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.
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For a company like MTD, which is involved in water distribution for mostly an event with a specific date and time. Resource Smoothing is a good option for them just that it will only increase the project cost and all the deliverables will still be achieved within the projected deadline.
Resource leveling might be a disaster for the sponsor of the event because they might not possibly reschedule the event because of MTD alone which might also affect other department(s).
Oluwagbemi Elasoru
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. And MTD is a water company which works in event projects, I’ll go with resource smoothing. Rescheduling of dates of event may not be favourable to stakeholders or clients as this may affect a lot of things as MTD may not be the only company working on the event project. If the event is rescheduled because of MTD company,other companies working on the project may also be affected and this may bring loss to stakeholders. As there is another option of resource smoothing which will not affect the deadline but only increases project cost, I’ll advise that smoothing be applied after proper discussion with the sponsor of the project.
Resource smoothing is advisable when handling a project like MTD.
Resources soothing ,maintains the project deadline but increases cost ,but leveling on the other hand brings in rescheduling,in this case ,it can’t be rescheduled because this project involves a water company,so resources soothing has to come in but every change has to be communicated with the project sponsors .
Considering the fact that MTD is a water company that handles events with fixed date, Resource smoothing is applicable which increases the project cost (This would be communicated to the project sponsors)While ensuring the events hold as expected with any disappointment.
For MTD company, resource levelling will affect their kind of work since it has to do with deadlines. Though it could help the company come up with better ideas and innovations for enhanced production.
But, resource smoothing is actually preferred since deadlines will be affected, not minding the costs.
Based on MTD/Glasgow event scenario, resource smoothing is more feasible. Though, it increases project cost but it aims at meeting with the project deadlines and deliverables. To get the best of this approach, communication with sponsors is very essential.
While both resource smoothing and resource leveling aim to optimize resource utilization and manage project constraints, they differ in their approach. Resource smoothing focuses on balancing resource demand over time within predefined limits, while resource leveling adjusts project schedules to ensure that resource demand does not exceed availability at any point. Both techniques are valuable tools for project managers to maintain project efficiency, manage risks, and deliver successful outcomes.
In my opinion, resource smoothing would be more favourable for MTD because they work with fixed dates and it will be totally inconvenient to adjust the schedule. Resource smoothing will increase the cost but it will reduce delay, create stability and enhance stakeholder satisfaction. Communication with the event sponsors is essential before implementing this approach.
Resource levelling is all about balancing the workload on resources in a project, after assessing their capacity, to ensure that the available resources are redistributed in a manner that makes the project achievable with the available resources. The Project challenge experienced by MTD, a water installation events company was one related to project quality, as the supply of water was bad for the Glasgow event. Naturally, where the supply is bad and water provided is insufficient for the estimated level of water required for the project, resource levelling would not be ideal.
There is an anticipated number of end users expected at the event (the project), based on historical data. An amount of float has been provided for this in the project plan. Where the supply is bad and the water supplied insufficient, it is likely that the water provided would not serve the anticipated end users. Thus, the project scope (in terms of end users that can be served) would either have to be adjusted, by scaling down drastically, or the event spread over a certain number of days to enable the project cater to the anticipated number of end users. The project might have to be cancelled altogether where the water supply is so bad that the end users to be served would not justify the cost of the project. Resource levelling in this case would materially affect not just the scope of the project but other associated project costs as the availability of other resources and elements of the project including the availability and cost of the venue and the time costs of the sponsor and the other stakeholders in the project.
Consequently, resource smoothing would seem to be a more viable option where the cost of providing an alternative source of water can be incorporated into the adjusted project plan as opposed to making major alterations to the project scope that would affect timelines in a manner that would multiply the cost of the project or make the project a white elephant one.
I would apply resource smoothing because the event has a date already which cannot be changed easily, therefore, I would add resources to meet up and maintain relationship with sponsor and stakeholders. This I would do through effective communication