Question

What is resource planning why is resource planning essential explain with three reasons?

Answer 1

Answer:

Resource planning is a process of  identifying, forecasting, and allocating various types of business resources to the projects at the right time and cost. It also ensures the efficient and effective utilization of resources across the enterprise. These business resources can be human resources, equipment, assets, facilities, and more.

In other words, it’s the process of strategic planning to make the best use of resources depending on their capacity and availability by following a systematic process.

Importance of resource planning:

• Allows project resource planning for pipeline projects--Creating more projects in the pipeline is desirable, but not having enough resources to execute them causes project bottlenecks, delays in meeting deadlines, and impacts the quality. An intelligent resource plan and timely forecasting help managers predict all resource needs for pipeline projects in advance.
• Bridge the capacity gap proactively--Demand forecasting, one of the major pillars of resource planning, identifies the excess or shortage of resources by comparing the resource demand against the existing capacity. Based on this data, managers can implement the right resourcing treatments to bridge the capacity and demand gap.
• Minimize project resource costs significantly--An effective resource plan helps managers to make data-driven decisions and implement the right resourcing measures at the right time. For one, they can allocate a cost-effective global/local resource or a benched resource to a task.
• Ensures Competent resource allocation across a matrix organization--The resource scheduler provides a centralized view of all resource-related information such as skill sets, cost rate, location, resource capacity, among others. Through this visibility, managers can filter and load the appropriate resource to the project’s task.