Any efficient Project Management Office (PMO) relies on a solid foundation to scale its operations and impact. A major part of that foundation is a robust resource allocation and management approach that embraces flexibility as much as it does forethought. Understanding the basics of resource allocation methods that are common within the realm of project management can help you start unpacking how to ensure your projects meet their deadlines.
What is Resource Allocation?
In project management, resource allocation is the process of assigning and distributing available resources across different projects. More specifically, it’s about optimizing operations and helping PMOs ensure that they keep project tasks moving along schedule.
Resources, in this case, are not limited to finances or budgets. They also include employees, equipment, time, and other materials or stakeholders involved in a project’s lifecycle.
Efficient enterprise resource allocation is a key feature of successful project portfolio management (PPM). It helps projects run smoothly and gives organizations the insights they need to make informed decisions and drive sustainable growth.
Resource Allocation Methods for Project Management
There are many approaches to resource allocation within PPM. However, three methods tend to rise above the rest when it comes to efficiency and versatility: critical path, critical chain, and resource leveling and smoothing.
Whether you adopt one of these resource allocation methods or combine them, they can assist you in allocating the right resources to the right projects. Each method offers specific guidance and steps that help you determine how to best assign resources. Let’s take a closer look.
1. Critical Path
The critical path method (CPM) of resource allocation involves planning a project from start to finish by identifying the resources required for each phase. CPM is all about identifying the sequence of tasks and activities that need finishing to guarantee a project’s timely completion.
This method takes a preemptive approach – it aims to identify needs early on in the project to avoid issues and reallocation down the road. As such, it’s best for predictable projects with clearly defined deliverables and expectations.
It’s also worth noting that CPM’s main focus is task management, as it assumes that all resources will be accessible at the same time.
2. Critical Chain
The critical chain method (CCM) is similar to CPM in that its primary goal is establishing a path that helps a project meet its completion deadline. It builds upon the critical path method and often gets used alongside it. Unlike CPM, though, critical chain focuses specifically on resource and buffer management.
CCM views project planning like a relay race. Completing each task quickly and passing it on to the next person is the ideal outcome of CCM – meeting the overall project timeline goal is more important than zooming in on individual tasks.
3. Resource Leveling & Smoothing
Even with the best plan in the world, change still promises to affect projects as they evolve. Resource needs can change, too. A method like resource leveling and smoothing helps accommodate these changes as they occur.
Resource leveling involves adjusting a project’s schedule to meet resource needs. When resource needs increase, for example, or the number of available resources dwindles, PMOs might delay a project’s start time or extend its completion date.
Resource smoothing, on the other hand, prioritizes ensuring that all critical tasks have the resources they need to keep the project on deadline. It lends itself best to projects with fixed deadlines that aren’t open to alteration, as its key concern is optimizing resources within project time constraints.
How PPM Software Helps with Effective Resource Allocation
While understanding the basics of resource allocation methods like these is important, it’s also worth noting that each method largely focuses on a project’s beginning. In other words, these methods may not necessarily account for unforeseen changes that affect resource needs or availability.
As a result, it’s crucial to monitor project progress and resource utilization as a project progresses. Careful monitoring allows PMOs to track resource needs and identify how actual utilization aligns with planned utilization.
A dedicated PPM and resource management software is the most effective tool for tracking and monitoring. PPM software empowers you to manage resources and see project progress in real time, enabling quick identification of issues or changing needs.
The earlier PMOs can identify issues, the more likely they are to address them before they lead to project delays. Purpose-built software aids in that effort with digital materials, dashboards, and visualizations that increase visibility into resource management.
Master Resource Allocation & Planning with Sciforma
Sciforma Vantage features advanced resource scheduling and management capabilities to give you precise control over resource allocation. See who’s working on what, increase operational efficiency, and make better decisions powered by data with PPM software built for your team.
Book a demo with us today to see how Sciforma helps you unlock the door to maximizing your business’ value and impact.
