Work breakdown Structure

Ex-1
Module 2: Work Breakdown Structure
Welcome to Module 2. The objective of this module is to introduce you to Work
Breakdown Structure (WBS) and other supporting documents.

This module will include defining and illustrating the following topics:

• Work Breakdown Structure

• WBS dictionary

• Organizational Breakdown Structure (OBS)

• Responsibility Assignment Matrix (RAM)

Module 2 – Work Breakdown Structure

What is a Work Breakdown Structure?
Planning a project using earned value management is no different than the initial
planning necessary to implement any given project. There are basic items that
you need to know and understand as a project manager:

• What makes up my entire project (Scope)?

• What is the agreed upon work scope and what is additional work?
• What are my start and completion dates (Schedule)?
• How much is the project going to cost (Cost)?

Over the years, it was determined that project managers needed a tool to help
capture and control their project scope. This led to the development of a Work
Breakdown Structure (WBS).

On the following pages we will define and discuss a WBS.

Module 2 – Work Breakdown Structure

What is a Work Breakdown Structure?
The Work Breakdown Structure (WBS) is a tool that defines a project and
groups the project’s discrete work elements in a way that helps organize and
define the total work scope of the project. A WBS element may be a product,
data, a service, or any combination. WBS also provides the necessary
framework for detailed cost estimating and control along with providing
guidance for schedule development and control. Additionally the WBS is a

dynamic tool and can be revised and updated as BEST Management

Books
needed by the project manager. 1.

Each descending level of the

Project Management
WBS represents an increased - An Introduction
1.1

level of detailed definition of the

project work. As you can see in Writing Editing Publishing

this WBS for developing the Text Book Text Book Text Book
1.1.1 1.1.2 1.1.3

BEST Management Book, the

work is broken down into all the Chapter 1
1.1.1.1
Chapter 2
1.1.1.2
Chapter 3
1.1.1.3
Editing
Chapter 1
1.1.2.1
Editing
Chapter 2
1.1.2.2
Editing
Chapter 3
1.1.2.3

discrete elements of work, the

total sum of which represents Project
Selection
Project
Organization
Project
Planning
Budget &
Cost
Scheduling
1.1.1.2.2
Project
Controls
Auditing
1.1.1.3.1
Administrative
Closeout

all the work and products 1.1.1.1.1 1.1.1.1.2 1.1.1.1.3 1.1.1.2.1 1.1.1.2.3 1.1.1.3.2

necessary to produce the book.

Module 2 – Work Breakdown Structure
What is a Work Breakdown Structure?
After reviewing the WBS on the previous page, an important point needs to be
reviewed. Although a WBS can be depicted so as to look like an
organizational chart, it IS NOT an organizational chart.

BEST Management
Books
1.

Remember the WBS defines a Project Management

- An Introduction

project and groups the project

1.1

elements for managing a Writing Editing Publishing

project. An organizational chart Text Book

1.1.1
Text Book
1.1.2
Text Book
1.1.3

describes the project team that

will accomplish the project.
Chapter 1 Chapter 2 Chapter 3 Editing Editing Editing
1.1.1.1 1.1.1.2 1.1.1.3 Chapter 1 Chapter 2 Chapter 3
1.1.2.1 1.1.2.2 1.1.2.3

Project Project Project Budget & Scheduling Project Auditing Administrative

Selection Organization Planning Cost 1.1.1.2.2 Controls 1.1.1.3.1 Closeout
1.1.1.1.1 1.1.1.1.2 1.1.1.1.3 1.1.1.2.1 1.1.1.2.3 1.1.1.3.2

Module 2 – Work Breakdown Structure

Why is a Work Breakdown Structure needed?
Not all projects have a WBS, and it is true that some of these projects have been
successful. So why is a WBS needed? We have already looked at a few reasons,
but in review, the WBS:
• Provides a framework for organizing and managing the approved project scope
• Helps ensure you have defined all the work that makes up the project
• Provides a framework for planning and controlling cost and schedule
information
• It’s better to be deliberate about planning than rely on luck!
Additionally, when you work for a company or organization that has many projects
being performed simultaneously, each of the projects is competing for the limited
resources available. The WBS enables you to review project details and
distinguish one project’s needs from others within the company or organization.
Why is distinguishing one project from another important? It enables you to identify
resource requirements and allocate resources more effectively.

