What is resource management

Resource management aims to maximize the utilization and effectiveness of available resources while minimizing waste, conflicts, and inefficiencies. It involves strategic planning, coordination, monitoring, and optimization of resources to achieve desired outcomes.Resources can include tangible assets such as finances, equipment, materials, and facilities, as well as intangible resources like human capital, time, and information.

Resource Management Context

Project Resource Management: In project management, resource management involves identifying, allocating, and scheduling resources to ensure project tasks are completed on time and within budget. This includes managing personnel, equipment, and materials to optimize the schedule and minimize bottlenecks.

Natural Resource Management: This refers to the sustainable management of natural resources such as forests, water, minerals, and wildlife. It involves balancing ecological, economic, and social factors to ensure the long-term viability and conservation of these resources.

IT Resource Management: In the context of information technology, resource management focuses on optimizing the allocation of hardware, software, and network resources to support organizational goals. This includes capacity planning, performance monitoring, and ensuring efficient utilization of computing resources.

Human Resource Management: Human resource management involves the strategic planning and allocation of human capital within an organization. It includes activities such as recruitment, training, performance evaluation, and career development to ensure the right people are in the right roles to achieve organizational objectives.

Financial Resource Management: This pertains to the management of financial assets and resources within an organization. It involves budgeting, financial planning, cash flow management, and investment decisions to ensure the organization's financial stability and profitability.

Resource Management Software

Timebars Software: is designed to streamline the process of assigning resources to projects or tasks. By considering factors such as availability, skills, and workload, users can make informed decisions on how to best utilize their resources. This not only ensures that resources are used optimally but also helps in staffing projects appropriately. With this software, you can have greater control and efficiency in managing your resources, ultimately leading to successful project outcomes.

Resource planning and forecasting: Timebars software allows users to plan and forecast resource needs for upcoming projects and initiatives. It provides one click visibility into resource availability and demand, helping managers make informed decisions about resource allocation and avoid overbooking or under-utilization.

With Timebars software, you can easily assess the current availability of your resources and determine if they are sufficient to meet your project needs. This allows you to identify any potential gaps or shortages in advance, giving you time to take necessary actions such as hiring additional staff or adjusting project timelines.

Additionally, Timebars's forecasting feature allows you to anticipate future resource requirements based on historical data and project plans. By analyzing factors such as project scope, timelines, and skill requirements, it helps you accurately predict the resources needed for upcoming initiatives.

Overbooking can lead to burnout among employees or compromises in quality due to limited capacity. On the other hand, under- utilization wastes valuable resources that could be better allocated elsewhere.

Resource collaboration and communication: Timebars software expects that organizations already own tools that facilitate collaboration and communication among team members and stakeholders so we did not reinvent the wheel. Timebars will provide you with answers and you keep everyone informed about resource allocations and changes.

Capacity planning: Timebars software helps evaluate the feasibility of taking on additional projects or making adjustments to existing ones based on the resources available.

Dashboards and Reporting: Timebars software provides insights on resource utilization, allocation, and performance, assisting stakeholders in making data-driven decisions to optimize resource management.

Resource Management Steps

Here's a step by step explanation of how resource planning and forecasting is typically done:

1. Assessing project requirements: The first step in resource planning and forecasting is understanding the requirements of upcoming projects. This includes identifying the tasks, deliverables, and timelines for each project. Managers and Schedulers work closely with stakeholders to gather details and determine the types and quantities of resources needed.

2. Resource inventory: Organizations maintain a resource inventory or database that contains information about available resources, including their skills, expertise, availability, and any constraints. This inventory is typically called the resource pool.

3. Resource demand estimation: Based on the various requirements, Managers and Schedulers estimate the demand for various resources, such as human resources (employees, contractors, consultants), equipment, facilities, or specific expertise. This estimation considers factors like the number of hours or effort required for each task, dependencies between tasks, and the overall project timeline.

4. Resource availability assessment: Managers and Schedulers then assess the availability of resources within the organization. This involves considering factors such as existing project assignments, vacations, leaves, training programs, or any other commitments that may impact resource availability. This assessment helps in identifying potential conflicts or resource shortages.

5. Resource gap analysis: By comparing the resource demand with the resource availability, Managers and Schedulers can identify gaps or imbalances in resource allocation. They can determine if there are resource shortages, over-allocations, or conflicts that need to be addressed. This analysis provides insights into whether additional resources are required or if adjustments to project timelines or scope are necessary.

