Resource levelling optimization model considering float loss impact

Abstract

Purpose The purpose of this paper is to propose a Non-Linear Integer Programming (NLIP) model that solves the resource leveling problem while reducing the negative effect of the total float loss on risk. Design/methodology/approach An NLIP model is formulated to solve the resource leveling optimization problem incorporating float loss cost (FLC). The proposed model is implemented using “What’s Best solver” for Excel. The FLC is calculated using the float commodity approach. An example is solved using the proposed model in order to illustrate its applicability. Sensitivity analysis is also performed. Findings The results confirmed that resource leveling reduces the available float of non-critical activities; decreases schedule flexibility and reduces the probability of project completion. The probability of timely completion dropped from 50 percent (for the normal schedule with 32 resource fluctuations) to 13.5 percent for leveled resources with zero fluctuations. Using the proposed method, the number of resource fluctuations is 8 but the probability of completing the project on time improved to 20 percent. Practical implications The proposed model allows project managers to exercise new trade-offs between resource leveling and schedule flexibility which will ultimately improve the chances of successful project delivery. Originality/value Resource leveling techniques result in reducing the available total float for the non-critical activities. Existing methods focus on moving noncritical activities within their available float and ignore the impact of the resulting float loss. This reduces the schedule flexibility and increase the risk of project delays. The proposed model incorporates the FLC into the resource leveling optimization problem resulting in more efficient schedules with improved resource utilization while keeping some schedule flexibility.