Human resource allocation in multi-project management using resource buffers

Abstract

Multi-project management is the tactical and operational management of a set of concurrent projects sharing the same resources and is controlled by the portfolio manager. Resource sharing significantly increases complexity since it creates resource dependencies between tasks, especially in high uncertainty and complex environments. Hence, resource allocation in multi-project environments is difficult for portfolio managers. According to prior literature, classical mathematical approaches are effective for dealing with resource and project scheduling problems of low complexity or in a relatively static environment. Still, they have limitations in describing interrelationships in multi-project environments and adapting the analysis to dynamic change. In this study, we have proposed a simulation method for human resource allocation for multi-project management in a project portfolio system considering resource buffers. We have suggested how resource buffers can be applied for resource allocation in multi-project management and affect portfolio performance. Different sizes of resource buffers have been tested in various situations by considering different levels of uncertainty and complexity and determining how they affected performance. Furthermore, the effect of varying resource buffer sizes on reducing completion time has been investigated, which might be useful to portfolio/project managers in practice.