Project Resource Management and Its Role in Project Success

You can be a small business that manages one task at a time or a bigger company with multiple projects coming together simultaneously; allocating human and non-human resources effectively is a crucial part of your success.

At first glance, this might not be even something you thought of. However, just as you can not make dinner without a stove and a knife, you can not reach project objectives without taking into consideration the resources at hand.

Now, you are probably wondering what can be considered a resource, as well as how you should manage resource utilization correctly. This is where project resource management comes in.

In this article, you will learn what is project resource management, what types of resources there are, how to effectively allocate resources, what are the benefits of establishing a resource management process as well as plans and techniques to use for your company. Let's dive into the topic.

Project Resource Management Definition

Project Resource Management is a part of general project management that can be defined as a process of calculating resource requirements for completing project tasks, acquiring the necessary resources, and distributing them across project timelines to achieve the desired project outcomes efficiently. It takes into consideration everything, including how productive you are to your employees, and maximizes every resource utilization.

In simple words, you are getting the most out of what you have. By establishing efficient resource planning, you will have an understanding of individual responsibilities as well as productivity.

In case of any roadblocks, you can repurpose resources so as not to put the project's success at risk. So, this is an ongoing process that helps the processes run smoothly.

Who is a Resource Manager?

Many companies charge a project manager or a project management office to monitor resource management. However, there are specialists who can be the ones accountable for this area - resource managers.

A resource manager can be a part of a project team or a project management office. However, he is the one leading all the processes connected to project resources, from calculating the resource usage to effectively allocating resources.

The main responsibility of a resource manager is to create a resource management plan as well as continuously direct the resource planning measures.

The Definition of the Resource Management Plan

A resource plan is a company document that contains all vital information related to project resource management, including:

• Company guidelines and SOPs;

• List of tools and resources;

• Company methodology for estimating resources;

• Prices for resources;

• Supplier information, etc.

A resource plan can consist of several combined documents and can also contain loads of data. Such information should be organized for easy management and access for authorized employees. Many CRM software provide combinations of features for these exact purposes.

One of the best options is Bitrix24. This all-in-one software not only has all the necessary solutions for effective project management but also cloud storage for all your company data, making it a perfect project resource management software.

Resources in Project Management

Proper resource management without actually understanding what your available resources are is impossible. So, before diving into the techniques to help you improve project execution, let's define project resources as part of project management as well as their types.

What is a Resource in Project Management?

When it comes to project management, resources can be defined as assets that are being employed throughout the project lifecycle to ensure project success. Anything that contributes to finishing project tasks, ensuring project progress, and preventing project delays is considered a project resource.

Types of Resources

To make managing and planning resources more effective, they are divided into types. Based on the industry and your project demands, categories of critical resources may vary. We have gathered a list that includes all the types you might want to focus on.

Time

This includes estimating the project lifecycle within the company workflow. Time is the most valuable resource. It allows project managers to establish reasonable deadlines and the necessary team to complete each project task.

Material resources

Material resources are everything that is being used entirely or partially in order to complete project tasks. It mainly includes numerous supplies (for example, office supplies) and raw materials that can not be used again.

Human resources

Human resources, or labor, refers to all employees required to complete project tasks. These include project managers, project team members, 3rd party consultants, who are essential based on the project scope and specifics.

Machinery and equipment

Machinery and digital software are physical resources needed to complete the project. However, contrary to the materials, they are not used up in the process.

For such assets, you have to calculate amortization and implement these only for the specified period to maximize resource efficiency. They include tangible and intangible resources.

Financial resources

Financial resources include all monetary flows that are required to meet the project outcomes. These include company budget, funding, donations, investing, etc.

Financial resources are necessary to fund labor, equipment, as well as all other resources needed for the project to be finished. In case of additional work time or other fees, it is better to create a monetary buffer as well.

