➔Free 30-day WBS Software Trial Show Breaking work into smaller tasks is a common productivity technique used to make the work more manageable and approachable. For projects, the Work Breakdown Structure (WBS) is the tool that utilizes this technique and is one of the most important project management documents. It singlehandedly integrates scope, cost and schedule baselines ensuring that project plans are in alignment. The Project Management Institute (PMI) Project Management Book of Knowledge (PMBOK) defines the Work Breakdown Structure as a “deliverable oriented hierarchical decomposition of the work to be executed by the project team.” There are two types of WBS: 1) Deliverable-Based and 2) Phase-Based. The most common and preferred approach is the Deliverable-Based approach. The main difference between the two approaches are the Elements identified in the first Level of the WBS. Deliverable-Based Work Breakdown StructureA Deliverable-Based Work Breakdown Structure clearly demonstrates the relationship between the project deliverables (i.e., products, services or results) and the scope (i.e., work to be executed). Figure 1 is an example of a Deliverable-Based WBS for building a house. Figure 2 is an example of a Phase-Based WBS for the same project.
Figure 1 – Deliverable Based Work Breakdown Structure In Figure 1, the Level 1 Elements are summary deliverable descriptions. The Level 2 Elements in each Leg of the WBS are all the unique deliverables required to create the respective Level 1 deliverable. Phase-Based Work Breakdown StructureIn Figure 2, a Phase-Based WBS, the Level 1 has five Elements. Each of these Elements are typical phases of a project. The Level 2 Elements are the unique deliverables in each phase. Regardless of the type of WBS, the lower Level Elements are all deliverables. Notice that Elements in different Legs have the same name. A Phase-Based WBS requires work associated with multiple elements be divided into the work unique to each Level 1 Element. A WBS Dictionary is created to describe the work in each Element.
Figure 2 - Phase Based Work Breakdown Structure A good WBS is simply one that makes the project more manageable. Every project is different; every project manager is different and every WBS is different. So, the right WBS is the one that best answers the question, “What structure makes the project more manageable?”. How to Make a Work Breakdown StructureA good Work Breakdown Structure is created using an iterative process by following these steps and meeting these guidelines:
Caution: It is possible to break the work down too much. How much is too much? Since cost and schedule data collection, analysis and reporting are connected to the WBS, a very detailed WBS could require a significant amount of unnecessary effort to manage. There are many WBS software tools available. Some of them are based on mind mapping and others are drawing tools. You can read about these tools in this WBS software review. Here is an example of how to make a WBS with MindView:
How to Use a Work Breakdown StructureThe Work Breakdown Structure is used for many different things. Initially, it serves as a planning tool to help the project team plan, define and organize scope with deliverables. The WBS is also used as the primary source of schedule and cost estimate activities. But, its biggest contributions to a project are is use as a description all of the work and as a monitoring and controlling tool. Work Packages Planning Packages
Figure 3 – WBS Work Packages and Control Accounts Control Accounts Create a WBS with the MindView software free trial. Check it out.Related Links:If you’re studying for the project management professional exam, you probably know there’s a lot to learn. When it comes to project scope management, the concept of work packages is a key topic to learn. Work packages are important when preparing the Work Breakdown Structure (WBS) for any project. A work package is the smallest unit of a Work Breakdown Structure. When preparing a Work Breakdown Structure using the decomposition technique, deliverables are generally broken down into smaller, more manageable chunks of work. This process of deconstruction continues until the deliverables are small enough to be considered work packages. Each of these packages should be small enough to help the Project Manager estimate the duration and the cost. Work packages can be scheduled, cost estimated, monitored, and controlled. Every project management dataset has an array of smaller pieces associated with it called work packages. A BudgetA budget is required to account for how much money was allotted to this package. Tracking prices and ensuring the project isn't over budget is necessary too. DeadlinesThis will give the project manager a point of reference to measure how the work is progressing. RisksYou need to identify risks and formulate a risk management plan to avert the problems before they start. You also need to monitor progress, so you can stop any potential problems before they get out of hand. Task PriorityBy structuring your work according to the work breakdown structure, you can set the priorities for every task, informing teams of the specifics of their tasks and making clear where they need to focus. On the one hand, stakeholders need to know about all the details, but on the other hand, they also need to be up to date on the overall progression of a project. When an individual completes a work package, he or she may generally share a common set of characteristics. For example, these might include the type of work that is performed, and whether that type of work is done on a marketing, programming, or other skill set. Certainly, you need to figure out what tasks you are going to execute in this work package, when they will take place, and how much time they will take. Resources may also be necessary to accomplish these tasks; some may be technological or material-based. Every project must have a team leader assigned to it, as well as stakeholders that are deeply invested in that particular project. It's your responsibility to get their contact information and keep them up to date with the progress of the work. By breaking a project down into work packages, the development of Work Breakdown Structures becomes easier—and project managers will have a finer level of control over assignments. Other benefits include:
The individual costs of all the work packages are then aggregated to arrive at the authorized cost baseline or the authorized budget for the project. Here are some project management tips to help with work assignments
Are you looking forward to making a mark in the Project Management field? If yes, enroll in the Project Management Fundamental Program now and get a step closer to your career goal! The performance of a work package can be measured by the earned value management measurement technique, a commonly used performance measurement metric. It integrates project scope, cost, and schedule measures to help the project management team assess and measure project performance and progress. It calls for the preparation of an integrated baseline against which the performance of the work packages can be measured for the duration of the project.
Variances from the approved baseline are also monitored.
It is a measure of schedule performance on a project. It is the difference between the earned value and the actual costs. The relation to determining Cost Variance is: CV = EV – AC Performance indices are also useful for determining project status. Cost Performance IndexThe cost performance index (CPI) is a measure of the value of work completed compared to the actual cost or progress made on the project. Relation: CPI = EV / AC These CV and CPI values for work packages are documented and communicated to stakeholders. Schedule performance of the project can be measured at the level of a work package Variances in schedule can be measured for every work package. Schedule VarianceThis is a measure of schedule performance on a project. It is equal to the earned value minus the planned value. Relation: SV = EV – PV Schedule performance indices can also be determined for every work package. Schedule Performance IndexThe schedule performance index is a measure of achieved progress relative to planned progress on a project. Relation: SPI = EV / PV These SV and SPI values for each work package are documented and communicated to stakeholders. Work packages allow team members to have a clear understanding of their roles and responsibilities with organization charts and other aids. Various formats exist to document team member roles and responsibilities. Most of these formats fall under three types: hierarchical, matrix-based, and text-based. For instance, the responsibility assignment matrix (RAM) is a matrix-based chart which is used to illustrate the relationship between work packages or activities and project team members. On larger projects, a higher-level RAM can be used to define what a project team group or unit is responsible for within each work package. Also, a lower level RAM can be used within the group to designate roles, responsibilities, and level of authority for specific activities. Risks can be managed at the level of work packages in a Work breakdown structure. The work breakdown structure is a critical input to identifying risks as it facilitates an understanding of potential risks at both micro and macro levels. Risks can be identified and subsequently tracked at the level of work packages. When breaking a WBS down to the level of work packages, the WBS nodes could be decomposed to extremely granular levels, wasting time and actually making the project difficult to understand, manage, and change. There are many things to be considered when deciding how far to decompose the WBS or how best to create a work package, but a few important factors to consider are:
For an in-depth look at Work Packages, Project Scope Management, and more, check out our accredited PMP certification course. If you start your career as a project manager, then check out Simplilearn’s popular Post Graduate Program in Project Management. PMP is a registered trademark of the Project Management Institute, Inc. |