WORK BREAKDOWN STRUCTURE

By
Henry Waruhiu
 Project Management Phase

FEASIBILITY DESIGN DEVELOPMENT CLOSEOUT OPERATIONS

PLANNING

Fin.&Eval. Organization
Risk
Estimating

Planning
 WOR BREAKDOWN STRUCTURE
• Planning – Hierarchical Project Structures
– Work Breakdown Structure
– Organization Breakdown Structure
– Cost Breakdown Structure
 Project Planning Components
• What: Work Breakdown Structure
• How: Plans and Specifications
• Who: Organization Breakdown Structure
• How much: Cost Breakdown Structure (via estimate)
• When: Schedule
 WBS
• The WBS is a tool for defining the hierarchical breakdown of
work required to deliver the products of a project.
• Major categories are broken down into smaller components.
• It is a hierarchical breakdown of the work necessary to
complete the project
• These are sub-divided until the lowest required level of detail
is established (work package).
• WBS is a way in which a project may be divided by level into
discrete groups for programming, cost planning and control
purposes.
 WBS
• A WBS is a deliverable-oriented grouping of project
components that organizes and defines the total scope of
the project
– Work not in the WBS is outside the scope of the project
– WBS is usually an operative tool used by contractors
• It is the first step towards constructing a schedule
• It plays a central role in project monitoring and control
• WBS-is used to define or decompose the project into
smaller, more manageable pieces
 Benefits of WBS
• The WBS assists project leaders, participants, and
stakeholders in the development of a clear vision of the
end products or outcomes to be produced by the project.
• It provides the framework for all deliverables throughout
the project life cycle.
 Benefits of WBS
• Better to estimate a project at the smallest (work package)
level in order to improve accuracy.
• WBS- that level of detail helps in creating the estimates,
as well as staffing the project and proving how many
people are needed.
• Risk on the project (what can go right and wrong) are also
identified by work package.
 100% WBS Rule
• The 100% Rule:
– This rule states that the WBS includes 100% of the work defined
by the project scope and captures all work deliverables to be
completed, including project management.
– The rule applies to all levels within the hierarchy.
 Roles of WBS
• The WBS provides a graphical representation or textual
outline of the project scope.
• Supports clarity for project definition in that it:
– Decomposes: the overall project scope into clearly defined
deliverables.
– Defines: the scope of the project in terms that the stakeholders
can understand.
– Provides: a structure for organizing information regarding the
project’s progress, status, and performance.
– Supports: tracking of risks to assist the project manager in
identifying and implementing necessary responses.
 Types of WBS
• Project WBS
– Operative tool for monitoring and control contractor work
• Contractual WBS
– Defines the level of reporting that the consultant/contractor
will provide the contracting authority
– May include less detail than Project WBS
– Agreed between owner and contractor
WBS: Example different
summary level
Sample WBS
WBS Methods of Subdivision
PBS / WBS
Activity List
Numbering System
 EXERCISE: NUMBERING
• Study the WBS numbering system shown in Figure 10.11
above. Suppose A, B, C are the following work package
numbers:
A = 1234 01 01 001
B = 1234 02 00 000
C = 1234 01 02 002
• What package numbers are D, E, F?
APPROACHES TO WBS
 Physical Space Approach
• Project
– Main building
– 1st floor
– Structures
– Plumbings
– Electrical
– HVAC
– 2nd floor
• Service building
– Structures
– Plumbings
– Electrical
– HVAC
 Procedure Approach
• Project
– Feasibility
– Design
• Basic
• Detail
• Bid documents
• Shop drawings
– Bid
– Construction
• Foundations subcontract
– Main building
– Piles
– Concrete foundations
– Service building
– Piles
– Concrete foundations
• Steel erection
• Finishings
– Commissioning
 Functional Approach
GAS-STEAM COMBINED
POWER PLANT
level 0

