJECT
CLOCK
RESOURCE EARLIEST TOTAL
ACTIVITY DURATION RESOURCES PRIORITY
DAYS START FLOAT 0 2 4 6 8 10 12 14 16 18 20
1-2 3 4 12 05 2 -3 21 4 4 4

1-3 2 4 8 058 6 1 -2 322 4 4

1-5 5 4 20 0 0 1 4 4 4 4 4

2-5 0 0 0 38 2 -3 T

2-6 3 2 6 3 8 10 14 5 0 -2 -6 321 2 2 2

3-4 4 3 12 2 10 6 -2 1 3 3 3 3

3-7 4 1 4 2 10 80 3 1 1 1 1

4-7 2 2 4 6 14 6 -2 2 2 2

5-6 6 2 12 58 0 -3 1 2 2 2 2 2 2

6-7 3 2 6 11 0 1 2 2 2

Abraham Assefa Tsehayae (PhD) Project Management Resource Allocation and Leveling 26/63
Resource Allocation

Example
Series Method of allocating limited resources
(Figure 9.3, Table 9.1)
2) Activities
ES Total Float Priority
Considered
1-2 0 2 2
1-3 0 6 3
1-5 0 0 1 (4 resources
assigned)

If 2 resources are required together (e.g. formwork panels and a crew) then
consider them as one resource

Abraham Assefa Tsehayae (PhD) Project Management Resource Allocation and Leveling 27/63
Resource Allocation

\ Assign resources to activity 1-5 (4 resources for 5 days).

\ Not enough resources to perform activity 1-2 or 1-3.

\ Clock moves to end of activity 1-5 when resources return

to pool.

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Resource Allocation

3) Activities ES Float Priority

1-2 5 -3 (2-5) 1 (4 resources assigned)
1-3 5 1 (6-5) 2

Float [This step] =

Original Float [Original or previous step] – (Revised ES –
Original ES) [Original or previous step]

Update all activities that did not receive resources and are
eligible to begin.

Abraham Assefa Tsehayae (PhD) Project Management Resource Allocation and Leveling 29/63
Resource Allocation

Cannot consider Activity 5-6 yet since activity 1-2 is a

predecessor also.

\ Assign resources to activity 1-2 (4 resources, 3 days).

\ Not enough for 1-3.
\ Clock moves to end of 1-2.

Abraham Assefa Tsehayae (PhD) Project Management Resource Allocation and Leveling 30/63
Resource Allocation

4)
Activities ES Float Priority
1-3 8 -2 (1-(8-5)) 2 (4 resources assigned
2-5 8 -3 (2-(8-3)) T (dummy)
2-6 8 0 (5-5) 3
5-6 8 -3 (0-3) 1 (2 resources assigned)

* Whenever dummy is encountered, assigned top priority

“T” so does not delay other activities (since dummy does
not need resources).

Abraham Assefa Tsehayae (PhD) Project Management Resource Allocation and Leveling 31/63
Resource Allocation
5) When activity 1-3 ends, 4 resources come back in pool – at
time 10 (5-6 not done yet).
Activities ES Float Priority
2-6 10 -2 (0-(10-8)) 2 (needs 2 resources, can not assign 2)

3-4 10 -2 (6-8) 1 (3 resources assigned)

3-7 10 0 (8-8) 3 (1 resource assigned)

More resource
days (rule 2)

Abraham Assefa Tsehayae (PhD) Project Management Resource Allocation and Leveling 32/63
Resource Allocation
6) At day 14, all 6 resources come back in pool. 5-6, 3-4
and 3-7 all end.

Activities ES Float Priority

2-6 14 -6 1 (2 resources assigned)
(-2-(14-10))

4-7 14 -2 2 (2 resources assigned)

(6-(14-6))

Left over

Abraham Assefa Tsehayae (PhD) Project Management Resource Allocation and Leveling 33/63
Resource Allocation

7) Only remaining activity is 6-7.

→requires 2 resources for 3 days.