Now let’s look at preparing a WBS.

Module 2 – Work Breakdown Structure

Preparing a WBS
In preparing a WBS there are a number of steps that need to be taken to make sure
the WBS developed will help manage your project. Below and on the following
pages we will discuss these steps.

1. Identify final project products necessary for achieving project success. The WBS
should assist the project manager in developing a clear vision of the end product.
You need to answer the following question:
• What must be delivered to achieve project success?
• You may need to review the project scope documents for guidance.

2. Identify the major deliverables necessary for project success.

• These are items that by themselves do not satisfy the project need but
combined make up a successful project
• Examples: a design completion, generator delivery, or acceptance test
completion
• In the DOE, these could be Critical Decisions (see DOE Order 413.3)

Module 2 – Work Breakdown Structure

Preparing a WBS
3. Incorporate additional levels of detail until management requirements for
managing and controlling the project are met.
• Remember that each project is different, thus each WBS will be different
• WBS’s from previous projects can be used as templates, but remember
that the management philosophy and the level of details may be different
from project to project
• Understand your controlling and reporting requirements
• Projects have different requirements; make sure you take
these into consideration when developing low level details

4. Review and refine the WBS until the stakeholders agree with the level of
project planning and reporting.
• Remember that no matter how detailed a WBS is, there are planning and
reporting restrictions a WBS creates. On the following pages, we will
look at examples of these restrictions.

Module 2 – Work Breakdown Structure

Preparing a WBS
Let’s use the BEST Management Books’ WBS we looked at earlier. Assume
that the WBS was only planned down to the chapters level (see graph
below, left), but after the first month of work, the stakeholder wants reporting
at the subchapter level (see graph below, right). Without restructuring the
WBS and changing the other supporting systems, like cost tracking and
reporting, it is impossible for the project manager to meet the stakeholder’s
request.

Current Project WBS Project WBS Needed

Writing Writing
Text Book Text Book
1.1.1 1.1.1

Chapter 1 Chapter 2 Chapter 1 Chapter 2

1.1.1.1 1.1.1.2 1.1.1.1 1.1.1.2

Project Project Project Budget & Scheduling

Scheduling Project
Not Planned to this level Selection
1.1.1.1.1
Organization
Organization
1.1.1.1.2
Planning
1.1.1.1.3
Cost
1.1.1.2.1
1.1.1.2.2 Controls
1.1.1.2.3

Module 2 – Work Breakdown Structure

Preparing a WBS
Now let’s reverse the situation. Assume WBS was planned down to the subchapter level
(see graph below, left), but after the first month of work, the stakeholder wants reporting
at the chapter level (see graph below, right). Is there any restructuring needed to the
WBS? The answer is “No”. Since you planned the work at a level below what is now the
stakeholder’s requirement, you can “roll-up” and meet the stakeholder’s request.

Do you still see a problem with the project WBS? Let’s take a look.

Current Project WBS Project WBS Needed

Writing Writing
Text Book Text Book
1.1.1 1.1.1

Chapter 1 Chapter 2 Chapter 1 Chapter 2

. 1.1.1.1 1.1.1.2 1.1.1.1 1.1.1.2

Project Project Project Budget & Scheduling

Scheduling Project
Selection Organization
Organization Planning Cost 1.1.1.2.2 Controls
1.1.1.1.1 1.1.1.1.2 1.1.1.1.3 1.1.1.2.1 1.1.1.2.3
Module 2 – Work Breakdown Structure
Preparing a WBS
Actually, there is not a problem with the WBS structure, but a problem with the
idea of time and cost. The project manager spent time and resources to
define the WBS down to a level that he determined was appropriate. The
only benefit could be that the project manager wishes to manage the
project at the lower level and will roll-up reporting for the stakeholder.

