PM 714

Work breakdown structure

hierarchical breakdown of work

 Introduction
 Dividing complex projects to simpler and manageable
tasks is the process identified as Work Breakdown
Structure (WBS).
 Typically, the PM use WBS for simplifying project
execution. … much larger tasks are broken-down to
manageable chunks of work (work packages), which are
easily supervised;
 One of the effective ways to reach goal quickly is to break
down larger goals into realistic achievable steps.
… smaller unit can be a data, product, service or any
combination.
 Introduction … cont …

 WBS … a hierarchical way of organizing a project-resembles an

organization chart;;
 The very top of the diagram shows a finished deliverable e.g. a
building (or parent);
 Each layer beneath the parent breaks the project down into children
(sub-work packages, sub-tasks);
 The bottom layer represents the smallest division of work, where
supervisors cannot reasonably decompose the elements further i.e.
work packages of specific components;
 Project planners call these groups of specific components terminal
elements.
Creating a WBS in a project … Why? a PM tool …

 Facilitates evaluation of cost, time, and technical

performance of the project;

 Provides management with information appropriate to

each organizational level;
 Helps to assigns project responsibilities to organizational
units & individuals
 Helps manager plan, schedule, and budget;
 Defines communication channels and assists in
coordinating the various project elements.
 Creating a WBS in a project … Why? …

 Accurate and readable project organization.

 Accurate assignment of responsibilities to the project
team.
 Indicates the project milestones and control points.
 Helps to estimate the cost, time, and risk.
 Illustrate the project scope, so the stakeholders can have
a better understanding of the same.
 Process of WBS

Look at what all we need to get started.

There are several inputs a PM (PM team)will need to

get off on the right foot:
 The Project Scope Statement
 The Project Scope Management Plan
 Organizational Process Assets
 Approved Change Requests - (Re: PMBOK Guide)
 Process of WBS … cont …

Use certain tools as well:

 Work Breakdown Structure Templates
 Decomposition - (PMBOK Guide)
 Process of WBS … cont …
Finally, using these inputs and tools, create the
following outputs:

 Work Breakdown Structure

 Scope Baseline
 Project Scope Statement (updates)
 Project Scope Management Plan (updates)
 Requested Changes

… PMBOK Guide
 How to build a WBS
Begin with the Charter, focusing on objectives and
deliverables;
Break the main product(s) down into sub- products;
Set the structure to match how the project will be
managed;
Lowest level not too detailed, not too broad;
Is there a need for integration?
Identify support activities
Check for completeness - is all the effort included?
Develop a coding structure if needed;
Assign work package managers.
Pitfalls … common downsides to creating a WBS

Plan to keep these as few as possible, to more

successful creating a useful & accurate WBS;
Level of work package detail;
Deliverables, not activities or tasks e.g. a completed … ;
WBS is not a plan or schedule;
WBS is not an organizational hierarchy.
Reasons for creating a WBS in a project

Accurate, readable project organization;

Accurate responsibilities assignment to project team;
Indicates the project milestones & control points;
Helps to estimate the cost, time & risks;
Illustrate the project scope, so stakeholders have a
good understanding of scope.
Construction of a WBS
1. Start: identify the main deliverables of a project (from an action
plan);
To carry on till all meaningful tasks or work packages have been
identified and each is/can be individually planned, budgeted,
scheduled, monitored, controlled;
Depends on the level of details: the same activity can lead to 10
or 20 sub-activities

2. For each WP, identify information required e.g. durations,

suppliers, equipment, materials, specifications;
List personnel responsibilities (See responsibility matrix);
This shows also critical interfaces between units & how
management can coordinate - also goes with the authority &
communication lines i.e. who approves what, who reports to
whom (interface coordination), to meet joint goals;
Responsibility & reporting matrix
Construction of a WBS
3. All work packages should be reviewed… to verify the WBS accuracy:
- Resources, schedules, sub-activities, relationships (interfaces);
- Aggregate to the next higher level of the WBS e.g. all schedules
aggregated to form a Master Schedule;
- Continue with succeeding levels in the hierarchy;
- At the top-most level, there is a project summary, its budget, its
estimated duration.

To keep in mind:
Risks assessment & management strategy;
Budgeting-direct & indirect costs;
Marketing costs, company overheads;
Determination of profits & losses
Plus, any other issue that may affect the project implementation.
Construction of a WBS

4. As the project proceeds, the PM continually examine actual

resources use by work element, work package, task/activity-for a
full project level;
This way, the PM can identify problems, work out relevant
corrective actions;
Assess resource use in relation to results - it could be expenses are
“as-planned”, but the actual progress much “less than planned”;
To assess the earned value, before deciding on the progress status.
Construction of a WBS … inputs of WBS …
 Project scope statement and requirements
documentation;
 Enterprise environmental factors … which? …;
 Organisational processes;
 Organisational assets & processes:
o organisational policies & procedures,
o previous project files, and,
o lessons learned from previous projects.
Goals/importance for WBS
 Giving visibility to important work efforts;
 Giving visibility to risky work efforts … for action,
management & control;
 Illustrate the correlation between the activities and
deliverables … relationships, dependencies … ;
 Show clear ownership by task leaders…
responsibilities, accountability …
 Resource requirements … weigh the importance
(re: resource levelling);
 Provides necessary framework for detailed cost
estimating & control along with providing
guidance for schedule development & control
Goals/importance for WBS … cont …

 Improves the efficiency of the project;

 Helps to estimate the resources required, such as
cost, time, staff, etc.;
 Easy allocation of resources based on the importance
of the task/sub-task
 Helps to set up milestones in the project;
 Gives a better understanding of the project to the
stakeholders;
 Easy to identify potential risks in a given project …
each & every sub-task is identified and visible;
 Helps in identifying communication points &
formulate communication plan across the project
team … re: role of communication in project management …
WBS …
Appears as an outline with the Level 1 tasks on the left
and successive levels appropriately indented;
The WBS may also picture a project subdivided into
hierarchical units of tasks, subtasks, work packages, etc;
Example of outlined WBS … `
Example of outlined WBS … 2
Example of outlined WBS … 3
Example of outlined WBS … 4
Example of outlined WBS … 5
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WBS
Can take a variety of forms & serve variety of purposes

1. Project Management software can generate a WBS on

command e.g. MS-Project, which can link sub-activities
with a Gantt chart, to visually show the activity
durations at any level (See slides).
A simple project action-plan
WBS: MSP and Gantt chart …
linking WBS activities with a Gantt chart
WBS … serves a variety of purposes
2. WBS can show the organisational elements for specific
work category;
See example for building up a robot to execute some
project function;
The electronics Department of the organisation is
responsible for developing control systems for the robot.\;
There exists five (5) different control functions, each of
which is broken down into more detailed tasks;
Through this, the account numbers for each task are shown
sot that changes can properly be assigned to a correct
function.
(See the slide representation)
WBS … organisational elements, responsibilities
WBS … serves a variety of purposes
 Some scholars argue it to be a fundamental tool for
planning;
 Others think it is overly structured, and pay scant
attention to the WBS;
 Important: preparing the WBS to an appropriate
level of details, particularly, using the WBS
alongside/based on the action plan;
WBS … usability in PM
 A WBS is an important document/tool that can be
tailored for use in different ways;
 Illustrates how each work activity contributes to the
whole project in terms of performance, responsibility,
budget & schedule;
 Can customize to add:
- List of sub-contractors/suppliers/vendors;
- Note detailed specifications for a specific work package;
- Specify hardware or software to be used;
- Basis for making cost-estimates;
- Estimations for task durations.
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