Resource leveling adjusts activity start dates or resource assignments so the schedule matches the resources actually available. It usually delays activities with the most free float first, so successors and the finish date do not move. The sequence that drives the finish once resources are considered is the resource critical path.
What leveling does
GAO's Schedule Assessment Guide says a schedule without resources implies unlimited resources. Resource leveling adjusts the scheduled start of activities or the work assignments of resources to account for their availability, and smooths peaks and troughs in demand. A plan that needs 30 software engineers one week, none the next and 25 the week after is disruptive and inefficient.
Leveling can mean moving work from overallocated to underallocated people, or delaying activities until resources are free. Its goal is to finish on time or early with the resources realistically available.
Which activities move
Activities delayed by leveling typically have the greatest free float and the fewest assigned resources. Free float is the time an activity can slip without affecting any successor, so using it limits the effect on the project.
If leveling still delays the finish date, resources are an unavoidable constraint and a different plan is needed. If no resources are overallocated, the leveled schedule is the same as the original schedule.
Logic added after the baseline to solve a resource conflict is preferential, or soft, logic. It reflects management's chosen order, not an order the work requires. Engineering, or hard, logic is an order the work must follow, such as curing after pouring concrete.
Critical resources and the resource critical path
The critical path method assumes unlimited resources, even in a resource-loaded schedule, because it ignores overallocation. A worker can be booked on any number of parallel activities.
Leveling reveals critical resources: people or equipment that will delay the finish if they are unavailable for specific activities. The sequence that drives the finish based on both logic and resource availability is the resource critical path, also called the resource-constrained critical path or critical chain.
Where the exam catches people
Believing a resource-loaded critical path accounts for overallocation: the critical path method assumes unlimited resources.
Believing leveling should delay the activities on the critical path first: it typically delays activities with the most free float.
Believing logic added to resolve a resource clash is engineering logic: it is preferential, or soft, logic.
Believing leveling always extends the schedule: with no overallocation the leveled schedule matches the original.