Resource data

This project resource includes all the information required for the project. Whether it is an additional resource, your existing databases, client information, courses, software manual, or access to the research - it is all a part of the resource.

Such project resources are often not considered. However, your team might not have enough expertise, or it might require more data for correct calculations and predictions.

Facilities

Every space you require to make the project come to life is a part of this project resource. Your offices, communication rooms, warehouses, factories, and even photo studios where you make content for your marketing campaign are considered a resource.

Resource Management Processes

Project resource management is a vital process throughout the entire project lifecycle. However, there are several stages it can be divided into to make sure your resource plan is effective and suitable.

Step 1 - Project Resources Aggregation and Analysis

Resource aggregation is the process of calculating daily resource usage to finish the project. This process helps estimate the resource utilization for future projects and make data-based decisions.

Resource analysis is necessary to evaluate resource availability. This helps create a list of resources missing for the project.

Step 2 - Project Resource Planning

Project resource planning outlines resource requirements as well as shows these are going to be acquired. As a part of effective resource management, it acts as a guide for resource utilization throughout project timelines.

Such guidelines provide information with detailed resource descriptions and amount in stock. The team can also look into who is going to use specific resources and when.

Step 3 - Project Resource Scheduling

Resource scheduling is necessary to make sure you have the right resources when needed to complete the task. Project managers must align the resource schedule with the general project schedule to minimize potential storage costs while at the same time being able to provide what is demanded when the time comes.

Step 4 - Project Resource Allocation

Resource allocation is a process of assigning resources to the correct tasks and parts of the project. This must be done based on the resource schedule as well.

While there are several tasks being completed simultaneously that require the same resources, the critical tasks must be made a priority. Resource allocation is based on time and preference.

Step 5 - Monitoring Resources

Project managers must monitor the effectiveness of the use of critical and valuable resources as well as the team's productivity. This is necessary to establish the rightful and timely use of resources and check the performance of your employees at the same time.

Such activities require a lot of data and analytics. This is why many companies implement resource management software to keep track of all activities. The all-in-one CRM solution is one of the best choices to help manage resources in project management.

Project Resource Management Techniques

Managing resources is an important and complicated part of project management. It requires profound preparation and a deep understanding of the potential needs. There are several techniques that can help you establish project resource management in your company.

Resource Capacity Planning

Resource capacity is a process of calculating the maximum amount of work that can be done based on current resource availability. At the same time, resource capacity planning is needed to make sure there is enough resource capacity to complete the project successfully.

Resource Leveling

Resource leveling is a resource management solution that includes re-assigning team workload within the projects in case of various issues. The main focus is the knowledge and abilities of your employees. Based on the advantages, the project manager assigns the work to accomplish the most efficiency.

Monitoring Resource Utilization

Resource management also includes constant monitoring of how the specific resources are being used and whether they are being used accordingly. When there are inconsistencies, project managers must adjust resource allocation scheduling or planning.

Recourse Forecasting

Forecasting as a resource management еechniquet that includes estimating as closely as possible the needs for the particular project. It also includes outlining how resource requirements will be met according to the general company plan.

Resource Smoothing

Resource smoothing is based on prioritizing critical tasks and putting aside non-urgent ones based on resource availability. When the task has no sufficient influence on the main planning, it can be dropped to move all resources to the ones with the most effect. After priority tasks are completed, you can return them to the non-urgent ones.

Resource Loading

With this resource allocation technique, project managers estimate the maximum workload amount in hours for each employee that can be dedicated to the specific project. After, they have to ensure all the time is actually spent on the established project.

Resource Management Software

Resource management software is an instrument that includes all the tools necessary to effectively establish resource management processes. It includes automatic data collection and analysis, charts, tables, shared online documentation, and cloud-based storage for all necessary files.

More profound software, like CRM, also provides inside communication, marketing, and lead management tools. You can find both desktop and online alternatives. Some are even suitable for mobile devices for quick access to company information on the go.

