What is scheduling resources in project management?

Resource scheduling is a collection of techniques used to analyse the resources required to deliver the work and when they will be required. The goals of resource scheduling are to ensure:

• efficient and effective utilisation;
• confidence that the schedule is realistic;
• early identification of resource capacity bottlenecks and conflicts.

Resource scheduling is a supplement to time scheduling, not an alternative. The procedure has three steps:

The model developed in the time scheduling function is used as the basis for allocation of resources to different components of work. This enables the demand for resources to be aggregated over time. This almost inevitably leads to a demand profile that has periods where demand exceeds supply or where resources are idle. The purpose of calculating the schedule, using resource limited scheduling techniques, is to modify timings in order to deal with these peaks and troughs of demand.

From a scheduling point of view there are two broad categories of resource – consumable and reusable. Consumable resources are typically materials. Reusable resources are people and machinery.

The first step in the procedure allocates resources to activities. This will comprise quantities of consumable resource or the effort required by re-usable resources. Once the resources have been allocated and a time schedule calculated, the resources can be aggregated. The results of aggregation are normally presented as a resource histogram. For consumable resources the histogram will normally show cumulative usage (also known as an s-curve). For reusable resources the histogram shows usage period by period (i.e. day-by-day, week-by-week or as required).

The schedule for consumable resources forms the basis of procurement including detail that may be included in a contract, such as the scheduling of deliveries. The schedule may also reveal issues with materials or components that have to be ordered well in advance. This can sometimes lead to the situation where orders need to be placed before the work is fully authorised (see the ‘pre-authorisation work’ activity in the definition process).

Reusable resources are rarely, if ever, limitless and the schedule needs to be reviewed to take all limitations into account. There are two approaches to resource limited scheduling that reconcile resource limits and time constraints: resource smoothing (or time limited resource scheduling) and resource levelling (or resource limited scheduling).

Resource smoothing reschedules activities while retaining the finish date calculated by critical path analysis. This results in a resource histogram where the peaks and troughs are ‘smoothed out’ but not eliminated. A smoothed schedule is useful where it is possible and practical to procure additional resources for periods of time.

Resource levelling ensures that resource demand never exceeds availability. This usually results in an increase in the time taken to complete the work and is more appropriate when there are strict limits on the available resources.

The simple process of smoothing or levelling the whole schedule (‘simple’ because it is the default approach of most scheduling software packages) does not reflect the true situation. In reality, some resources may have flexibility while others do not meaning that some need to be smoothed and some need to be levelled. It is also a fact that the schedule will be more sensitive to limits on some resources than others, but this effect is masked when all resources are scheduled simultaneously.

A better understanding of the relationship between resource limitations and the schedule can be achieved through a form of sensitivity analysis where resources are scheduled individually. Alternatively, techniques such as critical chain can be used to address the issues in a different way.

Projects, programmes and portfolios

Most resource limited scheduling techniques are based on an initial model based on a network diagram. The drawbacks of scaling these techniques from projects up to programmes and portfolios are explained in time scheduling.

Once the overall schedule for a programme or large complex project is broken down into component schedules, each one can be analysed locally. Of course, the problem here is that local decisions may have a wider impact that is then lost. A balance must be found between creating an overly large and detailed schedule that no-one can effectively manage and a series of local schedules that do not reflect all the inter-dependencies.

Where the work is sufficiently large or complex to warrant multiple schedules the programme or portfolio management team should focus on capacity planning. In general management, capacity is defined as ‘the maximum amount of work that an organisation is capable of completing in a given period’.

A programme or portfolio management team must therefore consider the capacity of the resources available to their work. They may adopt a policy of allocating portions of these resources to the component projects where the detailed scheduling is done. The component schedule may then be consolidated for review and the process repeated until a balance of resource distribution is achieved. This is part of the balancing activity in the portfolio management process.

As professional services businesses onboard new clients and add new projects to their portfolios, they ask themselves one common question: How can we keep tabs on everyone's workload and get the best out of our people?

The thing is, as your clientele grows, so does the complexity. People no longer work on one project at a time and can't boast of laser focus. In fact, the exact opposite is true. They spread their attention too thin - so thin that deadlines are looming, but the work is far from getting done. The bottom line? Unhappy clients, teams running at their redline, tiny project margins, or worse, cost overruns.

So how can one prevent a new project from having a domino effect on their business? Enter resource scheduling.

To get you started, we have provided a comprehensive beginner's guide that will help you understand what resource scheduling is and how it is beneficial.

What is resource scheduling in project management?

Resource scheduling is identifying and allocating the resources required to complete a specific project within a given time. It helps you assign tasks according to people's skills and availability, so that you avoid under- or over-utilization of team members.

