Statement (I): Resources Optimization is largely a pre-implementation pursuit whereas Resources Allocation is a through-implementation dynamic process. Statement (II): Resources Allocation has a larger bearing on Inventory Management than Resources Optimization.
Statement (I): Resources Optimization is largely a pre-implementation pursuit whereas Resources Allocation is a through-implementation dynamic process. Statement (II): Resources Allocation has a larger bearing on Inventory Management than Resources Optimization. Correct Answer Both Statement (I) and Statement (II) are individually true but Statement (II) is not the correct explanation of Statement (I)
Concept:
Resource is a physical variable required for completion of activities. It can be material, manpower, machinery, space, money or time resources.
Resource allocation is deciding the resources to each activity.
As here each activity is concerned throughout the project duration, it has a larger bearing on inventory management than resources optimization.
Methods to achieve resource allocation-
Resource Smoothening:
In this method the total project duration is not changed but the activities having float are rescheduled so that a uniform demand for the resources is achieved. So in this case there is constraint on project duration. There is however no constraint on the resources.
Resource Levelling:
In this method, the activities are so scheduled that the maximum or peak resources requirement does not cross the limit of available resources.
In rescheduling the available floats are used first. If by doing so, the resources demand is more than the available resources, the duration of some of the activities in increased so that the resource requirement for these activities is decreased. Thus In this process duration initially planned might be increased.
Resource Optimization:
Resource optimization is the set of processes and methods to match the available resources (human, machinery, financial) with the needs of the organization in order to achieve established goals. Optimization consists in achieving desired results within a set timeframe and budget with minimum usage of the resources themselves.
It requires us to carry out a statistical analysis of the project buffer consumption using Statistical Process Control (SPC).
Resource allocation is a dynamic process where as optimization requires static control.
So here both the statements are correct.
