Resource Allocation

and Resource Leveling

6
9/11/16

Nabil Dmaidi
University

Najah

CATEGORIES OF RESOURCES
Labor
Materials
Equipments.

9/11/16

Nabil Dmaidi
University

Najah

Labor
1. Salaried staff: like-project engineer,
secretary.
2. Hourly workers: like-carpenters.

Equipment and Materials

1. Construction equipment and materials
2. Installed equipment and materials

9/11/16

Nabil Dmaidi
University

Najah

What is resource allocation?

Resource allocation(resource loading) :
Is the assignment of the required resources
to each activity, in the required amount and
timing.

What Is Resource Leveling?

Is minimizing the fluctuations in day-to-day

resource use throughout the project.
It is usually done by shifting noncritical
activities within their available float. It
attempts to make the daily use of a certain
Nabil Dmaidi
Najah
resource
as uniform
as possible.
9/11/16
University

Why level Resources?

1. When the contractor adds the daily total
demand for a specific resource for all activities
he must provide the required amount, or work
will be delayed.
2. Leveling may also be necessary for an
expensive piece of equipment.
3. The main idea of resource leveling is to
improve work efficiency and minimize cost
during the life of the project.
Note: In general, materials do not need to be
Nabil Dmaidi
Najah
9/11/16
leveled
University

Resourc
e need

Resource Profiles

Actual, not
leveled

Leveled,
realistic

9/11/16

Nabil Dmaidi
University

Idea
l

Najah

Time

Sort

Sort : the process of arranging

activities in a list to certain
specific order.

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Nabil Dmaidi
University

Najah

Priorities & Sorts

The activities making up the network must
be listed in order of their priority of
resources allocation.
The network shows the logical sequence of
activities. (predecessor and successor).
The listing of activities must therefore
reflects the dependency of some activities .

9/11/16

Nabil Dmaidi
University

Najah

Activities Sort
Resource
unit

TF

ES

Duration

Activity

8H

9H

7H

5H

11

4H

8H

16

2H

11

4H

20

Activity sort reflects the logic sequence of the network.

9/11/16

Nabil Dmaidi
University

Najah

Major Sort
Resource
unit

TF

ES

Duration

Activity

8H

9H

7H

4H

2H

11

5H

11

8H

16

4H

20

Activity sort with ES time asNabil

Major
sort
Dmaidi
9/11/16

University

Najah

10

Major & Minor Sorts

Resource
unit

TF

ES

Duration

Activity

8H

9H

7H

4H

5H

11

2H

11

8H

16

4H

20

Activity sort with ES time as Major sort & TF as Minor Sort

9/11/16

Nabil Dmaidi
University

Najah

11

Allocated resources
8H

A
9H 9H 9H 9H 9H 9H 9H 9H 9H

Activity

B
7H 7H 7H 7H 7H

C
4H 4H 4H 4H

E
5H 5H 5H 5H 5H

D
2H 2H 2H 2H 2H 2H

8H 8H 8H 8H

F
4H

H
9/11/16

Nabil
8 Dmaidi
10
University

Time

Najah
12

14

16

18

20

12

Time
10

12

14

16

18

20

8H

A
9H 9H 9H 9H 9H 9H 9H 9H 9H

B
7H 7H 7H 7H 7H

Activity

C
4H 4H 4H 4H

E
5H 5H 5H 5H 5H

D
G

2H 2H 2H 2H 2H 2H
8H 8H 8H 8H

F
4H

H
Total Labor
9/11/16

8 16 16 16 16 16 1313 13 13 7

7 7

7 10 8

Dmaidi
Najahaggregation
EarlyNabil
start
resources
University

8 8 4
13

Resource Aggregation
Resources aggregation: is a summation of
the resources that are used to carry out the
program on a time period basis. For example,
day to day , or week to week.

