developing a wbs2

7/30/2019 Developing a WBS2

1/38

Work Breakdown Structures

Getting the fundamentals right

Melbourne

February 2011

Australian Cost Engineering Society

Malcolm Sawle

7/30/2019 Developing a WBS2

2/38

AGENDA

Introduction Definitions Uses of a WBS WBS Development Process

Purpose Context Content Preparation Hierarchy Coding

Pitfalls Recommendations

7/30/2019 Developing a WBS2

3/38

Introduction

Benefits of attending ACES meetings:Techniques are explained by practitioners

who have been there and done that.

We meet with our peers and are able to shareour frustrations.

It causes us to question our perceptions, andleads to a deeper understanding, of project

controls. This seminar falls into the latter category.

7/30/2019 Developing a WBS2

4/38

Introduction

This seminar is about Work Breakdown Structures(WBS).

A WBS is normally a given requirement on projects. What information is available on how to prepare one is

usually very context specific.

This session is an attempt to look for some universalthemes and develop a common process for developing a

WBS.

Whilst the focus is on engineering and constructionprojects, concepts discussed are generally applicable to

other types of projects.

7/30/2019 Developing a WBS2

5/38

WBS Definition 1

Ref: Wikipedia

A work breakdown structure .. is atool used to define and group a project's

discrete work elements in a way that helpsorganize and define the total work scopeof the project.

7/30/2019 Developing a WBS2

6/38

7/30/2019 Developing a WBS2

7/38

Does this fit the definition?

Volume

Chapter

Subject Subject

Chapter

Subject

Encyclopedia

7/30/2019 Developing a WBS2

8/38

Is this a good WBS?

7/30/2019 Developing a WBS2

9/38

WBS Definition 2

Ref: Project Management Institute Body of Knowledge

A deliverable-oriented hierarchical decomposition of thework to be executed by the project team to accomplish

the project objectives and create the requireddeliverables. It organizes and defines the total scope of

the project. Each descending level represents an

increasingly detailed definition of the project work. The

WBS is decomposed into work packages. The

deliverable orientation of the hierarchy includes bothinternal and external deliverables.

7/30/2019 Developing a WBS2

10/38

PMI Example by Deliverable?

7/30/2019 Developing a WBS2

11/38

Definitions 3

Ref: USA DOD MIL-HDBK-881A Work BreakdownStructures for Defense Materiel Items

provides a framework for specifying

program objectives. It defines the program in

terms of hierarchically related, product-orientedelementsEach element provides logical

summary levels for assessing technicalaccomplishments and for measuring cost and

schedule performance.

7/30/2019 Developing a WBS2

12/38

7/30/2019 Developing a WBS2

13/38

Definitions 4

Ref: AACEI Project Code of Accounts 20R-98..a WBS can be described as a hierarchical

division of work scope into manageable partsthat correspond to key deliverables, phases, or

milestones. Work breakdown structures can beproduct-oriented,. organization-oriented,or

combined product/process/organizational

hierarchies..several organizations refer to theircode of accounts as a WBS because the project

breakdown is incorporated into the cost coding.

7/30/2019 Developing a WBS2

14/38

Definitions 5

Ref: ACES Melbourne February 2011

.

.

.

..

.

.

..

7/30/2019 Developing a WBS2

15/38

We are starting to know what a WBS is but

how do we get there!

7/30/2019 Developing a WBS2

16/38

The Universal Questions

Why

What

WhenHow

Where

Who

7/30/2019 Developing a WBS2

17/38

Basic WBS Development

Content

Structure

Codification

7/30/2019 Developing a WBS2

18/38

Further WBS Development

Context

Purpose

Content

Preparation

Hierarchy

Coding

7/30/2019 Developing a WBS2

19/38

Rev I 15/2/11

Project Type

Procedures

Organisat-

ion

Systems

Users

Leadership

Ownership

Element

Definition

Mainten-ance

Scope

Definition

Project

Understand-

ing

CodingBasis

Commun-

ication

Scope or

Framework

Level of

Detail

Hard & Soft

Time

Phasing

Responsib-

Ility

OtherStructures

Relative or

Absolute

Multi-

dimensional

Granual-

arity

100% Rule

Structure

Convention

Mapping

WBS Development Process

PURPOSE CONTENT HIERARCHY CODING PREPARATION

Project

Planning

Project

Close-outProject

Execution

CONTEXT

7/30/2019 Developing a WBS2

20/38

Purpose

Why does the project need a WBS? What value does the WBS add? Who benefits from the WBS?