→can start on day 17 when activity 2-6 ends.
\ Project ends on day 20 = project duration using 6
resources.

Abraham Assefa Tsehayae (PhD) Project Management Resource Allocation and Leveling 34/63
Resource Allocation

Series Method with a fixed project duration

increase resource level by one, allocate resources, assess

resulting project duration.
repeat successively until obtain acceptable project
duration.
8 resources gives duration of 14 days.

Abraham Assefa Tsehayae (PhD) Project Management Resource Allocation and Leveling 35/63
Resource Allocation
Other Criteria for Priority Rules
− Savings associated with early return of a resource (e.g.
crane) \ higher priority to activities that use crane.
− Piece of equipment required by another project.
− Use of temporary personnel.
− High priority to activities presenting greatest (or least)
potential difficulty.
− Priority to activities that will bring in large amount of
progress payment.

Abraham Assefa Tsehayae (PhD) Project Management Resource Allocation and Leveling 36/63
Resource Allocation and Leveling

So far, resource allocation based on fixed activity duration

derived from fixed resource need for each activity in network.
− Assumption made that work on activity can not start until
required number of workers or machines available
→may not be true in reality.

Abraham Assefa Tsehayae (PhD) Project Management Resource Allocation and Leveling 37/63
Resource Leveling

Example:
− Project manager who does not have 8 carpenters for
formwork may start activity with 2 carpenters.
− May have a limit of 16 carpenters on activity due to space
constraints.
\ Normal duration of activity may be based on level of
resources normally employed by organization.

E.g., 2 and 16 may be secondary levels of resources

→ may be considered in scheduling when primary level not
available.

Abraham Assefa Tsehayae (PhD) Project Management Resource Allocation and Leveling 38/63
Unlimited Resource Allocation: Resource Leveling

Unlimited Resource Allocation

− If ample resources available, allocate them in best way so
as to not delay project and to obtain least costly profile
(lowest project costs)
→achieved by resource leveling.
− Resource profile varies depending on whether we
schedule activities according to ES times, LS times, or
any time in between two.

Abraham Assefa Tsehayae (PhD) Project Management Resource Allocation and Leveling 39/63
Unlimited Resource Allocation: Resource Leveling

Unlimited Resource Allocation

Abraham Assefa Tsehayae (PhD) Project Management Resource Allocation and Leveling 40/63
Unlimited Resource Allocation: Resource Leveling

Unlimited Resource Allocation

− Resources allocated in such a way that resource profile
gradually built up to peak and slowly brought down to end
without another rise
→ applicable to manpower usage.

Abraham Assefa Tsehayae (PhD) Project Management Resource Allocation and Leveling 41/63
Unlimited Resource Allocation: Resource Leveling

Unlimited Resource Allocation

e.g., carpenters – fewer at beginning of project when fewer
activities are occurring – build up to peak activity level –
wind down as activities are completed near end of project
(not a level profile for entire duration of project).

− Level profile applicable to equipment usage, e.g., crane.

Abraham Assefa Tsehayae (PhD) Project Management Resource Allocation and Leveling 42/63
Unlimited Resource Allocation: Resource Leveling

Unlimited Resource Allocation

Objective of unlimited resource scheduling is to obtain least
costly profile.
→ special costs associated with hiring and dismissal of
resources as well as resource idleness.
→ generally, the smoother the resource profile, the lower the
overall cost.

Abraham Assefa Tsehayae (PhD) Project Management Resource Allocation and Leveling 43/63
Unlimited Resource Allocation: Resource Leveling

Unlimited Resource Allocation

Abraham Assefa Tsehayae (PhD) Project Management Resource Allocation and Leveling 44/63
Unlimited Resource Allocation: Resource Leveling

Example of Unleveled Resource Profile

Construct Roads for Subdivision (No utilities)

1) Subgrade Preparation for Concrete Curbs

Days Labour (Number of people/day)

Grading 2 3
Cement Stabilizing 2 7
Trimming 1 3

Abraham Assefa Tsehayae (PhD) Project Management Resource Allocation and Leveling 45/63
Unlimited Resource Allocation: Resource Leveling

