Inthis research the focus will be on the most primary challenge which is resourceallocation problem within a multi-project environment(Engwall, M. & Jerbrant, A., 2003).Someimportant terms those deals with resource management are the resources, properdata and utilization or allocation(Bowen, 2009). It is veryimportant to know about what is resource before managing it. A resourcemay be a human resource (employee), financial resource, can also be a product,instrument to be sold or obtained, skills, technology, information, or rawmaterials for production.
Similarly having proper data is important as well foreffective resource manage that includes demand for resources, availableresource and how the resources will fit into the demands. The most important isutilization or allocation. Resources are to be required to be used to themaximum capacity for the minimum amount of cost and tasks should be distributedto the resources in a fair and balanced manner(Bowen, 2009).According to some literatures(Engwall, M. & Jerbrant, A.
, 2003)(Huemann M., 2007)(Fricke S. E., 2000), limited resources ,sharing of available resources among projects , priority based selection of projects and resource re-allocation , competitionbetween projects for common resources were seen as some of the problemsidentified in the multiple project environment.
The study on “A competency modelfor effectiveness in managing multiple projects” identifies also theexistence of complications between projects and operations in multi-projectenvironments in terms of resource availability and interdependency of projects(Patanakul P., 2008). According to the study, even though the projects are independent on the basisof project goals or deliverables, they are often grouped to achieve moreefficiency for better uses of resources and better management that leads tointerdependencies among the projects.In a study(Alber, 2014) of classification ofhuman and automated resource allocation approaches in multi project management,the stress of study was applied on how the different multi project managementmanagerial perspectives approach on organizing resource allocation. Thestudy states that the allocation problem is complex because ofsharing of scarce resource as it create dependencies between projects .It alsostates how solving the resolving the resource allocation problem is crucial forthe performance of the organization as aresource problem in one project can easily cause problems in many otherprojects. The different management approaches discussed such as Heuristic Operational Research , Buffer management , Agile by using scrumsor scrums , multi agent auction based methods , resource sharing policies ,systems management explains aboutvarious characteristics of the approach and how the resource allocation isorganized .
For example in case of buffer management approach , uncertainty andcritical chain concept are frequently used. Similarly in resource sharingpolicies, the approach is designed to deal with the inevitable conflict withina matrix organization between project, resource and portfolio management. Incontrast, resource allocation is organized in decentralized way in Multi agentapproach. Agile Scrum is considered to be the flexible scope management systemwhere the multidisciplinary teams with a high level of self-organizationexecute the work in sprints and System management regulates the resourceallocation on the basis of the feedback loop. The analysis of these variousmulti project management approaches reveals that most of them are based onautomated centralized decision taking.
The popular approach in the IT industrywas also found to be the Agile Scrum that takes advantage of decentralizedhuman decision taking and self-regulation (Alber, 2014).