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You probably have seen the sign: “Your dishes don’t do themselves.” Someone has to wash them -- or at least put them in the dishwasher.
Every project needs people and tools -- also called resources -- to get from here to there. But resources are often scarce, more so if you’re working on simultaneous projects. Which is why project managers must be able to effectively assign and schedule resources to squeeze the most value out of them.
This process is called resource allocation, a core project manager responsibility.
A resource is anything required at the task level to complete an activity and move the project forward. These can be people, funding, equipment, materials, reports, vehicles, computers, and other technology.
Resource allocation assigns or allocates resources to project tasks to meet schedule and quality requirements. If you’re managing a construction project, your project management resources list may include:
This is a list of the most commonly used resources:
Resource allocation is not an “assign it and forget it” kind of process. Changes are inherent to projects, which is why you need a contingency plan as an integral part of any project plan.
For a project to progress according to plan, project managers must manage resources throughout the project’s life cycle. The failure to address project changes promptly can result in project derailment.
As much as possible, you want the project’s scope to remain constant. But that won’t always be possible. The project management triangle -- more popularly known as the triple constraint -- states that the project constraints of time, scope, and resources are connected, which means any change in one will cause one of the remaining two, or both, to change.
If your project’s scope changes, because of funding or priority changes, you’ll have to make resource or time allocation adjustments. Projects going beyond the original scope happen a lot, so be ready to tap your pool of freelancers, contractors, suppliers, and vendors.
If that happens, you may have to request a project budget adjustment.
Project schedule changes can affect resource allocation in the following ways:
Resources sometimes become unavailable when you need them most. Employees take pre-approved vacation leaves or suddenly become sick, businesses shut down because of a natural or man-made disaster, equipment or machinery failure, or supplies don’t arrive on time.
Timely and sound communication strategies can save the day here. When a team member is unavailable and their work is time-critical, speak with other team members to see if they can accommodate the extra work.
Otherwise, check your resource list for a replacement. If no one qualified is available, bring in freelancers or outside contractors. If that isn’t possible, negotiate a timeline adjustment with the client.
Certain tasks can’t be started until another is completed. These are called dependencies. Pushing back predecessor tasks will likely delay the entire project, so it’s important you know the status of each task.
A project tracker can help you stay on top of things. It shows where bottlenecks are, which critical tasks are in danger of getting delayed, and which team members need a helping hand.
Resource-strapped organizations that work on simultaneous projects usually share resources across projects, making project prioritization critical to getting the most out of finite resources.
When priorities change, you may have to pause, or terminate, Project A to focus on Project B because it’s what makes sense for the company. That may also mean going back to the drawing board to rewrite your resource allocation plan.
When you’re ready to assign resources to your project, follow the general guidelines below:
To assign resources to a project, you must know the tasks involved. For a project to be successful, resources must be assigned at the task level and each resource must be appropriate for the task.
For instance, if you’re working on a kitchen and bathroom remodeling project, a plumbing installation job will require a plumber, while to do the kitchen cabinets, you need a carpenter, and so on.
Tips for breaking your project down:
Once the project has been broken down into tasks, you’re ready to assign resources.
Tips for assigning resources:
Resource management happens throughout the project’s life cycle. Even when a project is underway, certain situations may come up to disrupt the plan and schedule, such as:
Tips for reallocating resources:
Monitor resource utilization rates. This is to make sure you’re maximizing resource usage. To measure an employee’s utilization rate:
Utilization rate = working time / total time
So if an employee works 35 hours out of 40 in a week, their utilization rate is:
Utilization rate = 35 hours / 40 hours
Utilization rate = 87.5%
The optimal rate is between 70% and 90%.
The resource utilization rate shows two things:
You may have the most reliable talent on the team, but if you lack adequate funding and the tools to do things, your project is doomed to fail, which showcases why effective resource allocation is such a vital component of the project management plan.
To keep your projects organized and every document you need in one place, from project initiation to closure, check out The Ascent’s list of the best project management software. Options such as monday.com and Smartsheet come with resource allocation and planning templates you can use right out of the box.
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