Why is resource planning essential? In order to make the best use of all available resources that your company has access to, proper management of them is important. This is the Resource Planning definition; a systematic process that aims to make the best possible use of an organisation’s available resources in order to accomplish a specific goal.
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What is Resource Planning?
Resource planning takes into account all the projects that need to be completed and considers the availability of the resources that will be allocated to each task. Different aspects of a project resource plan include:
- Human Resource Planning – This is the continuous planning that comes with making sure employees are assigned to jobs that fit them best.
- Manufacturing Resource Planning – This is a system designed to provide integration of additional data related to things like employee and financial needs.
- Material Resource Planning – This is a system designed to increase productivity within a business in relation to raw materials.
- Team Resource Planning Template – This is a template used to provide a framework to assist in the resource management, and provides you with a means of easily tracking the start and end date of the tasks that require resources.
Each of these will be covered later on in the article and will help in giving you an idea of how to do resource planning, templates will also be covered as well, specifically a resource planner template. Excel will be the program the template is built for, as it is the best fit for this type of task.
Other key aspects that are related to a project resource plan example include an Integrated Resource Plan (IRP) which is a comprehensive support tool and road map utilised for meeting the objectives set by the company or organisation in question.
Another would be Distribution Resource Planning which is a method used in business administration for planning orders within a supply chain.
A third aspect would involve resource capacity planning, which involves assessing the available capacity during the process of allocating jobs, ensuring that the necessary amount of work can be completed.
Other examples include Resource Requirement Planning (RRP), which is used to plan the requirements of productive resources such as equipment, machinery and of course, workers.
Alongside this there is Entrepreneur Resource Planning (ERP), which is a tool that allows an organisation to use a system of integrated applications to manage and automate many functions.
Every project will have specific project resource requirements. These are the resources that are needed to be able to complete the project and all of its tasks. A list of resources required for a project would include anything that’s needed or will be used in the process of task completion.
Human Resource Planning Process
The process involved with Human Resource Planning focuses on making sure that all employees are assigned to the jobs that suit them the best. Alongside this, HRP aims to avoid and minimise manpower shortages or surpluses – HRP needs to be able to meet short-term challenges while simultaneously dealing with the constantly changing business environment over longer periods of time.
The first part of Human Resource Planning involves identifying the company’s strengths and weaknesses in terms of the workforce they currently have access to. From here, the next step is to analyse and figure out if a greater number of staff are required. Market trends, industry analyses and technological improvements all play a part in determining if more staff, and if so, what kind of staff are required moving forward in the future.
The last step here involves balancing supply and demand of Human Resources, once the aforementioned steps are taken HR creates a gap analysis that lays out specific criteria that allows them to narrow the supply of the company’s labour versus future demand. Now, HR will take the necessary actions required to carry out its plan with the rest of the organisation.
Manufacturing Resource Planning
Manufacturing resource planning, otherwise known as MRP II is an integrated information system used to manage and integrate additional data within a business. It includes and covering aspects such as employee and financial needs, and is designed to process, centralise alongside integrate this important information to effectively make decisions in regards to scheduling, inventory management and cost control in manufacturing.
Team Resource Planning Template
A Team Project Resource Planning Template is an effective way to make sure that you’re keeping track of the way resources are distributed and allocated throughout the schedule. A template provides the necessary framework to ensure that you and your organisation can keep track of every task, the start date, end date alongside the resources being assigned to that task.
Material Resource Planning
Materials Resource Planning, often referred to as MRP is an integrated information system intended to be used as a means of improving productivity for businesses. It is an effective tool for resource forecasting as it is a sakes forecast-based system that can be used to schedule raw material deliveries and quantities, given the necessary data to make the assumptions for the required resources needed to fulfil a sales forecast.
Companies need to be able to effectively manage the various materials that they purchase, which entails knowing which products are to be produced and in what quantities to meet demand at the lowest possible cost. To assist in the strategic planning of resources, MRP helps companies in manufacturing planning, purchasing and delivering activities. Errors in any of these will mean that the company loses money. MRP helps prevent this, but requires specific data such as:
- The Final Product being created
- Quantities needed to meet the demand
- The inventory records, including net materials available for use and the materials on order.
- Bills of materials – this includes details of materials, components and sub-assemblies required to create each product.
- Planning Data – This includes the restraints such as labour, quality standards and directions such as lot sizing techniques, pull commands and push commands.
To conclude, resource planning is rewarding way of getting the most out of your available resources, enabling you to fully maximise what you can get out of your current means. For any organisation, it’s a slightly extensive, but necessary concept to grasp should you wish to be as successful as you can be. This article will hopefully help you improve your business management skills, and allow you to understand better how to best manage your organisation’s resources.