In review, always get stakeholders to agree with the level of project planning
and reporting.

Current Project WBS Project WBS Needed

Writing Writing
Text Book Text Book
1.1.1 1.1.1

Chapter 1 Chapter 2 Chapter 1 Chapter 2

1.1.1.1 1.1.1.2 1.1.1.1 1.1.1.2

Project Project Project Budget & Scheduling

Scheduling Project
Selection Organization
Organization Planning Cost 1.1.1.2.2 Controls
1.1.1.1.1 1.1.1.1.2 1.1.1.1.3 1.1.1.2.1 1.1.1.2.3
Module 2 – Work Breakdown Structure
Preparing a WBS
In developing a WBS, one must realize that there are multiple ways to develop a WBS
for any given project. Some ways might be better than others, but the two most
important item to remember are that the WBS must contain all approved scope and
the Project Manager must develop the WBS to reflect the way he/she intends to
manage the project.

Other items to consider when developing a WBS are:

• Reporting requirements
• Size of project
• Resource executing the work (contractors vs. in-house)
• Complexity of the project

On the following two pages are examples of alternative WBS structures for the BEST
Management Books project.

Module 2 – Work Breakdown Structure

Preparing a WBS
This WBS structure is designed to control scope
by chapters, unlike the original WBS which
was developed to control scope by writing
and editing.

Module 2 – Work Breakdown Structure

Preparing a WBS
This WBS structure is taking into consideration
that the writing and editing will be executed
by a contractor. It still requires the contractor
to control scope by writing and editing by
chapter.

Module 2 – Work Breakdown Structure

Building a WBS
Armed with the basics of the WBS, it is time to examine them in more detail and
to begin to understand how to build one. To do this, let’s look at building a
WBS for the construction of a single family home. First, take a moment to
familiarize yourself with some background information about the construction
company, which appears on the next page.

Module 2 – Work Breakdown Structure

WBS: Structure
The ACME Housing Corporation, which you own, has been contracted to build
its first house. You want to be able to manage your projects effectively and
efficiently, so you charge your project managers to develop an appropriate
WBS. You decide to manage the project by the individual tasks necessary to
complete the house.
You hope that this is the first of many houses that ACME will build, so you start
the WBS with ACME in the highest position, or Level 1. Accordingly, Level 1
is given a WBS code of 1. You assign the WBS code of 1 to the highest level
because all future projects (houses) will be summarized at Level 1.

NOTE: For ease of explanation, our

example will assume the following:
• Design is complete Level 1 
• All permits issued
• All Material ordered
• Inspection happens
Module 2 – Work Breakdown Structure
WBS: Structure
With Level 1 established, you can begin to complete the WBS. But what should
the next level be?
The logical next level for ACME is the project level. Level 2 is the level for each
individual project, or house, that ACME undertakes. As the chart shows
below, Level 2 is identified at the project level: House.
Appropriately, the code for Level 2 corresponds to Level 1. In this case, the
code is 1.1.

Level 1 

Level 2 

Module 2 – Work Breakdown Structure

WBS: Structure
Now the WBS for the housing project is complete, right? Actually, no, the WBS
is not complete. At this point you determine that you want to divide the work
into the major elements needed to build a house. You choose to divide Level
3 into six elements: concrete, framing, plumbing, electrical, interior and
roofing. You realize that these are both major deliverables and milestones for
managing the project. They also enable you to get to your goal of managing
the project by task.
Notice the WBS codes at level 3. Each is unique to the project and starts with
the WBS code from the level above (11.11.1.1). Now lets look and see
if another level is needed.

