Resource+Mgmt

Shatha, Rahmeh ERP After completing this chapter, students will be able to: - Recognize the variety of constraints that can affect a project, making - scheduling and planning difficult. - Understand how to apply resource-loading techniques to project schedules to identify potential resource overallocation situations. - Apply resource-leveling procedures to project activities over the baseline schedule using appropriate prioritization heuristics. - Follow the steps necessary to effectively smooth resource requirements across the project life cycle. - Apply resource management within a multiproject environment.



ERP at a Construction Company ....

*The total means available to a company for increasing production or profit, including plant, labor, and raw material; assets. Behavioral
 * resources : **


 * * ** supply of money, materials, staff, and other assets that can be drawn on by a person or organization in order to function effectively


 * Resource mgmt: **
 * The process of using a company’s resources in the most efficient way possible. These resources can include: **
 * 1- Tangible Resources such as Goods and Equipment, **
 * 2- Financial Resources, and **
 * 3- Labor Resources such as employees. **

= Types of Constraints = = Time: the work must be finished by a certain time or date as effeciently as possible. = = Resource: the work must not exceed some predetermined level of resource use within the organization. = = Cost: **Another constraint for the project manager is sticking to a defined budget. The management determines the budget amount, and the project manager must not exceed this cost constraint. The project manager must have a realistic cost estimate of the entire project, including the cost for hiring project personnel, the cost of materials and indirect costs. **=

=** Scope: The management sets the goals for the project and the project manager must work within this scope of the project. If the management defines the scope of the project as getting a U.S. car ready for the European market, then the project manager must work to achieve this result. Even though he thinks that the project would be more successful if the aim was to get the car to the South American market, he cannot change the scope of the project **=

Managing Within Constraints
To achieve the project goals, the project manager will likely make trade-offs make trade-offs. For instance, she will get personnel to fit the project budget, who may not necessarily be the best persons for the job. And the project manager will have to manage risks in order to meet the project goals. If it is a construction project located in an earthquake-prone area, for instance, then the project manager will have to take this risk into account. An earthquake could delay the project and hike up its costs. The project manager will have to get insurance protection to manage this sort of risk.

= = =** Resource Loading **= refers to the amounts of individual resources that a schedule requires during specific time periods.

The benefit of the resource -loading process is clear it serves as a "reality check" on the project team's original scheduale. create an overall project resource-loading tables as well as identify the resource needs for each individual task. "in practical terms resource loading attempts to assign the appropriate resource to the appropriate degree or amount to each project activity."

= Resource Leveling = is the process that addresses the complex challenges of project constraints.

= Objectives = To determine the resource requirements so that they will be available at the right time To allow each activity to be scheduled with the smoothest possible transition across resource usage levels it's useful because it allows us to create a profile of the resource requirements for project activities cross the life cycle.

=Prioritization Rules for Leveling =


 * *Smallest amount of slack **


 * *Smallest duration **


 * *Lowest ID number (FCFS) **


 * *Greatest number of successor tasks **


 * *Requiring the most resources **

=** General Procedure for Leveling **=
 * 1.Create a project activity network diagram **


 * 2.Develop resource loading table **


 * 3.Determine activity late finish dates **


 * 4.Identify resource over allocation **

___
 * 5.Level the resource loading table **

An ERP system is an attempt to ** integrate ** all functions across a company to a single computer system that can serve all those functions’ specific needs.
 * E.R.P. >>>> Maximum Utilization of Resources.**
 * What is ERP? **

The central feature of all ERP systems is a shared database that supports multiple functions used by different business units. In practice, this means that employees in different divisions—for example, accounting and sales—can rely on the same information for their specific needs.

*** With an ERP solution, employees have access to accurate information that enables them to make better decisions faster. Not only that, but ERP software helps to eliminate redundant processes and systems, dramatically lowering the cost of doing business overall.

=** ERP Benefits: **=

= 1- Operational = Productivity improvement, Customer services improvement Quality improvement,

=** 2-Managerial **=

Better resource management,

Improved decision making and planning

Performance improvement

= 3-IT Infra-structure = IT costs reduction Increased IT infrastructure capability ||
 * build business flexibility for current and future changes