UNIT 5

RESOURCE SCHEDULING
RESOURCE LEVELLING
RISK ANALYSIS
PROJECT AUDIT
PROJECT TERMINATION & CLOSING
PROJECT CONTROL
 Resource scheduling is a project management process that helps
teams ensure the right person is assigned to each job.
 Basically resource scheduling refers to the set of actions and
methodology used by organizations to efficiently assign the
resources they have to jobs, tasks or projects they need to
complete, and schedule start and end dates for each task or project
based on resource availability.
 Resource scheduling is a process used by teams to organize
and structure their time, so tasks they need to complete are
scheduled based on availability and capability.
 It determines the timeline and resources required to complete
a project.
 Scheduling resources can be a complicated and time-
consuming process, but it's also a crucial piece of the puzzle
regarding getting projects done

Project Management Framework 2

STEPS IN RESOURCE SCHEDULING
Typical resource scheduling steps include:
 Listing tasks or jobs that need to be completed along with an
assumption of duration or effort. We can express them in hours, days,
or eventually percentage of occupation.
 Identifying constraints for each job or task. Then, it can be a deadline,
a set of skills required to complete the task, a location where the
resources need to be moved for the job, etc.
 Identifying the types and number of resources needed to complete
each task, i.e. the resource demand. We can express the demand for
each type of resource in hours or days for people, machines, etc. and
in quantity if we also need parts and materials.
 Controlling the future availability of resources of each category
(employees, equipment, rooms…). This is sometimes called capacity
 Matching available resources with tasks or jobs, i.e. scheduling
resources to perform specific tasks or jobs at a specific date, until we
assign all work
Project Management Framework 3
 Resource optimization
Finding ways to adjust the use of resources .
A resource optimization technique that keeps the amount of resources used for
each time period constant, resulting in a more stable level of resources and a longer
project duration .

Resource Leveling :
A technique in which start and finish dates are adjusted based on resource
constraints with the goal of balancing demand for resources with the available
supply

Resource Smoothing:
A modified form of resource levelling, where resources are levelled only within the
limits of the float of their activities, so the completion dates of activities are
not delayed .

Resource leveling is used when resources are under or over allocated. Resource
smoothing is used when resources are unevenly allocated.

14-01-2023 Time Management 4

 Resource Leveling

14-01-2023 Time Management 5

14-01-2023 Time Management 6
Project Risk Management includes the Processes
of conducting risk management planning,
identification, analysis, response planning, and
controlling risk on a project.

PROJECT RISK MANAGEMENT 7

 What is Risk ???

PROJECT RISK MANAGEMENT 8

Risk Management Cycle Overview

PROJECT RISK MANAGEMENT 9

10 Golden Rules of Project Risk Management
Rule 1: Make Risk Management Part of Your Project

Rule 2: Identify Risks Early in Your Project

Rule 3: Communicate About Risks

Rule 4: Consider Both Threats and Opportunities

Rule 5: Clarify Ownership Issues

Rule 6: Prioritise Risks

Rule 7: Analyse Risks

Rule 8: Plan and Implement Risk Responses

Rule 9: Register Project Risks

Rule 10: Track Risks and Associated Tasks

PROJECT RISK MANAGEMENT 10
 PERFORM QUALITATIVE RISK ANALYSIS

Perform Qualitative Risk Analysis is the process of prioritizing risks for further
analysis or action by assessing and combining their probability of occurrence
and impact. The key benefit of this process is that it enables project
managers to reduce the level of uncertainty and to focus on high-priority risks.
Perform Qualitative Risk Analysis assesses the priority of identified risks using
their relative probability or likelihood of occurrence, the corresponding impact
on project objectives if the risks occur, as well as other factors such as the time
frame for response and the organization’s risk tolerance associated with the
project constraints of cost, schedule, scope, and quality
Perform Qualitative Risk Analysis is usually a rapid and cost-effective means
of establishing priorities for Plan Risk Responses and lays the foundation for
Perform Quantitative Risk Analysis, if required

PROJECT RISK MANAGEMENT 11

PROJECT RISK MANAGEMENT 12
 PROBABILITY AND IMPACT ANALYSIS

Impacts Risk Management Actions

Considerable Extensive
Management Must manage and management
Significant required Monitor risk essentials

Risk may be worth

accepting with Management Management
Moderate monitoring effort worthwhile efforts required

Accept but monitor Manage and

Minor Accept Risks risks monitor risks

Low Medium High

Probability/ Likelihood

PROJECT RISK MANAGEMENT 13

 IMPACTS
PROBABILTY
If the Risk does result in harm,
How likely is it that the Risk
how severe would the injury be?
may result in harm?
1. Scratch (trivial)
1. Highly Unlikely
2. Cut (Minor injury)
2. Unlikely
3. Fracture (Major injury -
3. Possible
Over 3 day injury)
4. Probable
4. Amputation (Major injury)
5. Certain
5. Death (Death)
To carry out a risk ranking simply multiply the likelihood by the severity,

Likelihood Severity
1.Highly Unlikely 1.Trivial
2.Unlikely 2.Minor Injury
3.Possible 3.Over three day injury
4.Probable 4.Major Injury
5.Certain 5.Incapacity or Death

PROJECT RISK MANAGEMENT 14

 PERFORM QUANTITATIVE RISK ANALYSIS

Perform Quantitative Risk Analysis is the process of numerically analyzing the

effect of identified risks on overall project objectives. The key benefit of this
process is that it produces quantitative risk information to support decision
making in order to reduce project uncertainty.

