Resource Leveling

Project plans often assume that the people needed will be available whenever tasks are scheduled. In practice, the same specialists are frequently needed by several tasks or projects at once, creating periods where demand far exceeds what they can do. Resource leveling resolves these conflicts by moving tasks, splitting them or changing their sequence, so that no resource is asked to do more than it can in any period. The trade-off is that the project, or the portfolio, may take longer to complete. Leaders can then decide whether a later date is acceptable or whether to add resources to keep the original one.

Resource leveling can be applied within a single project or across a portfolio of projects that share people. It is closely related to resource smoothing, which evens out demand without changing the end date. For portfolio leaders and PMOs, leveling turns resource conflicts into realistic schedules, which is the first step to delivery dates that can actually be met.

Definition of Resource Leveling

Resource leveling is the process of adjusting a schedule to resolve resource overallocation, by delaying or rearranging tasks until resource demand in each period falls within available capacity.

It is one of the techniques used in resource management and resource planning, and its results are often shown in a resource histogram.

Resource Leveling vs Resource Smoothing

Resource leveling gives priority to resource limits. It treats the available capacity of each resource as a fixed constraint. It will delay the project end date if that is the only way to avoid overallocation.

Resource smoothing gives priority to the end date. It moves tasks only within their available slack, the time a task can slip without delaying the project, to reduce peaks in demand.

Smoothing is used when the deadline is fixed and some overallocation can be absorbed, while leveling is used when resources are strictly limited.

In practice, planners often try smoothing first and apply leveling only where conflicts remain.

Common Leveling Techniques

Delaying tasks moves lower-priority tasks to later periods when the resource becomes available. It is the simplest technique but the most likely to extend the schedule.

Splitting tasks breaks a task into parts, so it can be paused while a resource works on something more urgent. Frequent splitting adds switching costs, so it should be used sparingly.

Reassigning work moves tasks to other people with the right skills, where they are available. This often resolves conflicts without any delay, but depends on knowing who has which skills.

Changing sequence reorders tasks that do not depend on each other, so demand is spread more evenly. Most project tools can level automatically, but planners usually review the results, since automated leveling can produce schedules that make little practical sense.

Importance of Resource Leveling in Strategic Portfolio Management

Resource leveling produces realistic schedules. A schedule that requires people to work on several tasks at full time simultaneously will slip, and leveling exposes this before commitments are made.

It reduces overload and burnout. Keeping demand within capacity protects the people the organization depends on most. Specialists who are constantly overloaded make more mistakes and are more likely to leave.

It also shows the true cost of constraints. If leveling extends a project by three months, leaders can see the effect of a shortage and decide whether to add resources or accept the delay.

Resource Leveling and Financial Management

Leveled schedules give more accurate forecasts of when costs will be incurred, which improves cash flow and budget planning.

Comparing leveled and unleveled schedules shows how much a resource constraint is costing in delayed benefits, which can justify hiring or contracting.

Avoiding overallocation reduces unplanned overtime and premium-rate contractors brought in to recover slipping work.

Where delays affect when benefits start, leveled schedules give a more realistic basis for business case and return on investment calculations.

Common Challenges

Leveling can extend schedules significantly, which may be unacceptable to sponsors with fixed deadlines. In those cases, the choice is between adding resources, reducing scope or accepting the risk of overallocation.

Leveling within individual projects does not resolve conflicts between projects that share the same people. Portfolio-level leveling is needed for that. This usually requires a shared view of resources across projects, such as that provided by resource management or PPM tools.

Leveling depends on accurate resource data and realistic availability, including time spent on support and other commitments.