8 Effective Resource Allocation Methods to Empower Project Management in 2024

Resource allocation in project management is not a sealed book. If you understand and apply it wisely then it greatly facilitates the work on projects and helps achieve great results.

Managers may have a dream team, ample time, and a desirable budget but a lack of a competent resource management approach can lead to project failure.

This article focuses on the benefits of smart resource allocation methods, which, when combined with robust resource management software, enhance time management, predict risks, facilitate team collaboration, and increase stakeholder satisfaction.

If you’re uncertain about how to allocate resources in project management and seek proven approaches, explore the core resource allocation methods described below.

What is the power of resource allocation methods?

Smart resource allocation methods resolve potential asset conflicts and prevent overuse or underuse of resources. Well-chosen methods also minimize work failures, missed deadlines, and project delays.

Here’s how powerful resource allocation methods help project managers in their daily work:

• Optimal resource utilization saves costs and boosts productivity.
• Clear scheduling prevents delays in work.
• Resource allocation helps achieve project objectives.
• Professional RA methods aid budget control.
• Early identification of risks avoids cost overruns.
• Allocation plans reduce conflicts among teams.
• Transparent communication fosters trust.

Now let’s dive into the details of the best methods that make the job of project managers easier and bring stunning benefits to organizing resources.

Top resource allocation methods

You may find various strategies for effective resource allocation but we’ve selected 4 approaches that are used by the most experienced project managers all over the world. We also describe some lesser-known yet valuable methods.

So let’s explore them right away!

Method1: CPM (critical path method)

The critical path method is known as an excellent tool for resource allocation in project management. It helps businesses to schedule project processes and distinguish critical from non-critical tasks.

This approach focuses on determining the required resources at each project stage, from initiation to completion.

Project tasks can be dependent on other tasks. To meet deadlines, it is vital to quickly begin completing an initial activity. The longest sequence of dependent tasks has top importance and is called a critical path. All activities outside of this path are quite flexible and their delays will not impact the project schedule.

By defining a task priority sequence before your project begins, CPM in project management facilitates resource planning and enables seamless adjustments to ensure adherence to a timeline.

This resource allocation method looks rather effective for predictable projects. The most powerful tool to implement it is an online Gantt chart.

When you visualize a Gantt chart critical path, it creates a clear network of interconnected events and work activities. This network helps identify tasks that can significantly affect the project’s completion date. Any delay in a task on this critical path will lead to a project delay.

To implement CPM, choose robust critical path software with a Gantt diagram. For example, GanttPRO.

The Gantt chart generator can visualize a critical path on a timeline with a single click, highlighting critical tasks in red.

You can also find some more resource allocation methods that serve as good alternatives to CPM. Let’s study them as well.

Method 2: CCM (critical chain method)

The critical chain method (CCM) is a modern approach derived from CPM. It shares the goal of achieving project efficiency by prioritizing critical tasks, but it also considers resource limitations and project buffers. According to this method, completing each task swiftly before passing it onto the next team member is preferred, with an emphasis on the overall objective rather than individual tasks.

It’s important to remember that CPM primarily focuses on project duration and task dependencies, while CCM accounts for resource constraints and uncertainties, highlighting efficient resource utilization and risk mitigation through buffers.

Taking into account uncertainties and buffers, the objective is to optimize resource utilization and scheduling. This approach aims to prevent resource constraints and enhance overall project performance by defining and safeguarding a critical chain.

Both CPM and CCM contribute to ensuring that teams allocate their attention to the correct resources at the appropriate times.

Method 3: Resource leveling

While critical path and critical chain enhance efficiency and allow for resolving issues, sometimes, project changes are necessary.

Resource allocation in any project involves resource leveling, which means redistributing resources based on project managers’ decisions. This process aligns resource availability with project requirements. To ensure fair resource allocation, project schedules are adjusted by extending or postponing tasks. The aim is to prevent overextension or underutilization of resources, optimize asset distribution, and reduce project failures.

Resource leveling involves modifying project schedules based on resource availability, both for starting and finishing tasks. It helps protect employees from excessive commitments that can lead to burnout and allows for more efficient assets allocation.

Surely, it’s more convenient to implement this method on a visually appealing and simple timelines, where all resources can be easily controlled.

Method 4: Resource smoothing

This method (unlike resource leveling) focuses on reducing resource demand while adhering to established time constraints. It proves valuable when altering the start or end date of a project is not feasible.

Using this method, managers adjust resource schedules and allocations as necessary, occasionally augmenting their teams with additional resources to complete tasks. Resource smoothing, in essence, does not necessitate any modifications to the critical path or impact the project’s end date.

PM professionals often employ resource smoothing intuitively, sometimes by involving more experienced personnel to expedite project tasks and shorten timelines.

In summary, this method’s primary goal is to optimize resource utilization and ensure sufficient resources for critical tasks.

Are there any alternative methods for resource allocation?

If the approaches described above do not suit your project management philosophy, try to explore additional options that can effectively enhance this list of key resource allocation methods in project management. By the way, combining different methods may lead to improved outcomes.

The good news is that we have some more smart resource allocation methods for you.

To study them, please follow the link to the full version of this article — https://blog.ganttpro.com/en/resource-allocation-methods/.

It’s worth reading, as in this text, you’ll find 20 software solutions to implement the methods described here as well as 4 new methods that will definitely help you to organize all project assets with ease.