EUROPEAN

?~ I"
JOURNAL
OF OPERATIONAL
RESEARCH
ELSEVIER European Journal of OperationalResearch 104 (1998) 559-571

Theory and Methodology

A model to optimize project resource allocation by construction

of a balanced histogram
Peter D. Konstantinidis *

Department of Civil Engineering, Technological Educational Institute (TEl) of Athens, Ag. Spyridonos Street, 122 10 Athens, Greece
Received 17 October 1995; accepted 10 October 1996

Abstract

This paper examines a scheduling method to improve productivity in resource-constrained projects. When resources are
nonrenewable the duration of each activity has only one value. Optimal solutions are derived through criticalism of groups of
activities using the same resource so as to eliminate interruption times and associated costs. The corresponding resource
histogram is balanced and its design is derived by means of a program suitable for personal computer implementation.
In the case where resources are renewable, activity durations are resource driven. We introduce a new view of
discreetness for activity execution times which enables us to obtain optimal solutions relating to the cost functions of the
activities.
Finally we account for doubly constrained resources by (a) defining a maximum level of resource utilization and a
maximum cost increase per period of usage of renewable resources and (b) considering as acceptable only those optimal
solutions which keep total cost increase for the overall project below a tolerable limit.
An application example is given using personal computer and commercially available software. © 1998 Elsevier Science
B.V.

Keywords: Project management;Project scheduling;Optimization;Networks/graphs-applications;Facilities/equipment planning-design

1. Introduction newable if only a fixed amount is available for the

First considered in the CPM time-cost tradeoff
problem, resource-duration interactions and the allo-
cation of renewable resources were addressed by
Elmagraby [1]. Slowinski and Weglarz [6-8] and
also Patterson et al. [2] have suggegted classification
of resources into renewable, nonrenewable and dou-
bly constrained. Renewable resources are available
in limited amounts per period renewing themselves
each new period. Resources are considered nonre-
* Fax: +30-1-5911442.
total project. Doubly constrained resources are lim-
ited on both a per period and per total project basis.
Cash, for instance, may be a resource of this kind if
both total project appropriation and m a x i m u m cash
outflow per period are fixed. Nonpreemptive ver-
sions of the problem of resource-duration interac-
tions to minimize project duration were examined by
Talbot [4] and a comparative evaluation of heuristic
line balancing techniques was given in Ref. [5].
In respect to the above classification of resources,
we wish to suggest the examination of the renewable
resource driven activity duration under a new view
of discreetness: only certain realisation times are

0377-2217/98/$19.00 © 1998 Elsevier Science B.V. All rights reserved.

PH S0377-22 17(97)0001 8-0
560 P.D. Konstantinidis / European Journal o f Operational Research 104 (1998) 5 5 9 - 5 7 1

possible and they are all discrete. That is, we assume
in this model that activity durations cannot vary
linearly between the limits of the normal and crash
durations. Rather, only discrete execution times are
possible and the period between two adjacent dis-
crete realisation times causes an interruption the
influence of which on the objective function would
be considered as interruption cost.
Examination of this model with the classical opti-
mization theory of cost functions by Taha [3] leads
to optimal solutions when only these discrete realisa-
tion times enter the solution space. The problem is
solved by the separate programming method of con-
strained nonlinear algorithms.
In this paper our aim is to optimize the scheduling
solutions on use of resources by designing a bal-
anced resource histogram which eliminates interrup-
tion costs, then we suggest an algorithm to lead to
the balanced histogram. Importantly, such a his-
togram is also capable of addressing the possibility

