Critical resources are those resources that usually become overloaded when the schedule is increased (or run out of work when the schedule is reduced).

Critical Resources

Let us have a look at resources in a company.

Resources can be broadly classified into four types.

Classification of Critical Resources

Physical

  • Land or area: This is also one of the resources that can be critical at any time. You may consider it an exceptional resource. But it is a necessary resource for all businesses. For example, If you want to open a small consulting agency, it requires some area. If you want to test some chemical or something, you need a lab. Again it is the area. To store your inventories, you need a place. That is the land.
  • Equipment: This one also an essential resource for a company. Companies must have necessary and sufficient equipment to fulfill their needs.

Financial

  • Purchase of new machines: New equipment is a much-needed resource for all manufacturing industries.
  • Government grants: Legal permission from the government is also necessary for some businesses such as chemical industries, food industries, pharma industries, etc.

Human

  • Employees /labors: You can call this resource a pillar of other resources because labor plays an important role in all businesses.
  • Management: Guiding or managing the work is also very important for an organization. Hence, we consider management as one of the critical resources.

Intellectual

  • Technical: These days, most businesses run through an automated process. So you need a strong technical team. That means you should have employees with good technical knowledge.
  • Skill / Expertise: Organizations must have skilled or expertise employees to execute the business successfully.

Get more definitions about Critical resources and other ERP-related terms here.

   

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