Resource leveling: Techniques, examples, and tools

Sometimes projects don't always go as planned. You may encounter resource shortages and need to adapt to ensure project deliverables aren't affected. That's where resource leveling comes in. It allows you to adjust timelines so a project can be completed with the available resources. With this technique, you can allocate resources accordingly to ensure goals and objectives are met.

Resource leveling requires solid resource management skills and a thorough understanding of what each project needs. To help you get a better handle on this technique, we break down the resource leveling process with examples and best practices for you to follow.

What is resource leveling?

Resource leveling is a project management technique used to resolve scheduling conflicts and overallocation of resources. It adjusts project timelines or task assignments so work can be completed with available resources, including time, materials, and tools.

The purpose of resource leveling is to get the most out of available resources while working within the project's time, cost, and scope constraints.

Resource leveling can be challenging for project managers as it requires balancing the demand for the same resources across multiple projects.

Depending on your team's needs, here are possible outcomes:

• If the goal is to keep the current project deadline, more resources may need to be made available.

• If the goal is to run the project with the currently available resources, the project's deadline may be extended.

Resource leveling adjusts resource allocation or project schedules to keep resources from being overextended. This can help maintain the quality of project outputs.

When to use resource leveling

Resource leveling prevents resources from being spread too thin while ensuring projects still have what they need to succeed. This technique contributes not only to project management but also helps maintain work-life balance for the team. Here are some reasons why your team can benefit from resource leveling.

To optimize your resources

Resource leveling lets you get the most out of the resources you have on hand, improving operational efficiency. It helps you assess which projects should receive additional resources and which are flexible with deadlines.

To minimize deficits

Resource leveling prevents significant project delays, thereby minimizing cost and labor losses. This technique allows you to manage the resource demand without exceeding the company's current capacity and financial resources.

To prevent task overloading

Overallocation of resources leads to overwork, which can leave team members feeling overwhelmed at work. Resource leveling prevents this by resolving overallocation issues and adjusting deadlines to ensure team members don't have too much on their plates.

To ensure the quality of a project output

Leveling allows you to manage both resources and client expectations by maintaining the same level of quality for project deliverables. In general, resource leveling can be a useful technique for resolving budget issues, resource overallocation, and project delays.

Resource leveling techniques

Several proven techniques can help you level resources effectively. Choose the method that best fits your project constraints and team capacity.

Critical Path Method (CPM)

The critical path method is a common resource leveling technique used to calculate project duration without accounting for resource limitations.

This technique involves linking dependent project activities in a logical sequence to calculate the earliest and latest start and finish dates for each activity. Here's how it works:

• Identify task dependencies: Map out which activities rely on others to begin.

• Calculate the critical path: Determine the sequence of tasks with the longest duration that must be completed to finish the project.

• Determine float: Identify which tasks have scheduling flexibility and which don't.

Once you figure out the activities on the critical path, you can determine their "float," or scheduling flexibility:

Total float is the maximum time a task can be delayed from its earliest start date without impacting the project's completion date.

• Calculation: (Late finish date) – (early finish date) or (Late start date) - (early start date)

Free float is the number of days a task can be delayed without impacting the start date of subsequent activities.

• Calculation: (Early start date of next task) – (early finish date of current task)

Tasks on the critical path have a float of zero, meaning that if one task is delayed, the rest of the project is delayed as well.

For example, let's say the IT team is working on replacing the current security system, and they identify two critical and two noncritical tasks:

Critical:

• Discontinue the use of current security software across the company within two days

• Install and test the new software on all company devices within four days

Noncritical:

• Finalize purchase details with the software vendor within a day

• Create a how-to guide for using the new software within two days

Based on this example, the shortest project duration is six days, since the critical path activities are crucial to complete the project, whereas noncritical tasks may be optional.

Fast tracking

There are times when projects must be delivered on or before the deadline to satisfy client requirements. In those cases, you can use fast tracking to run multiple parallel tasks to speed up the project. This schedule compression technique can only work if the activities can overlap to some extent.

For instance, activities with dependencies can be staggered, while those without dependencies can run in parallel.

An example of fast-tracking is when the software development team starts building the back end of a website while the design team finishes the mock-up. With the fast-tracking technique, the work gets done on time and on budget, but there's also a higher possibility of rework.

Crashing

When fast tracking isn't possible or effective, you can implement crashing. This technique adds resources to shorten the timeline. To use crashing effectively:

• Assess high-priority tasks: Identify which critical path activities need acceleration.

