Project Resource Utilization Estimating

Project Resource Utilization--Estimating entails specifying the human skills, competencies, and talent levels needed to conduct the project work effort and provide the required product, service, or system deliverables. This section presents the fundamental concepts and technique guidance for estimating project resource utilization.

Conceptually ...

This practice enables the project manager and project planners to assign estimated values for types and numbers of project resources needed to conduct project work efforts. In turn, actual project resource utilization can be tracked and controlled against those estimates.

Project Resource Utilization--- Estimating i s normally conducted during project planning (Plan Phase). However, resource utilization estimates should be continuously reviewed and updated as necessary throughout the project. Please refer to the key events or indicators (listed on the Project Estimating introduction page) that should automatically trigger follow-on reviews (and possible updates) of project resource utilization estimates.

Resource Utilization Estimating Overview

In many organizations, resource utilization estimating is a niche within the project cost estimating effort and is accomplished in direct alignment with cost estimating. Resource utilization estimating can also involve consideration of "material" resources-supplies, materials, and equipment.

The focus of this practice will be on estimating the human resources needed to staff the project, but with due consideration for "material" resources, which users should apply as necessary. Project Resource Utilization Estimating deals with:

Identifying the resource skills and competencies needed to complete the project

Specifying the number and types of resources required for each project work element

Examining resource utilization constraints for each project work element

Establishing the resource allocations needed for the total project effort

Each of these resource utilization estimating facets is discussed here.

Identify Resource Skills

The project manager, with planning team assistance, will specify the types of resources that are needed to successfully accomplish project objectives. In general, this means looking at the several types of skill sets the project may require:

Professionals and Technicians --Identify skills needed to perform the stated professional or technical aspects of the project-the primary disciplines needed to pro duce and deliver the product, service, or system specified in the scope of work. This includes identifying skills needed for:

• Reviewing and comprehending technical and business requirements



• Developing technical solutions to fulfill project requirements



• Preparing and implementing project technical plans and documentation



• Performing design, development, testing, and installation of deliverables

Conducting quality control and assurance, application of standards, on-the-job training, risk assessments, and management Managing and supervising the people applying technical disciplines and specialties used by the project:

• Skilled Workers and Laborers --Identify skilled and unskilled labor required by the project, to include identifying skills needed for:



• Packaging, shipping, and freight activities



• Facility custodial, maintenance, and cleanup activities



• Transportation



• Manual labor (e.g., rubbish removal, grounds work, materials moving and handling)



• Skilled labor (e.g., masonry, plumbing, carpentry, electrical)

The manual and skilled labor items generally refer to individuals involved with major construction or product development projects. On other, smaller projects, nearly everyone on the project team contributes to accomplish any necessary "labor" efforts.

Administrative Aides and Assistants --Identify skills needed to perform necessary administrative duties associated with the project. These may be either "assistant" positions or primary roles in their own right, and this includes identifying skills needed for:

Correspondence, report, and document preparation

Communications management (e.g., phone, fax, courier receipt, and distribution)

Project operations, business, and staff collaboration

Meeting management (e.g., facility schedules and arrangements, participant notifications, and meeting minutes collection)

Project recordkeeping and archiving

Project Management --Identify skills needed to perform prescribed project management actions. This resource may include one or more individuals who are needed to support or complement the skills of the assigned project manager (particularly for larger, more complex projects). Conversely, the project manager working alone on smaller, simpler projects may have to bring skills in this area as well as skills in the other areas just mentioned. This includes identifying skills needed to:

Provide project leadership

Manage business aspects of the project

Manage and supervise the technical work of the project

Manage project documentation and project plans

Manage project performance (e.g., planning, tracking, and controlling-cost, schedule, and resource utilization oversight) Manage project reporting and analysis

Manage customer and stakeholder participation and expectations

Manage and supervise project team members

This initial step in resource utilization estimating is completed when the general types of resources and the "first guess" for the number of people needed in each resource category are identified. In some organizations, this might be done in alignment with established resource codes for each specialty. Otherwise, it’s simply an initial step in estimating that allows the planning team to focus on identifying the different types of skills needed and a preliminary examination of their sourcing. This resource utilization estimating step is often performed in conjunction with the following step on specifying resource requirements for many types of projects, particularly smaller, less complex ones.

