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resource allocation and leveling in project management pdf

A complete guide to the fundamentals of resource leveling

Avoid the pitfalls of poor planning by adopting this project management technique.

Usman Ghani

Contributing Writer

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Resource leveling is a resource management technique that can help teams better accommodate resource constraints and predict project timelines. It helps avoid poor project planning that often leads to last-minute delays, overworked team members, and cost overruns. 

Resource leveling should be a part of every project manager’s toolkit. By optimizing and balancing resources across time, you can avoid unrealistic expectations and determine the earliest possible date to complete your project. Keep reading to find out how to practice good project management by applying this technique.

What is resource leveling?

According to the Project Management Body of Knowledge (PMBOK) Guide , resource leveling is a technique to help you better accommodate resource constraints by adjusting the start and finish dates of a project. In doing so, you can make realistic project deadlines without overworking your team and increasing the total cost of the project.

An example of resource leveling

Let’s explain resource leveling with Project A which has five different tasks. Each of these tasks can be completed by a team member in eight hours, making the entire project possible to complete in 40 hours.

project a flowchart

During resource allocation, these five tasks get assigned to two team members – Sally and John – based on their skills. Dividing the 40 working hours between the two team members in the diagram below shows that Project A could be completed in three working days. 

sally and john's flowchart tasks

But if we break down the diagram below, Sally can’t realistically complete both Task 1 and Task 2 on the first day unless it’s a 16-hour workday. And John can’t start working on Task 3 until the next day since Task 1 will take an entire 8-hour workday. In this scenario, the project can’t be delivered in three days unless you overwork Sally.

unrealistic view of tasks flowchart

By using the resource leveling technique on Project A, you can see that the earliest it can be done is in four days – without overworking anyone. Applying this technique to your own projects surfaces their faulty assumptions and will most likely convince all project stakeholders to extend deadlines.

overworked team members flowchart

Resource leveling gives everyone a realistic, bird’s-eye view of the project and can help teams establish feasible deadlines and assign tasks reasonably.

How resource leveling can help improve work-life balance for team members

A brief guide to resource planning

A brief guide to resource planning

Ultimately, resource leveling can help lay the foundation for a healthy work-life balance for your teams. As of 2021, work-life balance was the single most important organizational attribute for employees worldwide. And, not surprisingly, employees who believe they have good work-life balance work 21% harder .

work life balance graph

In the original Project A example, Sally would have been required to work at least six hours longer on the first day of the project – well above the typical eight-hour workday.

before resource leveling graph

Sally and John now also have buffer days. Buffers can ensure timely project deliveries because they help teams accommodate work that flows beyond the budgeted time.

after resource leveling graph

When you have several tasks like those in Project A, it’s generally a good idea to break them up into smaller subtasks and distribute them more evenly between both team members across all days. This practice is also referred to as resource smoothing.

after resource leveling and smoothing graph

Buffers can also be distributed evenly across all days. Because daily buffers allow extra time to solve any unexpected problems or unforeseen work overruns, they can significantly reduce the number of overtime hours and stress. Resource leveling and smoothing provide teams with regular workday hours and distributed daily workloads – both contribute to better work-life balance.

How do resource allocation, resource leveling, and resource smoothing work together?

Resource allocation, leveling, and smoothing work together to optimize resource management in a three-step process. 

  • Resource allocation assigns team members to tasks to ensure the work gets done, leaving out the impact on individual team members. 
  • Resource leveling ensures that workloads don’t exceed resource limits, so nobody is working more hours than they should. 
  • Resource smoothing then helps you distribute workloads evenly with adequate daily buffers. 

During the planning phase, resource allocation helps you understand which team member is best suited to take on each particular task. Effective resource allocation considers project costs, resource availability, skills required, and project outcomes.

resource allocation flowchart

But while your project is in motion, unexpected things can happen like delays or insufficient budgets. This is where resource leveling comes in handy. It can help you avoid such conflicts, or manage the resource constraints that they create with more realistic expectations.

After resource leveling, resource smoothing can help you even out the high and low workloads assigned to each team member. In other words, it helps keep your resources within their predefined limits. For example, in Project A, resource smoothing distributes the workloads of Sally and John to keep them within a predefined six-hour daily limit.

How to select a resource leveling strategy in the real world

The real world is too unpredictable for neatly bound theoretical projects to go perfectly as planned. But you can practice resource leveling to prevent unexpected delays and scope creep. The right resource leveling strategy can help you extend deadlines, garner more resources, optimize available resources, and narrow down your project’s scope.

Project deadlines and available resources are typically the two most important variables in any project, so we’ve mapped them out in the grid below to show four different scenarios. The rows represent different deadline options (extended vs same) and the columns show us different scenarios for resourcing. 

deadline resource grid

Scenario 1: Add more resources and extend the deadline

With more resources and time, you have a better chance of delivering high-quality projects. But you need to help your stakeholders understand why the initial project assumptions were faulty. Revisit your resource allocation plans to accommodate the additional resources effectively.

Scenario 2: Add more resources to meet the same deadline

With critical projects, you may get more resources without a deadline extension. Use a “crashing” strategy, bringing in new team members to deal with the additional workload. But when senior team members train new ones, their work outcomes can get affected due to the time spent training instead of working on deliverables. That’s why you should allocate new members only to the tasks that demand the least additional effort.

Scenario 3: Use the same resources and extend the deadline

Get your stakeholders to approve the deadline extension as early as possible. Deadline extensions don’t require training or managing new team members. Project A showed how an extension resolved work overloads.

Scenario 4: Use the same resources to meet the same deadline

By reducing project scope, you can resolve work overloads even without additional resources or deadline extensions. The key is to ruthlessly remove all low-value tasks and limit the project scope to only the most critical tasks. You might also need to fast-track a project by executing as many tasks as possible at the same time, meaning you’ll need to have multiple team members working at once.

4 strategies grid

The four strategies above can help you resolve resource conflicts when they’re applied to the most critical and time-consuming project activities. 

Tools to help with resource management

Switching to a modern project management tool, such as Jira can help you level up your resource management processes. Atlassian marketplace apps like Activity Timeline , ProScheduler , and Project, Resource & Cost Management can work with Jira to help you plan, track, and manage your resources more effectively.

If you’re looking for a tool to help you with resource allocation, consider using Activity Timeline . This app can help you select the right people for each task based on their skills. The app can also estimate task completion dates based on a number of factors. And it can show you the workload calendars of your team members to help you identify overworked employees.

jira work overview

Want a bird’s-eye view of your project schedule, workload, and resource utilization? ProScheduler offers a powerful unified Gantt chart view that allows you to directly manage Jira issues across multiple projects from a spreadsheet-like tabular list view. Based on resource constraints, it allows you to find the ideal project start and completion dates within a few minutes.

jira projects overview

If you need support at different stages of your project resource management process, try using the Project, Resource & Cost Management app. It boasts a smart algorithm that takes into account the technical and soft skills of all your employees to help you find the most suitable resources for a specific project with just a single click.

resource management app screenshot

The Atlassian marketplace has more than 40 of these apps to help optimize your resource management processes.

Software-driven resource management can help your company grow

A McKinsey study found that project managers and companies who applied a software decision-making technique to their resource planning were 36% more likely to outgrow their competitors because of their ability to perform scenario analyses.

Using Jira along with Atlassian marketplace apps like Activity Timeline , ProScheduler , and Project, Resource & Cost Management can help you make more informed resource planning decisions.

Advice, stories, and expertise about work life today.

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Project Management pp 259–277 Cite as

Project Resource Allocation

  • Jitesh J. Thakkar 3  
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What Is Resource Allocation? How to Allocate Resources for Projects

ProjectManager

Projects require many resources. Everything from the people you’re working with and the equipment they’re using, to the materials and other supplies you need to even the site where you’re working falls under the umbrella of project resource allocation. Let’s explore what resource allocation is, why it’s so important for project management and what tools you can use to better allocate your project resources.

