PMI32 WBS

1

The Work Breakdown Structure

Prof. Mauro Mancini

e-mail: [email protected].: +39-02-23994057

POLITECNICO DI MILANODepartment of Management, Economics and Industrial Engineering

Project and Programme Management A and B

2

Agenda

•The Work Breakdown Structure

•Examples of WBS

•Development methods

•Construction rules

•WBS quality principles

•Other Breakdown structures

Jelena

Note

what is wbs, examples, development, rules. what is the link with week 2? -The scope management. We can't change the scope, we can modify it little bit. Scope management: Scope creep: Client wants to add small things to the project. Nobody will ask to change the contract if we add some small things. But even small thing can become big problem. That's why we have to think where small change will take us. Gold plating: if you change something you can come from one to another thing.. ( someone can ask for scooter, and you get super bike ) that can be very bad. Someone will not be happy to get something that he didn't ask for. sometimes small deviation can provoke big problem. You can't change technical specification of the client. Gold plating is problem, when you want to change performance . NO one ask you to do some change, you do it on your own. And with risk that client will tell I don't want that.

Jelena

Note

Main phases scope planning - creating a project scope management plan that documents how the project scope will be defined, verified, controlled and how to work break down structure (wbs) will be created and defined. Definition of wbs is most important for the project. Go slow in the beginning to go fast. At the beginning of the project we have huge impact on final performances of the project. At the beginning we can define the profit. Which type of client we want to gain. At the beginning 4-5 people who are making plans. In the conceptual phase we don't spend money. At the beginning of the p. we have higher impact on performances of the project. Definition of the wbs is very important for profit!

Jelena

Note

Project scope management overview Everyone have his own idea what must be done.

2

3

Work Breakdown Structure

The purpose of the WBS is to sub divide the scope of workinto manageable work packages which can be estimated,planned and assigned to a responsible or department.

It is the best tool for quantifying the scope of work as a listof work packages since is a hierarchical form of mind mapwhich helps to break complexity down to simplemanageable components.

4


It is not the activities needed to create the projectdeliverables; it's the stuff that the activities create.

A WBS is not the work, but the deliverables. MicrosoftProject suggests WBS as the activity list, but it isn't so. A WBSis not the activities but the actual deliverables that thecustomer expects from the project work.

The project scope must be decomposed into things that thecustomer will get as a result of the project. Stuff, notactivities. The end result of the WBS is a clear picture ofwhat the customer will and won't get as part of the project.

Jelena

Note

Main target is to divide project based on the product, areas or process. Depend what we are doing. ( organizing structure) Than we do wbs again in smaller details. and we can use different criteria on same activity. At the end we have to get what client want! Example.. cleaning room we can devide differently but at the end we have to get clean room. The best wbs depends on what I have to do, who I am and how I will organize. I have to take in consideration proficiency of the workers. so I can organize them in the groups. and make wbs. the overall boundary condition is continuously CHANGE. Microsoft project and other software is based on time. WBS is based on what youhave to do, what the client want and is ready to pay.

3

5


A Work Breakdown Structure is a deliverable-orientedgrouping of project elements that organizes and defines thetotal scope of the project: work not in the WBS is outside thescope of the project.

As with the scope statement, the WBS is often used todevelop or confirm a common understanding of projectscope. Each descending level represents an increasinglydetailed description of the project elements.

6


Jelena

Note

Example ( is not good) In first level we have phases and subproject's it's mixed and can make confusion. First level is completely wrong. It better to be related much more on product. not at the same time on product and process.

4

7

Work Decomposition

The WBS should not be confused with the method ofpresentation—drawing an unstructured activity list in chartform does not make it a WBS.

Each item in the WBS is generally assigned a uniqueidentifier; these identifiers are often known collectively asthe code of accounts.

The items at the lowest level of the WBS are often referredto as work packages (minimum point at which the cost andschedule of the work can be reliably estimated).

8

Work Decomposition

Developing a WBS is a meaningful exercise if you areequipped with the following information:

•Project scope statement

•Project workflow

•Voice of the customer

•Pool of available resources

•Project situation

Jelena

Note

Level of detail is big element in wbs.

Jelena

Note

If spent too much time on details and control phase this is useful only during the control of the project. In the process for example buying food at market if you have a list you are not going to forget something. WBS is sort of list the things to take in the supermarket. worldwide we can find different composition and different organization. and level of detail will be the same .