MAIN FUNCTIONS OF PLANT

level 1 GAS STEAM INTERFACES

level 2 ITEMS
TURBINE GENERATOR COMPRESSION STATION

level 3
COMPRESSORS GAS TREATMENT ENCLOSURE UNITS

level 4
COMPRESSOR 1 COMPRESSOR 2 FOUNDATIONS SUB-UNITS

level 5
DESIGN PROCUREMENT INSTALLATION WORK PACKAGES
 Work Packages
• A project can be subdivided into a number of work
packages or tangible deliverables
• The lowest level of a WBS.
• It contains a collection of work activities that can be
assigned to a specific team or individual for execution of
the work.
 Work Packages
• A work package is the lowest level of the WBS.
– It is output-oriented in that it:
1. Defines work (what).
2. Identifies time to complete a work package (how long).
3. Identifies a time-phased budget to complete
a work package (cost).
4. Identifies resources needed to complete
a work package (how much).
5. Identifies a person responsible for units of work (who).
6. Identifies monitoring points (milestones)
for measuring success.
 Work Package
• What size should a work package be?
– The PM must decide to what level to control the project.
• The following is a general rule of definition a small work packages.
– Can be realistically and confidently estimated.
– Cannot be logically subdivided.
– Has about 8 to 80 hours worth of effort, or whatever makes sense for your
project.
– Has a meaningful conclusion and deliverable.
– Can be completed without the need for more information.
– May be outsourced or contracted.
– The size of work packages also relates to reporting periods and project
control.
 Work Package
• Work packages are reached when they include
deliverables that:
– Can be realistically and confidently estimated.
– Can be completed quickly.
– Can be completed without interruption (in other words, without
the need of more information).
– May be outsourced or contracted out.
 Group Activity
• Create a WBS for the project of moving to other city. You
have received a job offer in that city, and want to plan the
move.
 WBS
Move

Research Sell home Buy home Pack Move unpack Evaluation

Locations Repair Financing Prepare Get there Hire Help Lessons Learned

Plan where
Schools Clean Look Buy boxes Get stuff there
things go

Risks Show Narrow down Garage Sale utilities Unpack

Close Close Pack Change address

Change schools
WBS Numbering
 Integrating the WBS with the Organization
• Organizational Breakdown Structure (OBS)
– Depicts how the firm is organized to discharge its work
responsibility for a project.
• Provides a framework to summarize
organization work unit performance.
• Identifies organization units responsible
for work packages.
• Ties organizational units to cost control accounts.
Integration of
WBS and OBS
Coding the WBS for the Information System
• WBS Coding System
– Defines:
• Levels and elements of the WBS
• Organization elements
• Work packages
• Budget and cost information
– Allows reports to be consolidated at any level in the
organization structure
 Coding
the WBS
PBS for Software Development Project
 Responsibility Matrices
• Responsibility Matrix (RM)
– Also called a linear responsibility chart.
– Summarizes the tasks to be accomplished and who is responsible for
what on the project.
• Lists project activities and participants.
• Clarifies critical interfaces between units
and individuals that need coordination.
• Provide an means for all participants to view their responsibilities and agree
on their assignments.
• Clarifies the extent or type of authority that
can be exercised by each participant.
Responsibility Matrix for a Market Research Project
 Responsibility Matrix for the Conveyor Belt Project