What Is Resource Allocation In Project Management?

Resource allocation is the process of scheduling resources such as labor, materials or equipment for the completion of project tasks. Resource allocation is a step of project resource management that involves estimating resources, procuring resources, allocating resources and tracking resources until the project is completed.

Why Is Resource Allocation Important?

As difficult as it might be to allocate resources correctly over the life cycle of a project, it’s an essential part of any thorough project management plan and should be done in the planning stage of a project. This keeps costs down, maximizes productivity and helps with team morale. It also facilitates client satisfaction by achieving the best outcome and successfully delivering the project.

resource allocation and leveling in project management pdf

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Resource Plan Template

Use this free Resource Plan Template for Excel to manage your projects better.

Resource Allocation Process: How to Allocate Project Resources

Resource allocation is a plan that you develop with the aim of making the most of the available resources at your disposal in a project, which makes it a critical resource planning activity. This is mostly a short-term plan set in place to achieve goals in the future.

This sounds challenging, but don’t worry, we’re here to help. The following are some general tips to help you with your resource allocation when managing a project.

1. Define Your Project Scope

Before you can allocate your resources or manage them, you have to determine the scope of the project you’re working on. To do so, you need to break down the project into every individual task and deliverable that will be completed. Once you’ve done so, you can make the right decision on what resources you’ll need and how many of them are necessary to complete the project.

The clearer the project scope is, the better you’ll be able to figure out how to allocate your resources. Take the time to get the full picture of the project using a work breakdown structure or other project planning tools to visualize all your project tasks before estimating your resources.

2. Estimate What Project Resources Will Be Needed

Once you have defined your project scope, you can move to the resource planning phase which is when you’ll have to estimate what resources will be needed including people, equipment, materials and anything else you’re going to need to complete your project tasks. Your organization will have some of these resources already, while others will need to be purchased or rented.

Before you can allocate resources, you have to have them. So, make a list using the criteria above and then make sure it fits within the project budget .

Once you’ve acquired your project resources you should use project management software to plan how they’ll be allocated. That way you can coordinate them with your project schedule and distribute them across your team. In ProjectManager for instance, you can manage your project schedule, your team and your non-human resources in one place. Build your schedule on a Gantt and track your resource distribution, progress and labor costs in one software. Try it free today!

Allocate resources on the ProjectManager Gantt chart

3. Assess Your Current Resource Utilization & Resource Availability

Now that you’ve determined what resources are required for your project, you should also identify which of those resources are available within your organization. However, some existing resources might be being used for other projects, so it’s important that you not only identify which resources your organization has but also which of those are being utilized.

4. Create a Resource Allocation Plan

Take the information that you’ve gained from the above steps to put together a resource allocation plan. Outline the list of resources you’ll need for your project as well as the cost and quantity of each. When you’re finished, circle back to your project scope to make sure your plan aligns with it.

5. Keep Track of Your Project Resources

It’s a problem when you’re so focused on the process that you neglect to lift your head up from the resource allocation plan to note what’s actually happening. This isn’t merely tracking your estimates against actual progress in the project, though that’s important, too.

You should always be aware of the state of your resources. For example, what’s the schedule for your team, are any taking vacation time, are they sick, etc.? Also, what’s the duration of the lease for the site or equipment? These are important questions to ask when scheduling resources.

Don’t let any of these details get past you because of tunnel vision. Look at the whole project, not just the various pieces.

6. Use Resource Allocation Reports

You can reallocate if you don’t know where your resources are allocated. You might have planned them out well, but change happens in projects. How can you tell what’s happening on the ground compared to your plans? Project reports .

You can generate all sorts of reports to give you a full picture of the project and how it’s progressing, which helps you balance your resources. For example, resource reports give you an overview of your team’s workload and whether they’re over-tasked or idle.

ProjectManager's status report filter

Task reports keep you updated and variance reports help you determine whether the project is proceeding as planned. The latter gives you vital information, such as if you’re behind schedule and need to redistribute the work to get back on track.

Resource Planning Template

Now you’re ready to build a resource plan to help you manage your resource allocation. Our free resource planning template for Excel lists all the resources you’ll need for the project, how much each will cost and a monthly, weekly or daily chart of when you’ll need them.

resource planning template

Resource Allocation Methods

The specific resource allocation method that your organization implements depends on your industry and the nature of how resources are managed. For example, manufacturing companies might focus on raw materials and equipment while a professional services company might focus on team utilization and financial resources.

Regardless, it’s important to balance resource allocation with involved stakeholders . This could include teams, departments, customers, shareholders and other stakeholders. We’ve outlined some commonly utilized resource allocation methods for you to consider.

  • Critical Path Method: In project management, the longest chain of dependent tasks is referred to as the critical path . By outlining a straightforward priority for task completion before the project starts, the CPM helps use resources as efficiently as possible. However, one criticism is that this method doesn’t allow for multitasking.
  • Resource Leveling: To implement resource leveling , start by looking at the capacity of your team to determine how much work they can handle. Compare this with demand. If resources aren’t aligned with demand, reschedule tasks accordingly.
  • Resource Smoothing: Resource smoothing aims to reduce demand while executing the project within the ideal timeframe. During this method, the project manager makes adjustments to resource scheduling and allocation. For example, if you’re under a time crunch, you might bring on a more seasoned person who can complete the work faster.

Resource Allocation Tools

Now that we’ve explained some popular resource allocation methods, let’s examine some of the tools that project managers can use along the way.

  • Gantt Charts: Gantt charts provide an easy way to map the required project tasks and note dependencies. You’ll be able to see and allocate your resources across a project timeline, so you know exactly when you’ll need each resource. Once you’ve identified your tasks, you can assign them on the Gantt chart and see how long each team member has spent working on each task.
  • Resource Allocation Matrix: A resource allocation matrix is an overview of the needed project resources. It helps to identify any potential bottlenecks or imbalances ahead of time. Typically, the matrix includes the names and roles of each team member, their availability, and their skills and tasks on the project. It acts as a visual representation of your resources mapped against project tasks and activities.
  • Resource Breakdown Structure: This resource allocation tool is a hierarchical chart of the resources needed to execute your project and it includes everything from the people needed for the project to what you’ll be spending your money on. An RBS can include materials, equipment, people, project management tools and more.
  • Workload Charts: These charts visually represent your resource allocation for your project team, department or entire company. You can see how many hours each person has been assigned and make adjustments to ensure your team is working at capacity. Use it to quickly determine how your human resource management is aligning with your planned resource allocation.

Resource Allocation Example

Let’s say you’re a manager for an IT organization and you’re tasked with hiring an architect for an upcoming project. You know the importance of an architect position to the overall success of the project but you know that they’re usually an expensive hire.

You’ll need to consider if it makes more sense to hire an architect for a specific project or if you want to assign him or her to multiple projects . You can utilize resource allocation tools to determine what makes the most financial sense for your organization.

Resource Allocation Tips

Even though there may be blind spots when managing resources, there are some tips to keep in mind to help you allocate resources as effectively as possible.

1. Know Your Resource Dependencies

By planning beforehand, you can avoid bottlenecks that trap your resources when you need them most in the course of the project execution . Planning also helps you keep your resources from falling short. This doesn’t mean you won’t have a bottleneck or resource shortage, but it’s less likely if you know your resource dependencies.

Part of planning for dependencies is having a contingency plan in place in case team members are blocked or you run low on needed resources. Keep your plans from being over-dependent on one resource to avoid trouble down the line.

2. Track Time

You always want to keep a close eye on the time, how your team is working and if they’re being efficient. It’s your job to make sure that a task that can be completed in a day doesn’t take a week. There are ways to improve time tracking .

