Analysing resource supply and demand for project selection

by admin on October 18, 2011

Our previous posts have looked at NPV and project scoring to help us screen and prioritise our project pipeline. In this post we are going to add a further dimension to the project selection process – resource supply and demand which helps organisations understand if they have the capacity to take on new projects.

All organisations have a finite supply of resources and this must be taken into account during the project selection process. While techniques such as NPV and project scoring help organisations select and prioritise their projects, organisations also need to consider their ability to take on those projects from a resource perspective.

Adding further complexity to this process is the fact than different projects have different resource needs, therefore different mixes of projects will have varying effects on the overall resource demands of the organisation.

The solution is to use resource capacity planning software (also known as resource planning software). This lets you model the effects of different projects on your resource availability and review resource issues and shorfall. Using what if analysis you can also model the effects of delaying or cancelling lower priority projects or recruiting further resources and how this affects your resource capacity.

Only when you understand if you can take on the requested projects from a resource perspective are you free to approve them.


Analysing resource supply issues


In this series of articles we have examined techniques that an organisation can use to help identify, evaluate and prioritise the right projects for their pipeline. Project selection is a key principle in a PPM (project portfolio management) process and ensures you choose the right projects to do. Only then can you focus on doing the projects right.

As a leading PPM tool, iPlanWare supports an end to end PPM process. In particular, during the project selection process key features include a project request process, financial analysis, project scoring and resource capacity planning.

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