9/11/16

Nabil Dmaidi
University

Najah

14

Total Labor

8 16 16 16 16 16 1313 13 13 7

7 7

7 10 8

8 8 4

Labor

16
14
12
10
8
6
4
2
2
9/11/16

4
6
12
8
10
14
16
18
Nabil Dmaidi
Najah
Early start resources aggregation
diagram (Histogram)
University

20
Time
15 15

Late start
Another histogram can be obtained if
Late start considered. Shows different
resources demand.
And many histograms can be obtained
considering a different time in the
network.
Each histogram shows different
resources demand.
9/11/16

Nabil Dmaidi
University

Najah

16

late Start Sorts

Resource
unit

TF

LS

Duration

Activity

8H

9H

7H

4H

10

5H

11

2H

14

8H

16

4H

20

Activity sort with LS time as Major sort & TF as Minor Sort

9/11/16

Nabil Dmaidi
University

Najah

17

Time
2

12

10

14

16

18

20

8H

A
9H 9H 9H 9H 9H 9H 9H 9H 9H

B
7H 7H 7H 7H 7H

Activity

4H 4H 4H 4H

E
5H 5H 5H 5H 5H

2H 2H 2H 2H 2H 2H

8H 8H 8H 8H

4H

Total Labor
9/11/16

8 9 9

9 16 16 1616 16 13 9
Late

9 7

Nabil Dmaidi
Najah
University
start resources aggregation

7 10 10 10 10 4
18

Total Labor

8 9 9

9 16 16 1616 16 13 9

9 7

7 10 10 10 10 4

Labor

16
14
12
10
8
6
4
2
2
9/11/16

10

Nabil Dmaidi

12
Najah

14

16

18

Late start resources aggregation

University
diagram (Histogram)

20
19
Time

Total Labor

8 9 9

9 16 16 1616 16 13 9

9 7

7 10 10 10 10 4

Labor

16
14
12
10
8
6
4
2
2

10

12

14

16

18

20
Time
Nabil Dmaidi
Najah
9/11/16
20
Early start vs Late start resources
University
aggregation diagram (Histogram)20

Total Labor

8 9 9

9 16 16 1616 16 13 9

9 7

7 10 10 10 10 4

Labor

16
14
12
10
8
6
4
2
2

10

12

14

16

18

20
Nabil Dmaidi
Najah
9/11/16
21
21Time
Early start vs Late start resources
University
aggregation diagram (Histogram)

Example

10

6 0 0

F
13

10 0 6 16

13 0 6 19

16

12

11 0 0 11

11

I
17

A
1

16

16 6 6 22

B
6

11

Dur. LS

EF9/11/16
FF TF LF

6 6 22

22

11

14 0 0 14

22

24 0 0 24

J
12

14

8 0 6 14
ES

19

D
6

14

22 0 0 22

H
16
6
Nabil8 Dmaidi
University
14 8 8 22

Najah

22

Activities Sort

Activity
9/11/16

Resource
unit

TF

ES

Duration

Activity

8H

2H

4H

9H

5H

5H

10

2H

11

8H

11

5H

13

2H

14

6H

22

Dmaidi
Najah
sort with ES time asNabil
Major
sort & TF
and duration as Minor Sorts23
University

2
A

Time
8
10

12

14

16

20

22

24

8H 8H 8H 8H 8H

2H 2H 2H 2H 2H

4H 4H

9H 9H
9H
9H 9H 9H
9H

5H 5H 5H

5H 5H 5H

5H 5H 5H

5H 5H 5H

2H 2H 2H

8H 8H

5H 5H 5H

2H 2H 2H 2H 2H 2H 2H 2H
6H 6H

Total
Labor

18

8 8
9/11/16

8 8

8 15 1516 16 12 20 20 17 12 12 2 2
Nabil Dmaidi
University

Najah

Early start resources aggregation

2 2 2 2 6

6
24

Total
Labor

8 8

8 8

8 15 1516 16 12 20 20 17 12 12 2 2

2 2 2 2 6

25

20
18

Labor

16
14
12

10
8
6
4
2
2

9/11/16

10

12

Nabil Dmaidi
University

Time

14
16
Najah

18

20

22

24

Early start resources aggregation diagram

Activities Sort
Resource
unit

TF

LS

Duration

Activity

8H

2H

4H

12

9H

12

5H

16

5H

16

2H

11

8H

17

5H

19

2H

14

0
22
2
6H
K
Activity sort with LS time as Major sort & TF and duration as Minor Sorts
9/11/16