Table i
Notation
Symbol Definition
r. project execution time
Tnormal execution time of a project having nonrenewable resources
D~_j activity duration in time units in the nonrenewable resources case
ERT earliest realisation time of an activity
LRT latest realisation time of an activity
CP critical path
SC start critical path
FC finish critical path
FS=O finish time F of the predecessor activity
equals start time S of the successor activity ensuring criticalism of the two activities
MeR axis of nonrenewable resources: resource type is M, level is p
MvRe axis of renewable resources: resource type is M, level is p
rk.r,, adjacent discrete execution times of activity i driven by renewable resource
r i. If Tk corresponds to D~_j then any other discrete time is denoted by T.
Si(K - u) interruption space between two adjacent activities in the nonrenewable resources case
S,'(,~- u) space between two adjacent execution times of activity in the renewable resources case;
if Di_ ~ is the longer time then the shorter is one oftbe discrete times T,
Di_ i - S~(r - u) activity duration in time units in the renewable resources case equal to 7;,,
p; the interruption slope of activity i involving renewable resource r i
pi( K -- U) the cost of interruption per time unit (slope) for two consecutive
activities in the nonrenewable resources case
p~(,~ - . ) the acceleration cost (slope) between two adjacent execution times Tk, T. of activity i;
if Tk corresponds to Di_ j then T,, denotes any other discrete time
Cri, Pi the cost increase which can be tolerated due to the use of renewable resource
r i during the period Pi (in cost units)
EEc total cost increase of renewable resources r~ during the period Pi
ri Pi
cr. the total cost increase of renewable resources for the full project duration
which must be less than CT.max
p;(K - u + n) the cost increase slope due to interruption of renewable resource driven activity i
Y/(,, - u + n ) the interruption space between two discrete adjacent execution times Tk and T,, of activity i
driven by renewable resource ri; if T, corresponds to Di_j then T. denotes any other discrete time
5-,,+. ~-,,+2.--5-,,+. interruption times between execution times Tk, T. of renewable resource driven activity i
L(K) cost function corresponding to duration D i _ j of activity i
4 ( * - u) cost function corresponding to duration Di_ j - S~i(K - u) of activity i
4 ( * - u)-~(K) functions of cost increase between execution times T , . Tu of renewable resource
driven activity i where T, corresponds to Di_ j and 7],, to any oftbe other discrete times
i.e. T, = D i _ j - S;(K - u); cost functions are expressed in cost units, e.g. 1 cost unit = 10 ecu
 P.D. Konstantinidis / European Journal of Operational Research 104 (1998) 559-571 561

of cutting activities into several parts. That is, it is 2. Notation

possible to create sequential activities utilising the
same resource, thus achieving the objective of realis-
Table 1 gives the notation used in this paper.
ing such activities in various project locations fol-
lowing the sequence logic of network precedences.
In effect, application of the algorithm to compose the
balanced histogram and the attendant avoidance of
3. Problem type investigated
interruption costs, achieves the reunion of cut activi-
ties in groups of related ones using the same re-
source.
3.1. Case of nonrenewable resources
We also account for the case of doubly con-
strained resources by, on the one hand, defining a
maximum level of resource utilisation and maximum The presence of nonrenewable resources, for in-
cost increase per period of use of renewable re- stance machines in the construction phase of a pro-
sources and, on the other hand, by considering as ject, imposes a constraint on the use of new units in
acceptable only those optimal solutions which keep the total expenditure on the project.
the total cost increase for the project below a maxi- Under such constraint imposed by the amount of
mum tolerable limit. resources, realisation time for project activities be-
To demonstrate the applicability of the proposed comes fixed and constant. Then determination of
method, we conclude with a practical example and project realisation time T~ = Tno,~al for a project
use of a personal computer with commercially avail- comprising n events relates to the limitation in the
able application software (Microsoft Project). amount of nonrenewable resources.