5

9

Work Decomposition

Decomposition may not be possible for a deliverable that must beaccomplished far into the future.

The Project team usually waits until the deliverable is clarified to bestdevelop the WBS.

Different deliverables can have different level of detail:– excessive decomposition can lead to non productive management

effort and inefficient use of resources– not exhaustive level of detail reduces the possibility of best

managing and control.

For practical purposes 3 or 4 level of detail should be sufficient to reachthe desired planning and control approach.

10

Work Decomposition

The number of levels can be influenced by:Level of detailLevel of riskLevel of controlEstimate accuracyWork package valueWork package dimension (cost, manhours, duration)

Except for E&C companies with more than 4 levels, sub-project are used, where the lowest level of WP of a projectconstitutes the highest level of another one.

Jelena

Note

In military sector we move from 12-20 level of detail.

Jelena

Note

Project is the same, for example for deliver of the something from one to another place but depending of value different is level of detail, risk, control, security etc.

6

11

Work Decomposition

So how far should you break down the project deliverables?

You can follow the "8/80 Rule" the work package equates tono more than 80 hours of work and no fewer than 8 hours ofwork to create that deliverable. You don't want to get sogranular or so vague with your WBS that it's uncontrollableand useless.

12

WBS example

Jelena

Note

BAD rule don't use it. :)

7

13

WBS example

14

WBS development methods

― TOP-DOWN APPROACH

― BOTTOM-UP APPROACH

― WBS (ORGANIZATIONAL) STANDARDS

― WBS TEMPLATES

What development method to use?

Jelena

Note

the most important part is training. besides deliver of the the vehicle. Impact of the equipment can change completely usage of this plane

Jelena

Note

generally we use top down approach sometimes bottom up. Trying to understand if we missed something.

8

15


― TOP-DOWN APPROACH

If the project manager and the project managementteam have little to no experience in developing WBSs

If the nature of the project’s products or services isnote well understood

If the nature of the project life cycle is not familiar orwell known

If no appropriate WBS templates are available.

16


― BOTTOM-UP APPROACH

If the nature of the project’s products and services iswell understood [For example, if the organization hasdeveloped very similar products or services on previousprojects]

If the nature of the project life-cycle is well known. [Ifthe organization use always the same project life-cycle]

Appropriate WBS templates are available. [If theorganization has WBSs from projects with similarproducts or services and these can be reused]

9

17


― WBS STANDARDS AND TEMPLATES

In general, if WBS standards or WBS templates areavailable, they can be used, but the choice to use asample WBS as template must be made carefully. Ifthere aren’t similarity between the new project andprojects already performed, the WBS must bedeveloped with the top-down approach.

Steps to create a deliverable-based WBS

1.Take the committed deliverables from your project charter,

statement of work, or other project conceptdocumentation. This list of deliverables becomes yourLevel 1 (highest level) entries within the WBS.

All WBS Entries that directly correspond to deliverablesshould be named as noun deliverables or adjective/noundeliverables. Examples include “Specification” or “DesignSpecification”.

10

19


2.Take each of these highest level entries, and decomposethem into their component parts (each becoming a WBSEntry). Each component must be logically distinct, aseveryone who sees the WBS needs to understand what thedeliverable or outcome will be from each WBS Entry.

What logically distinct means is that the breakdown of a higher leveldeliverable to its lower level components must make sense. Each of thelower level components musts be distinguishable as unique, and they mustbe recognizable as part of the higher level deliverable.

Continue the decomposition until you reach an appropriatelevel of detail.

20


The lowest level of decomposition is the Activity level. Activities should benamed as active verb / adjective / noun deliverables. Examples include“Create Design Specification” or “Update Design Specification”. By addingthe active verb, you better communicate to the assigned team member notonly what the outcome is (the deliverable) but you also communicate whatkind of process the assigned person is going to perform (create or update).

Note: You should never use terms like “perform”, as they do notcommunicate what is expected.

11

21


3. When all committed deliverables have been decomposedto the appropriate level of detail (becoming Activities),examine each WBS Entry and Activity to see if there arerequired deliverables that are not already in the WBS butthat will be needed to create something that already is in theWBS.

As an example, you may have a deliverable defined for a softwarecomponent (system, subsystem, or function). However, to deliver this intothe production environment, you may also need preceding deliverables suchas test results, compiled code, design documentation, and requirementsdocumentation.

Take all these required deliverables, and decompose them tothe appropriate level of detail, just as you did for thecommitted deliverables.

