Activity Resource Estimating [Process]

Activity Resource Estimating is a crucial process in project management. It involves identifying and estimating the resources (people, equipment, materials, and facilities) needed to complete each project activity. Proper resource estimation ensures that the project team acquires the right resources at the right time, avoiding waste and unnecessary costs while ensuring project success. This process is outlined in the Project Management Body of Knowledge (PMBOK® Guide) and is essential for effective project planning.

Inputs to Activity Resource Estimating

The process relies on six key inputs:

1. Activity List
   • A detailed breakdown of all project activities that need resource estimates.
   • Example: A construction project might list activities such as foundation pouring, framing, and roofing.
2. Activity Attributes
   • Information about each activity, including dependencies, constraints, and required skills.
   • Example: For an IT project, attributes might specify that a database migration activity requires a senior database administrator.
3. Organizational Process Assets (OPAs)
   • Internal assets such as templates, historical data, and guidelines that assist in estimating.
   • Example: A manufacturing company might use historical data from similar past projects to estimate the resources needed for production.
4. Enterprise Environmental Factors (EEFs)
   • External and internal factors influencing resource availability, such as labor market conditions, company policies, and regulations.
   • Example: In healthcare, labor availability might be affected by local shortages of specialized professionals like nurses or radiologists.
5. Project Management Plan
   • Relevant sections, such as the resource management plan, which outlines how resources will be identified, acquired, and managed.
6. Resource Availability
   • Information on the availability of resources, including schedules, time constraints, and quantity.
   • Example: A renewable energy project might face seasonal availability of specific equipment like wind turbine cranes.

Tools and Techniques for Activity Resource Estimating

Several tools and techniques help refine resource estimates:

1. Expert Judgment
   • Relying on specialists or experienced team members to provide realistic estimates.
   • Example: A film production team consults experienced directors to determine the crew and equipment needed for shooting.
2. Alternative Analysis
   • Evaluating different ways to complete activities to optimize resource use.
   • Example: A software project might consider outsourcing versus in-house development for certain tasks.
3. Published Estimating Data
   • Utilizing industry databases and benchmarks to guide estimation.
   • Example: Construction projects often use published data for material quantities and labor rates.
4. Project Management Software
   • Using tools like Microsoft Project or Primavera P6 to analyze and plan resources.
   • Example: A logistics company might use scheduling software to determine fleet requirements for delivery.
5. Bottom-Up Estimating
   • Breaking down activities into smaller components, estimating resources for each, and aggregating the results.
   • Example: A research project estimates resources by first calculating the time and materials required for individual experiments.

Outputs of Activity Resource Estimating

The process results in several key deliverables:

1. Activity Resource Requirements
   • A document specifying the type and quantity of resources needed for each activity.
   • Example: A marketing campaign might require five graphic designers, one social media specialist, and a video production team.
2. Resource Breakdown Structure (RBS)
   • A hierarchical chart categorizing resources by type, such as personnel, equipment, or materials.
3. Resource Calendar
   • A schedule showing when resources are available and for how long.
   • Example: In an event planning project, a calendar might show the availability of venues and catering staff.
4. Activity Attributes Updates
   • Adjustments to activity details based on new resource information.
5. Requested Changes
   • Change requests if adjustments to the resource plan are needed.
   • Example: A pharmaceutical project might request additional lab technicians to speed up testing phases.

Practical Examples Across Industries

Construction

• Scenario: A bridge construction project.
• Activity Resource Estimating: Calculate the number of laborers, heavy machinery (cranes, excavators), and materials (steel, concrete) required for each phase.

Healthcare

• Scenario: Implementing an electronic health record (EHR) system in a hospital.
• Activity Resource Estimating: Identify the number of IT specialists, trainers, and hardware devices needed for installation and staff training.

IT Projects

• Scenario: Developing a new mobile app.
• Activity Resource Estimating: Determine the number of developers, UI/UX designers, and testers required for sprints.

Manufacturing

• Scenario: Producing a new consumer product.
• Activity Resource Estimating: Estimate machinery time, raw materials, and assembly line workers needed for the production run.

Best Practices for Activity Resource Estimating

1. Engage Stakeholders Early: Involve team members and experts during the estimation process for accuracy.
2. Leverage Historical Data: Use past project data as a reference, particularly for recurring activities.
3. Prioritize Accuracy: While estimates are not always exact, detailed calculations minimize errors.
4. Monitor and Adjust: Regularly review estimates and resource allocations as the project progresses.
5. Utilize Software Tools: Take advantage of project management tools to visualize and manage resource planning.

Conclusion

Activity Resource Estimating is a vital process that ensures the efficient and cost-effective use of resources in any project. By carefully analyzing the needs of each activity and leveraging tools like expert judgment, alternatives analysis, and bottom-up estimating, project teams can plan for success. Whether in construction, IT, or healthcare, proper resource estimation provides a solid foundation for delivering high-quality results on time and within budget.