Example of Unleveled Resource Profile

2) Concrete Curbs

Days Labour (Number of people/day)

Stringline 2 4
Extrude Pour 1 10
Backfill 2 3

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Unlimited Resource Allocation: Resource Leveling

Example of Unleveled Resource Profile

3) Prepare Road Surface

Days Labour (Number of people/day)
Grading 2 3
Cement Stabilising 2 7
Trimming 2 3
Gravel Base 1 5
Asphalt Paving 1 10

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Unlimited Resource Allocation: Resource Leveling

Example: Unleveled Resource Profile

Construct Roads for Subdivision
Activity Number of Days Number of Labourers per Day

Subgrade preparation for concrete curbs

Grading 2 3
Cement Stabilising 2 7
Trimming 1 3
Concrete Curbs
Stringline 2 4
Extrude Pour 1 10
Backfill 2 3
Prepare Road Surface
Grading 2 3
Cement Stabilising 2 7
Trimming 2 3
Gravel Base 1 5
Asphalt Paving 1 10

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Unlimited Resource Allocation: Resource Leveling

Example of Unleveled Resource Profile

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Resource Leveling

Heuristic Procedures for Resource Leveling

− Based on priority rules and a procedure for allocating
resources.
− Difficult to tell what is best combination of rules – differs for
different schedules.
− Use trial and error of different rules for same network and
compare to get optimal solution.

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Resource Leveling

Optimal Procedures
− Procedures based on linear programming and other
mathematical techniques.
− Go through all possible solutions.
− Used for constrained resource scheduling for large
project networks.
− Too expensive, time consuming, or infeasible for resource
leveling.
\ Normally use heuristic methods.

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Resource Leveling

Heuristic and Optimal Procedures for Resource

Leveling
→ optimal too expensive even for small networks, and
medium and large problems difficult to solve using optimal
procedures.
\ Normally use heuristic methods.
Heuristic Approach
→ reschedule activities within limits of available float to
achieve better distribution of resource usage.
→ schedule all critical activities first and selectively
reschedule noncritical activities to obtain leveled profile.

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Resource Leveling

A Heuristic Approach: Series Method

− Allocate resources to activities in series – one activity at
a time from start to finish (i.e., do not interrupt an
activity once it has started).
Heuristic Rules for Resource Leveling
1) Schedule all critical activities first.
2) Start noncritical activities whenever there is a drop in
resource profile, so no ups and downs occur in resource
profile.
3) Stop noncritical activities whenever there is a rise in
profile up to point where peak is reached.

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Resource Leveling

Heuristic Rules for Resource Leveling

→ peak determined by critical activities and their resource
demands (\ unlimited resources in terms of critical activities).

→ may exceed peak of critical activities by scheduling

noncritical activities to avoid a drop (valley) in resource profile
(\ keep a smooth resource profile).

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Resource Leveling

Resource Leveling using Series Method

(Figure 9.3, Table 9.5)

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Resource Leveling

Resource Leveling – Series Method

TABLE 9.6 Resource Levelling Series Method

PROJECT CLOCK
DAYS

RESOURCE TOTAL
ACTIVITY DURATION RESOURCES EARLIEST START
DAYS FLOAT 0 1 2 3 4 5 6 7 8 9 10 11 12 13 14
1-2 3 4 12 02 20 4 4 4

1-3 2 4 8 05 61 4 4

1-5 5 4 20 0 0 4 4 4 4 4

2-5 0 0 0 35 20

2-6 3 2 6 35 53 2 2 2

3-4 4 3 12 27 61 3 3 3 3

3-7 4 1 4 27 83 1 1 1 1

4-7 2 2 4 6 11 61 2 2

5-6 6 2 12 5 0 2 2 2 2 2 2

6-7 3 2 6 11 0 2 2 2

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Resource Leveling

Resource Leveling – Series Method

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Resource Leveling

Notes on Resource Leveling

1) If must choose to assign resources between 2 non-critical
activities, assign resources first to most critical activity
(i.e., with least TF).
2) Only starting times for non-critical activities are varied to
produce a leveled profile.
project duration never extended.
3) Leveling can produce alternative solutions.
acceptable if one peak maintained and buildup and
decline are gradual.