To do this, you must keep track of your team’s workload. That requires the right tools to give you real-time data collected on one page where you can both see and schedule ahead when needed.

3. Use Resource Allocation Tools

Project management software, like ProjectManager , is a great asset for managing your resources more productively. With an online tool, you get project data instantly updated.

You can see where your resources are allocated across a calendar that’s color-coded to note whether they’re on- or off-task, on vacation or sick. Rescheduling to help a team member who is overtasked is a simple click of the keyboard.

reallocate workload

Free Resource Allocation Templates

Resources allocation requires accurate and timely data to avoid bottlenecks that can slow down your project. Project management software is the most efficient way to manage your resources, but if you don’t have an online resource management tool there are templates that can help. ProjectManager has free project management templates for every phase of your project, including ones to help with resource allocation. Here are a few.

Requirement Gathering Template

Before you can allocate your resources, you need to understand what’s required. The free requirement gathering template for Word acts as a means of communication between the stakeholders and the project team. This ensures quality deliverables that meet specifications.

RACI Matrix Template

You’ll also need to organize your resources before you can properly allocate them. Our free RACI matrix template for Excel is a place where you can define the roles and responsibilities of the team members. RACI stands for responsible, accountable, consulted and informed, and the free template helps you place everyone involved in the project within one of those quadrants.

How to Allocate Resources With ProjectManager

ProjectManager is robust project management software with multiple tools that allow project managers to allocate project resources, track utilization and availability, control costs and deliver project success. Regardless of how you prefer to manage and schedule your resources, ProjectManager has the tools to help you every step of the way. Here are some of our most popular resource management features.

Schedule Resources With Multiple Planning Tools

Tools such as Gantt charts, kanban boards, task lists and project calendars allow you to allocate resources in multiple ways. Use online Gantt charts to create interactive project timelines that let you easily assign the needed resources for each project task or create task lists that make it easy to stay on track. In addition, ProjectManager’s workload charts help you plan and oversee each team member’s workload at a glance so you can keep your team working at capacity.

resource allocation and leveling in project management pdf

Track Costs With Project Dashboards & Timesheets

Once you’ve allocated your project resources, you’ll need to track their costs to ensure that you’re sticking to your budget. ProjectManager’s real-time dashboards make it easy to monitor costs, timelines and progress so nothing is overlooked. Use the dashboard to make timely updates and catch problems before they snowball. In addition, you can use our project timesheets to help you keep track of labor costs.

dashboard showing project metrics in real-time

Related Content

If you’re still interested in resource management, you’ve come to the right place. ProjectManager isn’t just superior software, it’s the online hub for all things project management. You not only get free templates but regular blog posts, thorough eBooks, whitepapers and more. Here’s a sample of that content as related to our topic.

  • Best Resource Management Software Rankings
  • Resource Management: Process, Tools & Techniques
  • Resource Planning: The Ultimate Guide
  • Resource Smoothing Steps, Templates and Tools
  • How to Track Resource Availability

If you’re looking for a project management tool that can help you implement those tips and manage your resources properly, then look no further. ProjectManager has all the features mentioned above to help you manage your resources, and it’s online software, which means the information you’re working with is in real time. See how it can help you by taking this free 30-day trial today!  

Click here to browse ProjectManager's free templates

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  • What is resource allocation? Learn how ...

What is resource allocation? Learn how to allocate resources

Julia Martins contributor headshot

Project managers and teams can struggle to make balanced resource allocation decisions, often opting for too much or too little. But the key to navigating this delicate balance is continuous adjustment and real-time responsiveness to project needs. This approach ensures that resources are optimally utilized, preventing both surplus and shortfall and steering towards project success with precision and efficiency.

When you think of the most important elements of project planning, what comes to mind? You probably think of the project’s main objectives, the timeline for achieving those objectives, and the scope of what you can accomplish within the project. 

But achieving any of these elements hinges on one thing: the resources available for your project. 

If you’ve never created a resource allocation plan before, this article is for you. We’ll walk you through five steps to allocate resources effectively. Then, get a preview of common resource allocation challenges and what you can do to get ahead of them.

What is resource allocation? 

Resource allocation is the process of identifying and assigning available resources to an initiative. Effective allocation of resources helps maximize the impact of project resources while still supporting your team’s goals. To create a resource allocation plan, identify the right resources—including team members, tools, budget, and more—you need to accomplish your project deliverables .

What is a resource? 

A resource is anything that helps you complete a project. This can include:

Team members

Project timelines

Ideas, intellectual property, or specific skill sets

Tools or software

Automated processes that reduce work about work

Who is responsible for allocating resources? 

The person responsible for resource allocation varies based on the size of your organization, but it’s usually the individual in charge of the project’s decision-making. For smaller companies, the project manager or team leader typically manages the budget, resource scheduling, and project work. 

Alternatively, at larger companies, the project manager and project budget owner are often different people. As a result, you may need approval from important project stakeholders or your project sponsor before allocating resources. 

If you aren’t sure who should be allocating resources, ask yourself these two questions and identify who is best equipped to answer them:

What is the budget, and who is approving it? You’ll need a budget for tools, technology, freelancers, and equipment. 

What are the team’s priorities, and who has time to work on this initiative? Before you allocate human resources, think through each team member’s capacity and priorities. How can you help team members do their best work and have the highest impact?

If you aren’t sure what’s on everyone’s plate, use a workload management tool to view team member capacity, get ahead of upcoming projects, and spot burnout before it happens. 

Benefits of resource allocation

Effective resource allocation is more than just a task; it's a strategic approach that can improve project management by ensuring resources are used efficiently and judiciously. This leads to better alignment of tasks with available resources, smoother workflows, and more effective handling of project constraints. 

As a result, projects are more likely to be completed on time, within budget, and to the desired quality standards, directly contributing to the overall success of the project.

Streamlined workflow: Proper allocation of resources leads to a more streamlined workflow . It ensures that each phase of the project aligns with the necessary project requirements, reducing delays and increasing efficiency.

Mitigation of bottlenecks: By anticipating and planning resource usage, bottlenecks can be identified and mitigated before they impact the project timeline. This proactive approach keeps projects on track, enhancing client satisfaction.

Simplified project management: Merging the use of dashboards with automation transcends traditional methods like spreadsheets. Dashboards provide a visual and intuitive overview of resource distribution and utilization, while automation streamlines the tracking and allocation process. This combination enhances overall project management efficiency, allowing for real-time adjustments and more informed decision-making.

Resource optimization: A well-crafted resource allocation strategy is key for project success. It ensures the best resources are utilized where they are most needed, aligning with the project's goals and timelines. By optimally using both physical and human resources, projects are more likely to meet their objectives and satisfy client expectations.

How to allocate resources effectively

An effective allocation strategy identifies the project’s goals and priorities and collects resources to fit your needs throughout the project's lifecycle. Resource allocation should be an early project consideration—ideally, aim to allocate resources during the project planning phase.  

1. Start with the end in mind

In order to understand your project’s priorities, how important it is, and how it should be resourced, you first need to outline the project’s objectives. This is the first step to any project. Project objectives are attainable, time-bound, specific goals you plan to achieve by the end of your project.

If you haven’t already, align on:

The project’s main goals and objectives

The project’s key deliverables

Relevant milestones

A high-level timeline or project roadmap

2. Identify available resources

In resource allocation, a resource is anything that helps you achieve your project objectives. Depending on your project’s needs, this includes the project team and any tools, budget, equipment, or skills you need to hit your project deliverables. 

Before you actually allocate resources, understand what’s available. There are a few dependencies to look out for, including:

What is the project’s priority level? This influences how it should be resourced. Is this an all-hands-on-deck project that’s contributing to a company OKR , or is it a lower priority initiative? Come up with an internal tier system for project priority to guide how you’ll staff each project. 

