Resource Allocation Plan in Projects

Resource allocation is the process of identifying which best resources are going to be assigned to which task or project. Resource management and resources allocation helps to make sure that neither workers are overworked or underutilized. If it is necessary to, resources can be re-allocated to optimize current availability and project timelines. Capacity planning needs to happen hand-in-hand with the task at hand.

In project management, resources are allotted or managed, which means the activities that have specific resource requirements must be planned and scheduled based on the availability of the required resources as well as on the completion date of the project.

Building a plan for how to use resources, including limited ones, setting up a resource calendar to serve long-term goals is the goal of a resource allocation plan. The goal is to wisely allocate your resources to serve your business in the future, for example by hiring some people now and waiting on hiring others. 

Imagine a situation of draught in a village . Your city will therefore help to provide water in that village by providing 150 litres of water daily. According to you, how can the village residents distribute this quantity of water keeping in mind that water is a scarce resource?

Let us understand the concepts related to resources and their allocation. To answer this, a resource is a source or supply of money, material, labor, and assets from which some benefit is produced. For any available resource, do you think that a plan is needed for this appropriate distribution to various causes? Yes, strategies are made to allocate finite resources. Hence, resource allocation is a plan for using available resources.

Have you ever gotten less pocket money than usual? What could be the possible reason? Your parents plan a budget for the month by dividing the money at hand for various purposes like paying electricity and gas bills, buying food items, paying your school tuition fees, paying taxes, giving you pocket money, etc. They must also set aside a portion of money for the purpose of saving. Sometimes, the amount allocated for spending is exhausted too soon because of unexpected occurrences. For example, house repairs, family functions, etc. This leads to cutting down the portion of money allocated for other purposes like your monthly pocket allowance. To balance the overspent amount, one needs to have an understanding of management of money to optimize its allocation in the best possible manner. Financial literacy is an understanding of financial areas and the ability to manage money-related matters in an efficient manner. Financial institutions like banks help us in opening an account where we securely deposit our money for the future.

Now, let us catch a glimpse of what we are going to create after this activity. You will be able to understand how to manage resources, optimize allocation of resources, and execute financial planning."

See also: Estimate Activity Resources

Requirements Traceability Matrix