M R (a) M R (b)
P P

T T T T T T
1 2 3 1 2 3
r = 3A r-' 3A
2 2
1-2 1-2
r = 2A r=2A
3 1

r = 1A r = IA
1 3
0-1 2-3
o-, _I
1 2 3 4 5 6 7 T 0 I 2 3 4 5 6 7

M R (c) M R (d)
P P

I I t I
T T T T T T
1 2 3 1 2 3

r= 3A r= 3A
3 1

r= 2A r= ~,
1 3

r=
2
IA

0-1
I 1-2 2- 3
r=
2
1A

0- 1 1-2 2-3

1 2 3 4 5 6 7 T 0 1 2 3 4 5 6 7 T
Fig. 1. Examples of balanced (a, b) and unbalanced It, d) histograms.
562 P.D. Konstantinidis / European Journal of Operational Research 104 (1998) 559-571
Since we will attempt to classify activities into
groups using the same resource, we consider the
possibility of cutting an activity into parts using one
type of resource and this is feasible when these parts
are realised in different locations of the project. It is
also possible to cut an activity into parts, e.g. 60 and
40%, as long as it is feasible for the first (60%) part
to be realized ahead of the second, by considering
the two parts as sequential activities. In effect we
consider divisible activities without meaning neces-
sarily that only divisible activities must participate in
groups of activities using the same resource.
3.1.1. When a histogram is balanced
Under the precedence constraints of the logic of
the network for activities using the same resources in
different amounts, a balanced histogram of a se-
quence of activities using the same resource must be
characterized by the absence of intermediate slacks
between all sequential activities using the common
resource in any specific amount. Otherwise, i.e. if
intermediate slacks are present, interruption costs
will appear, the histogram will be unbalanced and
balance must be restored if we are to increase the
productivity of resources. Our method then aims to
Pi'
--
/ I
fi(K-u)
1 Tu
I
Tk-u+1l
Fig. 2. Adjacent discrete times Tt, Tu and interruption times Tt_,+ t, Tk-,+2 of activity Di_ j driven by renewable resource rj. When T,
corresponds to Di_ j the Tu can be each one of the discrete times Tu i.e. T, = Di_ J - ~(K-U).
erase interruption cost and our effort to achieve this
it leads to criticalism of such sequential activities.
This results in new critical paths, different from the
naturally occurring ones, comprising sequences of
activities each using one of the types of nonrenew-
able resources at the required utilization level Rma x .
3.1.2. Depiction of a balanced histogram
The durations of the activities in the various paths
of the project are located on the x-axis of the
histogram. The scheduling problem to establish time
spaces within which the start and finish of each
activity can slide is solved by network analysis and
this leads to the graph known as Gantt chart. Tempo-
ral positions are then allocated on the x-axis to the
sequence of activities using the same resource under
the network logic and in relation to the above spaces.
Appearing on the y-axis are the types of resources
used, each at the utilization level (i.e. in the amount)
used in the execution of each activity. When more
than one type of resource participates in a single
activity, the activity is repeated in the histogram as
many times as there are resource types, each time
with the resource being shown at the applicable
I\
\ , +
\ Pi (~-u 2)
I.-"-.LY".. \
I I -..-,
/
I
Tk.u+2l
,
Tk
'
Di-)
Si'(K-u+2)-
t. Si'(~-u+l)
si'(~-u)
 P.D. Konstantinidis/ European Journal of Operational Research 104 (1998) 559-571 563

Table 2
Activities, durations, resources a n d cost functions used in the application e x a m p l e
i -j Oi_ j MpR f~(K) T,, MpRe f~(K -- U) Re S;(K - u) p~(K u)-

0-1 3 IC 3000 2 2C 6000 !C 1 3000

1 3C 9000 2C 2 3000
0-2 5 I D + 1A 10000 4 2D + IA 15000 1D 1 5000
3 2D + 2A 20000 ID + IA 2 10000
0- 3 3 1B 3000 2 2B 6000 lB 1 3000
1-4 3 2C 6000 3 2C 6000 -- -- --
2-5 2 IA 2000 ! 2A 4000 IA 1 2000

2-7 4 ID + IF 8000 3 2D + IF 12000 ID 1 4000

3-5 4 I A + IB 8000 2 1A + 2B 12000 1B 2 2000
1 2A + 2B 16000 I A + IB 3 5333
4-6 1 IC + IE 2000 i IC + IE 2000 -- -- --
4-7 2 IC + IF 4000 ! IC + 2F 6000 IF 1 2000
5-8 2 2A + IB 6000 1 2A + 2B 8000 IB I 2000
6-7 1 1E 1000 I IE 1000 -- -- --
7-9 4 2E + 2F 16000 4 2E + 2F 16000 -- -- --
8-9 2 2B 4000 2 2B 4000 -- -- --

E{(K) = 73000

utilization level. W e will declare the histogram bal-
anced if the utilization level for each resource is:
• constant.
• ascending relative to the prior activity value,
then constant.
• descending relative to the prior activity value,
then constant.
• ascending, then descending to the value prior to
the rise or to a smaller value, then not ascending
again.