Who is available to work on this project? Take a look at your team’s capacity to understand what they’re working on. If this project is more important than their current work, try resource leveling . See if there’s anything you can deprioritize or reschedule to accommodate this new work. 

What budget or tools are available? Does this project have a budget? Are there additional tools you need to invest in or develop in order to complete this work? 

What additional resources do we need? Do you need any cross-functional team members to work on this project? Alternatively, are there unconventional resources—like very unique skill sets or new equipment—you need for this project to succeed?

Who needs to approve the resource allocation plan? If someone other than you is in charge of budget, tooling, or team workload, check in with them to make sure this resource allocation plan looks good. Are there any additional project stakeholders who need to be looped in during the resource allocation process? 

3. Align on project scope

To scope a new project, you first need to understand the project’s goals, deadlines, and project deliverables. This helps you get a sense of your project needs so you can hit your goals on time and on budget. 

A clear project scope also helps you avoid scope creep , which is what happens when the asks and deliverables exceed the pre-set project scope.

4. Create and share a project plan

Now that you have a sense of your available resources, surface that information to the larger team. Invite your project team to a project kickoff meeting , and share:

Your project plan

Relevant project milestones

The project schedule

Any task dependencies to keep an eye on

Track all of this work with work management software . It’s important for your project team to know which resources are available for this project—and also to have a central source of truth for this information in case it changes. With a centralized work management system, you can clarify project priorities so everyone understands the context of the work. That way, if something does change, you can reprioritize based on the highest-impact work. 

5. Monitor project progress

Once your project is underway, monitor project progress in case of any unexpected resource allocation developments. No matter how well planned your project is, things can change. Team members go on vacation, a client might be delayed in getting back to you, or your business goals might change. Track project progress in real time so you can adjust if necessary.

Common challenges of resource allocation

When done correctly, resource allocation can help you hit your goals, increase your impact, and maximize your resource utilization. You’ll get better at allocating resources as you go, but if you’re just getting started, here are some common challenges—and how to avoid them. 

Problem: Burnout and over-allocation

The biggest issue to avoid during resource allocation is overwork and burnout. Team members get overworked when they work too hard, too much, or too long. Prolonged overwork can lead to burnout, which the World Health Organization defines as an occupational phenomenon resulting from chronic workplace stress.

Without visibility into what everyone is working on—especially if you’re managing work across multiple projects —it’s easy to assume team members have the time and bandwidth to work on your specific project. This lack of clarity can lead to accidental over-allocation and, eventually, burnout.

To prevent overwork and burnout, proactively evaluate team members workload. With capacity planning , you can get ahead of burnout and make sure team members aren’t overwhelmed or underworked. This is critical because, according to the Anatomy of Work , 71% of knowledge workers reported experiencing burnout at least once in 2020. With proactive resource management software , you can promote balance—instead of burnout.

Problem: Resource dependencies

Sometimes, things change after you identify and allocate available resources. You might be waiting on a team member to finish a project before getting started on your initiative—but what happens if that project gets extended? 

Even the most effective resource allocation can’t predict every business contingency . To avoid unpleasant surprises, use resource management tools, such as project management software , to automate resource tracking in real-time. That way, you can immediately see resource shortages and project delays and pivot your own work accordingly. 

Problem: Low resource utilization

The average knowledge worker spends 60% of their time on “work about work”—things like searching for documents, chasing approvals, switching between apps, and following up on the status of work. That leaves only 40% of each day for skilled work and strategic planning . More often than not, we take this time-consuming “stuff” for granted as part of work, but it doesn’t have to be. That’s where resource utilization comes in. Resource utilization describes the percentage of a team member’s time that is spent on billable work or tasks that contribute to overall profitability.

High resource utilization isn’t about squeezing out the maximum amount of productivity from any given team member. Rather, the key to maximizing utilization is impact. When team members understand the relative priority between different tasks, they can spend their time where it’s most effective —and have the highest impact as a result.

Tips for effective resource allocation

Many teams that are new to making resource allocation decisions often struggle to identify and deploy the best resources in a manner that streamlines operations and keeps the project on its critical path . This can lead to bottlenecks and setbacks, potentially jeopardizing the success of the project. 

The following tips offer strategies to transform these initial stumbling blocks into stepping stones for a successful project.

Align location decisions with availability of resources

Deciding where to locate your project requires careful consideration of both its geographic requirements and the availability of resources . 

Consider a construction project where materials are sourced from the closest suppliers to reduce transit time and costs. To optimize their resource allocation strategy, the team could continually assess supply chain dynamics and foster relationships with local suppliers that can lead to quicker turnaround times and better material quality.

Such strategic location decisions not only ensure that resources are used where they are most needed but also aid in developing a more efficient project structure.

Leverage automation and project management tools

Incorporating automation into your resource allocation strategy can improve the management of project tasks and ensure smoother project progression and timely completion. 

For example, a software development team might use a tool like Asana to automate task assignments based on team members' current workload and expertise. Automation tools can help with scheduling, resource leveling , and identifying potential issues before they become problematic. 

By automating routine tasks, project managers can focus more on critical aspects of project management, such as client satisfaction and ensuring project success.

Use real-time data in decision-making

The foundation of effective resource allocation lies in harnessing real-time data . For instance, a marketing agency might use dashboards to monitor ongoing campaigns, adjusting team assignments and resources based on real-time performance metrics. 

Employing tools that provide insights into the work breakdown structure and relevant metrics , project managers can make adjustments that keep their resource allocation strategies on track.

Effective resource allocation leads to better projects

Resource allocation can help you set your project up for success from day one. Manage resource availability early during the resource planning process to know exactly what you can support and how you’ll hit your project goals.  

Resource allocation is crucial to reducing miscommunications and getting more work done, faster—especially when you can automate it. In Asana, you can identify resources, track and update them, and assign related tasks—all from one central platform.

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Table of Contents

What is resource leveling, when to use it, why is it important, how to select a resource leveling strategy in the real world, how can leveling resources help improve work-life balance for team members, how do resource allocation, resource leveling, and resource smoothing work together, resource leveling examples, common methods of resource leveling, resource leveling tools, resource leveling vs resource smoothing, become a project manager in 2023 , what is resource leveling [explained with examples].

What Is Resource Leveling? [Explained With Examples]

Project managers often turn to resource leveling to ensure that the timelines for any project can be correctly predicted and conflicts arising out of time, scope, or insufficient resources can be tackled early on without it snowballing into a huge problem, forcing employees to work overtime. Understanding what leveling resources is, its use, importance, and related information are vital to enhancing productivity and reducing burnout by eliminating over-allocation and minimizing the risk of resource burnout.

It is a technique in project management that resolves various conflicts, such as schedule conflicts or over or under-allocation of resources, to ensure that the available resources can be utilized to their fullest extent and the project gets completed at the earliest. 

Resource leveling is mainly done by setting realistic project deadlines by extending or curbing a project's start and finish dates. It helps maintain the project's cost while not forcing the employees to overwork.  

Resource leveling is used when the project might spread the resources too thin, or there might be a chance of over-allocation of resources. This technique is essential for maintaining a healthy work-life balance for the employees by evenly distributing work and creating a realistic working schedule for the project to finish on time.

Resource leveling is vital to understanding and creating realistic timelines for when the project can be completed by utilizing the available resources without creating budget issues, maintaining the quality of work, and avoiding project delays. Here are some reasons why this technique is important:

To Optimize Your Resources

It helps you assign tasks in a way that optimizes the resources. For example, it helps you assess the projects with a flexible deadline and can use a few employees to identify projects that require additional resources to complete the task on time.

To Minimize Deficits

It minimizes loss in labor and cost by managing the resource demand in a way that prevents delay of projects and does not exceed the cost and capacity of the company's financial resources.

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To Prevent Task Overloading

Resource leveling ensures that the overallocation of work is avoided. By adjusting deadlines, the project manager can resolve this and ensure that the team maintains its productivity.