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Resource Leveling

Notes on Resource Leveling

4) To compare solutions:
− Take sum of squares of resource usage within each
time unit.
− Lowest value indicates most leveled solution.

- Both require 4 resource days.

- Shift activities one day at a time

and calculate moment (minimum
moment = optimum solution).

(a) 42 = 16
(b) 12 + 12 + 12 + 12 = 4 more level
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Resource Allocation and Leveling
Computer-aided Resource Allocation
− For multi-resource leveling and complex networks.
− Can apply parallel or series method or combination of
both.
− Can perform both fixed-resource and fixed-duration
scheduling.
− Can select priority rules.
− Start by performing time analysis on network (CPM).
− Combine schedule with resource requirements and
limitations to produce daily resource requirement schedule
and modified project schedule.
− Important to understand priority rules and heuristic method
employed by computer program (e.g., Primavera)
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Resource Allocation and Leveling
Resource Leveling by Computer

− Need to establish an initial resource profile against which

to create a leveled profile.
− Use leeway (i.e., float) between ES and LS schedules.
− Consider total manhour requirements for project and for
each period and activity in project.
− Consider project management constraints (see following
slides).
− Specify heuristic priority rules for leveling.

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Resource Allocation and Leveling

Management Factors to Consider in Establishing

Resource Profile

→ Constraints to impose on profile.

1) Budgetary Constraints
− Corporation budgets amount per year for a large
multi-year project
• dictates number of manhours per year to be
expended on project
• affects annual project schedule.

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Resource Allocation and Leveling
Management Factors to Consider in Establishing
Resource Profile
2) Personnel Constraints
− Hiring of individuals.
→ applications, interviews, references, physicals,
papers processed.
− May be limited in number of applications that can
be processed in on month.
(on small projects, may just call on union for
staffing).
− Take limits into consideration when establishing
initial profile.

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Resource Allocation and Leveling
Management Factors to Consider in Establishing
Resource Profile
3) Craft Availability Constraints
− Core number of in-house labour.
− Limits in amounts of certain crafts available in some
markets.
− Other projects in area using similar personnel.
→ schedule manpower so that projects do not peak
around same time.

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Resource Allocation and Leveling

Management Factors to Consider in Establishing

Resource Profile
4) Availability of Manpower on Site
→ level of absenteeism on a given day due to illness,
vacation, injury, personal business.
− May depend on season.
− e.g., 10% absenteeism rate and need 100
pipefitters \ hire 110 pipefitters.

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Resource Allocation and Leveling

Management Factors to Consider in Establishing

Resource Profile
5) Supervisory Constraints
− Maximum number of craft personnel a supervisor can
effectively direct
− Depends on crew size (i.e., typical crew size for a
particular craft).
− Larger crew mean more people can be supervised
since each crew is doing a distinct job.
− Also maximum amount of paperwork (for each person
supervised) that a supervisor can handle at once.

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Resource Allocation and Leveling

Management Factors to Consider in Establishing

Resource Profile
6) Site Constraints
− Depends on physical area of project and
surrounding conditions (e.g. traffic).
7) Weather Constraints
− Depending on location, some activities can only be
performed at certain times of year.
e.g., foundation work – not in frozen ground.
− Take all these constraints into consideration in developing
initial resource profile, before even performing resource
leveling.
− Saves time-consuming revisions in future.
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References:

Project Management: Techniques in Planning and Controlling

Construction Projects, 2nd Edition, Ahuja, Dozzi, and AbouRizk, John
Wiley and Sons, 1994, Chapter 9, pp. 127-162.
Hegazy, T. (1999). Optimization of resource allocation and levelling
using genetic algorithms. Journal of Construction Engineering and
Management, 125 (3), 167-175.

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