6. Resource allocation and leveling: Based on the resource gap analysis, Managers and Schedulers make decisions on resource allocation and leveling. They determine which resources will be assigned to each project or task, considering factors like skill sets, availability, and workload. Resource leveling involves redistributing resources or adjusting project timelines to resolve conflicts or over-allocations.

7. Resource optimization: Resource planning and forecasting also involve optimizing resource utilization and allocation. Managers and Schedulers aim to achieve an optimal balance between resource capacity and demand. This may involve prioritizing projects, identifying opportunities for resource sharing or collaboration, or considering alternative resource options like outsourcing or subcontracting.

8. Ongoing monitoring and adjustment: Resource planning and forecasting are iterative processes. Managers and Schedulers continuously monitor resource utilization, track project progress, and assess any changes in project requirements or resource availability. This allows for ongoing adjustments to resource allocations, reallocation of resources as needed, and proactive management of resource constraints or conflicts.

EPC (Engineer Procure Construct)

In the context of Engineering, Procurement, and Construction (EPC) programs, project scheduling and resource management is crucial for the successful execution of construction and engineering projects. EPC programs typically involve large-scale infrastructure projects, such as power plants, oil refineries, bridges, or buildings, where a single entity is responsible for engineering design, procurement of materials, and construction.

Such projects involves careful planning, coordination, and allocation of resources, including human resources, materials, equipment, and finances, to achieve project objectives within the specified constraints of time, cost, and quality. This involves several key aspects:

Project Planning and Scheduling: Resource management begins with project planning, where the construction or engineering department determines the required resources for each phase of the project. This includes human resources, materials, equipment, and specialized tools. Scheduling activities and allocating resources optimally are crucial to ensure smooth progress and timely completion of the project.

Cost Management: Resource management in EPC programs involves cost control and budget management. Construction and engineering departments are responsible for estimating project costs, monitoring expenses, and ensuring that resources are allocated within the allocated budget. Effective cost management involves tracking expenses, identifying cost-saving opportunities, and addressing potential cost overruns.

Risk Management: Construction and engineering projects often face various risks, such as unforeseen events, technical challenges, or delays. Resource management includes identifying and assessing project risks, developing mitigation strategies, and contingency plans. This helps ensure that resources are allocated effectively to address potential risks and minimize their impact on the project.

EPC - Resource Supply and Demand Step by Step

Organizations in EPC programs calculate resource supply and demand in terms of people, both internally sourced (existing employees) and externally sourced (hiring new staff or subcontracting) through a process called resource forecasting. Resource forecasting helps determine the required number of personnel, their skills, and the duration for which they will be needed. Here's an overview of how this calculation is typically done:

Project Scope and Work Breakdown: The first step is to define the project scope and create a detailed work breakdown structure (WBS). The WBS breaks down the project into smaller tasks and activities, providing a clear understanding of the work required.

Estimating Activity Durations: Each task or activity in the WBS is assessed for its estimated duration. This estimation can be based on historical data, expert judgment, or reference to similar past projects.

Resource Requirements Identification: Based on the WBS and estimated activity durations, the specific resources required for each task are identified. This includes considering the necessary skill sets, experience levels, and any specific certifications or qualifications needed.

Internal Resource Assessment: The organization assesses its internal resource pool to determine the availability and capabilities of existing employees. This involves evaluating the skills and expertise of the current workforce, considering their current assignments, availability, and potential for reassignment or reallocation to the project.

External Resource Assessment: If internal resources are insufficient to meet project requirements, the organization evaluates the need for external sourcing. This can involve hiring new employees, subcontracting specific tasks, or partnering with external agencies or consultants. The assessment considers factors such as the availability of skilled labor, market conditions, and potential costs.

Resource Gap Analysis: By comparing the estimated resource requirements with the available internal resources, the organization identifies any gaps or shortfalls. This analysis helps determine the extent of external sourcing required to meet the demand.

Recruitment and Procurement: Based on the resource gap analysis, the organization initiates recruitment processes or engages in subcontracting activities to acquire the necessary resources externally. This may involve advertising job openings, conducting interviews, negotiating contracts with subcontractors, or outsourcing certain project components.

Resource Allocation and Scheduling: Once the required resources are available, the organization allocates them to specific tasks and activities in the project schedule. This includes considering the availability of resources at different project stages, ensuring an appropriate balance of skills, and optimizing resource utilization.

Ongoing Monitoring and Adjustments: Throughout the project, resource supply and demand are continuously monitored. If there are changes in project scope, schedule, or resource availability, adjustments are made to resource allocation. This iterative process helps maintain a balance between the demand for resources and their supply throughout the project lifecycle.

