Intro to Project Management: Project Resource Management Acquiring Resources Preassignment Negotiation Virtual Teams

What This Is

Acquiring resources is a critical aspect of project management that involves obtaining the necessary people, materials, equipment, and services to complete a project. This process is essential for successful project delivery, as it directly impacts the project's scope, schedule, and budget. For example, consider building a new hospital wing – acquiring the right resources, such as skilled labor, specialized equipment, and high-quality materials, is crucial to ensure the project is completed on time, within budget, and meets the required quality standards.

Key Terms & Formulas

• Resource Allocation: The process of assigning resources to specific tasks or activities to ensure the project's objectives are met.
• Resource Leveling: A technique used to balance the workload of resources by smoothing out peaks and valleys in the resource utilization curve.
• Resource Smoothing: A technique used to balance the workload of resources by allocating resources to tasks in a way that minimizes the impact of resource constraints.
• Virtual Team: A team that works remotely, often using technology to communicate and collaborate.
• Negotiation: The process of discussing and agreeing on terms with stakeholders, such as suppliers, customers, or team members.
• Pre-assignment: The process of assigning resources to tasks or activities before the project starts.
• Resource Breakdown Structure (RBS): A hierarchical decomposition of resources into smaller, more manageable components.
• Resource Calendar: A calendar that displays the availability of resources, including their working hours, breaks, and time off.
• Cost of Delay (COD): The cost of delaying a project or a specific task, which can include opportunity costs, lost revenue, and other expenses.
• Earned Value (EV): The value of work completed, calculated as EV = % complete × BAC (Budget at Completion).
• Cost Performance Index (CPI): A measure of how efficiently resources are being used, calculated as CPI = EV / AC (Actual Cost).
• Schedule Performance Index (SPI): A measure of how efficiently tasks are being completed, calculated as SPI = EV / PV (Planned Value).

Step-by-Step / Process Flow

1. Identify Resources: Determine the resources required to complete the project, including people, materials, equipment, and services.
2. Develop a Resource Plan: Create a plan that outlines how resources will be acquired, allocated, and managed throughout the project.
3. Negotiate with Stakeholders: Discuss and agree on terms with stakeholders, such as suppliers, customers, or team members.
4. Assign Resources: Assign resources to tasks or activities, considering factors such as availability, skills, and costs.
5. Monitor and Control Resources: Track resource utilization, identify and address any issues or constraints, and make adjustments as needed.

Common Mistakes

• Mistake: Failing to identify and acquire necessary resources before the project starts.
  Correction: Develop a resource plan and identify resources early in the project to avoid delays and cost overruns.
• Mistake: Not considering the skills and availability of resources when assigning them to tasks.
  Correction: Assess the skills and availability of resources before assigning them to tasks to ensure the project's objectives are met.
• Mistake: Not monitoring and controlling resource utilization throughout the project.
  Correction: Regularly track resource utilization and address any issues or constraints to ensure the project stays on track.

Exam Tips

• Tip: Be aware of the difference between Resource Allocation and Resource Leveling – the former is about assigning resources to tasks, while the latter is about balancing the workload of resources.
• Tip: Understand the concept of Virtual Teams and how they can be managed effectively.
• Tip: Be prepared to calculate Earned Value (EV) and Cost Performance Index (CPI).

Quick Practice Questions

1. If the CPI is 0.8, is the project under or over budget? Answer: Under budget. Explanation: A CPI of 0.8 indicates that the project is completing work efficiently, resulting in a lower actual cost compared to the planned cost.
2. What is the formula for Earned Value (EV)? Answer: EV = % complete × BAC. Explanation: Earned Value is calculated by multiplying the percentage of work completed by the Budget at Completion.
3. What is the purpose of a Resource Calendar? Answer: To display the availability of resources, including their working hours, breaks, and time off. Explanation: A Resource Calendar helps project managers plan and allocate resources effectively.

Last-Minute Cram Sheet

• Resource Allocation: Assigning resources to tasks or activities.
• Resource Leveling: Balancing the workload of resources.
• Resource Smoothing: Allocating resources to tasks to minimize the impact of resource constraints.
• Virtual Team: A team that works remotely.
• Negotiation: Discussing and agreeing on terms with stakeholders.
• Pre-assignment: Assigning resources to tasks or activities before the project starts.
• Resource Breakdown Structure (RBS): A hierarchical decomposition of resources.
• Resource Calendar: A calendar displaying resource availability.
• Cost of Delay (COD): The cost of delaying a project or a task.
• Earned Value (EV): EV = % complete × BAC.
• Cost Performance Index (CPI): CPI = EV / AC.
• Schedule Performance Index (SPI): SPI = EV / PV.
• ⚠️ Decomposition breaks down work, not activities – it creates the WBS, not the activity list.
• ⚠️ Resource Allocation is not the same as Resource Leveling – the former is about assigning resources, while the latter is about balancing the workload.