Resource Allocation in Construction Management: Leveling and Smoothing Techniques

Introduction

In construction management, effective resource allocation is vital for completing projects on time and within budget. Resources—such as materials, labor, equipment, time, and space—are the backbone of any project. During the planning phase, it’s often assumed that sufficient resources are available to carry out all activities seamlessly. However, in reality, resources are limited, and their availability can fluctuate significantly throughout the year. These limitations can delay the start, performance, and completion of activities, ultimately affecting the project timeline and cost.

Fluctuations in resource availability pose challenges. For instance, easily accessible resources like unskilled labor or common materials may not disrupt the project much. But rare resources—such as skilled professionals or specialized equipment—are harder to secure. Hiring them permanently or semi-permanently to ensure availability often leads to high idle time, driving up costs. To address this, resource leveling and resource smoothing are two key techniques used to optimize resource allocation in construction projects, ensuring a more uniform demand and efficient utilization.

Resource Smoothing

What is Resource Smoothing?

Resource smoothing is a construction management technique designed to maintain a consistent demand for resources throughout a project’s duration. It involves rescheduling activities that have float (slack time) without altering the total project duration. The aim is to eliminate peaks and troughs in resource usage, creating a steady and efficient workflow.

Key Points

• Project Duration: Remains unchanged.

• Resource Availability: Assumes resources are unlimited.

• Critical Path: Stays unaffected.

Steps in Resource Smoothing

1. Identify Key Resources: List the resources needed for project activities and pinpoint the most critical ones.

2. Create Resource Profiles: Aggregate resource requirements over time, often visualized as histograms, to understand usage patterns.

3. Analyze Demand: Identify periods of high (peaks) and low (troughs) resource demand.

4. Adjust Non-Critical Activities: Shift the start and finish times of activities with float to even out resource usage.

5. Achieve Uniformity: Aim for a consistent level of resource demand across the project timeline.

By focusing on non-critical activities, resource smoothing ensures efficient use of resources without delaying the project.

Resource Leveling

What is Resource Leveling?

Resource leveling is a construction management approach used when resources are limited. It reschedules activities to ensure that peak demand does not exceed resource availability, even if this means extending the project duration. Unlike smoothing, it may alter the critical path to accommodate resource constraints.

Key Points

• Project Duration: May increase due to rescheduling.

• Resource Availability: Considers resources as limited.

• Critical Path: Can change as a result of adjustments.

Steps in Resource Leveling

1. Identify Constraints: Determine resource limits and the maximum available resources.

2. Analyze Demand: Examine resource usage to spot periods where demand exceeds supply.

3. Reschedule Activities: Shift non-critical activities first, using their float, to reduce peak demand.

4. Adjust Critical Activities (if Needed): Modify critical tasks if necessary, potentially extending the project timeline.

5. Prioritize Based on Float: Focus on activities with the most float first to minimize disruptions, adjusting critical ones last.

Resource leveling ensures that scarce resources, like specialized equipment or skilled labor, are managed effectively, even at the cost of a longer schedule.

Practical Applications and Examples

To better understand these concepts, consider this scenario: A construction project requires a specific piece of equipment available only in limited quantities. Without intervention, the demand might spike to 18 units on a single day, exceeding the 15-unit availability.

• With Resource Smoothing: If the project duration can’t change, activities with float are shifted to distribute the demand evenly, keeping it below 15 units daily without delaying completion.

• With Resource Leveling: If the demand still exceeds 15 units, activities (including critical ones) are rescheduled, potentially extending the timeline to stay within the resource limit.

Test Your Knowledge

1. In resource leveling, what happens to project duration?

   • It might increase to accommodate limited resources.

2. Does resource smoothing affect the critical path?

   • No, it only adjusts non-critical activities with float.

3. What’s a key difference between the two techniques?

   • Smoothing assumes unlimited resources; leveling works with constraints.

Conclusion

Effective resource allocation is the cornerstone of successful construction management. Resource smoothing and resource leveling offer practical solutions to manage limited resources and fluctuating availability. Smoothing keeps projects on schedule with uniform resource use, while leveling prioritizes resource limits, potentially extending timelines. By applying these techniques, construction professionals can optimize resource usage, control costs, and ensure timely project delivery. Have questions or insights? Share them below!