• Evaluate cost vs. value: Choose resource options that deliver the most impact at the lowest cost.

• Get approval: Confirm the budget for additional resources with your manager or client before proceeding.

For example, the marketing team needs two more writers since their deadline was moved up by two days. With no spare team members, the project manager decides to hire two freelancers they've worked with before rather than spend time looking for new writers.

Critical chain method

The critical chain method is an updated version of the critical path method that accounts for resource limitations. The critical chain is the longest path of tasks, accounting for both task and resource dependencies. Unlike CPM, this method recognizes that a resource can only be allocated to one task at a time, making schedules more realistic.

Project scheduling using this method involves listing the required resources for each task and reassessing their availability as needed.

The critical chain method includes a buffer period between the last task and the project finish date, serving as a contingency for the critical chain activities. Tasks that finish early increase the buffer. Conversely, delays in critical chain activities use up this buffer but won't affect the project completion date.

For example, to publish a piece of content on time, the manager determines the resources needed: a writer, an editor, a designer, and a developer. They set a buffer of five days in case there are delays between content or design reviews.

The critical chain method aims for realistic estimates of project duration and resources so that projects finish on time without overextending resources.

Resource leveling examples

To help you get a better understanding of how resource leveling can be applied across your team, here are some examples:

Example one: Delaying a project start date

A project requires a designer to create mock-ups for the client, but the designer is double-booked, and the rest of the design team is also occupied. They decide to start the project two days later when the designer is available. Since the designer works fast, the project end date remains the same.

Example two: Obtaining additional resources

The IT team has been responding to a large number of IT requests to address a virus that infected the company's computers. Since the company's current antivirus software isn't robust enough to handle the virus, the team decides to invest in new antivirus software to protect the computers.

Example three: Postponing a project end date

The marketing team is launching a new social media campaign, and they're waiting for approval from the social media manager, who is currently out of the office due to illness. Since the campaign isn't time-sensitive, they decided to push the launch date back by a few days so the manager has time to review.

Whether you lead a marketing, sales, or IT team, resource leveling can be useful for resolving resource conflicts. Once you decide on a solution, let the rest of your team know your plan.

Resource leveling vs. smoothing

Both resource leveling and resource smoothing are resource management techniques, but they prioritize different project constraints.

Here's an example of smoothing: You're booked for eight hours a day for five days, but you only need 30 hours. You redistribute the schedule to six hours a day, giving you leeway for other tasks without affecting the deadline.

After using resource leveling to resolve overallocation, you can use resource smoothing to balance the schedule.

Resource leveling tools

Resource leveling will become easier with more experience. As you practice this technique, here are some tips and tools you can use to your advantage.

• Use Gantt charts: A Gantt chart is a bar chart that visualizes a project schedule and can be ideal for identifying and planning the critical path. You can easily get a high-level overview of the task dependencies, start and finish dates, and project duration. As the project progresses, you'll be able to rearrange the chart and adjust dates as needed.

• Leverage project management software: Some project management software comes with resource leveling algorithms that can help resolve overallocation conflicts. Project management software also provides greater visibility into team members' schedules, helping prevent scheduling conflicts and double-booking ahead of time.

• Draw network diagrams: A network diagram is another type of visual representation of a project's schedule. It's shown as a chart with sequences of boxes and arrows to depict the chronology of tasks. It can be used to plan schedules and track project progress.

• Use previous projects as a reference: Keep an archive of past project plans and schedules so that you can reference them when doing a similar project to come up with a more accurate project plan. Looking at past projects will give you a better idea of how much leeway to give each task.

• Make realistic estimations of resource needs: Resource leveling efforts have a better chance of succeeding if you clearly define the project scope up front and make realistic estimates of resource needs.

Here are some tips for making more precise estimates:

• Make estimations in a team to reduce personal biases

• Include potential project risks in the estimation process

• Estimate in ranges rather than specific values to cover a wider set of possibilities

• Use the same estimation technique each time to yield more consistent estimates

The better the initial resource estimates, the less drastic the resource leveling will be if issues arise later.

Simplify resource leveling with work management software

To make the most out of limited resources, you can use the resource leveling technique to distribute available resources to help projects finish on time.

Use this strategy in tandem with customized templates for your team, such as IT templates or marketing templates, to plan and schedule your projects.

Resource leveling requires solid resource management skills, but work management software can help you take your project coordination to the next level. With Asana, you gain visibility into team workloads, prevent scheduling conflicts, and keep projects on track. Get started today to see how your team can work more efficiently.

Frequently asked questions about resource leveling