Resource Allocation and Resource Leveling - Construction Project Scheduling and Control - page 126

Do All Resources Have to Be Leveled?
Not all resources need to be leveled. The main idea of resource leveling is to
improve work efficiency and minimize the cost of the project. This concept applies
to resources that are hired or rented—namely, labor and (major) construction
equipment. This is because these resources cost the contractor money just for their
being on site—working or idle.
The need for such resources may vary significantly as some activities start (they
pull new resources) and other activities finish (they release their resources). Likewise,
the resource requirement of some activities changes during their duration.
In general, materials do not need to be leveled. For instance, it is not an uncom-
mon practice to place 100 CY (cubic yards) of concrete in one day, place no concrete
for one week, place more concrete the week after, and so on. Materials must be
managed using a completely different concept, as will be discussed at the end of this
chapter.
Multiproject Resource Leveling
Some resources may be shared among projects. The question is which resources
and how much should be shared. For small projects in a relatively close vicinity, for
example, some staff (project manager, safety manager, quality manager, secretary,
etc.) and equipment can be shared. A project manager must make decisions when the
situation looks like a borderline case: for instance, whether it would be more efficient
to have someone travel between two jobs versus hiring another person, even though
that person would not be fully occupied of the time. The same argument holds true
for equipment. In general, convenience and simple economics are mostly the driving
criteria in making such decisions. However, other issues may be considered, such
as the short- and long-term need; future market expectations; staff morale, fatigue,
and satisfaction; relationships with stakeholders; the possibility of a need suddenly
occurring, and so forth. Keep in mind that transferring resources from one project to
another permanently is frequently and normally done, and it is not considered sharing.
Example 6.1
Assume a project engineer costs his employer $63 per hour ( $50 wage +
$13 benefits). ) . Two projects are within x miles of each other. The engineer
travels at an average speed of 40 miles per hour and costs the company $1
per mile to travel between the two projects. Assume that the following four
statements are true:
1. The engineer is needed a minimum of 3 hours per day in each project.
2. Travel between the two projects occurs only once a day (the engineer
starts his or her day on job A, travels to job B, and then comes back
home near job A).