How to resolve the resource overallocation when the resource is allocated with 200%

Question

I have a project with 650 days of effort with 2 resources to work with. For both resource it is 8 hours per day. When I assign resource with 200% of allocation for all the task the resource is overallocated. And while doing the leveling to remove resource allocation the project timeline get extended to Next year. Which is not acceptable.

Answer 1

You need more resources.

1. Restating your problem, you have two laborers to perform 650 person-days of effort. At perfect productivity, this effort will take 325 days of duration, which, using the standard calendar, extends well into the year AFTER next year – i.e. February 2022. No matter how “not acceptable” this is, it is the absolute best you can do without more resources.
2. Left to its own rules, the resource leveler in MS Project is aimed at achieving “good enough” results, never the absolute best, so further delay is likely. Specifically, assuming that: a.) you have constructed your project schedule using a robust logic network, b.) you have used only a generic labor-team resource with a maximum availability of 200%, and c.) you have not overloaded this resource (i.e. no more than 200%) on any single task; then, d.) MS Project will delay less-important tasks compared to their logic-based early dates in favor of more important tasks that demand the same resources – as needed to stay within the 200% availability limit. e.) If some tasks have no resources assigned or are loaded with less than 200%, then the combination of logic dependencies and leveling delays may create idle time, thereby extending the project.
3. As a rule, using non-generic resources (at max of 100%) is preferred, but a certain amount of finesse is still required.