Strategies for Reducing Resource Costs

The following are suggestions for reducing resource costs by adjusting assignments:

• If you have assignments with multiple resources assigned, reduce the work for the more expensive resources and assign the work to less expensive resources. By shuffling work around on an assignment, you won't risk changing duration or units inadvertently.

• If you have resources with the same skills and availability, replace the more expen sive work or material resources with less expensive ones. Although this replacement can introduce some risk into your project, it can also ensure that you're using your expensive resources where you really need them.

• If you have resources with the same skills and availability, replace slower work or equipment resources with faster ones. If one resource is faster than another, you might save money, even if the faster resource's rate is higher.

• If you have material resources whose costs are based on assignment units, for exam ple, 3 tons or 100 yards, decrease the assignment units; that is, use less of the material.

Note You can also adjust scope to cut costs.

For more information about cutting scope, see "Changing Project Scope" later in this chapter on page 293.

Project Management Made Easy

Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

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