Efficiently managing resources is impossible without software. It not only helps you automate most of the tasks but also helps you make data-driven decisions throughout the resource management process.

You can get reports on remaining resources as well as potential resource constraints before even starting the project. When it comes to resource allocation, you can assign tasks based on the concreted data in your system without second-guessing yourself.

Resource Management Tools

There are resource management tools you must focus on when choosing software. These are necessary to complete all processes and allocate the right resources to the right team members.

Time Tracking

This feature has 2 primary benefits in project management. On the one hand, it is needed to calculate payroll for the employees and freelancers with an hourly payment system.

On the other hand, it also helps monitor productivity and effectiveness. You will know how much time exactly your team spends on each task. Such information helps collect data for future planning, determine who puts the most effort, and provide additional bonuses.

Calendar

Calendar is the main feature of project resource management. It helps navigate schedules to make sure resources are coming in time, the project progress is happening as planned, and all deadlines are met.

All the employee schedules can also be managed with the help of the software. This way, resource allocation is happening according to the individual workload, and everyone is doing their fair share.

Charts and Histograms

Charts are especially helpful for outlining resource usage, dividing tasks, and employee responsibility. You can create any histogram based on your need and keep track of the project resource management data, including:

• A structure breakdown is needed to organize all tasks that are part of the project and the resources necessary for each one of these.

• Gantt charts to help plan the schedules and improve resource allocation.

• Resource utilization histograms to visualize how the resources are used throughout the project;

• Workload charts to help project managers monitor personal import and re-allocate resources if necessary.

Resource Management Challenges

Effective resource management includes numerous vital parts and profound planning. Creating a system that works for your company and does not lead to constant unplanned spending is demanding and requires a lot of work.

However, there are several common challenges that most project managers are facing. These can start as small discrepancies but lead to unpredictable consequences as the project progresses.

Disorganized Resource Supply Chain

The sources must be supplied when needed, for the right person and incorrect among. Whether these are human or non-human resources, their timely arrival is a vital part of the process.

One of the main reasons for this mistake is the disorganization of schedules and communication channels. There must be a clear outline of when the resources are planned to arrive and be used. You must also understand all the whos:

• Who is the supplier?

• Who is communicating with the supplier?

• Who will be using the resource?

Unqualified Resource Allocation

Each resource must be allocated to a suitable task. This is crucial in resource management if you want to finish the projects successfully. Many variables determine this process, so to make the most efficient decisions, you must collect and analyze a lot of data.

Using a single spreadsheet might be difficult for some companies, yet for the majority, this can lead to numerous errors, schedule disagreements, and resource shortages. This is where special software comes in handy. They can help you create scenarios and outline spending to choose the best course of action.

Not-Optimal Use of Project Resources

The most common scenario of this mistake is when one or a few employees are assigned the majority of the project tasks. This happens due to previous successful performance, so the job is given to the same person.

However, this can lead to uneven workload distribution, higher stress levels, and burnout throughout the team. Such mistakes cause resource unavailability and exceed the budget.

Wrong Project Resource Estimate

There are 2 sides to this mistake, which both lead to devastating consequences. Your calculated amount might not be enough to finish the project, or you can acquire too much.

When there is a recourse shortage, constant delays start to occur, leading to team pressure and missing deadlines. Many times, acquiring something at the last minute also drives up the costs for fast delivery.

The main reason to avoid overbuying when it comes to project resource management is due to higher costs. You do not only have leftover resources that might not be used later but there are higher storage costs that can пo beyond the budget.

Disconnection Between Departments

Unfortunately, disconnecting and miscommunication between your departments can not only disturb the resource management process but lower customer satisfaction as well. Your sales team has a goal to, well, make a sale. However, without taking into account the project team, any deal can cause significant monetary losses.

There might not be enough resources, knowledge, or software available to undertake the necessary tasks. This is why a part of any company project management is to establish a clear line of communication and collaboration within the teams and departments.