What is Project Resource Management

You need resources to complete any work to be done. So, it is with every project. Any project would need different types of resources to complete and deliver successfully. Resources contribute most to successfully delivering a project. Project Management is not about managing the tasks required to complete it. Effective project management also includes managing the resources efficiently. So, resource management has become one of the most important aspects of project management. If the project management team follows the best resource management practices, it can make a real difference in the project. 

The manner of planning, organizing, and managing resources can greatly impact a project's success. Therefore, resource management has become an integral part of Project Management. Neglecting this part of Project Management may result in delays or costly oversights. It is, therefore, important that the project management team clearly understands the significance and concept of resource management. But before we talk about project resource management, let us first see what a resource is and what resources are usually required for a project.

What is a resource?

A resource for a project can be defined as anything or a person that can be planned or booked for completing the project. Types of resources required for the project may vary depending on the type of project and industry. The advantage of planning and managing the resources is that they are used effectively, efficiently, on time, and within the budget. This helps in improving the performance of the project team. Maximizing the team's performance is one of the most important objectives of any leader. 

Types of resources used in projects

The three main pillars essential for the successful execution of any project are people, processes, and technology, or in other words, man, material, and machine. So, to complete a project, you need people who need material or inputs to carry out their tasks, and the technology or method is turned into processes to accomplish these tasks. A place is needed to carry out the project activities. Overall, resources can be divided into human and non-human types at the enterprise level. We will have a look at all of them.

Human resources: 

Human resources are the people needed to do the project's actual work and physical activities. These are the organization's employees (both full-time and part-time) and may also include some contractual staff. They perform functions assigned to them. These employees and staff have different skills and knowledge required to execute the project. We can safely say that human resources form the backbone of any project.

Finance:

This, as we all know, is like a breath to the project. No project can move forward without adequate financial backing. The resources required for the project can be procured with money only. So, it is one of the most significant resources needed for the project. 

Material:

The material consists of the things consumed to produce the final product. Of course, consumables would vary from project to project. A software development project would need materials that are different from those of a machine-building project. But materials are the inputs that would generate the final output.

Tools and equipment: 

This is the machine part of the resources needed to complete the project successfully. Equipment and tools can be of two types: tangible and intangible. The tangible equipment will include plant, machinery, etc., while the intangible equipment will include software, processes, and methods. Once again, the required tools and equipment would change according to the project and organization. 

Facilities:

Lastly, a project needs a space to be executed. It could be land, a room, an office, or some other accommodation, but a place has to be earmarked specifically for the project activities to be carried out. It must be ensured that the space is enough to accommodate all the people, materials, and machines and that the project activities can be carried out comfortably. 

Having learned about different project resources, let us now, discuss project resource management.

Project resource management:

Project resource management is a key function in Project Management. It is that part of the Project Management process that identifies, plans, organizes, and monitors the resources required for the successful execution and delivery of the project. It is a set of integrated processes through which the Project Managers can determine, procure, and allocate resources. In small projects, the Project Manager is tasked with managing the resources. However, in bigger projects, a separate resource manager may be appointed to coordinate with the project manager for the smooth flow of resources. Project resource management includes managing both internal and external resources. Project managers have to manage resources from the start of the project to its completion. And for this, they may need some resource management tools and techniques.

Project resource management, plans and processes are built to manage resources effectively. This is necessary for an efficient distribution of the available resources. In simple language, project resource management is about getting the best out of your organization's resources. To get the best out of them, it becomes imperative to track and monitor the performance of each resource as the project progresses. This clearly shows who is doing what and how the resources are utilized. This way, the Project Manager can take proactive measures to improve the strategic utilization of resources. This also helps identify the resources being underutilized so they can be reallocated to suitable places. With project resource management, the Project Manager would know if enough resources are available to complete the project and how and where the project cost can be reduced. So, project resource management is an ongoing process starting at the project planning phase and continuing till the end of the project. With a proactive approach and applying the right solution, a Project Manager can take preventive measures to move smoothly toward the project's objectives.

Now that we know what project resource management is, we will look at the processes related to it.

Project resource management processes

The Project Management Book of Knowledge (PMBOK) is the most extensively used by Project Management professionals globally. It contains an exhaustive expression of project resource management. According to it, there are six processes of project resource management. We will discuss each one by one. The six project resource management processes are:

Resource management planning:

The first thing is to identify the kind of resources required and their number to achieve the deliverables in the project. But even before that, you need to understand the project. What are its deliverables? What are the expected outputs? What kind of skills and competencies are required? What is the timeframe? What are the milestones? What are the dependencies? All these questions must be addressed and understood before identifying the resources. Besides, you need to hear all the stakeholders' expectations. You must also try to read between the lines because stakeholders may not express what they want so explicitly. Once you have assessed all the requirements, it becomes easy to define the type of resources needed to complete the project successfully. Some will have specific skills attached to them, and others may have particular requirements for size. Now, you can clearly identify the needed resources for the project. A project resource management plan is usually a component of the overall project plan.