Using the Responsible Accountable Supportive Consulted Informed.(RASCI) matrix to agree team roles and responsibilities
RASCI CHART
ORGANIZATION BREAKDOWN
STRUCTURE
 Organization Breakdown Structure
• Decomposition of necessary resources to perform job
• Identification & organization of the resources responsible
with carrying out activities associated with the project
• Used to keep track of specific work assignments &
resource allocations
 Organization Breakdown Structure
• Project resources • Construction force
– Project management team – Worker
– Project manager – Subcontractor
– Construction superintendent • Electrical
– Field superintendent • Plumbing
– Office manager • Insulation
– Scheduler • Tankage
– Accountant/controller • Roads
– Field engineer
OBS/WBS
Linkages
COST BREAKDOWN STRUCTURE
 Cost Breakdown Structure (CBS)
• Breakdown of the costs of the various components of the
structure including all work done by the subcontractors
• Serves as a basis for subsequent monthly pay requests by
the contractor
• Used to continuously compare costs as they actually
occur with the budget
Cost Breakdown Structure (CBS)
MASTER LIST OF PROJECT COST ACCOUNTS
Subaccounts of General Ledger Account 80.000
PROJECT EXPENSE
Project Work Accounts .100 - .699
100 Clearing & Grubbing 245 Precast Concrete
101 Demolition 260 Concrete forms
102 Underpinning .01 footings
103 Earth Excavation .05 grade beams
104 Rock Excavation .07 slab on grade
105 Backfill .08 beams
115 Wood structural piles .10 slab
116 Steel structural piles .11 columns
117 Concrete structural piles .12 walls
121 Steel sheet piling 280 Structural Steel
240 Concrete poured 350 Masonry
.01 footings .01 8 in. block
.05 grade beams .02 12 in. block
.07 slab on grade .06 common brick
.08 bcarns .20 face brick
.10 slab on forms .60 glazed tile
.11 columns 400 Carpentry
.12 walls 440 Millwork
.16 stairs 500 Miscellaneous Metals
.20 expansion joints .01 metal door frames
.40 screeds .20 window sash
.50 float finish .50 toilet partitions
.51 trowel finish 560 Finish Hardware
.60 rubbing 620 Paving
.90 curing 680 Allowance
685 Fencing
 Two Main Approaches
• CBS = WBS
– CBS is the project cost control structure
• CBS ≠ WBS
– CBS is the corporate multi-project cost control structure
– Usually the case of a firm that has an integrated cost control
system
 Diverse Combinations
• WBS + OBS: Task assignments
• CBS + OBS: Budget monitoring of crews, etc.
• OBS + Schedule: Time-specific crew assignments
• CBS + Schedule: Cost monitoring
DESIGNING THE WBS
 WBS Practice - Bicycle
• You have been tasked to assemble a bicycle. Assembling a
bicycle is your project.
• The Level 2 activities for the bicycle assembling project are:-
– Frame set
– Crank set
– Wheels
– Braking system
– Shifting system
– Integration
– Project management
 WBS Practice - Bicycle
• Develop the WBS for the Project
 WBS Practice – Education Project
• You have a World Bank funded project in the education
sector. The aim of the project is to improve Quality
Education and the Project title is Secondary Education
Improvement Project
• The project has 3 components
– Construct school laboratories
– Teacher professional development
– Supply learning materials to students
• Develop the WBS for the project, PBS and CBS
End
 Work Breakdown Structure (WBS)
Example:
Level 1

Level 2

Level 3

Level 4
 Work Breakdown Structure (WBS)

This example is quite simple and the whole purpose is to bring

the students’ attention to focus on the WBS itself.
As you can see, the first level describes the product we want to
achieve once the project is complete.

By meeting with the stakeholders, the team can start

decomposing the product into smaller, more manageable
components.

This is what the level 2 is showing below:

 Work Breakdown Structure (WBS)

If we take the component called “Wheels” for example, we may

want to break it down into several pieces. However, the team has
to decide how much detail the work really requires.

For this example, we can just break this level into two pieces:

Level 3

The bicycle as a product has only two wheels and from a project
management standpoint, this is enough for the team.
 Work Breakdown Structure (WBS)

Finally, there could be a component that needs more details for

other reasons. In our example, the team decides to bring even
more detail to the component called “Testing”. Based on the
project’s needs, there could be a reason to add three more work
packages as you can see in the following figure:

Level 4
 Work Breakdown Structure (WBS)
Very important key points to keep in mind while developing a
WBS:

1. The WBS is created with the help of the team.

2. The first level is completed before the project is broken
down further.
3. Each level of the WBS is a smaller piece of the level
above.
4. The WBS includes only deliverables that are really
needed.
5. Deliverables not included in the WBS are not part of
the project.
 Work Breakdown Structure (WBS)

Very important…
work packages are reached when they include deliverables that:

1. Can be realistically and confidently estimated.

2. Can be completed quickly.
3. Can be completed without interruption (in other
words, without the need of more information).
4. May be outsourced or contracted out.
 Work Breakdown Structure (WBS)

BENEFITS:

1. It helps prevent work from slipping through the

cracks.
2. It provides the project team members with an
understanding of where their pieces fit into the
overall project management plan.
3. It facilitates communication and cooperation among
team members.
4. It helps prevent changes.
5. It provides a basis for estimating staff, cost, and
time.
6. It gets team buy-in and builds the team.
7. It helps people get their minds around the project.
Make sure you read this information twice:

Under a professional project management methodology, every

single project you manage must have a WBS.

You cannot afford to misunderstand this important project

management tool.

Why?

Without it, the project will take longer, elements will slip through
the cracks, and the project will be negatively impacted.
 Work Breakdown Structure (WBS)
Example:
 Work Breakdown Structure (WBS)
Example:
 Work Breakdown Structure (WBS)
Example: