Aggregate project model for resource allocation within multiproject construction systems

A new approach is presented for the problem of allocating nonstorable resources (e.g., labor of different types) among construction projects. It is based on a management-level model of project execution which describes the alternative distributions of resource use over the project's life cycle. The model consists of a network of major project components called aggregate activities. It is developed by aggregating data from a detailed representation (CPM network) at the project. The model includes mathematical constraints which describe the feasible levels of resource use by each activity through time while considering the realized progress of supporting activities. The aggregate models of all current and future projects are combined. A linear program (LP) is then used to dynamically allocate resource capacities among projects. The resource allocations provide the basis for detailed project scheduling. The LP formulation allows the impact of alternative allocations and capacities to be studied. Plans for future projects can be evaluated under various assumptions. Problems of realistic size are readily handled by existing computer packages. The aggregate model of project execution is proposed as an effective tool for planning of multiproject resource use. Although the model was developed in the context of shipyard planning, it is believed to be equally applicable to other repetitive construction industries. By providing a link between project planning and resource use planning, it can improve management's control over project performance and resource utilization.