7/30/2019 Developing a WBS2

21/38

Purpose of a WBS

7/30/2019 Developing a WBS2

22/38

Purpose of a WBS

Estimating &

Scheduling

Progress

Monitoring &Cost

Reporting

Variation

Control

Historical

Reporting

Work Breakdown Structure

Project Life

Project Coding (Document Management etc)

7/30/2019 Developing a WBS2

23/38

Context

How does a WBS vary with the type ofproject?

What procedures have been established? What interface is required with the

organisational structure of the project?

What systems are used on the project? Who are the users of the WBS?

7/30/2019 Developing a WBS2

24/38

Content

Should the WBS reflect known scope or provide aFramework?

How detailed the content of the WBS? Difference between tangible scope and intangible

scope.? Variation of content over time? Responsibility for the definition of the WBS? WBS compared to:

-

Code of Accounts (COA)?- Organisational Breakdown Structure (OBS)?- Cost Breakdown Structure (CBS)?

7/30/2019 Developing a WBS2

25/38

Known Scope or Framework?

Right Hand Brain Left Hand Brain

7/30/2019 Developing a WBS2

26/38

Hierarchy

Should the levels of the WBS hierarchy berelative or absolute?

Should the WBS hierarchy have multipledimensions?

What factors need to be taken intoaccount in deciding the granularity of the

WBS?

The 100% Rule

7/30/2019 Developing a WBS2

27/38

Multi-dimensional Hierarchy

Phase

Facility

Trade

7/30/2019 Developing a WBS2

28/38

Some Rules

The next level decomposition of a WBS element(child level) must represent 100 percent of thework applicable to the next higher (parent)

element (the 100% rule);

No overlapping of scope between WBSelements; No mixing of products/deliverables with activities

or phases at the same level;

No mixing dimensions when using a multi-dimensional structure.

7/30/2019 Developing a WBS2

29/38

Coding

What are the advantages in applying acoding structure to the WBS? What conventions should be used when

coding a WBS?

How much consideration be given tomapping across to other project systems?

What compromises may result from havingto map across to other systems?

7/30/2019 Developing a WBS2

30/38

One Dimensional Coding Convention

Level One 1

Level Two 1.1

Level Three 1.1.1

Level Four 1.1.1.1

Other Coding Conventions?

7/30/2019 Developing a WBS2

31/38

Preparation

Does the project leadership promote thedevelopment and use of the WBS?

Does the project team accept ownership ofthe WBS?

Can each element be defined in terms ofscope/timing/budget/responsibility?

Is the maintenance of the WBA beingcontrolled?

7/30/2019 Developing a WBS2

32/38

WBS Selection Chart

Criteria for hierarchy and content of WBS forparticular projects types:

Construction

Project

Design

Project

Defence

Project

Software

Project

Primary

Secondary

Tertiary

Type

Level

Detail

Area

Facility

Commodity

Task

??

??

??

??

??

??

??

??

?? ??

??

??

7/30/2019 Developing a WBS2

33/38

What a WBS is Not

A WBS is not an exhaustive scopestatement or to-do list;

A WBS is not a chronological listing; A WBS is not an organisational hierarchy; A WBS is not a prescriptive list of methods; A WBS is not a schedule activity list.

7/30/2019 Developing a WBS2

34/38

Pitfalls

Not understanding fully the purpose of theWBS;

Not keeping elements mutually exclusive; Not maintaining a consistent definition for

each level;

Not controlling development of the WBS.

7/30/2019 Developing a WBS2

35/38

Pitfall Example

A WBS was decomposed with the first level of the WBS having the followingelements:

1. Building/Area2. Systems

3. Project Management4. Programs5. Indirects

6. Permanent Plant Staffing7. Corporate Support

8. Life Cycle Ops9. Site Master Plan/Facilities.

This was so confusing to those working the project, it led to many questions of"Where is my budget?", "How much and when?", and "What do I charge to if I am

doing this?

As a communication tool it clearly failed.

7/30/2019 Developing a WBS2

36/38

Recommendations

Go through a structured process to definethe WBS;

Prepare the WBS early in project; Get team buy-in on content and structure; Ensure change control in place; Acknowledge limitations but minimise

compromise.

7/30/2019 Developing a WBS2

37/38

Ref: Google Images

7/30/2019 Developing a WBS2

38/38

Work Breakdown Structures

Thank You