Resource allocation model for a fast-tracked project

Abstract

The concept of fast-tracking a project, although generally economically beneficial, is a risky undertaking. The risks vary from being unable to complete the project in the expected time to higher costs due to excessive compression of the activity duration. The paper describes the variables involved in fast-tracking a project and then demonstrates that risks can be reduced if proper resources are carefully allocated to the project. Reducing the duration of an activity ("crashing") within a project usually requires additional investment and/or resources. These resources can be found within the project's pool of funds such as using overtime for manpower or they are brought into the project as additional items. The success of the fast-tracking approach depends on minimizing the cost of these additional resources. A simulation model is described that allocates resources to project activities in a way so as to minimize the additional cost of resources. The fact that the start time of an activity depends on the completion time of its predecessors makes it a probabilistic problem with respect to completion time.