Level 1 

Level 2 

Level 3 
Module 2 – Work Breakdown Structure
WBS: Structure
The ACME WBS is taking shape, but it does not quite define the project at a
level that shows needed tasks for completion. To do this, one more level
needs to be included.
Level 4 of the WBS will enable us to manage
the project as desired. All of our contractors
fit into specific elements at level 4, and so
do all specific departments. As with the  Level 1
previous Levels, note the WBS codes that
have been assigned to the tasks and their
 Level 2
relationship to the previous Level.

Level 3 

Level 4 

Module 2 – Work Breakdown Structure

WBS: Structure
What do you think? Is the WBS complete? Does it enable the manager to
manage at the task level?
After a review to make sure that only approved scope is included, our WBS is
complete. It does include the necessary components to manage the project
by task.

Module 2 – Work Breakdown Structure

Work Breakdown Structure (WBS) Tree 1 ACME Housing Corporation
The graphical structure of the WBS is an easy 1.1 New Home Construction
way to identify the project components and 1.1.1 Concrete
1.1.1.1 Pour Foundation
relationships of those components; 1.1.1.2 Install Patio
however, the WBS can be displayed in 1.1.1.3 Pour Stairway
another format as well: the Tree format. 1.1.2 Framing
Both formats are acceptable. The graphical 1.1.2.1 Frame Exterior Walls
1.1.2.2 Frame Interior Walls
format is at times easier to understand, but
can take up considerable space in a report. 1.1.2.3 Install Roofing Trusses
The tree is not as easy to understand but is
more easily incorporated into a report 1.1.3 Plumbing
1.1.3.1 Install Water Lines
format.
1.1.3.2 Install Gas Lines
Note the WBS codes and the structure of the 1.1.3.3 Install B/K Fixtures
1.1.4 Electrical
Levels in the Tree format mirror the 1.1.4.1 Install Wiring
graphical format. The content has not 1.1.4.2 Install Outlets/Switches
changed; only the way the content is
presented has changed. 1.1.4.3 Install Fixtures
1.1.5 Interior
1.1.5.1 Install Drywall
1.1.5.2 Install Carpets
1.1.5.3 Install Painting
1.1.6 Roofing
Module 2 – Work Breakdown Structure 1.1.6.1 Install Felt
1.1.6.2 Install Shingles
WBS and Earned Value
Now that you understand the WBS and how to assemble one, let’s examine how
it relates to earned value.
In Module 1, we discussed that in implementing earned value, a project manager
must have control of the project’s “triple constraint” (scope, schedule and
cost). Unlike traditional management, which tracks two components (budget
and expenditures), earned value considers three and provides a more robust
understanding of a project’s overall progress and health.
The WBS is the most important item in defining and controlling the project
scope. How does it control the scope? If the WBS is not developed correctly
and does not capture all the project scope and only the project scope, then the
“earned value” system built using the WBS will be inaccurate. The project
manager will lose control of the project before it even begins.

Now that you have your WBS, let’s take a look on the next page at the other item
needed to properly organize your project.

Module 2 – Work Breakdown Structure

WBS Dictionary
Once the WBS is complete, the WBS dictionary needs to be the next item
developed. The WBS dictionary is a narrative documentation of the effort
needed to accomplish all work defined in the WBS. The WBS dictionary is
developed for the lowest level element in the WBS only.

To better understand how a WBS and a WBS dictionary work, let’s compare it to a
book and the book’s table of contents:
• The WBS is the table of contents for the project. It captures the contents in
an organized fashion (chapters, subchapter).
• The WBS dictionary is the book itself. It tells the story. In our case the story
is what work will be accomplished and what outputs will be produced in
each of the WBS elements. The total of these descriptions is how a house
will be built and what is needed to build the house.

The WBS dictionary will often lead to the development of the statements of work
(SOW) for the project. SOWs will be discussed in later modules.

