This question is asking you to evaluate the appropriate tools to solve project management challenges.

In that pursuit, read "Snapshot from Practice 8.5: Multiple Project Resource Scheduling" on page 520 of the textbook.

The case for a central source to oversee project resource scheduling is well known by practitioners. Here is a synopsis of a conversation with one middle manager.

Interviewer: Congratulations on acceptance of your multiproject scheduling proposal. Everyone tells me you were very convincing.

Middle Manager: Thanks. Gaining acceptance was easy this time. The board quickly recognized we have no choice if we are to keep ahead of competition by placing our resources on the right projects.

Interviewer: Have you presented this to the board before?

Middle Manager: Yes, but not this company. I presented the same spiel to the firm I worked for two years ago. For their annual review meeting I was charged to present a proposal suggesting the need and benefits of central capacity resource planning for managing the projects of the firm.

I tried to build a case for bringing projects under one umbrella to standardize practices and to forecast and assign key people to mission critical projects. I explained how benefits such as resource demands would be aligned with mission critical projects, proactive resource planning, and a tool for catching resource bottlenecks and resolving conflicts.

Almost everyone agreed the idea was a good one. I felt good about the presentation and felt confident something was going to happen. But the idea never really got off the ground; it just faded into the sunset.

With hindsight, managers really did not trust colleagues in other departments, so they only gave half-hearted support to central resource planning. Managers wanted to protect their turf and ensure that they would not have to give up power. The culture there was simply too inflexible for the world we live in today. They are still struggling with constant conflicts among projects.

Im glad I made the switch to this firm. The culture here is much more team-oriented. Management is committed to improving performance.

Finally, many companies are using outsourcing as a means of dealing with their resource allocation problems. In some cases, a company will reduce the number of projects they have to manage internally to only core projects and outsource noncritical projects to contractors and consulting firms. In other cases, specific segments of projects are outsourced to overcome resource deficiencies and scheduling problems. Companies may hire temporary workers to expedite certain activities that are falling behind schedule or contract project work during peak periods when there are insufficient internal resources to meet the demands of all projects. The ability to more efficiently manage the ebbs and flows of project work is one of the major driving forces behind outsourcing today.

It has often been asserted in project management literature that a centralised project office is essential for efficient scheduling of scarce project resources such as specialised skills and costly equipment across multiple projects. Do you agree? State your position. Support your answer with evidence and reasonable arguments from the case scenario and/or your work experience.