Specify Project Resources

Resource utilization estimating takes form with an examination of each work element in the project WBS. These work elements, usually at the work package level, are reviewed to determine the type of resource and the level of effort needed to accomplish specified project work. Here, planners often begin to attach names to project work packages, or at least specify a resource type and level of resource qualification needed.

The following steps present the primary activities pre scribed for specifying project resource requirements:

Review each WBS work element--This is done to ascertain the type of work to be accomplished and to align a competent resource (or resource type) with the effort.

This is normally done at the project work package level, where work efforts are usually separate and distinct. If the work package is a "task," then tasks will aggregate or roll up into activities, and activities into project phases. Therefore, any resources specified at work package levels will be accounted for upward and throughout the project. In some cases, resources may be aligned at a higher level in the project WBS--say, the "cost account" level. This would be appropriate if the resource is involved in all or most of the tasks below it. This step produces a preliminary resource requirements matrix.

Refine resource qualification requirements--Examine the resources assigned to each work element to ensure that the qualifications of each identified resource are appropriate-both for the nature of work to be performed and the level of effort. If not already done, incorporate resource qualification levels, perhaps using internal resource or position codes, into the resource requirements matrix.

Identify proposed resources--When possible, name the individual resource that will be requested for participation on the project. This resource should be consistent with the specified position qualifications. This identification also contributes to the separate effort of acquiring and assigning project team members (see the Project Staffing Management practice area).

Examine Resource Utilization Constraints This is an effort that provides further refinement of the resource responsibility matrix and contributes to realistic considerations of the availability of preferred or specified resources. This action examines conditions associated with several types of constraints that could affect estimating resource utilization.

Logic-Driven Conditions--Examine project activity relationships to identify areas in which activity dependencies will drive resource requirements. This helps determine when resources will start and end a work effort, and affects resources available for assignment.

Resource-Driven Conditions--Examine how project activities will drive resource requirements, that is, the number and qualification of resources to be used for each work activity.

Resource Evaluation--Examine resource availability against that resource's current activity assignment commitments to ascertain any assignment conflicts.

Resource Allocation--Examine factors that could limit the allocation of project resources; plan the project work around established resource pools, and request allocation of that pool to the project.

Qualification Factors --Examine resources to deter mine if appropriate and necessary qualifications will be fulfilled. Look at opportunities for outsourcing if current resources are not available or are otherwise not qualified. Examine what is needed and what can be done to achieve qualification for currently avail able resources.

External Factors --Examine any business or technical performance areas where external factors or conditions could affect resource availability and assignment to the project.

It’s suggested that issues resulting from identified resource utilization constraints be considered as a part of the estimating effort, with adjustments made to the resource responsibility matrix when such issues adversely impact the project staffing effort.

Establish the Project Resource Utilization Baseline

Upon completion of project resource utilization estimates on the resource responsibility matrix, resources are then entered into the WBS normally at the work package level. This compilation will enable total project staff strength to be specified for all project activities. In turn, this represents the number of resources that will be requested for the staffing allocation.

The resource utilization estimate is forwarded to the project executive (sponsor) and perhaps other management entities (e.g., PMO) for review and approval. Otherwise, the project manager may have the authority to approve the project resource utilization estimates as per standard procedures within the organization or as specified in the Project Charter.

In some situations, the customer may also be a reviewer of early resource utilization estimates.

A resource utilization baseline is established when the review authority has approved the resource utilization estimates. The resource utilization baseline is normally set by the project manager, and any changes to this baseline must go through a change management process. The resource utilization baseline is normally established in conjunction with setting the cost and schedule baselines.

When using project management software, there is normally an automated feature or function available to establish and save the approved resource estimates (as assigned to project activities) as a part of the project baseline.