530 534 PDF
530 534 PDF
530 534 PDF
1,2,3,4-M A Student of Business Management, Science and Research Branch, Islamic Azad
University, Rasht, Iran
Abstract
Resource allocation is one of the most important management tasks and makes strategy implementation feasible.
Those organizations in which strategic management is not implemented resources are allocated based on personal or
political factors. In strategy-based organizations, but, resources are allocated based on priorities determined by
annual objectives. One of the main obstacles of successful implementation of organization strategies is the failure in
linking executive plans and determining the priority in allocating resources to strategic long-term programs.
Nowadays most organizations have a separate process for long-term strategic planning and annual and short-term
budgeting. Every organization, at least, has four types of resources to be allocated in order to achieve organizational
goals. These resources include: financial resources, physical resources, human resources and technology resources.
Resources may be allocated in an effective manner while success of strategy Implementation is not assured since
success is achieved when plans, employees, operations, controls and commitments act to maintain and survive
allocated resources.
Keywords: Allocation, Resources, evaluation, project, Primavera
Introduction
The use of resources allocation in project control is not a new issue. It was proposed in 1950s. Most methods were
first those which led to an optimal solution. Production and operation sequence management is the process of
controlling production and services the main objective of which is to match efforts with application of resources and
equipments in order to best produce and serve. Effort is made to use available resource and time in a desirable way
and prevent resource and equipment waste. Here, resource allocation is of great importance. It determines the type
resource allocation and importance of various parameters based on the nature of a production system and amount,
type and importance of resources. Developing a plan differs from developing a program in the issue of resource
allocation in project control (Kotler,1999). A plan contains questions such as “which activities are going to be
done?” or “how these could be done?” In addition, a plan estimates the time of performing a certain task in various
methods and if the time is random, then it estimates time distribution. It also identifies required resources to perform
tasks in various methods. Although it seems that plan is prior to program but. In fact, there is a close relationship
between these two. A plan may lack a practical program and thus it must be revised. However, a plan and its related
program aim to optimize one (or more) predetermined goal and the value of the objective function measures their
efficiency.
Primavera Software
The software (in summary: Primavera P6) comprehensively focuses on activity of project-based organizations in
order to manage the full cycle of projects and portfolios (involving all big and small projects of an organization).
Projects controlled with Primavera family so far are estimated to cost over 6 trillion dollars. Companies employ
Primavera project management strategy to make better decisions in portfolio management, evaluate project-relating
risks and opportunities and specify whether they have sufficient resources and skills to accomplish a task. This
unique strategy provides the required ability and capacity to implement and control projects in order to successfully
accomplish projects in certain time period, based on a certain budget and predetermined quality level. The software
is usually used for timing and controlling various projects (Yasoobi,2001). It also can be used for timing and
controlling and estimating costs of the project in all construction, industrial, software and many other types of
projects. The process starts with entering project tasks into the software and specifying relationships between them
while exerting resources available in projects on different tasks. The software then times tasks based on their
relationship with resources so that the project finishes in the shortest time possible. Besides, if the resources
consumption cost is given to the software, it can estimate the overall project expenditures. It is noteworthy that the
software determines the time of starting and finishing every single task (Freeman & Aspry,2010).
Following objectives are met using this software:
- Making strategic decisions
- Identifying required resources, resource prioritization and estimation in long period of time
- Reorganizing projects based on new priorities without any negative influence on the quality
This powerful software has numerous facilities for project and time management. It is capable of organizing limited
resource projects up to 100000. The user can simply store data pertaining to a project and its tasks in a database give
it to managers for decision-making. The software is provides by designers who were project managers themselves
and hence it meets various needs of project managers in plan designing and controlling. The huge number of
projects is a main problem in project-based organizations. Such organizations use Primavera to combine, plan and
control all their projects in an integrated manner. The project breakdown structure can be well defined by this
software. The structure shows the organization’s project in a hierarchy. Then, EPS is defined to manage projects.
Even resources can be described in the form of OBS (organizational breakdown structure) and hierarchical
responsibilities (Hamidi & Jafari,2010). Although Primavera is essentially designed for project-based organizations
but it can also be used for independent projects. In other words, this project control software can manage all projects
and it covers a level higher than the project, the organization.
2. Resource planning in project control
Required resources are those equipments and devices needed for accomplishing a certain task. No task or activity is
performed without human resources, machinery, equipments, materials and using various resources. Tasks required
resources of a project are classified into three groups. One of the classifications is presented by Slovinski by which
resources are divided into these classes: renewable resources, non-renewable resources and resources with dual
constraints. Beside, quasi renewable resources were also suggested. Implementation of every task requires allocation
of needed resources. If available resources are in levels that cause no delay in implementation of those tasks which
are to be accomplished in a simultaneous manner using uncommon resources, then no alteration occurs in project
timing. But the situation is not usually like this (Korooni,2000). Hence, the way and time of resource allocation
becomes important.
3.1. Resource allocation manner
In the traditional and conventional manner constrained and unconstrained resources can be defined for a project. In
must be noticed while allocating resources that no resource can be constrained or unconstrained innately. Nowadays,
most resources are allocated using a dynamic manner associated with time targeting. Figure 1-2 the manner of
allocating resources to various tasks of a project.
It is assumed in PERT and CMP methods that project tasks are certain and absolute and the probability of their
accomplishment during the project is not 100%. Here, tasks are determined with probabilities and those necessary
tasks are 100% performed.
5.2.2. Cost weight value of every task is obtained by dividing its implementation costs by algebraic sum of costs of
all tasks.
Conclusion
At the present time, owners of huge businesses and contractors simultaneously manage and control several
engineering and construction projects. These big projects are linked rings of a chain. Insisting on finishing the
project on the determined time, considering financial limitations and maintaining the position in competitive market
lead to an increase in applying project management knowledge. Hence, it is necessary for project managers to move
from a traditional structure to a simple and efficient multi-project organizational structure (Armstrong,2005).
Optimal use of resources increasingly becomes more sensitive and challenges managers' minds. Organizations must
use advanced software knowledge more than ever. Like other developing countries, Iran is developing and moving
forward but it lack planning culture and thus some managers do not believe in project planning and control (even if
they support it seemingly). It is necessary to prevent Dr ayjadbstrbray rising industrial power supplies Az·hdrrftn
Srytrazqbl the human resources software company Hadrbdnrm learn the necessary training.
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