Nabil Dmaidi
University

Najah

26

2
A

Time
8
10

12

14

16

18

20

22

8H 8H 8H 8H 8H

2H 2H 2H 2H 2H

4H 4H

9H 9H 9H 9H

5H 5H 5H 5H 5H 5H

5H 5H 5H 5H 5H 5H

2H 2H 2H

8H 8H

5H 5H 5H

2H 2H 2H 2H 2H 2H 2H 2H
6H 6H

Total
Labor

24

8 8
9/11/16

8 8

2 2 2
Late

2 15 15 11 11 12 20 2017 17 17 6

Nabil Dmaidi
Najah
University
start resources aggregation

6
27

Total
Labor

8 8

8 8

2 2 2

2 15 15 11 11 12 20 20 17 17 17 6 6

20
18

Labor

16
14
12

10
8
6
4
2

9/11/16

10

12

Nabil Dmaidi
University
Time

14

Najah

16

18

20

22

24

28
Late start resources aggregation diagram

Early start
Labor

20
18
16
14
12
10
8
6
4
2

Late start

Labor

20
18
16
14
12
10
8
6
4
2

9/11/16

Nabil Dmaidi
University

Najah

29

Smoothing/Leveling
Let us program activity F to start by its late
start day which is day 17.
And activity I to start by day 14.
The resulting resources aggregation
histogram will be as follows:

9/11/16

Nabil Dmaidi
University

Najah

30

2
A

Time
8
10

12

14

16

18

20

22

8H 8H 8H 8H 8H

2H 2H 2H 2H 2H

4H 4H

9H 9H
9H
9H 9H 9H
9H

5H 5H 5H

5H 5H 5H

5H 5H 5H 5H 5H 5H

2H 2H 2H

8H 8H

5H 5H 5H

2H 2H 2H 2H 2H 2H 2H 2H
6H 6H

Total
Labor

24

8 8
9/11/16

8 8

8 15 1516 16 12 12 12 12 12 12 7 10 10 2 2 2 6 6
Nabil Dmaidi
Najah
31
Early start resources
aggregation
University

Total
Labor

8 8

8 8

8 15 15 16 16 12 12 12 12 12 12 7 10 10 2 2 2 6

20
18

Labor

16
14
12

10
8
6
4
2
2
9/11/16

Nabil
12
10 Dmaidi
University

Time

Najah
14

16

18

20

22

24
32

Smoothing/Leveling

Let us program activity E to start by its late

start time.
So its resources demand starts with its
Late start date.
The resulting resource aggregation and
histogram will be as follows:

9/11/16

Nabil Dmaidi
University

Najah

33

2
A

Time
8
10

12

14

16

18

20

22

24

8H 8H 8H 8H 8H

2H 2H 2H 2H 2H

4H 4H

9H 9H
9H
9H 9H 9H
9H

5H 5H 5H

5H 5H 5H

5H 5H 5H

2H 2H 2H

8H 8H

5H 5H 5H

2H 2H 2H 2H 2H 2H 2H 2H
6H 6H

K
Total
9/11/16
8 8
Labor

5H 5H 5H

8 8

8 15 1516 Nabil
16 Dmaidi
7 University
15 15 Najah
12 7 7

7 7

7 7 7 7 634 6

Total
Labor

8 8

8 8

8 15 15 16 16 7 15 15 12 7

7 7

7 7 7 7 6

20
18

Labor

16
14
12
10
8
6
4
2
9/11/16
2

Nabil Dmaidi
12
10 University

Time

Najah

14

16

18

20

22

35

24

Smoothing/Leveling
In case activity D is split able activity. It
could be interrupted to be carried out in tow
parts.
Let us program activity B to start by 7th day .
And activity H to starts by its Late start date.
And activity E to start by day 14.
The resulting resource aggregation and
histogram will be as follows:
9/11/16

Nabil Dmaidi
University

Najah

36

2
A

Time
8
10

12

14

16

18

20

22

24

8H 8H 8H 8H 8H

2H 2H 2H 2H 2H

4H

4H
9H 9H 9H 9H

5H 5H 5H

5H 5H 5H

5H 5H 5H 5H 5H 5H

2H 2H 2H

8H 8H

5H 5H 5H

2H 2H 2H 2H 2H 2H 2H 2H
6H 6H

Total
8 8
Labor 9/11/16

8 8

8 6

11 11 Nabil
11 11
10 10 Najah
11 12 12 12 12 12 12 7 7
Dmaidi
University
Early start resources
aggregation

37

Total
Labor

8 8

8 8

8 6

11 11 11 11 10 10 11 12 12 12 12 12 12 7 7

20
18

Labor

16
14
12
10
8
6
4
2
9/11/16
2

Nabil Dmaidi
12
10 University

Time

Najah

14

16

18

20

22

38

24

Early Start OR Early Finish

There are many solutions between
the limits of Early Start and Early
Finish.
The optimal solution is zero
fluctuation histogram. Which is hard
to be achieved.
It is preferred to solve the problem
toward the Early start resources
aggregation diagram.
9/11/16

Najah
WHY ?!

