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Objective 2.5Process· 2 min read

Plan and manage budget and resources

Plan and manage budget and resources

What you will learn

  • Distinguish resource leveling from resource smoothing.
  • Identify which of the two can extend the critical path and which cannot.
  • Name the three common estimating techniques (analogous, parametric, bottom-up).
  • Choose the most fitting estimating technique based on available historical data and level of detail.

When one resource is assigned to two tasks at the same time, there are two conflict-resolution tools many people confuse: resource leveling and resource smoothing. Both reschedule tasks around resource constraints, but the core difference between them is their effect on the project's end date.

Resource leveling vs. resource smoothing

Resource LevelingResource Smoothing
Effect on the critical pathCan extend the critical path and the project's end dateDoesn't change the critical path — works only within available float
When it's usedWhen resolving the resource conflict is a higher priority than keeping the original end dateWhen the project's end date is absolutely non-negotiable

Three common estimating techniques

Analogous EstimatingEstimating by analogy to a similar past project — fast but less accurate, fitting for early stages with limited data.
Parametric EstimatingEstimating using a statistical relationship between two variables (like cost per square meter × area) — more accurate than analogous when reliable data exists.
Bottom-Up EstimatingEstimating each small work package individually then aggregating — usually the most accurate, but slowest, and needs a fully detailed WBS.

What matters on the exam

  • A question stating the project's end date must not change points to resource smoothing, not leveling.
  • Bottom-up is usually the most accurate but takes the longest and needs the most detail — don't assume it's always the default right answer regardless of project stage.

Leveling and smoothing aren't synonyms

A common trap: treating "resource leveling" and "resource smoothing" as interchangeable terms because both address resource conflicts. But leveling is willing to sacrifice the end date to resolve the conflict, while smoothing refuses to and works only within existing float.

Quick check

Answer in your head first, then reveal.

  1. Which tool can extend the project's end date?Reveal the answer

    Resource Leveling.

  2. Which of the three estimating techniques is fastest but least accurate?Reveal the answer

    Analogous Estimating.

  3. Which estimating technique needs a fully detailed WBS?Reveal the answer

    Bottom-Up Estimating.

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Sources

Used to verify the facts. The writing is original to Passuit.