Module 2 – Work Breakdown Structure

Module 2: Work Breakdown Structure
Welcome to Module 2. The objective of this module is to introduce you to Work
Breakdown Structure (WBS) and other supporting documents.

This module will include defining and illustrating the following topics:

• Work Breakdown Structure

• WBS dictionary

• Organizational Breakdown Structure (OBS)

• Responsibility Assignment Matrix (RAM)

Module 2 – Work Breakdown Structure

What is a Work Breakdown Structure?
Planning a project using earned value management is no different than the initial
planning necessary to implement any given project. There are basic items that
you need to know and understand as a project manager:

• What makes up my entire project (Scope)?

• What is the agreed upon work scope and what is additional work?
• What are my start and completion dates (Schedule)?
• How much is the project going to cost (Cost)?

Over the years, it was determined that project managers needed a tool to help
capture and control their project scope. This led to the development of a Work
Breakdown Structure (WBS).

On the following pages we will define and discuss a WBS.

Module 2 – Work Breakdown Structure

What is a Work Breakdown Structure?
The Work Breakdown Structure (WBS) is a tool that defines a project and
groups the project’s discrete work elements in a way that helps organize and
define the total work scope of the project. A WBS element may be a product,
data, a service, or any combination. WBS also provides the necessary
framework for detailed cost estimating and control along with providing
guidance for schedule development and control. Additionally the WBS is a

dynamic tool and can be revised and updated as BEST Management

Books
needed by the project manager. 1.

Each descending level of the

Project Management
WBS represents an increased - An Introduction
1.1

level of detailed definition of the

project work. As you can see in Writing Editing Publishing

this WBS for developing the Text Book Text Book Text Book
1.1.1 1.1.2 1.1.3

BEST Management Book, the

work is broken down into all the Chapter 1
1.1.1.1
Chapter 2
1.1.1.2
Chapter 3
1.1.1.3
Editing
Chapter 1
1.1.2.1
Editing
Chapter 2
1.1.2.2
Editing
Chapter 3
1.1.2.3

discrete elements of work, the

total sum of which represents Project
Selection
Project
Organization
Project
Planning
Budget &
Cost
Scheduling
1.1.1.2.2
Project
Controls
Auditing
1.1.1.3.1
Administrative
Closeout

all the work and products 1.1.1.1.1 1.1.1.1.2 1.1.1.1.3 1.1.1.2.1 1.1.1.2.3 1.1.1.3.2

necessary to produce the book.

Module 2 – Work Breakdown Structure
What is a Work Breakdown Structure?
After reviewing the WBS on the previous page, an important point needs to be
reviewed. Although a WBS can be depicted so as to look like an
organizational chart, it IS NOT an organizational chart.

BEST Management
Books
1.

Remember the WBS defines a Project Management

- An Introduction

project and groups the project

1.1

elements for managing a Writing Editing Publishing

project. An organizational chart Text Book

1.1.1
Text Book
1.1.2
Text Book
1.1.3

describes the project team that

will accomplish the project.
Chapter 1 Chapter 2 Chapter 3 Editing Editing Editing
1.1.1.1 1.1.1.2 1.1.1.3 Chapter 1 Chapter 2 Chapter 3
1.1.2.1 1.1.2.2 1.1.2.3

Project Project Project Budget & Scheduling Project Auditing Administrative

Selection Organization Planning Cost 1.1.1.2.2 Controls 1.1.1.3.1 Closeout
1.1.1.1.1 1.1.1.1.2 1.1.1.1.3 1.1.1.2.1 1.1.1.2.3 1.1.1.3.2

Module 2 – Work Breakdown Structure

Why is a Work Breakdown Structure needed?
Not all projects have a WBS, and it is true that some of these projects have been
successful. So why is a WBS needed? We have already looked at a few reasons,
but in review, the WBS:
• Provides a framework for organizing and managing the approved project scope
• Helps ensure you have defined all the work that makes up the project
• Provides a framework for planning and controlling cost and schedule
information
• It’s better to be deliberate about planning than rely on luck!
Additionally, when you work for a company or organization that has many projects
being performed simultaneously, each of the projects is competing for the limited
resources available. The WBS enables you to review project details and
distinguish one project’s needs from others within the company or organization.
Why is distinguishing one project from another important? It enables you to identify
resource requirements and allocate resources more effectively.