To Ensure the Quality of a Project Output

By maintaining high team productivity, resource leveling prevents the downfall of the quality of the project and successfully manages client expectations for project deliverables.

Unexpected delays and other conflicts are a part of the real world and can crop up anytime without announcing their arrival. It can prevent such problems by adjusting the two most important variables - project deadlines and available resources. The correct strategy can help you optimize resources, extend deadlines, narrow the project scope , and garner more resources. Given below are four scenarios to help you understand where and how a resource-leveling strategy can be applied for the best possible outcome:

Scenario 1: Add More Resources and Extend the Deadline

Extended deadlines and additional resources can deliver the best work for high-quality projects. After meeting with the stakeholders and explaining that the initial project assumptions were insufficient, you can accommodate the additional resources by revisiting the resource allocation plans. 

Scenario 2: Add More Resources to Meet the Same Deadline

The crashing strategy will often help with projects where deadlines cannot be extended. You can bring in additional resources to divide the workload. One problem that might arise out of this is the lack of training for the new team members. Senior team members can train the newcomers, but this will take away from the time required to complete the work. Thus, to solve this issue, newcomers should only be allotted tasks that require the least effort.

Scenario 3: Use the Same Resources and Extend the Deadline

Stakeholders should be contacted at the earliest opportunity to approve the extended deadline for high workloads if possible. This method ensures no additional team members are required, and the existing resources get the time needed to complete the project without compromising the quality of the deliverables.

Scenario 4: Use the Same Resources to Meet the Same Deadline

When no additional members can be acquired, nor can deadlines be extended, the only way to complete the project on time is to remove all low-value tasks and focus only on the most important aspects of it. This way, you can reduce project scope and execute several tasks at once by all available resources working together to ensure the project is delivered on time.

Employees worldwide believe a healthy work-life balance is the most important attribute of any job. Statistics show resources have improved productivity - by 21% when they have a good work-life balance.

Not exceeding the regular working hours by providing buffer days to employees and breaking up chunks of large tasks into smaller subtasks, and dividing them among team members will make the workload lighter and the team members more efficient. This process is called resource smoothening. Buffer days are evenly distributed across all days and are advantageous since they provide extra time for solving unexpected problems, effectively reducing stress and overtime.

Resource smoothening coupled with leveling promoted improved work-life balance as the team works under regular working hours with an equal daily workload.

Project management can be efficiently optimized by combining resource allocation, smoothing and leveling.

When you allocate tasks to individual team members within their area of strength to ensure the work gets done by them, that is called resource allocation. 

By allotting daily buffers, resource smoothing helps distribute the workload evenly among the available resources.

Leveling resources promotes a balanced work-life ratio by ensuring no employees work more than the regular hours and do not exceed their limits. 

Resource allocation helps by mapping out the project and tackling budgeting, resource planning, and project outcome during the initial planning phase. It helps tackle any unforeseen problems that might arise during the project. Resource smoothening balances the high and low workload to ensure the resources do not exceed their limits.

Here are some examples of resource leveling:

Example one: Adjusting the start date

A graphic designer has been double-booked for a project and is unable to complete the project without working overtime. To ensure that the designer does not exceed his limits, the company decided to adjust the start date to two days later. However, as the designer is a fast worker, he maintained the quality of work, and the project completion date remained the same.

Example two: Obtaining additional resources 

An IT team has been trying to fix various virus-infected computers in a company. After realizing that the company software would not be able to handle the virus, the team invested in new anti-virus software to fix all the infected computers. 

Below are common resource leveling methods project managers use to tackle various project conflicts efficiently.

Critical Path Method

A common leveling technique, this method involves a visual mapping of the project's ' critical path ' to decide the start and end dates, dependency and duration, and so on. This method does not take resource limitations into account. Project managers use this technique to identify which task will require the longest to complete and manage such tasks efficiently to ensure no delay. 

It allows appropriate resources to be allocated to those tasks, and the project execution begins. If the team faces any unexpected problems, project managers might adjust resources to ensure the timely completion of the critical paths.

Critical Chain Management

The critical chain method is considered an advanced version of the critical path method as it considers the resource limitations that the critical path method does not. This technique considers the resource dependencies as well as the task. The 'critical chain' here refers to the task with the longest path. In this method, only one task can simultaneously be assigned to a resource. 

Projects are scheduled according to the required resources for the tasks, and their availability is reassessed if and when needed.

This method also uses a buffer period to ensure the project is not delayed. It is placed right before the completion date, after the last task, to round up any incomplete tasks.

Fast-Tracking

When multiple tasks are run parallelly to deliver the project on or before the deadline, that is called fast-tracking. Only up to a certain extent can activities be overlapped with one another. Parallel activities could be those without dependency, and the ones with dependencies could be staggered.

Project Crashing

When a project timeline is too short to be completed by the available resources, additional resources are allocated to complete the tasks on time. This technique is used when fast-tracking fails, and the project manager assesses high-priority tasks and allocates resources that would provide high value at the lowest cost.

Successful leveling is often achieved after some experience; here are tools you can use to help you expertly execute projects till then.

Use Gantt Charts

This visual bar chart maps a project schedule and is used for identifying and planning the critical path that can be rearranged later. It helps provide an overview of the project duration, start and end dates, and task dependencies.

Leverage Project Management Software

Allocation conflicts can be easily resolved using project management software with an additional resource leveling algorithm that could give an insight into the team member's schedules, thereby preventing double booking or schedule conflicts. 

Draw Network Diagrams

A chart can be created called a network diagram which will chronologically show the tasks assigned with a series of boxes and arrows. It is often used to identify the critical and non-critical paths of the project schedule and track the project's progress. 

Use Previous Projects as a Reference

Learning from past projects and using them as a reference for upcoming projects will help me plan the schedule better and more efficiently.   

Make Realistic Estimations of Resource Needs

Defining the resource estimates and project scope helps with future resource leveling efforts.

Leveling focuses on resource availability, while resource smoothening focuses on time constraints. They prioritize different aspects of a project. Resource leveling can fix an overallocation conflict by moving the start and end dates of the project. In contrast, resource smoothening is used for uneven resource allocation without changing the project deadline.

Resource smoothening is applied to even out the project schedule after resource leveling has fixed the overallocation problem.

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Resource Leveling: Benefits, Techniques, and Examples

Rafael Timbó

Table of Contents

Proper resource allocation is essential for project success. Project managers who cannot properly distribute resources such as work time, skill sets, equipment, and materials put their teams at a severe disadvantage. Resource leveling is one resource optimization technique that helps tech teams achieve maximum productivity.

Resource leveling allows project managers to adjust project timelines and resources. Project managers, including Certified Project Management Professionals (PMPs), use this technique to prevent employee burnout, optimize resource availability, and create feasible project plans that flexibly maintain high quality. 

This article will help project managers better understand resource leveling and how to utilize it to improve tech projects. It also provides techniques, examples, and tools that assist in proper implementation. 

What Is Resource Leveling?

Resource leveling in project management is a technique that addresses possible resource constraints affecting a project’s timeline. This type of project and resource planning balances time, tools, and materials so project managers can allocate them most effectively. Project managers who effectively employ this technique create more manageable workloads for team members and improve overall project efficacy. Effective utilization of resource leveling is critical in complex technical projects with limited resources or time constraints to ensure the effective distribution of specialized tech skills.

To perform resource leveling, project managers detect where development teams may use resources more effectively and make necessary adjustments. The approach helps project managers overseeing tech teams better coordinate engineers, equipment, and tools for successful execution. Project managers also use it to ensure that a project’s schedule doesn’t overwork team members or overburden developers with specialized skill sets.

