Loading...

Benefits of Project Resource Management

What Is Project Resource Management?

Here’s what you need to know about project resource management to become more efficient.

  • Project resource management makes sure you are using everything at your disposal – staff, equipment, money, etc. – as efficiently as possible.
  • There are three types of resource management: resource allocation, resource leveling and resource forecasting.
  • Done correctly, project resource management can help you identify problems, avoid overallocation and adapt to change.
  • This article is for business owners who want to make sure they are using all of their resources effectively and efficiently.

Every business is under constant pressure to do more with a smaller budget. One of the fundamental lessons for any business owner is how to allocate business resources so they can reach their maximum potential. An ineffective or nonexistent project resource management plan could have regular negative effects on your business, such as low productivity, quality or morale. With a solid process in place, though, your business can do more with fewer resources.

What is resource management?

Put simply, resource management is the process businesses take to allocate their resources effectively.

The process has several stages, such as planning, scheduling and managing resources to reach their maximum efficiency. While resources vary greatly between businesses, they can generally be categorized as tangible assets – such as inventory, equipment and money – or intangible assets, such as people and time.

What is project resource management?

Resource management is often used in the context of project management. In this instance, “resource management” usually refers to resource leveling or resource smoothing, which are techniques to avoid a shortage or excess in a business’s resources or time. In other words, project resource management is about doing more things with fewer resources.

 

Editor’s note: Looking for the right online project management software for your business? Fill out the below questionnaire to have our vendor partners contact you about your needs.

Companies all over the world are so invested in optimizing what they have, they hire people whose entire job is resource management. Resource managers are responsible for allocating the appropriate resources to ensure a project is completed on time and within budget. They often work in conjunction with project managers, who are responsible for creating and assigning specific tasks. Ultimately, an effective business owner or resource manager knows the minimal amount of resources necessary to achieve the best results.

How else is resource management used?

The principles of effective resource management can be applied to various business structures. A small business can apply these principles in many different ways. For example, a local restaurant could use resource management in the following ways:

  • Staffing: One of the most important roles of a restaurant manager is to ensure the right number of employees are on the clock at any given time. Managers know they have to avoid overstaffing when business is slow and understaffing during their busiest hours. However, it’s not as easy to determine whether hiring an additional server or cook will make the business more efficient or profitable. [Read related article: Thinking About Using a Staffing Agency? Here’s What You Need to Know]

  • Equipment: Restaurants have to manage a significant amount of equipment to operate, from kitchen tools and utensils to tables and chairs. Without managing equipment properly, a restaurant could quickly find itself lacking the right tools.
  • Physical layout: Restaurant owners and managers must carefully consider the physical footprint of their establishments to ensure they are utilizing every square inch. Perhaps the kitchen could be rearranged to increase productivity, or dining tables rearranged to seat more customers.
  • Technology: Restaurants are often early adopters of new technology, from efficient scheduling software to advanced POS systems. Business owners must constantly evaluate their tech systems, comparing them to emerging technologies. Especially in the era of COVID-19, restaurants have to manage their tech resources tightly to stay in business and serve their customers.
  • Finances: Restaurant managers must constantly weigh their finances to determine where money would be best spent. They may have to decide between hiring a new employee and investing in new kitchen equipment, considering what will make the entire business more efficient and profitable.

Key takeaway: Resource management is the process of ensuring businesses are using their resources as effectively as possible. They can use this process for specific projects, or for resources like staffing, equipment and technology.

How does resource management work?

You can implement several different resource management techniques in your business to become more efficient, but they all begin with identifying the resources available to you. A deep understanding of your various business processes and projects is key.

Once you’ve identified all your resources and business processes, you can start allocating, leveling and/or forecasting your resources. The goal is to continually improve your process by adjusting your staff, equipment and finances as needed to meet your objectives.

Regardless of how you incorporate resource management principles into your business, don’t overcomplicate the process.

“Keep it simple and compartmentalize,” said Strato Doumanis, chief technical officer and creative director of MediaCutlet. “Get all the major parts on paper in their most raw format.”

Doumanis reminds business owners that it’s best to establish the bookends of a project first, outlining where you are starting and where you need to go.

“Look at the biggest chunks of the project from the top down and, one at a time, begin carving out the more granular pieces needed to execute,” he added. “Then, get it on a timeline. This will help identify missing pieces while providing the skeleton for a project calendar and an incremental management approach.”

Key takeaway: To manage your resources effectively, you must first identify all of your resources, your starting point and your end goal.

What are the types of resource management?

There are three primary resource management methods: resource allocation, resource leveling and resource forecasting.

1. Resource allocation

Resource allocation is perhaps the most prevalent resource management method, as every successful business does it on some level, even if it is not a formalized process. This is the process of utilizing the resources you have available and distributing them across different aspects of the business to run efficiently. A common example of resource allocation is staffing your business to run at maximum efficiency without going over budget.

2. Resource leveling

This is the process of identifying any project that requires more resources than you have available and adjusting deadlines accordingly to ensure the project is ultimately successful. An example of resource leveling is when a construction company extends the project deadline to account for a limited supply of lumber, a critical material to complete the project.

3. Resource forecasting

Resource forecasting is the process of identifying all your available resources – such as time, people, finances and equipment – and predicting any resource requirements, bottlenecks, or problems before a project begins. To forecast accurately, a resource manager must understand the entire scope of the project as well as any specific goals or objectives that must be met along the way.

Methodologies to enable resource management

There are many different approaches to resource management, some of which include the use of sophisticated software. However, many small businesses don’t have the budget for advanced project management software, instead adopting a workflow process to use their resources more efficiently.

“Agile is definitely the methodology that is being widely used now,” said Wade Millward, founder of Rikor. “It’s a great step forward from the traditional Waterfall method that was so prevalent for decades.”

However, he said Agile can have its own issues and is still evolving. “I think Agile can become better with quicker iterations and more autonomy. The question becomes how to effectively manage it, almost to a point where you can identify issues before they arise.” [Read related article: Pros and Cons of 7 Project Management Styles]

READ MORE:Benefits of Project Resource Management

Leave a Reply

Your email address will not be published. Required fields are marked *