Estimate activity resources:

Now that you have identified your resources, you can get more specific. The estimation of resource requirements for executing the project must always be done at the planning stage. As we said earlier, resources are classified based on type and quantity. Other factors, like availability and quality that could affect the project cost in management or schedule, are also considered. Therefore, at this point, the estimation of human resources, materials, equipment, tools and technologies, facilities, and supplies required to complete the project is carried out. Three main methods of estimating are used in conjunction with bottom-up and top-down estimating. They are Analogous, Parametric, and Three points. This helps in the effective execution of the project. After estimating the required resources, these resources are allocated.

Acquire resources:

After estimating and allocating resources based on project tasks and the project execution phase has started, it is time to get the needed resources as identified in the project resource plan. So, decide on how and when you will acquire these resources. For this purpose, consult the project schedule to see when the resources would be needed. The Project procurement department is notified and it procures the equipment, tools, materials, etc., required for the project. A separate Procurement plan, another component of the Project Management Plan, is implemented, and the procurement team purchases the necessary resources. At the same time, the manpower needed to work on the project has been hired. This can be done internally as well as externally. There may be people in the organization with the skills required to work on the project, and some might be looking for a new role. Depending on their suitability for the position, they may be shifted to work on the project. External hiring would mean advertising the positions and filling them with candidates from outside the organization. 

Develop the team:

This is a more challenging part than planning, estimating, and acquiring resources because it involves humans. Developing, managing, and motivating a team is not an easy job. But that is precisely what is needed to deliver the project successfully. So, nurture the conditions that enable people to perform at their best. Clear-cut job descriptions and expectations from the individual members of the team play an important role in this. Provide training to them if needed, find out how you can keep them motivated, give them a feeling of security, and encourage them to communicate freely so that you can get the correct feedback as the project progresses. Most people look for rewarding work and career growth opportunities. So, show them the positive sides of the project. Celebrate with them whenever a milestone is reached or another achievement is made. Developing the team's knowledge and skills during the project is another way of keeping them motivated as they will see the opportunity for new learnings. 

Manage team:

Undoubtedly, the project team plays a significant role in completing the project and its success. Tracking, monitoring, and measuring the team's performance as a whole and individual members is important both from the point of view of the project's success and boosting the team's productivity. This is also vital for efficiently managing resources. This also helps identify any need for further training or coaching to any team member to enhance performance. Therefore, managing the project team is an important component and a key process of project resource management.

Continuously evaluate and control resources:

At the beginning of every new project, everyone starts with positivity. Everyone is usually excited when starting something new. But once the actual work begins and you are in the midst of all the activities and bombarded with stakeholder requests and queries, the need for metrics is felt. Continuously evaluating how resources are performing is as important as the resources themselves. You need to assess if the resources are being used efficiently regularly and if they are doing the work they have been deployed for. And for this, regular, continuous control procedures are required. Also, a regular look at the resource management plan will ensure that the resources are being used per the plan. Cost-benefit analysis and alternate analysis are carried out to provide the optimum use of resources.

Each project is unique in itself. Every project differs from others, whether developing an innovative IT solution, launching a marketing campaign, or creating a new product or service. But one common thing that all projects have is efficient project resource management. With the right kind of project resource management, delivering a project successfully becomes as easy as a walk in the park. On the other hand, the mismanagement of resources can turn your project into a mess. So, use the project resource management processes described above wisely and make sure that you cannot only complete the project successfully but also learn valuable things.  

Conclusion:

Project resource management is the backbone of successful project execution, ensuring resources are effectively utilized. It encompasses identifying, planning, acquiring, and managing resources throughout the project lifecycle. Human, financial, material, tools, equipment, and facilities are vital for project success. The PMBOK outlines six essential processes: resource management planning, estimating activity resources, acquiring resources, developing the team, managing the team, and continuous evaluation. By implementing these processes diligently, project managers can optimize resource allocation, enhance team performance, and mitigate risks. Efficient project resource management is paramount for achieving project objectives, ensuring timely delivery, and maximizing organizational resources. At Simpliaxis, we're committed to helping you reach your full potential as a project manager. Enroll in our project management courses today and take the first step towards advancing your career and achieving your professional goals.