Nabil Dmaidi
University

39

 Because if there are labor availability

problems to be overcome, they will
occur in the early beginning of the
project.
By other words, if the program based
on the Late Start date, it means that
all the activities are Critical, and any
labor problem will affect the project
completion.
9/11/16

Nabil Dmaidi
University

Najah

40

Allocation within resources restraints

Another situation which you may face in
practice is the restricted resources
availability.
Where you have to carry out the job with the
available resources only.
In this case the project duration may be
prolonged to suit the availability of the
restricted resources.

9/11/16

Nabil Dmaidi
University

Najah

41

Rules for scheduling activities with

imited resources
1) schedule activities to start as soon as their
predecessors have been completed.
2) if more than one activity using a specific limited
resources can be scheduled, priority is given to the
activity with early Late Start. ( LS as Major Sort)
3) if tow or more activities have the same Late start, give
priority to the activity with least Total Float. (TF as Minor
Sort)
4) if the activities have the same Total Float in the minor
sort, give the priority to the activity with the Largest
Number of Resources.
5) If the activities are tied in the number of resources,
give priority to the activity
that has
Nabil Dmaidi
Najah already started.
9/11/16

University

42

Example

A
1
2

1
0

B
1

11 0

8H

Activity desc.

2
0 11

11

16 0

F
16

11
0 16

20 0

5H

8H

5
0

5
3 10

7H

7
11 0

11

10
3 14

H
16
0 20

9H

2
7

17 3

20

21 0

20
0 21

4H

14
3 20

2H

4H

ES Dur. LS
EF FF TF LF
Resources
9/11/16

Nabil Dmaidi
University

Najah

43

Resource
unit

TF

ES

Duration

Activity

8H

9H

7H

4H

5H

11

2H

11

8H

16

4H

20

Activity sort with ES time as Major sort & TF as Minor Sort

9/11/16

Nabil Dmaidi
University

Najah

44

 Assume that the available labors in the

company restricted to 10 helpers, and
the company decided to carry out the job
without resorting to hire more labor.
The resulting program will exceed the
Early finish date based on the network.

9/11/16

Nabil Dmaidi
University

Najah

45

Total Labor

8 16 16 16 16 16 1313 13 13 7

7 7

7 10 8

8 8 4

Labor

16
14
12
10
8
6
4
2

9/11/16

2
4
6
12
8
10
14
16
18
Nabil Dmaidi
Najah
Early start resources aggregation
diagram (Histogram)
University

20
Time
46 46

Activity

2
A
B
C
E
D
G
F
H

Total Labor

Time
10 12 14 16 18 20 22

8H
9H 9H 9H 9H 9H 9H 9H 9H 9H
7H 7H 7H 7H
4H 4H 4H 4H
5H 5H 5H 5H 5H
2H 2H 2H 2H 2H 2H
8H 8H 8H
4H

8 9 9 9 9 9 9 9 9 9 7 7 7 7 9 9 9 9 7 10 10 10 2 2 4

12

Labor
Limit

10

Labor

24 26

8
6
4
2
9/11/16

NabilTime
Dmaidi
University

Najah

Resources aggregation diagram

47

Money and network schedules

Reminder, cost was one of the elements of project constraints
triangle ( COST, TIME & QUALITY).
An effective management tries to minimize and integrate the
above mentioned elements.
CPM provides a mean for relating time and money.
The application of resources to a project (materials, manpower
and machinery) related to another resource which is MONEY.
The value of the resources for each activity represents
a component of project cost.