3-5 A + B ~ 5-8 2A+B

12131 4 2

o~ s "1°12114
3
2(::
2-7
4

>11141
D+F
F'~~

1
.,. ~

"11161
7-9

(a)

Path 0 1 2 3 4 5 6 7 8 9 I; D Type

1 * • * * 13 CP

2 • • • • * 10 NC1

3 • • • * * 12 NC2

• * * * 8 LC

6 * • * * * 11 NC3

(b)

Fig. 3. N e t w o r k solution a n d project paths.

564 P.D. Konstantinidis/ European Journal of Operational Research 104 (1998) 559-571

As an example, of the histograms in Fig. la to d able resources and Tnormal for the overall project
the ones in Fig. la and b are balanced because they must be exceeded. This case is also examined in
are characterized by the absence of intermediate Section 3.2.
slacks between sequential activities for any utilisa-
tion level of resources. In a real world equivalent, 3.1.4. Algorithm to construct the balanced histogram
machines arrive at a construction site and work starts o f the project
promptly, it is carried out in regular time thus avoid- Based on the above considerations a step by step
ing overtime and it continues to the end without approach is now given to schedule the use of the
interruption, the key limitation being imposed by the available nonrenewable resources in optimal manner.
maximum number of machines available to the pro-
ject (case of nonrenewable resources). By contrast,
the histograms in Fig. lc and d are unbalanced 0 1 2 3 4 S 6 ? 8 9 10 11 12 13

0-2 2-7 7-9

because of the presence of intermediate slack in
activity 1 - 2 during the time interval T2. 0 3

1 4

0 4
3.1.3. Cost implications o f the balanced resource
El
histogram
4 7
To clarify the effect of degree of balance on cost
7
we refer again to Fig. la to d. In Fig. la, the
utilization level r of resource A rises from 1 to 3, S 6

then remains constant and finally drops to 2. In Fig. 8 9

lb it rises from 2 to 3, then remains constant and 5 9

finally drops to 1. There are no costs associated with

0-3 0 3
idle presence of a second resource r 3 during time
2 5
period T] in Fig. la, or with idle presence of a
0 5
second resource r] during period T 3 in Fig. lb.
In Fig. lc, the initial utilization level r I = 2 of 3-5 7

resource A drops to r 2 = 1, then rises to r 3 = 3. The

use of the second unit of resource A at level r 2 = 2
is interrupted during period T2 only to resume in 8 7

period T3. T 2 is interruption time for resource A and 11__12

so is T 2 in Fig. 7d. Both have negative cost impact. 6 12

To compute interruption cost, we call S i the

7 9
interruption time of activity i, k - u the respective
g 11
time interval and p i ( x - u) the cost of idling re-
7 11
source per unit time. In Fig. 7c it is r] > r 2 < r 3 and
r 3 > r]. Then, for activity 1-2, or i, it is S i ( k - u ) = 4-7 6 8

3 in the time frame k = 5 to u = 2. The interruption 7 g

cost relates to the idling of the second unit, so that S g

Pi = r2 - r] = 1. Interruption cost C becomes 7 8

12__13

c= E Ep,(K-ulS,(K-u) 7

ri K
8-9 9 I1

Balancing the resource histogram ensures that C 11 13

is avoided. There may be circumstances where it is 9 13

not possible to construct a balanced histogram, for Fig. 4. Gantt chart of total activity slacks derived from ERT-LRT
instance due to an inadequate number of nonrenew- graphs.
 P.D. Konstantinidis / European Journal of Operational Research 104 (1998) 559-571 565