The purpose of resource scheduling is two-fold:

First, it's an opportunity to make sure that work is assigned to the right resources. If you're trying to complete a task as quickly as possible, then you'll want to assign the most efficient resources. If you're looking for the lowest cost option, then you'll need to assign resources that aren't so expensive.

Second, it's an opportunity to make sure that work is assigned to available resources. That means accounting for time off, training and other obligations that might need to be scheduled around your workload.

In essence, resource scheduling is about allocating the right resources (assets) to the right project, at the right time. It's a basic concept, but one that's essential for a company to function effectively. Without it, a company wouldn't be able to manage projects, keep costs in check, or increase profitability.

As the business is growing, it becomes one of the most complex tasks that managers face. And when it is done poorly, it can cause chaos in an organization.

Resource scheduling can help you:

• Outline your resource availability at any time
• Analyze your resource performance and skill-set
• Make timely and appropriate task allocations to each team member
• Estimate resource demand and future availability
• Manage resources while keeping them happy

Resource scheduling equips project managers with unlimited flexibility. You can monitor projects from their inception day to their completion dates, with a chance to reshuffle tasks and deadlines to keep the project on track.

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What are the benefits of resource scheduling?

Meeting project deadlines

Since each project has a definite timeline, a project manager should ensure its timely delivery. This requires scheduling resources before the project starts to avoid delays in task implementation and prevent project stagnation.

Resource scheduling enables project managers to allocate adequate resources per project and schedule those resources in advance for critical tasks.

Maintaining project quality

Each project is a series of various tasks that require specific skills. It’s the duty of resource and project managers to ensure that each task is assigned to the right person. Matching tasks with optimal skills upholds a project's quality and enhances employee productivity.

However, if resource capabilities don't correspond to the tasks assigned, the project's quality can be compromised, leading to employee dissatisfaction. Discontented employees have lower productivity and can resign at any time.  

Assessing resource demand vs availability

Resource scheduling enables project managers to track resources available for projects at hand and allocate them appropriately. The manager can spot critical resources that are booked for several tasks concurrently and delegate some of their responsibilities to avoid over-utilization or burnout.

After monitoring the resource utilization rates, the manager can take appropriate measures to avail resources needed and avoid a last-minute rush.

Drafting a resource plan

Resource scheduling gives an outline of resource utilization, which creates a basis for proper capacity planning. This helps the project manager to draft a systematic and precise work breakdown with a stable structure.

Optimizing resource utilization and lowering project costs

A resource scheduling system enables project managers to assess the types of projects available and shift employees from low-priority to high-priority work to enhance profitability and sustainability.

Resource scheduling tools also help project managers monitor projects' critical financial indicators such as: profit margin, revenue, and resource costs in advance. This makes it easier for managers to correct any discrepancies and control project costs in advance.

Maximizing limited resources

Project managers can collaborate with other departments to share available resources. This ensures that more tasks are accomplished with the available resources, and avoids the costs of hiring additional resources.

Predicting and mitigating resource risk

All project managers know that too many factors are outside of their control. This has never been as evident since recent supply chain issues have impacted global productivity. Anything that can contribute to delayed completion of a project or the inability to finish it at all is a resource risk.

Managing that risk can be achieved by drafting a resource risk plan. These plans are based on the resource schedule, as they must take into consideration which resources, and how many of them, will be needed to finalize the project on time. Resource risk plans also look at how those resources could be jeopardized, for example by considering tentative projects that might draw on key resources. They also identify whether there is a secondary source from which those resources could be drawn if the primary source is compromised.

Resource risk plans help to set company policy, streamlining the reaction to unexpected events. This is an important job for one document, so it may need to be updated as the business changes or or climate the business operates in evolves.

What information do project managers need to create a resource schedule?

Preparing a resource schedule can be a time-consuming process, but long-term, it’s worth the time. Depending on the scope of the project, it may take various forms, but the framework needs to include the following:

• ‍Resources. Project managers should check the project's resource demand and note their availability. The list of resources should include their names, roles, and the team they are currently aligned to. According to the skills required, a manager can determine whether there's a need to recruit new employees for the project.‍
• Resource costs. It is essential to outline each resource's cost per hour, indicating whether it's a direct cost (incurred by the company) or a billed rate (incurred by the client).‍
• Availability. The resource schedule must indicate each resource's availability and highlight their planned holidays or any other events.‍
• Project assignments. Managers should draft a detailed schedule showing specific tasks for each resource and the scope of their responsibilities.‍
• A resource calendar. A resource calendar is a critical document since it shows each resource's availability per week, their planned vacations, and off days.‍
• Origin. It is crucial to indicate the origin of your resources, including their team, office, and location. If contracted, it is best to indicate the type of contract as well.

How to create a resource schedule

Because resource scheduling incorporates decisions based on multiple sources of information, it is important to follow a detailed process to ensure nothing is missed out. Here are six steps to resource scheduling for your project.

