What is Resource Planning: Step-By-Step Process

Resource planning is a critical tool for project managers as it enables them to optimize resource utilization, manage budgets effectively, and ensure timely project completion. By providing a clear picture of resource allocation and availability, resource planning empowers project managers to make informed decisions, prioritize tasks, and proactively address risks.

Resource planning ensures that resources are aligned with project goals, prevents team overload, and fosters stakeholder confidence by showcasing effective project management. Finally, it promotes a culture of continuous improvement by applying lessons learned to future projects, ultimately enhancing the overall project management process.

Table of Contents

• What is Resource planning?
• Why do we need to create a resource plan?
• How to create a resource plan?
• Components of resource planning
• Features of resource planning
• Tools Used

What is Resource Planning?

Resource Planning in project management refers to a detailed process of outlining the physical, human, and material resources required to complete a project. A resource plan is essential in identifying, allocating, and scheduling resources to maximize efficiency and effectiveness in achieving project goals.

Explore project management courses

What is the need for resource planning?

For the following reasons, one needs to create a resource plan:

• Optimizes Resource Utilization: Ensures that resources are used efficiently and effectively, preventing resource wastage and overutilization, which can lead to burnout or increased costs.
• Facilitates Budget Management: Helps in accurately estimating and tracking project costs, ensuring the project stays within financial constraints and reducing the likelihood of unexpected expenditures.
• Enhances Project Planning and Execution: By knowing what resources are available and when, project managers can schedule tasks more effectively, avoiding delays and ensuring timely project completion.
• Improves Risk Management: Identifies potential resource-related risks (like shortages or cost overruns) early in the project, allowing for proactive mitigation and contingency planning.
• Supports Decision Making: Provides a clear overview of resource allocation and availability, aiding project managers in making informed decisions about task prioritization, resource allocation, and adjustments.
• Increases Flexibility and Adaptability: A well-planned resource strategy allows for quicker and more effective responses to changes and challenges, enhancing the project’s ability to adapt to new circumstances.
• Ensures Alignment with Project Goals: Aligns resource allocation with the project’s objectives and milestones, ensuring that every resource contributes effectively towards achieving the project goals.
• Improves Team Coordination and Morale: Clear resource planning helps in setting realistic expectations and workloads, preventing team overload, and improving overall team morale and productivity.
• Strengthens Stakeholder Confidence: Demonstrates to stakeholders that the project is well-managed and on track, building trust and confidence in the project’s success.
• Facilitates Continuous Improvement: Through monitoring and adjusting resource plans, lessons learned can be applied to future projects, contributing to a culture of continuous improvement within the organization.

Explore project manager courses

How to Create a Resource Plan: Step-by-Step Process

A construction company has been contracted to build a new 20-story corporate office building in the downtown area of a major city. The project is scheduled to take 24 months, with a budget of $50 million. The building will feature modern architectural design, energy-efficient systems, and state-of-the-art facilities. Here is the step-by-step process of Resource Planning:

1. Defining Scopes and Objectives

This step involves defining the scope and objectives of the project. This includes identifying the specific features and functionality of the building, as well as the desired timeline and budget.

Here are some key questions to consider when defining the scope and objectives of the project:

• What is the purpose of the building?
• What are the specific features and functionality that the building must have?
• What are the desired aesthetic and environmental considerations?
• What is the budget for the project?
• What is the desired timeline for the project?

Once the scope and objectives of a project have been defined, it is important to document them in a project charter. This document will be referred to by stakeholders throughout the project lifecycle.

2. Resource Identification

Once the scope and objectives have been defined, the following step is to identify all of the resources that will be needed to complete the project. This includes both human resources (e.g., architects, engineers, construction workers) and material resources (e.g., building materials, equipment).

Here are some key questions to consider when identifying resources:

• What tasks need to be completed to complete the project?
• What skills and experience are required to complete each task?
• What materials and equipment are needed to complete each task?
• Are the resources available in-house or will they need to be contracted from external sources?

It is important to create a comprehensive list of all of the required resources, including their estimated costs. This information will be used to develop the project budget and resource schedule.

3. Assessing Resource Availability

Once all of the required resources have been identified, the next step is to assess their availability. This includes determining whether the resources are available in-house or if they will need to be contracted from external sources.

If the resources are available in-house, it is important to determine whether they are already committed to other projects. If the resources are not available in-house, it is necessary to identify potential suppliers and assess their availability and pricing.

It is also important to consider the lead time required for each resource. For example, some specialized equipment may have a long lead time, so it is important to order it early on in the project.

4. Resource Allocation

Once resources have been assessed, the next step is to allocate them to the project. This involves assigning specific tasks to team members and scheduling resources for specific times and locations.

When allocating resources, it is important to consider the following factors:

• The skills and experience of each team member
• The workload of each team member
• The dependencies between tasks
• The overall project timeline

It is also important to create a resource buffer to account for unexpected delays or changes in the project plan.

5. Timeline Management

It is important to create a realistic timeline for the project and to track progress throughout 

the construction process. This ensures that the project is running on schedule and within budget.