Now let’s look at preparing a WBS.

Module 2 – Work Breakdown Structure

Preparing a WBS
In preparing a WBS there are a number of steps that need to be taken to make sure
the WBS developed will help manage your project. Below and on the following
pages we will discuss these steps.

1. Identify final project products necessary for achieving project success. The WBS
should assist the project manager in developing a clear vision of the end product.
You need to answer the following question:
• What must be delivered to achieve project success?
• You may need to review the project scope documents for guidance.

2. Identify the major deliverables necessary for project success.

• These are items that by themselves do not satisfy the project need but
combined make up a successful project
• Examples: a design completion, generator delivery, or acceptance test
completion
• In the DOE, these could be Critical Decisions (see DOE Order 413.3)

Module 2 – Work Breakdown Structure

Preparing a WBS
3. Incorporate additional levels of detail until management requirements for
managing and controlling the project are met.
• Remember that each project is different, thus each WBS will be different
• WBS’s from previous projects can be used as templates, but remember
that the management philosophy and the level of details may be different
from project to project
• Understand your controlling and reporting requirements
• Projects have different requirements; make sure you take
these into consideration when developing low level details

4. Review and refine the WBS until the stakeholders agree with the level of
project planning and reporting.
• Remember that no matter how detailed a WBS is, there are planning and
reporting restrictions a WBS creates. On the following pages, we will
look at examples of these restrictions.

Module 2 – Work Breakdown Structure

Preparing a WBS
Let’s use the BEST Management Books’ WBS we looked at earlier. Assume
that the WBS was only planned down to the chapters level (see graph
below, left), but after the first month of work, the stakeholder wants reporting
at the subchapter level (see graph below, right). Without restructuring the
WBS and changing the other supporting systems, like cost tracking and
reporting, it is impossible for the project manager to meet the stakeholder’s
request.

Current Project WBS Project WBS Needed

Writing Writing
Text Book Text Book
1.1.1 1.1.1

Chapter 1 Chapter 2 Chapter 1 Chapter 2

1.1.1.1 1.1.1.2 1.1.1.1 1.1.1.2

Project Project Project Budget & Scheduling

Scheduling Project
Not Planned to this level Selection
1.1.1.1.1
Organization
Organization
1.1.1.1.2
Planning
1.1.1.1.3
Cost
1.1.1.2.1
1.1.1.2.2 Controls
1.1.1.2.3

Module 2 – Work Breakdown Structure

Preparing a WBS
Now let’s reverse the situation. Assume WBS was planned down to the subchapter level
(see graph below, left), but after the first month of work, the stakeholder wants reporting
at the chapter level (see graph below, right). Is there any restructuring needed to the
WBS? The answer is “No”. Since you planned the work at a level below what is now the
stakeholder’s requirement, you can “roll-up” and meet the stakeholder’s request.

Do you still see a problem with the project WBS? Let’s take a look.

Current Project WBS Project WBS Needed

Writing Writing
Text Book Text Book
1.1.1 1.1.1

Chapter 1 Chapter 2 Chapter 1 Chapter 2

. 1.1.1.1 1.1.1.2 1.1.1.1 1.1.1.2

Project Project Project Budget & Scheduling

Scheduling Project
Selection Organization
Organization Planning Cost 1.1.1.2.2 Controls
1.1.1.1.1 1.1.1.1.2 1.1.1.1.3 1.1.1.2.1 1.1.1.2.3
Module 2 – Work Breakdown Structure
Preparing a WBS
Actually, there is not a problem with the WBS structure, but a problem with the
idea of time and cost. The project manager spent time and resources to
define the WBS down to a level that he determined was appropriate. The
only benefit could be that the project manager wishes to manage the
project at the lower level and will roll-up reporting for the stakeholder.

In review, always get stakeholders to agree with the level of project planning
and reporting.

Current Project WBS Project WBS Needed

Writing Writing
Text Book Text Book
1.1.1 1.1.1

Chapter 1 Chapter 2 Chapter 1 Chapter 2

1.1.1.1 1.1.1.2 1.1.1.1 1.1.1.2

Project Project Project Budget & Scheduling

Scheduling Project
Selection Organization
Organization Planning Cost 1.1.1.2.2 Controls
1.1.1.1.1 1.1.1.1.2 1.1.1.1.3 1.1.1.2.1 1.1.1.2.3
Module 2 – Work Breakdown Structure
Preparing a WBS
In developing a WBS, one must realize that there are multiple ways to develop a WBS
for any given project. Some ways might be better than others, but the two most
important item to remember are that the WBS must contain all approved scope and
the Project Manager must develop the WBS to reflect the way he/she intends to
manage the project.

Other items to consider when developing a WBS are:

• Reporting requirements
• Size of project
• Resource executing the work (contractors vs. in-house)
• Complexity of the project

On the following two pages are examples of alternative WBS structures for the BEST
Management Books project.

Module 2 – Work Breakdown Structure

Preparing a WBS
This WBS structure is designed to control scope
by chapters, unlike the original WBS which
was developed to control scope by writing
and editing.

Module 2 – Work Breakdown Structure

Preparing a WBS
This WBS structure is taking into consideration
that the writing and editing will be executed
by a contractor. It still requires the contractor
to control scope by writing and editing by
chapter.

Module 2 – Work Breakdown Structure

Building a WBS
Armed with the basics of the WBS, it is time to examine them in more detail and
to begin to understand how to build one. To do this, let’s look at building a
WBS for the construction of a single family home. First, take a moment to
familiarize yourself with some background information about the construction
company, which appears on the next page.

Module 2 – Work Breakdown Structure

WBS: Structure
The ACME Housing Corporation, which you own, has been contracted to build
its first house. You want to be able to manage your projects effectively and
efficiently, so you charge your project managers to develop an appropriate
WBS. You decide to manage the project by the individual tasks necessary to
complete the house.
You hope that this is the first of many houses that ACME will build, so you start
the WBS with ACME in the highest position, or Level 1. Accordingly, Level 1
is given a WBS code of 1. You assign the WBS code of 1 to the highest level
because all future projects (houses) will be summarized at Level 1.

NOTE: For ease of explanation, our

example will assume the following:
• Design is complete Level 1 
• All permits issued
• All Material ordered
• Inspection happens
Module 2 – Work Breakdown Structure
WBS: Structure
With Level 1 established, you can begin to complete the WBS. But what should
the next level be?
The logical next level for ACME is the project level. Level 2 is the level for each
individual project, or house, that ACME undertakes. As the chart shows
below, Level 2 is identified at the project level: House.
Appropriately, the code for Level 2 corresponds to Level 1. In this case, the
code is 1.1.

Level 1 

Level 2 

Module 2 – Work Breakdown Structure

WBS: Structure
Now the WBS for the housing project is complete, right? Actually, no, the WBS
is not complete. At this point you determine that you want to divide the work
into the major elements needed to build a house. You choose to divide Level
3 into six elements: concrete, framing, plumbing, electrical, interior and
roofing. You realize that these are both major deliverables and milestones for
managing the project. They also enable you to get to your goal of managing
the project by task.
Notice the WBS codes at level 3. Each is unique to the project and starts with
the WBS code from the level above (11.11.1.1). Now lets look and see
if another level is needed.