Summary By following these steps, organizations can effectively calculate resource supply and demand in terms of people, considering both internal and external sourcing, to ensure that the right resources are available at the right time to support successful project execution.

EPC - Work Breakdown Structure WBS

A Work Breakdown Structure (WBS) is a hierarchical decomposition of a project into smaller, manageable tasks or work packages. It helps to organize and structure the project's scope, making it easier to plan, assign resources, and track progress. Let's explore an example of how a WBS breaks down a construction project into smaller tasks:

Project: Construction of a Residential Building

Level 1: Project Phases

Phase 1: Pre-Construction

Phase 2: Foundation and Structural Work

Phase 3: Building Construction

Phase 4: Finishing and Interior Work

Phase 5: Final Inspections and Handover

Level 2: Phase 1 - Pre-Construction

Task 1: Project Initiation

Task 2: Site Selection and Acquisition

Task 3: Permits and Approvals

Task 4: Design and Architectural Planning

Level 2: Phase 2 - Foundation and Structural Work

Task 1: Excavation and Site Preparation

Task 2: Foundation Construction

Task 3: Structural Framing

Task 4: Plumbing and Electrical Rough-ins

Level 2: Phase 3 - Building Construction

Task 1: Walls and Roofing

Task 2: Exterior Finishing (Siding, Painting, etc.)

Task 3: Window and Door Installation

Task 4: HVAC System Installation

Level 2: Phase 4 - Finishing and Interior Work

Task 1: Interior Walls and Partitioning

Task 2: Flooring Installation

Task 3: Cabinetry and Counter top Installation

Task 4: Painting and Wall Coverings

Level 2: Phase 5 - Final Inspections and Handover

Task 1: Quality Inspections and Testing

Task 2: Finalizing Permits and Certifications

Task 3: Cleaning and Site Restoration

Task 4: Client Walkthrough and Handover

Each level of the WBS represents a different level of detail. Level 1 represents the broad project phases, while Level 2 breaks down each phase into specific tasks. Depending on the complexity of the project, the WBS can be further expanded into additional levels to provide even more granular details.

The WBS serves as a foundation for project planning, resource allocation, and monitoring. By breaking down the project into smaller tasks, it becomes easier to estimate the effort required, assign responsibilities, and track progress at each level. It provides a visual representation of the project's scope and helps ensure that all necessary activities are accounted for during the planning and execution phases.

Software Product Example WBS

Here is a typical Work Breakdown Structure (WBS) can be applied to the development of a new software product:

Project: Development of a Personal Task Management Web Application

Level 1: Project Phases

Phase 1: Requirements Gathering and Analysis

Phase 2: Design and Prototyping

Phase 3: Development and Testing

Phase 4: Deployment and Launch

Phase 5: Maintenance and Updates

Level 2: Phase 1 - Requirements Gathering and Analysis

Task 1: User Needs Assessment

Task 2: Market Research

Task 3: Define Functional Requirements

Task 4: Define Non-functional Requirements (e.g., Performance, Security)

Level 2: Phase 2 - Design and Prototyping

Task 1: User Interface (UI) Design

Task 2: Wireframing and Mockup Creation

Task 3: Information Architecture Design

Task 4: Interactive Prototype Development

Level 2: Phase 3 - Development and Testing

Task 1: Database Design and Setup

Task 2: Front-end Development (HTML, CSS, JavaScript)

Task 3: Back-end Development (Server-Side Programming)

Task 4: Integration of External APIs (if applicable)

Task 5: Unit Testing

Level 2: Phase 4 - Deployment and Launch

Task 1: Hosting Environment Setup

Task 2: System Configuration and Deployment

Task 3: User Acceptance Testing (UAT)

Task 4: Bug Fixing and Issue Resolution

Task 5: Documentation and User Guides

Level 2: Phase 5 - Maintenance and Updates

Task 1: Monitoring and Performance Optimization

Task 2: User Feedback Analysis

Task 3: Feature Enhancements and Updates

Task 4: Bug Fixes and Patch Releases

Task 5: Security Audits and Upgrades

This WBS provides a breakdown of the software development project into various phases and tasks specific to a small web application. It demonstrates how each phase focuses on different aspects of the project, such as requirements gathering, design, development, testing, deployment, and ongoing maintenance. But in the Agile world things change.

The WBS serves as a guide for project planning and resource allocation, ensuring that all necessary activities are accounted for. It enables better project management, estimation of effort and timelines, and tracking progress throughout the development lifecycle. In the Agile world there are are four key values and twelve principles that guide agile development practices and project managers believe the old way is outdated. This makes it quicker and easier to get work accomplished but Resource Management as described above takes a back seat.