Choose a resource scheduling tool

The manual process of scheduling resources can be exhausting and inaccurate, but choosing the right resource scheduling tool can help you manage your resources efficiently.

The Runn resource scheduling tool is one of the best and simplest resource scheduling software solutions on the market. You only have to click, drag, and drop to assign a time schedule to each of your team members. The software gives you a bird's eye view of everyone's schedules and real-time scheduling insights to keep you updated about evolving plans and milestones.

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A good resource scheduling solution like Runn will allow you to:

• Identify when staff availability conflicts with client requests so you can reallocate resources on the fly
• Track billable hours for every project and employee, so you always know how much time is being spent on each project
• View staff availability in real-time, so you can schedule more efficiently

Break down the project into phases and milestones

To schedule resources effectively, you first need to break down your project into smaller parts. Forming a strong work breakdown structure (WBS) is a key step. This includes creating phases and milestones for each project to help you estimate how many resources and skills are required. Using the task list, managers can schedule resources in line with each team's capacity.

Analyze your resource capabilities

The most common resources for most projects are equipment and human resources. Your project might need specific software, hardware, or tools through purchase or leasing.

As for human resources, it is essential to assign tasks to the right person with the required skill set – a process known as resource planning. It is beneficial to invest in a database showing the skills of each of your team members for easy matching of tasks with members' schedules. For instance, using Runn for resource scheduling can help you allocate resources to projects intelligently.

Monitor your team members' availability

You can check each employee's availability on your resource calendar and can allocate a corresponding schedule to their available hours. It’s crucial to know how long the work would take up to completion, so as to adjust your project team size appropriately. You can get an accurate estimate of the time and resources needed by checking previously completed projects with a similar scope.

Identify constraints and respond promptly

Employees' holidays, sick leaves, or days off may come as the deadline approaches, forcing you to reassign tasks or change deadlines. Resource scheduling software can save the day in such instances and give you peace of mind.

Track resources as the project progresses

It is essential to monitor progress of each team member's tasks to keep the overall project on track. As well as forming part of your actual costs review, the actual time spent will have an impact on the future scheduling process. Identifying critical resources and developing a coverage and contingency plan to keep your project going is essential.

Good business performance depends on the proper utilization of resources. Every project requires specific skills and time to be accomplished, but these resources are scarce and you need to optimize what you have available to you.

5 golden rules for effective resource scheduling

Now that we've covered the basics and you know how to create a resource schedule, here are some best practices. Stick to these five golden rules, and your resource schedule will be worth the effort. 

1) Don't book people for more than 80% of their time

It may seem counterproductive, but when scheduling resources, leaving buffer room is extremely important. This way, you'll make sure you don't run teams at their redline and they have the capacity for usual admin tasks. 

Do not allow employees to have more than 80% of their day full of scheduled tasks, the other 20% fill in automatically. If an employee’s schedule is at 100% capacity, then you can assume things are falling through the cracks, recommends Nate Moeller, COO at The Penguin Group.

2) Pay attention to skills and seniority when assigning people to projects

There are many blind spots when it comes to resource scheduling. You've got to pay attention to skills, seniority, cost, and availability. Combine them correctly and you’ll be able to balance your budget, schedule, and deliverables.

One thing to remember is - you can't schedule resources by virtue of the situation. And if you do, your resource scheduling practices won't be cost-effective. 

Consider the hourly rate of the resources available to you, alongside their skill set and level of expertise. You may need to splash the cash to get the skilled resources you need to deliver project objectives. Or you may still be able to deliver your project using lower-cost resources. 

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3) Create various project scenarios

It's a fact that your project won't always proceed as planned; there will always be ad hoc requests or cases of force majeure. This is why creating what-if strategies and modeling various project scenarios can help you avoid unanticipated hazards. And for resource management, this is especially helpful. Learn how to do it in our recent guide on tentative scheduling. 

4) Prioritize projects to avoid understaffing

The best way to prioritize projects when you're understaffed is to analyze what client work brings the most value to the business. In other words, you can start spending more time on activities that add value and less time on net drainers. To do so, you can identify the 20% of your time that generates 80% of the results for your organization.

5) Use placeholders when you don't have the right resources

After allocating the people you know will be available, you might be left with some shortages where there’s either no availability with someone of the right role or skill, or you simply haven’t decided yet who on the team you'll want to take the work. In that case, you can create placeholders using Runn's Project Planner to indicate demand for a person of a specific role and continue building your project schedule.

An effective resource scheduling tool allows you to maximize resources which in turn can promote employee retention, reduce hiring costs, and boost productivity. So put your manual Gantt chart and spreadsheets away, and let resource scheduling software bring you more accuracy, efficiency, and cost-effectiveness.

You can try free resource scheduling software today to experience the convenience of resource management.