1. Human Resources n How do we compete with everybody else who needs resources? n Where do we find people when we can’t hire new employees? n What does time cost us in terms of resources? n How can we make up for missing resources?

2. The Human Resource Challenge Today n Advantage of using contractors –Highly skilled –Flexibility in your changing human resource needs –Contract to hire option n Disadvantage of using contractors –Lack of background knowledge –Difficulty of “marrying full time employees in close- knit, fully integrated team.

3. The Human Resource Challenge Today - Continued n Project manager must provide –Direction: Keep the team focused –Guidance: Coach your people along –Support: Back your team –Encouragement: Cheerleading

4. Cost of the Human Resource n Salaries n Benefits n Fees and Cost of Hiring n Time to Manage

5. Capital Resource n What are the elements of cost? n What are different ways we can minimize the cost and duration of a project? n What are some ways to Manage the resource profile? n What is the final plan?

6. The Capital Resource - Elements of Cost n Direct Cost: costs that vary directly with your volume of output –Labor wages –Overtime premium –Material –Subcontractors –Freight –Sales Tax n Indirect Cost: fixed periodic costs –Insurance –Start-up –Overhead utilities –Security –Marketing –Goodwill –Opportunity for problems

7. Duration and Cost n Criteria for selecting activities to crash –Must be on the critical path –Precedes multiple activities –Long duration –Lower cost per period gained –Early in the project –Labor intensive –Subject to common problem

8. Time/Cost Tradeoff Analysis n Cost/Duration Graph (p. 208) n Optimum Duration Point

9. Managing the Resource Profile n At different times along the project’s duration, drastically more or fewer resources are needed. n The key to leveling resource profiles is to shift work from the peaks to the valleys by rescheduling activities.

10. The Final Plan n Use the three lines of defense to meet the customer’s deadline n Find the optimum duration for the project n Level the critical resources –People –Bottleneck facilities n Perform a last reality check