Mp R

Rmax = 2

2 C FC
0-1 f 1-4 14-7 Rmax = 2

2 B SC
|
0-3 3-5 5-8 8-9 I Rmax = 2

2 A 3-5 5-8 SC

o-a I 2-5 5-8 Rmax = 2

2 E CP
6-7 7-9 :lmax = 2

2 F CP
CP 2-7 7-9 ~max - 2

1 D 0-2 2-7 CP
0 1 2 3 4 5 6 7 8 9 10 11 12 13

Fig. 5. The b a l a n c e d histogram.

1 2
A/A NAME DURATION START FINISH I { 2 I 3 {4 [ 5 I 6, 7 I 8 { 9 110{i1112113 14115116137 18119
13d 7/1/96 7/13/96
~ffART.~ ~ASKDUP~TIO/qSAPSEW ~
2 (0-1) 3d 7/2/96 7/4/96 ~ I C
3 (0-2) 5d 7/1/96 7/5/96 II,D
4 (0-2) 5d 7/1/96 7/5/96 II,A
5 (0-3) 3d 7/1/96 7/3/96
6 (1-4) 3d 7/5/96 7/7/96
7 (1-4) 3d 7/5/96 7/7/96
8 (2-5) 2d 7/6/96 7/7/96 [I IA
9 (2-7) 4d 7/6/96 7/9/96 "ilID
10 (2-7) 4d 7/6/96 7/9/96 l~ IE
1, (3-5) 4d 7/4/96 7/7/96
12 (3-5) 4d 7/4/96 7/7/96
,3 (4-6) Id 7/8/96 7/8/96 i •

,4 (4-6) Id 7/8/96 7/8/96

15
16
(4-7)
(4-7)
2d
2d
7/8/96
7/8/96
7/9/96
7/9/96
~ WWI,c
I!!tF
7/8/96 7/9/96 L

i
,7 (5-8) 2d • IA
18 (5-8) 2d 7/8/96 7/9/96 [ ] tA
,9 (5-8) 2d 7/8/96 7/9/96

iilE.

~
20 (6-7) ld 7/9/96 7/9/96
2, (7-9) 4d 7/10/96 7/13/96 IE
22 (7-9) i 4d 7/10/96 7/13/96 IE
23 (7-9) 4d 7/10/96 7/13/96 IF
24 (7-9) 4d 7/10/96 7/13/96 IF
25 (8-9) 2d 7/10/96 7/11/96 IB
26 (8-9) 2d 7/10/96 7/11/96

Fig. 6. The b a l a n c e d h i s t o g r a m for T = 13 with Microsoft Project c o m p u t e r software.

566 P.D. Konstantinidis / European Journal of Operational Research 104 (1998) 559-571

Mp Re
Rmax., 3 for T:I
Rmax - 2 for T > I
3 C
Rmax ,. 2
2 B
Rmax ,, 2
2 A
Rmax = 2
2 E
7-9 Rmax = 2
2 F

2 D
2-7 I 7-9
Rmax = 2

0-2 2-7
0 1 2 3 4 5 6 7 8 9 10 11 12 13

Fig. 7. The balanced histogram for project time 1". = 12 with renewable resources.

3.1.4.1. Step 1. Critical path activities are located in
a histogram of time versus resources with start and
finish times along the x-axis and resources at their
respective utilization levels.
3.1.4.2. Step 2. We search for other paths utilizing
any of these resources and turn them 'critical' under
the following conditions (a) and (b):
(a) The duration of any activity movable between
an earliest start time and latest completion time is
placed in sequence to the critical path by network
logic FS = 0, where F and S denote finish and start
time, respectively, in one of four ways (al) to (a4):
(al) By critical event logic Fj = Fi: It means that,
for critical event Tj= i, the finish time F~ of predeces-
sor activity Dj_(j) equals start time Si of successor
activity D(i)_j.
(a2) By logic which forces the spacing of start
times SiSj to equal predecessor activity duration D i
thereby placing the activities of D i and Dj duration
in direct sequence.
(a3) By logic which forces the spacing of finish
times F iFj to equal the successor D~ for a similar
reason.
(a4) By logic which forces S i Fj to equal the sum
of activity durations D i + Dj.

