• Identify the types of resource constraints projects face.
• Identify whether a project is time constrained or resource constrained.
• Apply leveling techniques in time-constrained projects.
• Develop resource constrained schedules using the parallel method.
• Create a time-phased budget.
This module lasts one week. In that time, you are required to complete the following:
• Read Chapter 8 of the textbook.
• Watch the videos from guest instructor Michael Breward, PhD, CPA. (Why a guest? I brought in an actual accountant and former Director of Finance to teach you budgeting given his depth of expertise in this area.) In addition to providing more explanation Michael has created detailed examples to help you through the process step-by-step.
• Practice using Chapter 8 chapter ending exercises #4, 5, 7, 9, and 11. (Use your judgement regarding how many of these exercises it is useful to complete based on your prior experience using these tools. If the tools are new and unfamiliar you should do them all. If you are already an expert you may move directly to the graded case.) You can check your answers in Appendix 1, however the answers provided there are brief and may be unhelpful for some people. More detailed answers are provided in the word document below.
• Complete the graded individual assignment (Case 8.1 titled “Blue Mountain Cabin” in the textbook, page 292).
Chapter 8
Scheduling Resources and Costs
- You have prepared the following schedule for a project in which the key resource is a tractor(s). There are three tractors available to the project. Activities A and D require one tractor to complete while activities B, C, E and F require 2 tractors.
Develop a resource-constrained schedule in the loading chart that follows. Use the parallel method and heuristics given. Be sure to update each period as the computer would do. Record the early start (ES), late finish (LF) and slack (SL) for the new schedule.
Log of Parallel Method of Scheduling: Exercise 8-4
PERIOD ACTIVITY CHANGES
0-1 B Schedule Activity B (first by minimum slack rule)
A Schedule Activity A
1-2 – No changes
2-3 – No changes
3-4 – No changes
4-5 C Delay ES of Activity C to 5. Reduce slack to 1
5-6 D Schedule Activity D (minimum slack rule)
C Schedule Activity C
E Delay ES of Activity E to 6. Reduce slack to 1
6-7 E Delay ES of Activity E to 7. Reduce slack to 0
7-8 E Delay ES of Activity E to 8. Reduce slack to -1
F Delay ES of Activity F to 11. Reduce slack to -1
8-9 E Delay ES of Activity E to 9. Reduce slack to -2
F Delay ES of Activity F to 12. Reduce slack to -2
9-10 E Schedule Activity E
10-11 – No changes
11-12 – No changes
12-13 F Schedule Activity F
- Develop a resource schedule in the loading chart that follows. Use the parallel method and heuristics given. Be sure to update each period as the computer would do. Note: activities 2, 3, 5, and 6 use two of the resource skills. Three of the resource skills are available. How has slack changed for each activity? Has the risk of being late changed? How?
Log of Parallel Method of Scheduling: Exercise 8-5
PERIOD ACTIVITY CHANGES
0-1 2 Schedule Activity 2 (minimum slack rule)
1 Schedule Activity 1
1-2 3 Delay ES of Activity 3 to 2. Reduce slack to 2
2-3
3-4 3
4, 3 Delay ES of Activity 3 to 3. Reduce slack to 1
Activities 3, 4, 5 are eligible to be scheduled.
Schedule Activity 4 (minimum slack rule)
Schedule Activity 3 (minimum slack rule)
Delay ES of activity 5 to 4. Reduce slack to 1
4-5 5 Delay ES of Activity 5 to5. Reduce slack to 0
5-6 5 Delay ES of Activity 5 to 6 .Reduce slack to -1
6-7 5
6 Delay ES of Activity 5 to 7. Reduce slack to -2
Delay ES of Activity 6 to 9. Reduce slack to -1
7-8 5 Schedule Activity 5
6 Delay ES of Activity 6 to 10. Reduce slack to -2
8-9 No changes
9-10 6 No changes
10-11 6 Schedule Activity 6
Notice that after adjusting the schedule to accommodate limited resources that there is now no slack in the schedule and that every activity is critical. This increases the risk that the schedule will take longer than planned since if any of the activities are delayed the project is delayed.
- You are one of three carpenters assigned to complete a short construction project. Right before the start of the project, one of your fellow carpenters was hospitalized and will not be available to work on the project.
Develop a resource-constrained schedule in the loading chart that follows to see how long the project will take with only 2 carpenters. Be sure to record the order in which you schedule the activities using the scheduling heuristics. Activities A, B, C, D, E, G, and H require 2 carpenters to complete. Activity F requires only 1 carpenter. No splitting of activities is possible.
You will receive a bonus if the project is completed within 15 days. Should you start planning how you will spend your bonus?
You should not spend time planning how you are going to spend your bonus. The schedule will take 16 days.
- Given the time-phased work packages and network, complete the baseline budget form for the project.
- Given the time-phased work packages and network, complete the baseline budget form for the project.
Individual Assignment #2
Instructions
Complete the assignment titled “Blue Mountain Cabin” (Case 8.1, page 292 in the textbook) and submit it here.
To complete the case you need to do the following:
• Prepare a short proposal for the Smiths that includes a Gantt chart with resources assigned and cost estimates (assume the project starts on 8/1/21).
• Identify whether resource limitations affected the final schedule, and if so, how.
• Identify financial risks faced during this project and how they could be mitigated or controlled. (Right now we have some real-world contingencies to throw into our analysis – given the uncertainties of vaccine distribution remember to consider pandemic related risks to labor and the supply chain in addition to the usual risks.)