9/11/16

Nabil Dmaidi
University

Najah

48

Hint
: Construction costs includes
.Materials costs( 1
.labor costs( 2
plant and equipment costs( 3
. overhead costs and profit( 4

9/11/16

Nabil Dmaidi
University

Najah

49

Example

10

6 0 0

F
13

10 0 6 16

13 0 6 19

16

12

11 0 0 11

11

I
17

A
1

16

16 6 6 22

B
6

11

Dur. LS

EF9/11/16
FF TF LF

6 6 22

22

11

14 0 0 14

22

24 0 0 24

J
12

14

8 0 6 14
ES

19

D
6

14

22 0 0 22

H
16
6
Nabil8 Dmaidi
University
14 8 8 22

Najah

50

9/11/16

)$Cost)

TF

ES

Duration

Activity

650

1300

400

1450

500

1100

10

600

11

350

11

1000

13

1300

14

200

22

Nabil Dmaidi
University

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51

2
A
C

Time
12
10

100250
9H
9H 300
9H 100
9H

150 100

22

24

200 200 100 150 100 150

200 200 200

20

50 100 150 200 50 50

18

150 100 200 200 150

200 200

16

200 100 200 100 50

14

200 100100
100 100 150 200 100100 150 100
100 100

Total
Dmaidi
Najah
200 100 200 100 50 350 550550 Nabil
400 500
750 450 600
300 350 150 200 100100 150 100 100
52100
cost 9/11/16
University

Total
cost

200 100 200 100 50 350 550550 400 500 750 450 600 300 350 150 200 100100 150 100 100 100

800
700
600
500
400
300
200
100
9/11/16 2

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12
10University

Time

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14

16

18

20

2253 24

Cash Flow
It is quite significant to the contractor to
know the amount of money that would be
spent in each stage of the project.
( Expenditures)
And compare it to the amount of money that
would be received. (income)

Overtrading

Overtrading: arises when the current

liabilities of a company exceed the current
assets, even though the business is solvent.
9/11/16

Nabil Dmaidi
University

Najah

54

Total
cost
Com.
cost

200 100 200 100 50 350 550550 400 500 750 450 600 300 350 150 200 100100 150 100 100 100
200 300 500 600 650 1000 1550 2100 2500 30003750 4200 4800 51005450 5600 580059006000 6150 625063506450

$
6400
6000
5600
5200
4800
4400
4000
3600
3200
2800
2400
2000
1600
1200
800
400
9/11/16 2
4
Com. cost = Cumulative Cost

Nabil Dmaidi
12
10University

Time

Najah

14

16

2255 24
18
20
Cash Flow Diagram

Retainage Release
Expenditures
Revenues

Cumulative
Expenditure
s
& Revenues

9/11/16

Amount of
Negative
Cash Flow

Nabil Dmaidi
Najah
Time (Months)
University

Cash Flow Curve for revenue and expenditures

56

Cash Flow Example

$$$
$$

early
planned

late

Time

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University

Najah

57

Cash Flow: In and Out

Profi
t

Spending

Reimburseme
nt
Time
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University

Najah

58

Cash Flow Analysis

Cash flow analysis consists of a detailed
examination of funds disbursement
(expenditures) and the receipt of revenue.
Cash flow shows if surplus fund available
during project, or if negative cash position
will occur during construction.
The cash position of contractor during
project whether positive or negative is
important.

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Nabil Dmaidi
University

Najah

59

Negative cash position

Negative cash position means that the
revenues obtained from a project
insufficient to meet the financial
obligations (expenditures) of the
project.
In this case other fund from the
company or from outside sources
must be used.
9/11/16

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University

Najah

60

Positive cash position

Positive cash position means that the
revenues obtained from a project
exceed the financial obligations
(expenditures) of the project.
In this case surplus (extra) fund
available with the contractor.
And the contractor may invest this
surplus funds for short duration.
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University

Najah

61

Materials Management
Is defined as the planning and controlling of all
necessary efforts to ensure that the correct
quality and quantity of materials and
equipment are appropriately specified in a
timely manner, are obtained at a reasonable
cost, and are available when needed.

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University

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Materials management functions

Identifying.
Acquiring.
Distributing.
Disposing.

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University

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Objectives of materials
management
Ensure that materials meet the
specifications and are on hand when and
where required.
Obtain the best value for purchased
materials.
Provide efficient, low-cost transport,
security, and storage of materials at
construction sites.
Reduce any surplus to the lowest level
Nabil Dmaidi
Najah
9/11/16
possible.
University

64