Project allocation and leveling are both important parts of project management. Typically, they're referred to as "resource allocation" and "resource leveling." They both involve the distribution of resources -- including labor, materials and equipment -- used in production. Allocating and leveling resources also both require input from different departments, such as accounting and manufacturing, to ensure the best decisions are made.
Resource allocation means determining which resources are required for which activity, deciding on the total amount needed, and making sure they are available when they are needed. Whichever resources the project manager allocates, she must ensure she procures enough to complete the project and they are available during the desired time period.
Resource leveling involves creating a balanced production schedule to minimize fluctuations in the amount of resources used per time period, such as a day. The project manager devises a schedule that ensures a steady usage of resources instead of sporadic increases and decreases in resources used. A balanced schedule typically serves as the most practical way of using resources.
Allocating resources is fairly self-explanatory. If allocating stone for building a house, the project manager must ensure that she procures enough stone to complete the project. Regarding leveling, if renting equipment, the project manager must ensure it will be used steadily rather than sporadically rented and returned. If contracting carpenters, the project manager should aim to strive to keep a set number of carpenters working at a set number of hours for the duration of the project to ensure consistency. Carpenters may have difficulty scheduling more sporadic hours into their schedule, meaning the firm might then have to contract more workers, leading to inconsistent results. Meanwhile, materials don't necessarily need to be leveled as they have been purchased rather than rented or paid by the hour.
Resource allocation and leveling are synergistic. Leveling equipment usage or labor will help to determine the time period for which equipment and labor need to be allocated. Resource allocation and leveling each involve different but related considerations. Overallocation or underallocation of resources involve assigning too many or too little resources to a project. The project manager may then spend extra time, energy and money on procuring more resources or may have extra resources on which the company spent unnecessary funds. Meanwhile, an unpredictable schedule can make leveling challenging. Dynamically changing responsibilities means the project manager can make educated guesses about how to level resources but not a firm projection.
- Construction Project Scheduling and Control; Saleh A. Mubarak
- IBM Support: Resource Leveling
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