22


4. Level the hierarchy to the extent that it is possible. At thisstage of development, the WBS may have some Activities atlevel two, some at level three, and so on. See if thehierarchy can be modified so that the number of levels thatActivities fall into is reduced to a short range.

One way to do this is to examine the number of Activities falling within asingle WBS Entry. If the number is less than three to five, see if theseActivities can be merged with another WBS Entry’s Activities. If the numberis more than 10, see if the WBS Entry can be split into two logically distinctcomponents, each with its appropriate Activities. The general idea is toattempt to have each WBS Entry that decomposes into Activities haveapproximately 7 plus or minus 2 (5 to 9) Activities.

12

23


You should never make these changes if the merger or split of a WBSEntry does not make logical sense.• When evaluating whether to merge two WBS Entries, the question to askis, “are these two deliverables really part of one deliverable, and is thatdeliverable distinct from all others?” If the answer is yes, then you shouldcombine them, otherwise don’t.• When evaluating whether to split a WBS Entry with too manycomponents, the question to ask is, “does this WBS Entry deliverable havetwo or more major components, and can the already defined lower leveldeliverables be combined into these proposed higher level ones?” If theanswer is yes, then you can split the WBS Entry. If the answer is no, thenleave it as is.

24


5. When you think you have a completed WBS, validate it using a bottom-up approach. A bottom-up validation works like this:• For each WBS Entry that decomposes into Activities, ask yourself thequestion: “If I had all the deliverables from each of these Activities,would my WBS Entry deliverable be complete?” If the answer is yes, moveon to the next WBS Entry. If the answer is no, add in the missingActivities.• Once the evaluation of the lowest level WBS Entries and Activities iscomplete, examine the next higher level of WBS Entries. Keeping with ourthree-level example, for each Phase ask: “If I had the deliverables fromthe WBS Entries that are part of this Phase, would the Phase deliverablebe complete?” If the answer is yes, move on to the next one, if theanswer is no than add in the missing WBS Entries or go back to step 4 andrebalance the hierarchy, or both.

13

25


Note: Validating the completeness of the WBS if extremely important, as amajor reason for projects being late and over budget is the originallyplanned scope of the project was incomplete, and there was a significantamount of unplanned work that had to be done. Since this unplanned workwas not part of the original plan, and it consumed resources that wereoriginally scheduled for other project work, the schedule inevitably slips.

6. When you have completed your bottom-up validation, it isnow appropriate to re-evaluate the entire WBS one last timeby comparing the currently defined WBS deliverables to theoriginally defined objectives for the project. Ask yourself thequestion, “If I had all these deliverables, would I achieve theplanned objectives for the project?” If the answer is yes, youcan move on to the next step. If the answer is no, you stillhave a lot of work to do.

Work Package (WP)

• It is the elementary unit of the project planning andcontrol

• It constitutes of more elementary activities interrelated,with objectives and constraints univocally defined

• It is defined in relation with Product Breakdown Structure(PBS), Activity Breakdown Structure (ABS), andOrganizational Breakdown Structure (OBS)

• For every WP, start/finish and available resource aredefined

• Time, cost and quality objectives are measurable tocontrol them

• A Description is associated to every WP (objectives,responsibility, authorized budget, start/finish,milestones, interactions, revisions of all these entries)

26

Jelena

Note

smallest part of the project don't give too much importance to this.

14

Work Package (WP)

Crossing a WBS element and an OBS one, a WP it isobtained as elementary unit of project management

27

28

WBS development rules

RULE 1 (100% RULE)

The sum of the work at the “child” level must equal 100% of thework represented by the “parent” and the WBS should not includeany work that falls outside the actual scope of the project, that is,it cannot include more than 100% of the work

RULE 2Every breakdown level must be developed adoptin a singlerationale

RULE 3Different level of the WBS can be developed according todifferente rationale

Jelena

Note

what is important? is the glossary. feasibility study can last between weeks and months.

Jelena

Note

different rules

15

29


RULE 4

Every WBS level and every part of it must be coded to allow WPresearch/aggregation useful to planning and control

RULE 5To choose WP dimension it is necessary consider that at thediminishing of these dimensions, it increase:• managerial capacities of the single responsible• WP number with control complications

RULE 6WBS is the base to highlight interfaces among WPs, so thenecessity of interactions among the correspondent organizationalunits that are the responsible of them

30


RULE 7

WBS may be developed according to specific needs of the projectconsidered (WBS ad hoc) or according to a standardized referencescheme

RULE 8It is possible to aggregate elements of WBS according to differentways respect to those of the WBS hierarchical structure. Forexample: activities that determine jointly incomes and cash flow;materials that belongs to different part of the WBS but aretransported on the same date through the same transport means;project aspects that involve different sub-systems of the plant.

