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4989 Words Nov 5th, 2015 20 Pages
Chapter 6

Allocating Resources to the Project

This chapter extends the previous one on scheduling into the area of allocating resources among the activities of a project, or among multiple projects competing for the same resources. The chapter begins with a discussion of expediting project completion times and highlights that by selectively choosing which activities to crash and by how much, we can determine the minimum cost for all possible project completion time. The use of Excel’s Solver optimization routine to facilitate this analysis is also presented. Next, the chapter moves on to the topic of resource loading and in particular highlights the problems of over scheduling resources. The topics of resource leveling and
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5. Explain why project-oriented firms require excess resource capacity.

In project oriented firms there is much more uncertainty about the timing of resource needs since the resources primarily move between projects rather than moving between projects and a functional department. Therefore, extra resource capacity is needed as a buffer given the greater level of uncertainty present.

6. The arrival and departure times of commercial aircraft are carefully scheduled. Why, then, is it so important to have excess capacity in the airport control tower?

Although the arrival and departure times may be carefully scheduled, we all know that actual arrivals and departures often deviate significantly from these schedules. Therefore, a significant amount of uncertainty is present and greatly complicates the ability of the airport control system to handle arrivals and departures.

Indeed unplanned events (e.g., weather delays, equipment malfunctions, late flight crews, and so on) often cascade through the system further compounding the problem. Therefore, excess capacity in control towers is needed as a buffer given this level of uncertainty. Clearly, the cost of not having this capacity greatly exceeds the cost of some idle capacity.

7. Explain the difference in the problems faced by a PM who is short of secretarial resources and one who is short of a “Walt.”

The PM that is short of secretarial resources does not face

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