When to Use Resource Leveling

Project managers must plan appropriately to avoid the negative impacts of resource constraints and budget limitations and use their employees' specialized skills wisely. Managers leverage project resource leveling when they identify that limited resources are causing team members to be overworked or necessary resources to be inaccessible. This technique is especially useful when project timelines are strict, and problems with resource distribution may lead to bottlenecks.

Tech projects often face sudden shifts in priorities, changes in project requirements, and alterations in timelines. Project managers who employ resource leveling techniques utilize flexibility to optimize team performance, reassess necessary resource distribution, and avoid unwanted side effects. 

Why Is It Important?

Utilizing resource leveling before the project starts preemptively solves many potential resource conflicts that a team of software developers may encounter. In addition, resource leveling improves work conditions in a variety of ways. Properly balanced schedules improve employee teamwork, focus, and work-life balance, increasing job satisfaction and better employee retention .

Project managers who implement resource leveling also facilitate realistic scheduling. Team members will find deadlines more feasible by considering all of the resources and details and making educated decisions to establish a relevant timeline. Efficient resource leveling also reduces project costs while offering flexibility to shift priorities if issues arise in other projects.

Failing to utilize resource leveling to its full potential hampers projects and causes significant adverse impacts. An over- or under-allocation of resources may lead to low-quality work and project delays. Overworking employees often decimates team morale and productivity, leading to high employee turnover . Inflexible approaches also make it more difficult to reallocate resources, skills, and time when a crisis occurs. 

Examples of Resource Leveling

Implementing resource leveling before initiating a new project is important to allocating resources appropriately, cutting costs, and promoting adaptability. Team members can also maintain a healthy work-life balance that ensures maximum output. There are several methods project managers employ to implement resource leveling effectively.

Deadline adjustment

If a tech team is working with a limited amount of developers or equipment, a deadline adjustment is an appropriate form of resource leveling. Asking employees to work overtime or finish tasks in less time often leads to burnout and overly cumbersome code reviews . If stakeholders cannot provide additional resources or developers to complete the project as initially planned on an end date, it is best to adjust the deadline to retain employees and ensure high-quality results.

Task prioritization

Correctly determining task dependencies in the planning phase significantly streamlines a project’s workflow and date of completion. Project managers must decide which tasks developers should prioritize based on urgency and importance. Assigning a balanced workload across the team will allow for completing critical tasks on time while facilitating the development of dependent, less critical tasks.

Cross-skill Training

Tech teams that invest in cross-skill development for team members see increased versatility and expansion of available resources. Training developers to perform other duties, such as a front-end developer learning database management, will make that developer more versatile and able to fill more roles. Tech teams that embrace cross-skill training will reduce potential costs, as hiring additional workers to perform specific skill sets becomes unnecessary. 

Resource Leveling vs. Resource Smoothing

Resource leveling and resource smoothing are two distinct project management techniques. Still, project managers use them together to maximize effectiveness. Resource leveling mainly works to prevent the over-allocation of resources and allows project managers to adjust the timeline to meet the availability of resources.

Resource smoothing is a technique that takes place when project managers do not have the option to adjust a project’s timeline and must finish by the project completion date. Because resource smoothing does not allow an adjustment to the timeframe, project managers must optimize resource demand within the time constraints. Resource smoothing involves dividing tasks into smaller subtasks among team members. 

Choosing the optimal technique depends largely on the flexibility of the project's deadline. Projects with limited resources but the ability to extend the deadline will benefit from resource leveling. Resource smoothing is best for projects with fixed deadlines but flexibility with resources.

Resource Management Techniques 

For maximum efficiency and flexibility, project managers should be able to employ various resource management techniques depending on the state of the project. All resource leveling techniques involve adjusting schedules and resource allocation; however, different methods attack the problem from different angles. 

Critical Path Method (CPM)

A popular resource management technique is CPM. Project managers use CPM to plan, schedule, and monitor projects without considering the availability of resources. CPM improves a project’s workflow by mapping out a project’s tasks in the best sequence to find the shortest project duration. 

CPM requires project managers to break the project into manageable tasks before sequencing them based on their dependencies. Once the manager determines an estimated time duration for each task, they use the diagram of tasks to determine the most efficient path for completing the project in the shortest time span. This is called the critical path. With the critical path identified, the project manager determines start and finish times for each task and any outputs and deliverables needed for the project to run smoothly.

Critical chain management

Whereas CPM focuses on the time it will take to complete a project, critical chain management is a method of managing a project centered around available resources. The critical chain is the longest possible sequence of dependent tasks after considering resource constraints. When determining the critical chain, the project manager only allocates resources to a single task at a time and includes buffers so the project completion date remains unaffected despite any unexpected problems. Critical chain management is a way for project managers to optimize resource allocation and reduce bottlenecks caused by resource constraints. 

Fast-tracking

Fast-tracking is a resource management technique that project managers use when clients suddenly push deadlines forward. Fast-tracking involves compressing a project’s timeline and executing multiple tasks concurrently to speed up the workflow. For fast-tracking to work effectively, project managers must identify which activities don’t have dependencies and overlap. While this resource management technique can speed up the duration of a project, it can also lead to higher costs due to team members working overtime and securing additional resources.

Resource Leveling Tools

Resource leveling tools are software applications that project managers use to balance team workloads and resource allocation effectively. Each tool offers different advantages that benefit specific projects. However, resource leveling tools may cause delays for teams that are new to them. Integrating them with existing systems may also add complexity to workflows. 

One prominent resource leveling tool is project management software. Project management software provides solutions that allow managers to visualize project timelines, tasks, and resource assignments. This cuts down overscheduling or double-booking of team members and reduces resource misappropriation. Some project management software includes real-time insights, providing automatic adjustment suggestions or manual realignment of tasks. Popular types of management software include:

  • Agile project management tools: Agile project management tools support the Agile methodology approach, which involves segmenting projects into steps. The approach emphasizes collaboration, adaptability, and a rapid response to changes. These tools utilize backlogs, visual aids, and boards to prioritize and track progress. Agile project management tools also incorporate feedback to improve projects. Famous examples of Agile project management tools include Jira and Trello.
  • Time-tracking tools: These software applications record and analyze how long teams or team members spend on individual tasks and projects. This data helps project managers improve team productivity , manage workloads, and ensure accurate billing. Common time-tracking tools include Toggl Track and Time Doctor.
  • Resource scheduling tools: Resource scheduling tools are software applications that allocate resources to optimize a project’s efficiency. Teams utilize this tool to track resource usage, coordinate meeting rooms, and allocate equipment as needed. Resource scheduling tools often include real-time visibility of available resources to prevent overbooking conflicts. Popular examples of resource scheduling tools include Smartsheet and Float.

Find Project Managers for Your Dev Team

Resource leveling is an important technique that significantly improves the quality and efficiency of your development team’s projects. Ensuring that your employees are productive but not overworked while meeting project completion dates depends on the project manager’s ability to utilize resource leveling effectively. However, finding a qualified and effective resource leveling PMP is often challenging. 

At Revelo, we help businesses find the best project managers and developers for their tech projects. We rigorously vet our pool of highly skilled candidates for technical skills, soft skills, and English proficiency. We also handle onboarding, including payroll, benefits administration, taxes, and local compliance, and offer support throughout the developer or project manager’s time at your company. 

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What Is Resource Allocation In Project Management?

Jitesh Patil

Resource allocation in project management deals with finding and assigning the right resources to the right tasks at the right time. Allocating the right resources at the right time could be the difference between project success and failure.

No wonder, according to this Wellingtone report , resource management is the third biggest challenge for project managers.

Resource management is one of the top project management challenges.

In this article, you’ll learn:

  • What resource allocation in project management is
  • Who’s responsible for allocating resources
  • Why is it important
  • The resource allocation process
  • And common resource allocation challenges faced by project managers

Ready to dive in and deliver successful projects, stress-free?

Let’s get started.

What is resource allocation in project management?

Resource allocation is a process in project management that helps project managers identify the right resources, and assign them to project tasks in order to meet project objectives.

Project resources can be material, equipment, financial, or human resources.

Typically, resource allocation is done during the early stages of a project’s lifecycle. Specifically, it’s a step in resource planning , which, in turn, is a step in the project planning phase in project management.

A project manager needs to consider the following factors during resource allocation:

  • Skills: the skills that can help achieve the project objectives
  • Capacity: the number of theoretical hours a resource can work during the project schedule
  • Availability: the number of available resource hours, after excluding time off and culture hours from capacity
  • Utilization: the number of productive hours a resource can put in, typically 80% of available hours

Resource planning tools make it easy to identify available resources and allocate them to a project.

Who is responsible for allocating resources in project management?

A project manager is responsible for resource allocation in project management. In larger organizations, resource managers are responsible to allocate resources from the resource pool.

Before a project manager resource planning and allocation, they must:

  • Get a sign-off on the project scope.
  • Identify all critical project tasks using Work Breakdown Structure ( WBS ).
  • Create a project schedule and a project timeline .

During resource allocation, the project manager must work closely with:

  • project stakeholders, including the customers and the project team members
  • other project managers, in cases where multiple projects share the same resources
  • identified resources to determine if their capacity and availability are in line with project objectives

Large organizations often have dedicated resource management teams. In such cases, the project manager needs to work closely with resource managers to ensure that resource requirements are met.

Why is resource allocation important in project management?

The benefits of following the right resource allocation process in project management include:

Efficient resource utilization

Assigning resources the right way ensures that limited resources are used in the best possible way to achieve the project’s goals. It helps make the most effective use of the team’s capacity among different projects and tasks.

Mitigate resource risks

Proper allocation of resources helps identify resource constraints that can cause project delays. It enables managers to anticipate potential risks and take remedial measures. Thus improving the chances of project success.

Reduces scheduling conflicts

Time off and shared resources across multiple projects often result in scheduling conflicts. Planned resource scheduling ensures that the project timelines don’t conflict with resource availability. In addition, it takes care to minimize resource dependencies while ensuring that the project stays on track.

Improved cost management

Deliberate resource allocation helps project managers track progress, and manage resource costs, which leads to better cost management. As a result, it reduces the possibility of the project budget going overboard.

Better project outcomes

Effective resource management leads to fewer project failures. When the right resources are assigned to the right tasks, it results in better project outcomes. As a result, project goals are met within the timeline and budget.

Improved project team productivity

Done right, resource assignment ensures optimum resources are allocated and avoid overallocation. This, in turn, prevents overwork, stress, and burnout. As a result, team productivity improves.

3 resource allocation strategies in project management

A resource allocation strategy is a method by which a project manager ensures the right resources are assigned to a project and its tasks. Three popular resource allocation strategies include:

Critical Path Method (CPM)

Using this resource allocation strategy, a project manager identifies tasks that cannot be delayed without delaying the project schedule. Then the project manager prioritizes the best available resources for these critical tasks.

The biggest advantage of CPM is that it ensures the project’s time constraints are met.

However, it does not allow multi-tasking. As a result, while time constraints are met, resources need to be allocated for a longer duration than necessary.

Critical Chain Method (CCM)

The Critical Chain Method is a newer resource allocation technique. Its focuses on resource constraints instead of time constraints like in CPM.

Considering resource availability and constraints, a buffer time is added to the initial project estimate . This allows project teams enough time to complete the project on time.

Some managers use CCM along with CPM.

Resource leveling and smoothing

Things don’t always go according to the resource allocation plan—An emergency means a team member is no longer available. A task takes much longer than estimated. Or something else happens that throws your project timeline off.

In such situations, a project manager can do little else but change the initial project plans.

In resource leveling, a project manager changes the project schedule, including the start and end dates, to account for resource availability.

However, that’s not possible with all projects. In such cases, the project manager uses resource smoothing—They change the resource schedule and allocation plan, or in extreme cases, bring in more resources.

How to allocate project resources effectively?

The project resource allocation process involves identifying and assigning the necessary resources to complete a project successfully. Here are the steps involved:

Step 1: Identify project requirements

Start by identifying the project requirements , including the scope, objectives, and deliverables. This is the first step to identifying resource requirements.

Step 2: Map out the project schedule on a timeline

Next, identify the major tasks needed to complete the project. The Work Breakdown Structure, or WBS in short, is a reliable framework for breaking down a project into deliverables and tasks.

Once you know all the tasks, identify dependencies and estimate how long each task will take.

Based on the estimates and the project requirements, make a project schedule and map it on a timeline.

This may seem like a lot of work. But, creating a project timeline with Toggl Plan is really easy. You can import all your tasks in a CSV file and then simply drag and drop the imported tasks to create a beautiful-looking timeline.

Toggl Plan's Project Timeline makes it easy quickly create a visual project schedule.

Step 3: Define resource requirements

Now that you know what tasks must be done to deliver the project, you’re ready to define the resource requirements.

You need to identify both, the quality and quantity of resources needed. The quality of human resources can be judged based on skills, experience, and certifications. While quantity simply means the number of people or other resources needed to deliver a task or a project.

Step 4: Allocate resources

Armed with the information in the first three steps, you’re now ready to dip into the resource pool. The resource pool is where you’ll find all the available resources within your company.

For effective resource allocation, look out for resources that:

  • Aren’t on other assignments,
  • Aren’t on an absence such as a holiday,
  • And meet any time zone restrictions the project may have.

Some team members (for example, designers in a web design agency) often work on multiple projects at the same time. In such cases, you want to reevaluate resource availability based on their allocation to other projects.

Just like the Project timeline, Toggl Plan also has a team timeline .

This makes it really easy to identify available resources. On the team timeline, you can see what each team member’s schedule looks like, across projects and their time off plans.

Get a quick overview of resource availability across projects using Toggl Plan's Team Timeline.

Step 5: Monitor resource utilization

In spite of all the planning, things could still go wrong. Project scope changes, emergency time off, or task delays can throw your best project resource plan off.

That’s why you must constantly monitor resource utilization to identify over or under-utilized resources. Monitoring helps you:

  • Release unused or under-allocated resources
  • Use resource leveling or smoothing to get over the resource crunch

It also helps to have a backup resource allocation plan when nothing else works. For example, you could hire freelancers or outsource work to partners.

Today, most project management software comes with features to track resource utilization. Alternatively, you can use a resource loading chart.

Common resource allocation challenges and solutions

We live in a world where change is constant. And, to deliver projects on time, you need to adapt your plan constantly. That’s what makes resource allocation so difficult.

Here are some common problems that can trip you.

Changes in project scope

Workloads can change at any moment. Scope changes will undoubtedly lead to your resource requirements changing, so you need a resource allocation plan that’s flexible.

Solution: Fully assess scope changes before they’re approved. Then identify if the current resource allocations remain sufficient or whether changes are required.

Changes in resource availability

Resource allocation is rarely static and there are many scenarios that bring changes. Whether that’s a team member off sick or a late supplier delivery, try to factor contingency into the resource allocation process.

Solution: When building your initial project plan, try to factor in some resource contingency. This will give you room to maneuver for minor changes. If the consequence is major, take immediate action to source replacements.

Task delays

No piece of work is without its dependencies. That’s why a delay in one task has a cascading effect on other tasks, sometimes across projects. Because of this, you lose your resource availability window.

Solution: When building your initial project plan, identify key dependencies and make contingency plans for those resources.

Level up your project management with efficient resource allocation

Every one in four projects fails, because of resource dependencies.

Understanding how to allocate resources and planning project resources can be the difference between a successful and a failed project. That’s why resource allocation becomes so critical.

Also, allocating resources is not a one-time planning phase activity. Situations change. And, that’s why the need to monitor your resource plans continuously.

