Better Project Planning: Effective Resource Management

Overview

Effective resource management is key to the successful outcome of a project. Throughout my career, I have planned many projects and contributed as a resource to many others. One recurring issue I have observed is the assumption that personnel are available 100% of the time for any given project, effectively assuming infinite capacity. Project managers often operate under the belief that all team members can fully dedicate themselves to their project, which is unrealistic. In reality, each individual has a finite capacity and must balance their time across multiple projects.

Most companies exacerbate this issue by using project planning tools in isolation. Each project manager typically has their own license and manages their projects independently, further perpetuating the assumption of infinite capacity.

Differences

The main difference between Infinite Capacity Planning and Finite Capacity Planning lies in how they handle resource constraints:

Infinite Capacity Planning

• Assumption: Assumes unlimited resources and time.
• Scheduling: Schedules tasks based on the required delivery date, without considering resource constraints.
• Outcome: This can lead to unrealistic schedules, as it may plan more work than the available resources can handle.

Finite Capacity Planning

• Assumption: Considers the actual constraints of resources.
• Scheduling: Schedules tasks based on the available capacity of resources, ensuring that the project schedule is realistic and feasible.
• Outcome: Creates a more realistic and achievable schedule by considering the start and end times of each operation and the availability of resources.

Challenges

Finite capacity planning, while essential for realistic scheduling, comes with several challenges:

1. Data Accuracy: Ensuring accurate and up-to-date data on resource availability, production rates, and demand is crucial. Inaccurate data can lead to flawed schedules.
2. Complexity: Managing and scheduling resources while considering various constraints (e.g., people, machine capabilities, labor skills, material availability) can be complex.
3. Resistance to Change: Implementing finite capacity planning often requires changes in processes and systems, which can face resistance from employees.
4. Unforeseen Disruptions: Unexpected events such as machine breakdowns, supply chain disruptions, or sudden changes in demand can disrupt carefully planned schedules.
5. Balancing Multiple Projects: Juggling multiple projects and customer expectations while optimizing resource use can be challenging.
6. Change Management: Effective communication and change management strategies are needed to ensure employee buy-in and smooth implementation.

Summary

In summary, Infinite Capacity Planning is more theoretical and can lead to overloading resources, while Finite Capacity Planning is practical and ensures that project schedules are achievable within the given resource constraints. Addressing these challenges requires robust data management, flexible planning tools, acceptance of change, and effective communication strategies.

In my opinion, for a project planning tool to be truly effective in an organization with multiple parallel projects, it must be centralized and include resource management capabilities.

How do you currently handle capacity planning in your organization?