Mp Re

cri.l
R m a x - 3 f o r T,,I
Rmax - 2 for T>I

I 4"7 Rmax = 2
B
,, 0-3 3-5 5-8 Rrnax ,, 2
A 3-5
0-2 2-5 5-8 Rmax = 2
E
7-9

2-7 7-9

0-2 2-7
1 2 3 4 S 6 7 8 9 10 11 12 13

Fig. 8. The balanced histogram for project time 7". = 11 with renewable resources.
 P.D. Konstantinidis / European Journal of Operational Research 104 (1998) 559-571 567

Mp Re
Rmax s 3 for I"=1

i
Rmax = 2 for T>I
3 C
0-1 1-4 i. t 4-7 Rmax = 2
2 B
0-3 3-8 5-8 8-9 I Rmax a 2
2 A ~a 345
0-2 2-8 5-8 Rmax = 2
2 E
(;-7 7-9 Rmax = 2
2 F
2-7 7-9 | Rmax - 2
2 D
0-2 2-7
0 1 2 3 4 5 6 7 8 9 10 11 12 13 T

Note: The 2,,3 notation Indicates the existence of dummy activity 2-3 of zero duration for renewable resource A.

Fig. 9. The balanced histogram for project time 7". = 10 with renewable resources.

(b) As new paths become critical, the utilization
level of each resource must stay within the nonre-
newable Rmax.
3.1.4.3. Step 3. Step 2 is repeated for the remaining
paths not sharing resources in common with the
critical. The process is repeated until all project
activities are exhausted. This leads to the end of the
algorithm and composition of the balanced his-
togram.
3.2. Case o f renewable resources
If it becomes impossible to construct a balanced
histogram in time T~ = T~o=aI due to the limits in the
available amounts of resources for the project dura-
tion, or due to network logic of the precedence of
activities, then total project execution time T, must
exceed T.or~j. Then additional cost will be required
to return total project execution time to the one
originally scheduled. It can be achieved by use of
renewable resources, that is by strengthening the
resources (for instance by authorising overtime and
increase in the work units in certain periods of the
scheduled durations) as long as net cash outflow for
each period of cost increase does not exceed a
m a x i m u m amount.
Accordingly, activity duration will be resource
driven and possible realisation times will be discrete,
their values dependent on the kind of the additional
renewable resources which are introduced.
Fig. 2 shows two adjacent, discrete execution
times Tk and T. of activity Di_ j where T k > T. and
between them interruption times Tk_ . + l and T k_ ~ + 2
> T k - . +1- The meaning of interruption time is that
the activity has been executed in the shorter duration
T. and resources sit idle in the interval between it
and the immediately longer duration resulting in
interruption cost. This cost comprises a fraction of
the work cost of the resources involved in that it
does not include the cost of their active operation.
In Fig. 2 let p~ be interruption cost per unit time
for the renewable resources in activity i. Then, for
the two intermediate interruption times of activity i,
the work cost f/(K -- U) of executing the activity in
time T,, increases by interruption cost
C, = p;[S'i( K - - u) -- S;( K - - u + 1)] = p~ X 1
C, = p;[S'i( r - - u) -- S;( K - - u + 2)] = p; × 2.
Specifically in Fig. 2, reducing duration Tk to
Tk_,+ l and Tk_,+ 2 causes cost increases having
slopes p ~ ( K - - U + 2 ) > p ~ ( K - - U + I ) > p ~ ( K - - U ) .
Therefore the reduction S ' i ( K - u) enters the solution
ahead of S'i(x - u + 1) which in turn precedes S'i(K
--u+2).
568 P.D. Konstantinidis / European Journal of Operational Research 104 (1 998) 559-571

l 2 3 4
A/A NAME D U R A T I O N START FINISH 11213 [ 4 1 5 1 6 [718 19 110111112113114115116117118119120121122123124125126127128
1 12d 7/1/96 7/12D6 ~ O T ~ PROJECTTIME ~ : : "

