What are the problems that inefficient resource management lead to?
Problems in resource management
-> Consequences for individual projects
-> Consequences for the company
What are problems in resource management that result from inefficient resource management?
Employee deployment planning is not aligned with corporate strategy
Uncoordinated hiring of employees, wear and tear of key personnel
High safety buffer as protection against permanent overload
Unplanned and spontaneous resource deployment/change (“fire fighting”)
What are consequences for individual projects that result from inefficient resource management?
Time and cost overrun, inferior quality
Required resources are not available at the right time
What are consequences for the company that result from inefficient resource management?
Loss of entrepreneurial interest and work according to individual aspects
Conflicts between resource managers and project managers
Intransparent capacity management
Competitive disadvantage due to lack of adherence to delivery dates
What are resource types in resource management?
Human resources
Financial resources
Physical resources
Organizational resources
Technological resources
What are human resources?
Skilled workers, engineers, managers etc.
What are financial resources?
Budgets etc.
What are physical resources?
Buildings, plants, test & service stations, laboratories etc.
What are organizational resources?
Information systems, integration departments, etc.
What are techonlogical resources?
Patents, standards, norms, brands, R&D know-how, etc.
What is resource management?
Resource management (human resources) answers thequestion...
... which project
... to what extent
... with which employees is occupied
... and who decides on the corresponding assignments and priorities.
This refers to future and current projects
Illustrate how resource management needs to balance and optimize capacity and capability management!
What are short-term objectives of resource management?
Typically related to capacity:
Optimization of employee deployment planning
Establishment of a company-wide, transparent allocation of resources
Harmonization of parallel line and project activities
Reduction of project and personnel costs
Increasing the probability of project completion
Improvement of adherence to delivery dates
Optimal resource utilization
What are long-term objectives of resource management?
Typically related to capabiltiy
Targeted development or recruitment of new employees (skill-related)
Increase in employee satisfaction
Reduction of employee fluctuation
Provision of new career systems within the framework of project management
Improvement of adherence to schedules at overall project portfolio level
Optimization of team utilization / team development
What is long-term / strategic resource management?
Annual in the context of budget/project planning
Illustrate long-term / strategic RMA!
What is medium-term / tactical resource management?
Quarterly as part of portfolio capacity planning
Illustrate medium-term / tactical RMA!
What is short-term / opertional resource management?
14-day within the framework of employee deployment planning
Illustrate short-term / opertional RMA!
Who has the responsiblity of centralized resource management?
Central office
Project Management Office
Resource manager
Assignment manager
Who has the responsiblity of decentralized resource management?
Line manager
Line supervisor
What are the tasks of centralized resource management?
Handle resource requests
Determine availability and skills of employees
Assign employees to the requirement profiles of the projects
Resolve resource conflicts
What are the tasks of decentralized resource management?
Information on availability and skills is managed by department managers
Resource requests are made from the area of responsibility
Conflicts are resolved bilaterally or by a committee (steering committee)
Illustrate a generic assignment process for central resource management!
What are the phases of capacity management?
Definition of resources
-> Recording of resource requirements
-> Recording of project availability
-> Analysis of resource utilization
What is the definition of resources?
Definition of human resources on the basis of the organization chart in a central resource pool
Master data administration: Skills planning, cost rate, order call-offs etc.
Working time models and holidays are mapped via employee-specific calendars.
The maintenance of the resource pool is ensured centrally by the technical administrator.
What is the recording of resources requirements?
The standard functions of the resource plan are used to capture resource requirements.
In the resource plan, human resources are planned on a monthly basis independent of tasks.
For a simpler overview of the resource plan, an additional project detail page with a corresponding report is provided.
What are methods of cost estimation for the recording of resource requirements?
Expert surveys
In individual cases, reference projects or evaluations of completed projects are used.
Not widely used so far: Standardized estimation conferences or algorithmic estimation methods.
What are different approaches to human resource planning as part of the recording of resource requirements?
Standardisation of resource profiles / skills
Quarterly evaluation of resource requests in the departments
Derivation of resource planning
Comparison of departmental planning with company-wide resource planning (coordination with HR required)
What can be said about the standardisation of resource profiles / skills?
But rarely qualitative assessment of skills (no enforceability at the works council) andrestriction to a total of 10-15 typical profiles
What can be said about the quarterly evaluation of resource requests in the deparments?
Structuring according to inquiring departments or requested skills
What can be said about the derivations of resource planning?
Consideration of planned projects, existing workload and historical values
What does the recording of project availability contain?
Capacity analysis
Capacity requests
Capacity allocation
What is capacity analysis?
Calculation of remaining availability for new projects based on the following formula:
Project availability = working time - line activity
Residual availability = project availability - absence - project work
What is a capacity request?
Uniform requests for resources from all project managers for cross-departmental projects
What is capacity allocation?
Allocated resource capacities become visible to project managers and can be requested again if required.
What is the analysis of resource utilization?