When creating a timeline, it is important to consider the following factors:

• The duration of each task
• The dependencies between tasks
• The availability of resources
• The desired project completion date

Once the timeline has been created, it is important to track progress and make adjustments as needed. This is done using a project management tool or by simply holding regular team meetings.

6. Creating a Resource Schedule

A resource schedule is a diagram that shows how resources will be allocated over the course of the project. This is a valuable tool for tracking progress and identifying potential bottlenecks.

There are a number of different ways to create a resource schedule. One common approach is to use a Gantt chart. This is a bar chart that shows the start and end dates for each task, as well as the resources that are assigned to each task.

Another approach to creating a resource schedule is to use a network diagram. A network diagram is a graph that shows the dependencies between tasks.

7. Budget Management

It is important to develop a budget for the project and to track spending throughout the construction process. This ensures that the project remains within budget and any financial problems are identified early on.

For budgeting, it is important to consider the following costs:

• Labor costs
• Material costs
• Equipment costs
• Permit fees
• Other miscellaneous costs

It is also important to create a contingency fund to account for unexpected costs.

8. Risk Mitigation Plan

It is important to identify and assess all the potential risks that may impact the project. Once the risks have been identified, a plan should be developed to mitigate them.

Some common risks that could impact a construction project include:

• Weather delays
• Material shortages
• Equipment breakdowns
• Labor disputes
• Permit delays
• Changes in government regulations

The risk mitigation plan should identify specific strategies for addressing each of the identified risks. For example, if weather delays are a potential risk, the plan could include strategies such as developing a contingency schedule or stockpiling materials.

9. Quality Assurance

It is important to develop a quality assurance plan to ensure that the building is constructed to the required standards. This plan should include inspections and testing at key stages of the construction process. The quality assurance plan should be developed in collaboration with the project architect and engineer. It should identify the specific quality standards that will be used for the project and the procedures that will be used to ensure that those standards are met.

10. Communication and Collaboration

Effective communication as well as collaboration are essential for the success of any large-scale project. It is important to establish clear communication channels between all stakeholders and to regularly collaborate on decision-making. The project manager should be responsible for facilitating communication and collaboration. This may involve holding regular team meetings, creating project communication plans, and using project management tools.

11. Monitoring and Adjustments

It is important to monitor progress and make adjustments to the project plan as needed. This ensures that the project is on schedule and within budget. The project manager should regularly review the project schedule, resource schedule, and budget. They should also identify any potential problems and develop strategies for addressing them.

12. Project Completion

Once the building has been constructed and all of the required inspections have been completed, the project can be considered complete.

The project manager should oversee the final stages of the project, such as coordinating the move-in process and issuing final payments. They should also prepare a final project report that summarizes the project’s progress, costs, and lessons learned.

13. Documentation and Reporting

It is important to document the project and to generate reports that summarize the project’s progress, costs, and lessons learned. This information can be valuable for future projects.

The project manager should develop a project documentation plan that identifies the specific documents that will be created and maintained throughout the lifecycle of project. They should also develop a project reporting plan that identifies the specific reports that will be generated and distributed at key stages of the project.

Components of Resource Planning

The following are the components of resource planning:

Features of Resource Planning

The resource plan will provide the details of when and how these resources are utilized at different stages of the project, such as using architects and engineers during the initial design phase and construction workers and materials in the building phase.

1. Resource Identification

Resource planning is meant to catalogue human, material, equipment, and financial resources that are required for a project. This involves listing out specific skills, equipment, and financial resources. It also ensures that no critical resource is overlooked and helps in comprehensive planning.

2. Quantification and Estimation

It determines the quantity of each resource needed and estimates the associated costs. This involves calculating the amount of each resource required and estimating the cost based on current rates or historical data. Resource planning aids in budgeting and financial planning, ensuring the project remains financially viable.

3. Scheduling

Resource planning aligns the availability of resources with the project timeline. Resources are scheduled according to the project phases and tasks. For example, scheduling architects in the design phase and construction workers for the building phase. This prevents resource conflicts and bottlenecks, ensuring smooth project progression.

4. Resource Allocation

One of the aims of resource allocation is assigning and distributing specific resources to various tasks or project phases. It involves assigning resources to tasks based on their availability and the task requirements. For instance, allocating a senior developer to lead a critical software module. It maximizes the use of resources, ensuring that each task has the necessary inputs to proceed without delays.

5. Flexibility and Scalability

To adapt the resource plan to changes in project scope, timelines, or resource availability. The plan should be revisable to accommodate new requirements, unexpected delays, or changes in resource availability. Resource planning allows adjustments without delaying the progress of a project.

6. Risk Management

Through proper research planning, one can identify and mitigate potential risks related to resources. It involves anticipating risks such as resource shortages, cost overruns, or delays and planning for any emergency. Risk management reduces the likelihood and impact of resource-related issues, safeguarding the project against unforeseen challenges.

Explore risk management courses

7. Monitoring

With effective resource planning, one can effectively track the usage of resources and adjust plans as necessary. Continuous monitoring of resource utilization against the plan, allowing for real-time adjustments. This might include reallocating resources or revising schedules. It ensures efficient use of resources, prevents overspending, and keeps the project on track.

Tools Used in the Process of Resource Planning

The following tools are used for resource planning:

Explore: