developing a wbs2
TRANSCRIPT
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Work Breakdown Structures
Getting the fundamentals right
Melbourne
February 2011
Australian Cost Engineering Society
Malcolm Sawle
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AGENDA
Introduction Definitions Uses of a WBS WBS Development Process
Purpose Context Content Preparation Hierarchy Coding
Pitfalls Recommendations
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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.
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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.
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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.
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Does this fit the definition?
Volume
Chapter
Subject Subject
Chapter
Subject
Encyclopedia
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Is this a good WBS?
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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.
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PMI Example by Deliverable?
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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.
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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.
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Definitions 5
Ref: ACES Melbourne February 2011
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We are starting to know what a WBS is but
how do we get there!
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The Universal Questions
Why
What
WhenHow
Where
Who
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Basic WBS Development
Content
Structure
Codification
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Further WBS Development
Context
Purpose
Content
Preparation
Hierarchy
Coding
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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
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Purpose
Why does the project need a WBS? What value does the WBS add? Who benefits from the WBS?
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Purpose of a WBS
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Purpose of a WBS
Estimating &
Scheduling
Progress
Monitoring &Cost
Reporting
Variation
Control
Historical
Reporting
Work Breakdown Structure
Project Life
Project Coding (Document Management etc)
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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?
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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:
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Code of Accounts (COA)?- Organisational Breakdown Structure (OBS)?- Cost Breakdown Structure (CBS)?
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Known Scope or Framework?
Right Hand Brain Left Hand Brain
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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
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Multi-dimensional Hierarchy
Phase
Facility
Trade
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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.
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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?
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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?
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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?
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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
??
??
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??
??
??
??
??
?? ??
??
??
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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.
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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.
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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.
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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.
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Ref: Google Images
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Work Breakdown Structures
Thank You