2 (0-1) 3d 7/1/96 7/3/96 1 ~,'~ "

3 (0-2) 5d 7/1/96 7/5/96
4 (0-2) 5d 7/I/96 7/5/96
, m, m ~ , 7 , , • '
5 (0-3) 3d 7/1/96 7/3/96 IB
6 (1-4) 3d 7/4/96 7/6/96
7 (1-4) 3d 7/4/96 7/6/96 ~|tc
8 (2-5) 2d 7/6/96 7/7/96 . . . ill
. . . IA i i I
9 (2-7) 3d 7/6/96 7/8/96
10 (2-7) 3d 7/6/96 7/8/96
II (2-7) 3d 7/6/96 7/8/96 "mmm --
12 (3-5) 4d 7/4/96 7/7/96
13 (3-5) 4d 7/4/96 7/7/96
14
15
(4-6)
(4-6)
ld
Id
7/7/96
7/7/96
7/7/96
7/7/96
r!.mtc
16 (4-7) 2d 7/7/96 7/8/96
17 (4-7) 2d 7/7/96 7/8/96
18 (5-8) 2d 7/8/96 7/9/96
19 (5-8) 2d 7/8/96 7/9/96
20 (5-8) 2d 7/8/96 7/9/96
21 (6-7) ld 7/8/96 7/8/96
22 (7-9) 4d 7/9/96 7/12/96
23 (7-9) 4d 7/9/96 7/12/96
24 (7-9) 4d 7/9/96 7/12/96
25 (7-9) 4d 7/9/96 7/12/96 iF
26 (8-9) 2d 7/10/96 7/11/96 ~: IB
! ' i
27 (8-9) 2d 7/10/96 7/11/96

Fig. 10. The balanced histogram for T = 12 with Microsoft Project computer software.

Let f/(K) be the work cost corresponding to time Examining the problem from the point of cost
Tk and activity duration D~_j in the course of which optimization, Taha [3] refers to separable program-
nonrenewable resources are used. Also, let Tu be one ming of constrained linear algorithms consistent with
of the discrete realisation times with renewable re- the sufficiency of the Kuhn-Tucker conditions.
sources so that the time S'~(K- U) denotes a reduc-
tion in activity duration relative to the case where
resources are nonrenewable. From Fig. 2, Table 3
T o t a l cost increase ~ r f f . e C for the technical project with renew-
f,( K - u) - f , ( K ) = S~( r - u) X p;( r - u) able resources

or Time Total cost increase

12 4000
p;(~- ,) = [f,(~- u) - f , ( ~ ) ] / s ' , ( ~ - u) 11 18000
where p ; ( K - U) is the acceleration cost expressing 10 26000
the slope of the cost increase in the period Tk - Tu = Max C T n = 2 7 0 0 0 , so that 2 6 0 ( 0 < 2 7 0 0 0
s',(~ - ,).
 P.D. Konstantinidis / European Journal of Operational Research 104 (1998) 559-571 569

Table 4
Total cost increase of renewable resources, A, B, C, D, E and F during the periods p and outflow per period

(a) Tn = 12

[ ~-' I R.=w==..,~
0 1 2 3 4 5 6 7 8 9 10 11 12 13 T

Total c o s t increase
T.T. C--4000

I ~= I Outflow increase
C rl,pl

(b) Tn = 11

[ o-1 J Renewable activities

I o-= [ ~7 I

o 1 2 3 4 5 S 7 8 9 10 11 12 13 T

I== t Total c o s t increase

3".T. C=18000
I .oo I =oo I
I ~o I=ol
• =o I I=oo I,=ol O u l i l o w increase
C ri,pi