Toggl Plan is a beautifully simple project planning tool that can help you manage your resources and deliver a project on time.

Sign up for a free 14-day trial account .

Jitesh Patil

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  1. Resource Allocation in Project Management

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  2. Resource Leveling: How to Optimize Resource Allocation and Utilization

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  3. (PDF) Resource Allocation and Leveling in Construction Management

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  4. Resource Planning in Project Management: How to make it work (Update 2020)

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  5. Resource Allocation in Project Management: an Ultimate Guide

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  6. Difference between Resource Leveling and Resource Smoothing

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  1. #131 CHSL 2021 How to fill Division/Cadre Allocation Form

  2. Project Management 2

  3. Mastering Project Schedule Management: A Comprehensive Guide to Timely Success

  4. 05 Project Management Resource Leveling HQ

  5. Resource Management II: Resource Leveling Process

  6. PROJECT MANAGEMENT RESOURCE LOADING & LEVELING UNIT-4 TOPIC 2 & 3 #RESOURCELOADINGLEVELING

COMMENTS

  1. PDF Project Resource Allocation

    Chapter 9 Project Resource Allocation Critical Questions What is the importance of resource in project? What is the different between resource allocation and leveling? What is the limited resource problem? What are the heuristics used in allocation of resources? What is the well-established Weist's procedure for resource leveling?

  2. A complete guide to the fundamentals of resource leveling

    Resource leveling is a resource management technique that can help teams better accommodate resource constraints and predict project timelines. It helps avoid poor project planning that often leads to last-minute delays, overworked team members, and cost overruns. Resource leveling should be a part of every project manager's toolkit.

  3. What is resource leveling? (Techniques and examples)

    Resource leveling is a project management technique that involves resolving overallocation or scheduling conflicts to ensure a project can be completed with the available resources. Resources include the time, materials, or tools needed to complete a project.

  4. Fundamentals of scheduling & resource leveling

    Fundamentals of scheduling & resource leveling. Paper presented at PMI® Global Congress 2006—North America, Seattle, WA. Newtown Square, PA: Project Management Institute. Introduction Developing a good schedule for managing the execution of a project is paramount to good project management practice.

  5. (PDF) Resource Allocation and Leveling in Construction Management

    Resource allocation and leveling in construction management projects have been an enthusiastic subject to plenty of researchers since the advancement of the scheduling techniques. Many...

  6. PDF Allocate and Level Project Resources

    Resource Levelling: Defined n o e e e Resource leveling is a technique used to examine unbalanced use of resources (usually people or equipment) over time, and for resolving over-allocations or conflictsresulting from scheduling certain tasks simultaneously.Such conflicts are:

  7. (PDF) Analyzing Resource Allocation and Levelling in ...

    Analyzing Resource Allocation and Levelling in construction Projects. American Journal of Engineering Research 11 (4):108-117. Authors: Mohamed Hussein Hegazy. The British University in Egypt ...

  8. PDF Analyzing Resource Allocation and Levelling in construction Projects

    Apply resource-leveling on the same project using the minimum moment method. ... Poor management of resources can result in unwanted circumstances that could be related to time overruns, and cost overruns. Hence, proper allocation and leveling of resources can be significant in ensuring the success of construction projects.

  9. PDF Optimization of Resource Allocation in Project Planning

    phase in project management, that is, the problem of optimum resource leveling in the project schedule. The optimization problem involves formulating the predecessor-successor relations of activities in a suitable analytic form and associating an objective function, hopefully of additive type. In order to state the

  10. Project Resource Allocation

    9.1 Importance of Resource Allocation and Leveling in Project Management. In project management, the scheduling of activities and the resources required by them, considering their availability, project duration, and the organization's strategic goals, is defined as resource allocation. It allocates fixed resources to all the available ...

  11. Resource Allocation in Project Management: an Ultimate Guide

    Resource allocation in project management is the process of assigning and distributing resources to various tasks and activities within a project. The goal of this process is to ensure that the right resources are available at the right time to complete project tasks effectively and manage possible constraints.

  12. PDF Resource planning and resource allocation in the construction ...

    Resourcelevelingisanattempt toproject activitiesin a manner thatwill improve productivity and efficiency. Thisreport will present anoverview on resourceplanning and resource leveling.

  13. PDF Resource allocation in IT projects: using schedule optimization

    resource allocation. Project managers in the company often found that they had IT developers who were often over scheduled even though a sophisticated commercial project management program was used to plan, assign and track activities in a large number of concurrent projects. The company asked us to assist them with solving the problem, and

  14. [PDF] Resource Allocation and Leveling in Construction Management

    The study presents a solution of the levelling and allocation problems for projects that have some uncertain activities that are defined by uncertain activity durations based on a proposed heuristic algorithm with limited duration. PDF Autonomous Resource Management in Construction Companies Using Deep Reinforcement Learning Based on IoT

  15. What Is Resource Allocation? How to Allocate Resources for Projects

    Download Excel File Resource Allocation Process: How to Allocate Project Resources Resource allocation is a plan that you develop with the aim of making the most of the available resources at your disposal in a project, which makes it a critical resource planning activity.

  16. Resource Management Strategies for Effective Project Scheduling

    07 Resource Allocation Leveling - Free download as PDF File (.pdf), Text File (.txt) or read online for free. Resource Management: Resource Allocation and Leveling COSC 621 Advanced Construction Project Scheduling and Management.

  17. What is Resource Allocation? Importance & Challenges

    Resource allocation is all about identifying and scheduling resources on various activities across your project (s) to achieve your project goals. Resources in project management refer to anything you require to complete the project, including tools, equipment, facilities, or funding. On most digital projects, however, the key resources are ...

  18. What is resource allocation? Learn how to allocate resources

    Resource allocation is the process of identifying and assigning available resources to an initiative. Effective allocation of resources helps maximize the impact of project resources while still supporting your team's goals. To create a resource allocation plan, identify the right resources—including team members, tools, budget, and more ...

  19. What is Resource Leveling? [Explained With Examples]

    By Simplilearn Last updated on May 24, 2023 5700 Project managers often turn to resource leveling to ensure that the timelines for any project can be correctly predicted and conflicts arising out of time, scope, or insufficient resources can be tackled early on without it snowballing into a huge problem, forcing employees to work overtime.

  20. (PDF) Resource allocation problem in project management

    Resource allocation problems in project management are notoriously complex. Therefore the development of efficient algorithms for solving various specific cases is a real problem. This paper shows ...

  21. Resource Leveling in Project Management

    Resource leveling in project management is a technique that addresses possible resource constraints affecting a project's timeline. This type of project and resource planning balances time, tools, and materials so project managers can allocate them most effectively. Project managers who effectively employ this technique create more manageable ...

  22. What Is Resource Allocation In Project Management?

    Resource allocation is a process in project management that helps project managers identify the right resources, and assign them to project tasks in order to meet project objectives. Project resources can be material, equipment, financial, or human resources. Typically, resource allocation is done during the early stages of a project's lifecycle.

  23. Resource Allocation and Resource Leveling

    Resource Leveling Materials Management Chapter 6 Exercises. Skip to Article Content; Skip to Article Information; Search within. Search term. Advanced Search Citation Search. Search term. Advanced Search ... Resource Allocation and Resource Leveling. Saleh Mubarak, Search for more papers by this author.

  24. (PDF) Resource Management In Construction Project

    Download full-text PDF Read full-text. ... duration after resource allocation and leveling for 100 generations. ... In a construction project, resource management is one of the main challenges ...

  25. GMS 450 Midterm (pdf)

    GMS 450 Midterm. Module one What is a project Interrelated set of activities with a definite start and end point which results in a unique outcome for a specific allocation of resources What is PMI Project management institute Provides services such as - Research and education - Hosting conferences and training seminars - Networking ...