Level 1 

Level 2 

Level 3 
Module 2 – Work Breakdown Structure
WBS: Structure
The ACME WBS is taking shape, but it does not quite define the project at a
level that shows needed tasks for completion. To do this, one more level
needs to be included.
Level 4 of the WBS will enable us to manage
the project as desired. All of our contractors
fit into specific elements at level 4, and so
do all specific departments. As with the  Level 1
previous Levels, note the WBS codes that
have been assigned to the tasks and their
 Level 2
relationship to the previous Level.

Level 3 

Level 4 

Module 2 – Work Breakdown Structure

WBS: Structure
What do you think? Is the WBS complete? Does it enable the manager to
manage at the task level?
After a review to make sure that only approved scope is included, our WBS is
complete. It does include the necessary components to manage the project
by task.

Module 2 – Work Breakdown Structure

Work Breakdown Structure (WBS) Tree 1 ACME Housing Corporation
The graphical structure of the WBS is an easy 1.1 New Home Construction
way to identify the project components and 1.1.1 Concrete
1.1.1.1 Pour Foundation
relationships of those components; 1.1.1.2 Install Patio
however, the WBS can be displayed in 1.1.1.3 Pour Stairway
another format as well: the Tree format. 1.1.2 Framing
Both formats are acceptable. The graphical 1.1.2.1 Frame Exterior Walls
1.1.2.2 Frame Interior Walls
format is at times easier to understand, but
can take up considerable space in a report. 1.1.2.3 Install Roofing Trusses
The tree is not as easy to understand but is
more easily incorporated into a report 1.1.3 Plumbing
1.1.3.1 Install Water Lines
format.
1.1.3.2 Install Gas Lines
Note the WBS codes and the structure of the 1.1.3.3 Install B/K Fixtures
1.1.4 Electrical
Levels in the Tree format mirror the 1.1.4.1 Install Wiring
graphical format. The content has not 1.1.4.2 Install Outlets/Switches
changed; only the way the content is
presented has changed. 1.1.4.3 Install Fixtures
1.1.5 Interior
1.1.5.1 Install Drywall
1.1.5.2 Install Carpets
1.1.5.3 Install Painting
1.1.6 Roofing
Module 2 – Work Breakdown Structure 1.1.6.1 Install Felt
1.1.6.2 Install Shingles
WBS and Earned Value
Now that you understand the WBS and how to assemble one, let’s examine how
it relates to earned value.
In Module 1, we discussed that in implementing earned value, a project manager
must have control of the project’s “triple constraint” (scope, schedule and
cost). Unlike traditional management, which tracks two components (budget
and expenditures), earned value considers three and provides a more robust
understanding of a project’s overall progress and health.
The WBS is the most important item in defining and controlling the project
scope. How does it control the scope? If the WBS is not developed correctly
and does not capture all the project scope and only the project scope, then the
“earned value” system built using the WBS will be inaccurate. The project
manager will lose control of the project before it even begins.

Now that you have your WBS, let’s take a look on the next page at the other item
needed to properly organize your project.

Module 2 – Work Breakdown Structure

WBS Dictionary
Once the WBS is complete, the WBS dictionary needs to be the next item
developed. The WBS dictionary is a narrative documentation of the effort
needed to accomplish all work defined in the WBS. The WBS dictionary is
developed for the lowest level element in the WBS only.

To better understand how a WBS and a WBS dictionary work, let’s compare it to a
book and the book’s table of contents:
• The WBS is the table of contents for the project. It captures the contents in
an organized fashion (chapters, subchapter).
• The WBS dictionary is the book itself. It tells the story. In our case the story
is what work will be accomplished and what outputs will be produced in
each of the WBS elements. The total of these descriptions is how a house
will be built and what is needed to build the house.

The WBS dictionary will often lead to the development of the statements of work
(SOW) for the project. SOWs will be discussed in later modules.

Module 2 – Work Breakdown Structure