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FIGURE 19-10. Improved capacity planning.

In excellent companies, project managers meet with sponsors to determine the objective of the plan, which is different than the objective of the project. Is the objective of the plan to achieve the project's objective with the least cost, least time, or least risk? Typically, only one of these applies, whereas immature organizations believe that all three can be achieved on every project. This, of course, is unrealistic.

The final box in Figure 19-10 is now the determination of the capacity limitations. Previously, we considered only human resource capacity constraints. Now we realize that the critical path of a project can be constrained not only by time but also by available manpower, facilities, cash flow, and even existing technology. It is possible to have multiple critical paths on a project other than those identified by time. Each of these critical paths provides a different dimension to the capacity planning models, and each of these constraints can lead us to a different capacity limitation. As an example, manpower might limit us to taking on only four additional projects. Based upon available facilities, however, we might only be able to undertake two more projects, and based upon available technology, we might be able to undertake only one new project.

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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