16

31

Breakdown rationale for plant project

1. FUNCTIONAL RATIONALE (typical of base engineering or

commissioning phases)

2. SPATIAL/STRUCTURAL RATIONALE (typical of

construction/assembly phases)

3. SPECIALISTIC PROCESSES RATIONALE (every phase is identified

and then for every one the specific breakdown rationale is

adopted)

32

WBS Quality Principles

• WBS Quality Sub-Principle 1 – Core CharacteristicsThere is a set of core characteristics that must be present in every WBS, asthese characteristics enable the WBS to satisfy project needs that arepresent in every project

• WBS Quality Sub-Principles 2 – Use-Related CharacteristicsThere is a set of additional use-related characteristics that may vary fromone WBS to another. These characteristics enable the WBS to be used forpurposes that are unique to a specific project, industry or environment, orare applied in a particular way to individual projects.

WBS Quality Principle 1A quality WBS is a WBS constructed in such a way that it satisfies all of therequirements for its use in a project

17

33

WBS Quality Principles

Representative examples of WBS defects are:• There are frequently missed deadlines and an extended schedule• Project is over-budget• Individuals are unable to use the new product or feature• The project scope has changed and is unmanageable• The project has become an ongoing project with no end in sight• Project team members are confused about their individualresponsibilities• Some planned work does not get done.

WBS Quality Principle 2WBS quality characteristics apply at all levels of scope definition.

34

Other Breakdown Structure

The WBS should not be confused with other kinds of"breakdown" structures used to present project information.Other structures commonly used in some application areas

include:

Contractual WBS (CWBS), which is used to define the level ofreporting that the seller will provide the buyer. The CWBSgenerally includes less detail than the WBS used by the sellerto manage the seller’s work.

Organizational breakdown structure (OBS), which is used toshow which work elements have been assigned to whichorganizational units.

Jelena

Note

we can use different approach. we can describe the project from the different point of view. OBS - who are the responsible inside my company of the different part of project but also outside the company.

18

35


Cost Breakdown Structure (CBS), which represents thefinancial breakdown of the project into budgets per workpackages.

Location Breakdown Structure (LBS), which is used to showthe location of the work and would be appropriate for aproject which as pockets of work dotted all over the place.

Transport Breakdown Structure (TBS), which is used inprojects characterised by large loads that may find transportand cranage limitations critical for the breakdown.

36


Resource breakdown structure (RBS), which is a variation ofthe OBS and is typically used when work elements areassigned to individuals.

Bill of materials (BOM), which presents a hierarchical view ofthe physical assemblies, subassemblies, and componentsneeded to fabricate a manufactured product. Also calledProduct Breakdown Structure.

Project breakdown structure (PBS), which is fundamentallythe same as a properly done WBS. The term PBS is widelyused in application areas where the term WBS is incorrectlyused to refer to a BOM.

Jelena

Note

classification of different cost of different parts of the project. Location - surface that we have to cover. Transport BDS RBS - who will

19

37


38


20

39


40


21

41


42


22

43


44


23

45


46


Jelena

Note

Main elements in some place.

24

47

WBS example

48

WBS example

25

49

WBS example

50

WBS example

26

51

WBS example

52

WBS example

27

53

WBS example

54

WBS example

28

55

WBS example

WBS advantages

1. To identify the Project independently on who participatesit

2. To clearly identify project objectives3. To provide a scheme that guarantee objectives

achievement through inferior objective most controllable4. To obtain a “different levels” visibility5. To univocally identify reference sectors of the documents

relative to monitoring, controlling and reporting activitiesof the project

6. To highlight interactions rationale among projectelements

7. To identify WP to assign responsibilities and resources8. To identify innovative and repetitive components

56

Jelena

Note

we have static model that don't depend of time, but dynamic is different. so same project can have static and dynamic model. WBS we define to understand what we have to do, at the beginning we don't know what we have to do. than we identify the topic. than go slow to go fast. lot of time at beginning to realize what must be down. and that can reduce misunderstanding at the company. Because everyone have his own idea what must be done.

Documents

PMI32 WBS