Perform Quantitative Risk Analysis is performed on risks that have been

prioritized by the Perform Qualitative Risk Analysis process as potentially and
substantially impacting the project’s competing demands.

The Perform Quantitative Risk Analysis process analyzes the effect of those risks
on project objectives. It is used mostly to evaluate the aggregate effect of all risks
affecting the project.

PROJECT RISK MANAGEMENT 15

 EXPECTED MONETARY VALUE ANALYSIS ( EMV)

 Expected monetary value ( EMV) analysis is a statistical concept that calculates

the average outcome when the future includes scenarios that may or may not
happen.

 The EMV of opportunities will generally be expressed as positive values , while

those of threats will be negative.

Formula for expected monetary value:

Probability times impact, or EMV = P x I

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 EMV Case study
Suppose you are leading a construction project. Weather, cost of construction material,
and labour turmoil are key project risks found in most construction projects.

Project Risks 1 - Weather: There is a 25 percent chance of excessive snow fall that’ll
delay the construction for two weeks which will, in turn, cost the project $80,000

Project Risks 2 - Cost of Construction Material: There is a 10 percent probability of

the price of construction material dropping, which will save the project $100,000.

Project Risks 3 - Labour Turmoil: There is a 5 percent probability of construction

coming to a halt if the workers go on strike. The impact would lead to a loss of $150,000.
Consider your industry and geographic area to determine whether this risk would have a
higher probability.

PROJECT RISK MANAGEMENT 17

 EMV Case study-cont.
Now, let's see how to quantify the project risks by calculating the Expected Monetary
Value of each risk.

In this Expected Monetary Value example, we have two negative project risks
(Weather and Labour Turmoil) and a positive project risks (Cost of Construction
Material). The Expected Monetary Value for the project risks:

Weather: 25/100 * (-$80,000) = - $ 20,000

Cost of Construction Material: 10/100 * ($100,000) = $ 10,000
Labour Turmoil: 5/100 * (-$150,000) = - $7,500

Though the highest impact is caused by the Labour Turmoil project risk, the Expected
Monetary Value is the lowest. This is because the probability of it occurring is very
low. This means that if the:

PROJECT RISK MANAGEMENT 18

 EMV Case study- cont.
Weather negative project risks occurs, the project loses $20,000,
Cost of Construction Material positive project risks occurs, the project gains $10,000,
and
Labour Turmoil negative project risks occurs the project loses $ 7,500

The total project’s Expected Monetary Value based on these project risks is:

-($20,000) + ($10,000) – ($7,500) = - $17,500

Therefore, if all risks occur in the construction project, the project would lose $17,500.
In this scenario, the project manager can add $17,500 to the budget to compensate for
this

PROJECT RISK MANAGEMENT 19

EMV using Decision Tree

PROJECT RISK MANAGEMENT 20

 Audit Process
 Auditing or reviewing is the most common way of actually looking
at the financial statements alongside other accounting data of a
business or an organisation. It is a structured method where the
monetary state of the business is examined. The individual
assuming up the liability of the cycle is called an ‘Auditor’.
 In this procedure, it is checked on the off chance that the business is
running productively or not. Auditing is a significant procedure for
the organisation, the financial backers, the public authority,
investors, creditors, and so on. They especially depend on review
reports to settle on significant business decisions.
Features of Auditing:
 Its fundamental target is to discover any mistakes, errors, and
frauds in the monetary records.
 It is directed either by the auditors who have inside and out
information on bookkeeping methodology and lawful customs.
 It guarantees the reality and decency of the fiscal reports in case it
mirrors the specific status of the situation of the business.
 It likewise guarantees that the statements keep the bookkeeping
guidelines.
 It is a precise methodology of analysing the monetary records of
an association.
Benefits of Auditing:
 During the auditing procedure, frauds and errors in the accounting
books are found. As it were, it likewise forestalls such mistakes for
the dread of being distinguished.
 On account of outer reviews, the books are firmly assessed, and the
administration hears the second point of view of their monetary
standing.
 Since the books are firmly analysed, it assists the workers with
being straightforward and capable while setting up the reports.
 The budget reports get greater validity while they are reviewed.
 The significant benefit of examining is that it gives confirmation to
the proprietors, financial backers, and so on with regard to the
exactness of their budget summaries.
 PROJECT TERMINATION PROCESS

The project lifecycle consists of five groups:

 Initiating process group
 Planning process group
 Executing process group
 Monitoring and controlling process group
 Closing process group
The closing phase of project management is the final phase of the
project lifecycle. This is the stage where all deliverables are finalized
and formally transferred, and all documentation is signed off,
approved, and archived.

Project Management Framework 24

 PROJECT CONTROL PROCESS
Project Controls is a process that encompasses the resources,
procedures, and tools for the planning, monitoring, and controlling
of all phases of the capital project lifecycle. This includes estimating,
cost and schedule management, risk management, change management,
earned value progressing, and forecasting.
Steps in Project Control :
 Set Performance Standards. Before a project manager can begin
holding their team and project to a set of standards, they first
need to develop those standards.
 Measure Performance.
 Compare Actual Performance with Standards.
 Analyze Deviations.
 Take Corrective Actions.

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The project closure process ensures that:
 All work has been completed according to the project plan and
scope.
 All project management processes have been executed.
 You have received final sign-off and approval from all parties.

The project management closure process also gives the team the
opportunity to review and evaluate the project’s performance to
ensure future projects’ success.
Project closure helps avoid:
 Repeating mistakes on future projects and objectives
 Having final products or deliverables without dedicated
support and resources
 Failing to identify the team or individuals who will own and
maintain the solution following final delivery

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