Monitoring & analysis of resource utilization by the resource manager:
- Monitoring the utilization of resources (by area of responsibility)
- Monitoring the relevant contract quotas
The majority of companies carry out project-related actual time recording (> 90 %)
How is target / actual planning and utilization information used for the analysis of resource utilization?
Serves as the data basis for the overview of the workload situation, activity allocation and performance-based remuneration.
What are the problems of analysis of resource utilization?
- Often no area-wide application
- Lack of acceptance due to lack of user-friendliness of the tools
- Resistance from employees and works council due to excessive transparency
Illustrate analysis of resource utilization!
Illustrate a project portfolio matrix in the context of analysis of resource utilization!
Illustrate What If? Scenario combinations in the context of analysis of resource utilization!
What is the objective of the critical chain method?
Effective and efficient use of bottleneck resources
What are the assumptions behind the critical chain method?
1. Employees usually work parallel in project and line
2. Employees are often unaware which task has the highest importance and which has the highest urgency
3. Project managers and line managers have different views on the priority of tasks
4. Employees frequently switch between lines and project tasks (harmful multitasking)
5. Employees are overloaded with too many parallel activities
What are the different approaches in which the critical chain method can be developed?
Sequencing of projects
Bundling of resources
Operational prioritization with buffer index
What is the sequencing of projects approach of the critical chain method?
Planning focuses on the critical (most loaded) resource (so-called „DRUM”resource).
Projects are planned according to the critical resource and its availability.
Work packages and objectives are defined in such a way that the critical resource does not have to jump between several projects in the short term -> avoiding multitasking and unnecessary set-up times.
Work packages of non-critical resources are adapted.
Uniform utilization of all resources is not a planning objective of this method.
What is the bundling of resources approach of the critical chain method?
Individual buffers are replaced by a total buffer.
What is the operational prioritization with buffer index approach of the critical chain method?
Work packages and projects are started in order of priority.
Processing is carried out as continuously as possible until completion (at least for the bottleneck resource)
Steering with buffer index = buffer consumption / progress rate
Illustrate an example for project sequencing using the DRUM resource (here: RS 4)!
Illustrate the buffer index!
What are difficulties or resource management?
Lack of resources and competences as well as unbalanced resource allocation
Incorrect scheduling and “over commitment” and inadequate systems
Short-term reallocation of resources to time-critical projects
Matrix organizations
Explain the difficulty of “Lack of resources and competences as well as unbalanced resource allocation”!
Lack of resources and competences as well as unbalanced resource allocation are one of the biggest problems in multi-project management. Causes are lack of prioritization, transparency, pre-project planning and willingness to terminate projects.
Explain the difficulty of “Short-term reallocation of resources to time-critical prjects”!
Short-term reallocation of resources to time-critical projects („Fire-Fighting”) is a self-reinforcing process with strongly negative consequences for the overall portfolio.
Explain the difficulty of matrix organizations in the context of resource management!
Matrix organizations lead to tensions due to different organizational principles and identities in project and line. Potential solutions are direct negotiations and the creation of overarching organizational instances (e.g. PPMO).
What is strategic capacity management?
Successful companies have a good overview of human needs, availability, and anticipate future resource requirements in their projects.
What is systematic project manager allocation?
Successful companies assign project managers to projects in a systematic and standardized way (e.g., by using their former experience for orientation).
What is project manager participation?
Successful companies take the individual career planning of a project manager into account when assigning the project.
What are the different approaches regarding the design of a projectmanagement career path?
Establishment of roles in project management parallel and equal to the line organization.
Definition of performance levels for project managers (e.g. professional PM, TPM, PM, Senior PM...)
Creation of performance incentives for project staff/managers
Close coordination with the Personnel, Personnel Development and Human Resources (HR) departments is required.
Which criteria is used for the definition of performance levels for project managers?
- Level of project responsibility
- Priority of projects
- Level of budget competences
- Professional requirements
- Number of areas involved
- Number of project team members
What are performance incentives for project staff / managers?
- Premium payments for project success (e.g. deadlines and budget met)
- Certification options according to PMI or IPMA
What is a career system for a project management career?
Definition of clear roles and responsibilities in project management.
Establishment of equal career paths/performance levels in PM (e.g., PM specialist career).
Introduction of monetary remuneration systems for project activities (e.g., variable remuneration structures in project management).
Development of non-monetary incentives for project managers (e.g,. special training, conference participation, etc.)
What is a training system for a project management career?
Definition of PM standards whose mastery is necessary for the management of projects.
Definition of a step-by-step training model to be adapted to the tasks to be assumed by the project managers.
Illustrate a career as a project manager!
What can be said about career path for project managers?
Successful companies have established, valued and accepted project manager careers that are equal to equal to the career in the line.
What are project oriented incentives?
Successful companies have project-dependent renumerations and advancements for project managers.
What are qualification opportunities for project managers?
Successful companies offer training opportunities and mentoring programs for project manager.
Illustrate how career paths and qualification lead to retention of project managers!
Illustrate how career paths only increase the perceived support if qualification opportunities are available at the same time!
Last changed2 years ago
