How do resource smoothing and resource leveling differ from each other?
Resource smoothing aims to maintain original project deadlines while increasing project costs. On the other hand, resource leveling does not alter the existing resource capacity but instead emphasizes rescheduling, which may have an impact on project deadlines.
The accompanying diagram, sourced from the APM Body of Knowledge, provides a comparison between the two approaches.
Resource levelling and smoothing options (APM, 2019, p. 179)
© Association for Project Management (APM) (2019) APM Body of Knowledge (7th edn), Princes Risborough: APM.
At a more significant level of impact, certain projects undergo more than just rescheduling or resource allocation adjustments. They may undergo a reevaluation of their project scope by the project sponsor. This involves a broader analysis of the entire project and requires reconsideration of how time, cost, and quality interact within the project.
A prime example is the review of large-scale infrastructure projects like railways. Such projects often undergo rescaling due to increased costs, resulting in significant deviations from the original plans. The consequences of these revisions can affect the client and a wider range of stakeholders and may even result in the loss of subsequent work opportunities (Kerzner, 2009, p. 529).
Now, let’s consider MTD, the water installation events company, and the Glasgow event that you have been following in the course videos thus far. When examining the provided figure, do you think it would be feasible to implement a resource leveling approach in this scenario?
Share your thoughts and join the discussion below.
© The Open University
Resource smoothing and resource leveling are two techniques used in Project management to manage and optimize the allocation of resources. While they both aim to achieve a balance between resource availability and Project Requirements.
Resource smoothing aims to adjust resource allocation while keeping the Project schedule intact, focusing on avoiding resource peaks and troughs. Resource leveling involves adjusting the Project schedule to achieve a more even distribution of resources, even if it means extending the Project duration.
As MTD’s Project manager I will work with resource smoothing
For me,
I wouldn’t choose one over the other without understanding the risk in relation to project duration and cost. This is my option on a more board view.
But if am to pick just an approach out of the two options. My first will be to consider resource smoothing.
In as much as applying the resource leveling seems more ideal considering cost I would opt for resource smoothing since project is time-based. But if rushing project (i.e. applying the resource smoothing approach) would result in quality of project been affected, i recommend a meeting with stakeholders to decide on the possible option.
MTD is a water production company and water is very important,infact some organizations or businesses can not be productive without water for instance, food production companies, having said this resource smoothing will be preferred to levelling, even though there is increased cost,yet meeting the deadline is paramount, the end users may definitely procure with increased costs
Cost must be sacrificed in order to meet up with the deadline. Resource Smoothing is preferable
resource smoothing is the best approach
In the case of the MTD water installation company it’s better to go with the resource smoothing than resource levelling which implies rescheduling or not meeting the deadline.
For the MTD water project, I would suggest Resource smoothing approach to meet up with the deadline.
Considering the MTD water project, my best approach would be to go with resource smoothing which is ideal for a deadline and time based project. Even though it’s going to have affect on the cost, it’s better to go with the resource smoothing than resource levelling which implies rescheduling or not meeting the deadline.
With using the resource smoothing approach, the company would be able to meet up with the expected deadline and delivery a quality outcome.
The best approach would be to apply the resource smoothing to meet deadline before event should start.
In the case of MTD, I would suggest Resource Smoothing, though it may require extra cost but because the nature of their projects has a timeframe, They wouldn’t want to risk not being able to deliver at the stipulated time.
In the case of MTD, resource levelling is applicable to avoid additional cost contrary to resource smoothing.