An Agile Approach

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A Agile approach to project scheduling and resource management emphasizes iterative and agile methodologies. Agile methodologies, such as Scrum or Kanban, focus on collaboration, adaptability, and delivering value incrementally. Rather than a traditional hierarchical WBS, Agile approaches rely on frameworks like user stories, epics, and feature-driven development.

Here's how the Agile approach might look for the development of a web application software product: Personal Task Manager

User Stories:

• As a user, I want to create tasks and set due dates.

• As a user, I want to categorize tasks into different projects or categories.

• As a user, I want to prioritize tasks and set reminders.

• As a user, I want to collaborate and share tasks with other users.

• As a user, I want to track the progress of my tasks and mark them as completed.

• As a user, I want to receive notifications for upcoming tasks or deadlines.

Epics:

• Epic 1: Task Management Core Functionality

• Epic 2: User Collaboration and Sharing

• Epic 3: Task Prioritization and Reminders

• Epic 4: User Interface and User Experience Enhancement

• Epic 5: Task Progress Tracking and Analytics

Feature-Driven Development:

• Feature 1: Task Creation and Due Date Setting

• Feature 2: Project/Categories Management

• Feature 3: Task Prioritization and Reminders

• Feature 4: User Authentication and Access Control

• Feature 5: Real-time Collaboration and Sharing

• Feature 6: Task Progress Tracking and Reporting

• Feature 7: Notifications and Reminders

• Feature 8: Intuitive User Interface and Responsive Design

• Feature 9: Integration with Third-Party Services (e.g., Calendar, Email)

In an Agile approach, user stories capture the functionality or features desired from the end user's perspective. These user stories are organized into epics, which represent broader themes or functionalities of the application. Feature-driven development then breaks down each epic into individual features that can be developed, tested, and delivered incrementally.

This more modern approach aligns with agile principles, allowing for flexibility, adaptability, and continuous improvement. Development iterations, commonly known as sprints, focus on delivering a working product increment at the end of each iteration, providing value to users early on and incorporating feedback for further enhancements.

Modern project management tools such as Agilebars by Timebars Ltd. can be used to manage and track the progress of user stories, epics, and features, enabling effective communication, collaboration, and visibility across the development team. But organizational resource management techniques may be difficult to achieve now

Agile Resource Management

Agile Resource Supply and Demand

How is resource management supply and demand done in the Agile world as described above?. In the Agile methodology, resource management supply and demand are typically handled through the following practices:

Cross-Functional Teams: Agile methodologies promote the formation of cross-functional teams that consist of members with diverse skill sets. These teams are self-organizing and collaborate closely on project tasks. By having a mix of skills within the team, resource supply and demand can be balanced. It is very difficult to produce organizational supply and demand reports and analytics with the monthly sprint approach with out problems.

Capacity Planning: Agile teams engage in capacity planning to assess the availability and capacity of team members for each sprint or iteration, which it typically monthly. Team members' individual skills and availability are taken into account when planning the monthly work to ensure that the right resources are allocated to each task or user story. But what about forecasting resource demand down the road past the current month? This is where Agile leave a gap in its wake.

Iterative Planning: Agile projects follow an iterative approach, dividing the work into smaller, manageable increments instead of WBS elements. During the sprint planning phase, the team assesses the user stories and features to be developed in the upcoming sprint. Based on the team's capacity and the complexity of the work, a subset of user stories is selected for development, considering the available resources. But how does the team know what the available resource load is? Basically the resources manager allocates their people to teams based on gut feel and who ever pulls the hardest.

Adaptive Resource Allocation: Agile teams are supposed to commit to achieving all the work in the Sprint up front during planning. They are not supposed to have the flexibility to adapt during the sprint based on changing project needs. When team members are assigned to a sprint, and assigned to another sprint they will have different teams but Agile does not account for organizational resource management this is the gap.

Collaborative Work: Agile methodologies foster collaboration and knowledge sharing within a team. By encouraging team members to work together, share expertise, and provide support and this is a big win for Agile. Cross-training team members on different skills can be a task in a sprint so it helps to address resource constraints and dependencies.

Summary

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Both Agile teams and WBS based teams both utilize visual management tools but in totally different ways. The WBS methodology came first so all these tools catered to it. Tools like MS Project and the like, don't work right in the Agile world. In order for these tools to provide visibility into organizational resource availability, workload, and task dependencies, new tools and methodologies are being invented to meet this challenge. Read more at Timebars Ltd. web site!