Resource allocation is the key to whether the project can be carried out smoothly as planned, and it involves the coordination and management of personnel, equipment, funds and other aspects. So what is resource allocation in project management? How should project managers allocate resources? What are the precautions? Hopefully, this article will give you some inspiration.
In the previous two articles, I talked about the definition of scope and the development of timelines in project management, which laid the foundation for the success of the project. In this article, we will talk about another crucial part of the project management process - resource allocation.
01 What is resource allocation in project management?
In project management, resource allocation, also known as resource scheduling, is the process of procuring and allocating funds and materials to achieve business goals.
Everyone who has done a project should know that generally the resources or budget allocated to a project are limited, so these resources must be reasonably allocated to the right place to minimize waste and maximize the return on investment, which is professionally called "ROI".
Resource allocation, on the other hand, is a one-time dynamic task at the beginning of the project planning process.
In other words, the total amount of resources for a project is basically fixed and will not be easily adjusted, but how to allocate it requires the project manager to constantly monitor the use of resources throughout the project life cycle and adjust the allocation at any time as needed.
Here are some typical resource types in project management:
- Workforce: One of the most critical components of a project's resource allocation is to leverage an employee's talents, qualifications, and professional experience and assign the right tasks and positions to employees with the right skill levels.
- Equipment: Critical to the success of a project, refers to any machine, tool, hardware, or software used by a company to manufacture a product, provide a service, or complete other business-related tasks.
- Space: Some projects require space to get work done, develop products, and provide services, which can involve leasing or buying physical facilities and office space, among other things.
- Materials: To ensure the continuity of the production process and the stability of product quality, including any physical supply that helps the company produce products or provide services.
- Funding: An integral part of resource allocation. Project managers need to allocate budgets and funds appropriately to different business units or project phases.
02 How are resources allocated in project management?
Resource allocation involves multiple steps, from the development of the project plan to the actual allocation of resources, each step requires careful planning and execution, and we generally break down resource allocation into 4 steps:
1. Develop a project plan
First of all, developing a detailed project plan is the basis for resource allocation.
This plan should include the overall idea of the project, the goals and the team members involved, divide the project into several focus areas, phases, and tasks, and create a work breakdown structure (WBS) for each part.
Through WBS, all tasks and deliverables that need to be completed can be listed in detail, helping project managers better understand the overall needs and progress of the project.
For example:
In a software development project, the project can be divided into phases such as requirements analysis, design, development, testing, and deployment.
Each phase is further broken down into specific tasks, such as writing requirements documents, creating prototypes, developing core modules, conducting unit tests, and so on.
2. Determine the resource requirements for each project task
After you've created a detailed plan that includes each project task, the next step is to determine the resource requirements for each task.
Resource requirements can be divided into two categories: human and non-human resources.
1) For human resources, it is necessary to clarify the skills and abilities that team members need to have.
For example, if a task requires complex data analysis, a member with experience in data analysis is needed to be responsible for the task.
In addition to this, consider the workload and availability of each team member to ensure that they have enough time and energy to invest at each stage of the project schedule.
2) For non-human resources, the specifications of the equipment and supplies required need to be described in detail.
For example, a construction project may require specific models of excavators, bulldozers, and corresponding building materials such as steel and concrete.
Note: When listing these resource requirements, it's important to forecast the budget for each project or project phase to ensure that resource allocation is within budget.
3. Find resources and funding
Once you've identified your resource needs, the next step is to find resources and funding. At this point, project management software can be leveraged to determine the availability of internal or external resources within the company.
For example, what I demonstrated to you above is the Jiandao cloud project management system, which can see which employees have free time to participate in the project, which equipment can be rented or purchased through Gantt chart + calendar scheduling, and so on.
In some cases, it may be necessary to hire new staff or rent additional equipment to support the project. At this time, the cost of these resources needs to be incorporated into the overall financial plan of the project and business to ensure the feasibility and economics of resource allocation.
For example, the project member applies for payment according to the actual expenditure needs, and the financial personnel make the payment after the approval of the superior.
4. Allocate resources on a schedule
Once you've secured your resources, it's time to allocate them according to your plan.
Ensure that all business leaders have a clear understanding of the resources available and use project management tools to monitor the usage and progress of resources. By using dashboards and data analysis reports, you can track the allocation and usage of resources in real time, identify problems in time, and make adjustments in time.
For example, if you find that a team member is overloaded and is affecting the progress of the project, you can consider adjusting the task assignment and transferring some tasks to other members who have free time. Or if a piece of equipment fails or can't meet the needs of the project, it needs to be replaced or leased in time to ensure that the project can run smoothly.
03 Common problems in resource allocation
Finally, I have compiled some common challenges that project managers may encounter when doing resource allocation, as well as some ideas to prevent or solve these challenges:
1. Outdated software
For a business as highly variable and uncontrollable as project management, using cloud-based software can be more worthwhile than a traditional project management system.
Because the cloud-based project management software itself is flexible enough, it can meet the needs of the project manager to make real-time adjustments and modifications, which can well avoid errors and miscommunication, and the data analysis capabilities of the cloud project management software can also meet the needs of "real-time monitoring".
2. Poor management of employee talents
Project managers must be "mindful" of their team members' capabilities and assign the right tasks to the right team members.
Ensure experienced employees take on responsibilities that are commensurate with their skill level to foster employee engagement and interest, and guide junior employees through junior tasks to prevent employee burnout.
3. Changes in resource availability
In any project, there may be unexpected changes in human or non-human resource availability, as employees may get sick, machines may be damaged, or other problems arise, remember to make a plan B for these situations in advance.
4. Lack of communication
Effective communication is key to ensuring the success of a project, and it is important for managers to ensure that all participants are aware of resource plans and needs.
This part makes it possible to use cloud-based project management software to share documents, calendars, and timesheets, and allow team members to collaborate in real-time.
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