(¢) Tn : 10

Renewable activities

0-2 I 2-7 I

I=, ;-i
1 2 3 4 5 6 7 8 9 10 1t 12 13 T

Total c o s t increase
ZT. c=2eooo
] loo= i ,=o I
I ,=o I~ool
I1--w~-- I 10000 I == I. ol Outflow increase
C d,pi
570 P.D. Konstantinidis / European Journal of Operational Research 104 (1998) 559-571
In a problem of minimization of the cost objective
function, the minimum cost increase which optimises
the function for renewable resource r i of activity i
and duration Di_ j - S;(K -- u) is given by
min C = min [ f , ( K -- U) - - f i ( r ) ]
= minS~( K -- u) × p;( K -- u)
where the convexity of the space solution ensures the
optimal solution with the introduction of the discrete
time variables Tk, T. and the reduction of activity
duration by S'i(K- u) before interruption times S'i(x
-u+n).
It follows that in an optimization problem involv-
ing renewable resources the absence of interruption
times in the space of optimal solutions renders im-
possible the design of histograms which are not
balanced. The algorithm to design a balanced his-
togram is still valid in the case of nonrenewable
resources as long as realisation times are discrete.
3.3. Case of doubly constrained resources
One constraint is that the minimum cost increase
rain C associated with the optimal solution must be
below levels Cr i, Pi of the tolerable cost increase of
resource r i for period Pi,
U
Y'~ E p ~ ( K - u)SI( K - u) < E Cri, Pi.
r, K
Also, cash outflow increases during each period
of use of the renewable resource must stay below a
tolerant level per period
Er, < Emax.
P P
In effect, the total cost increase
E Ec< CT.
ri P The method takes into account renewable, nonre-
of resources r~ during the periods p must be below
the tolerable total cost increase CT, for the overall
project thus allowing, for instance, the contractor
company to earn a minimum acceptable profit.
4. Application example
Following is an example of the composition of a
balanced histogram for a mechanized technical pro-
ject involving nonrenewable resources, namely con-
struction machines and total execution time T, =
Tnormal = 13 time units. The activities, durations, re-
source types and cost functions for renewable re-
sources are shown in Table 2.
Fig. 3 shows the network solution and project
paths resulting from network analysis. The Gantt
chart is depicted in Fig. 4 along with the ERT and
LRT values for each activity. Then Fig. 5 shows the
balanced histogram of nonrenewable resources re-
suiting from the application of the algorithm and Fig.
6 shows the solution for T, = 13 as derived by
means of a personal computer and the Microsoft
Project v.4 application software.
Fig. 7 refers to the solution of the balanced
histogram for project time T, = 12 and renewable
resources, while Figs. 8 and 9 depict solutions for
7", = 11 and T~ = 10, respectively. Fig. 10 shows the
solution relating to Fig. 7 for T~ = 12 derived by
means of a personal computer as previously. Table 3
summarises the total cost increase for this project
involving renewable resources for each of the three
realisation times T~ = 12, 11 and 10. Finally Table 4
shows the total cost increase of renewable resources
per period and the increase of the necessary outflow
Cri, Pi per period.
5. Conclusions
The method described in this paper has been
developed to help increase the productivity of avail-
able resources through the design of balanced re-
source histograms. It is intended for use during the
scheduling phase of technical projects so as to effect
the fullest possible utilization of resources subject to
the constraints and set criteria.
newable, as well as doubly constrained resources in a
common model. Conditions which are commonly
met in the realisation phase of technical projects are
taken into account via the introduction of the concept
of interruption cost and resource driven activity real-
isation times which are discrete. Using simulation
techniques of network analysis, the method provides
easy-to-apply graphical depiction of the resources in
the form of balanced histograms. It restructures di-
visible activities into groups using the same type of
 P.D. Konstantinidis / Earopean Journal of Operational Research 104 (1998) 559-571
resource at the desired level. It further ensures opti-
mality of the cost of the derived solutions.
A n application e x a m p l e was given in the end to
d e m o n s t r a t e that c o m m o n l y available application
software for personal computers can be used to
facilitate the scheduling solutions,
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