Programme : BBA Semester Subject Code: IB 0006 Subject Name: Project Planning and Scheduling Unit Number: 3 Unit

Title : Developing the Breakdown Structure

Program

Introduction The work breakdown structure is a detailed listing of the deliverables and tasks for building the product or delivering the service. It is a top down, board to specific hierarchical outcome of the work to perform. It is a structured organization of project scope, schedule, and cost information. WBS is defined as the structure, or organization of project scope into a hierarchical breakdown for planning, assigning responsibility, managing, controlling, and reporting progress.

Program

Objectives: Recognize the difference between activities and tasks. Understand the importance of the completeness criteria to your ability to manage the work of the project. Explain the approaches to building the work breakdown structure. Program Determine which of the approaches to use for generating the work breakdown structure for a given project. Generate a complete work breakdown structure. Use a joint project planning session to generate a wok breakdown structure.

WBS Structuring Keys

WBS Level Name Description

Business sector Business Unit

Line of business with the organization

The specific facility or site within the business sector

Area

Physical aspect of the project that have discrete boundaries

System

Often systems across multiple areas but their scope or cost may require discrete analysis Tends to be a main focus on how the work is performed civil, structural foundation design, piping etc., Direct cost indirect cost, engineering cost, owners cost etc

Program

Discipline

Work Group

Work Category

Anything from a drawing group to an equipment specification to pouring a specific type of foundation. Type of cost, for example, labour cost, a material cost, a subcontract cost, an engineering cost, an owners cost, etc.

Element

To maximize the structure when developing the WBS, the following should be considered.

It must be simple to use. A simple WBS will be more easily adopted by end users resulting in consistent use. It must be flexible so it can be adaptable, get applied consistently across all types of projects. As the WBS is developed each organization must consider how the structure Program can support current and future projects and / or clients. The WBS has to be applicable and functional in each of these disciplines, providing cost information at different levels of detail or from differing perspective of scope. Along with supporting cost monitoring reporting and forecasting, the WBS must also provide properly structured cost information for contract packages, progress / performance measurement , cash flow projections and the fixed asset register.

WBS and the Estimate Once the organization has developed its WBS, every cost estimate prepared should apply this structure. Properly structuring and applying the WBS will result in significant benefits in estimate preparation and in the estimates relationship with other project and financial tools. In the estimating process a consistent approach to estimating will emerge. This consistency in approach will soon increase accuracy and efficiency in preparation, modification and the review / validation process. Estimators will have the benefit of the WBS to use as a framework that acts to prompt input or note exclusions. The grouping of cost elements will speed preparation and clearly link relationships between scope items. When they exist as well as allow for cost models to easily be inserted or deleted in cost estimates.

Program

WBS and Cost Control As the project progresses and increase activity the WBS continues to increase in usefulness. The baseline estimate should seamlessly transfer to the control estimate and cost reports. The procurement change management and performance measurement efforts are facilitated, as well as the ability to incorporate information from these efforts into Program revised forecasts and cost reports. When the WBS is structured to support contract packages, project teams can quickly review bids to determine where they may vary from plan. As these variances are identified, forecasts can be adjusted accordingly. Additionally the information can be used to develop initiation strategies by revising the procurement plan if needed.

WBS Flexibility In applying the WBS to projects, a reasonable amount of flexibility should be used. An easy trap and major pit fall is applying the WBS too rigidly. The following questions should be asked to determine whether too much rigor is being applied.

Program What level of detailed information is required to provide cost control and forecasting? What will be required for close out and final reports at the end of the project? Will tracking by assets fit your WBS? Do costs require differentiation for tax considerations? Will the project be executed within the WBS format?

WBS Development The entire project sits at the top level of the WBS, which is referred to as level zero. Developing a WBS involves subdividing the project into three to nine deliverable elements at the next level, level one (the basis of the decision is addressed below). Then each of the level one items will be divided into three to nine level two items, and each of the level three items and so on. The WBS should emphasize real deliverables e.g. approval requires a signature on a deliverable price of paper and as noted previously at each juncture the basis of the division should be similar, if not identical, for all sub tasks at a given level.

Program

Division Bases Any given project can be subdivided from various perspectives that often reflect the different mindsets of different managers. For example, the transition from each level in a WBS to the next level may be oriented around schedules or resources, but the most useful (and admittedly most difficult) WBS will use deliverables as the breakdown basis. Coding the WBS For purposes of proper documentation and structured implementation, the WBS is often coded in a unique manner. We will illustrate this by an example of a project of South Florida Rail Corridor (SFRC). This project is procured through and under the control of TRL-RAIL. The project is located in the three most populated counties of South Florida, USA. Miami Dade, Broward and Palm Beach. This design build project that includes the design and construction of approximately 45 miles of a new second mainline track.

Program

Basically, this WBS consists of eight levels of detail. These levels are identified as follows:

1. Full funded grant agreement 2. TRI-RAIL phases 3. Category 4. Location Program 5. Subcategory 6. Work element 7. Work detail 8. Cost code

The WBS Detail Level The WBS is a tree showing the hierarchy of the required work to be performed to complete a project. It depicts the work contents in the manner in which the work is to be accomplished. The work elements are structured in WBS levels in such a way, wherein discarding levels provide work definition in increasing detail.

Program

Level 1 Contains only the quantified project objectives, e.g. build a power plant or develop an airplane.
Level 2 Contains the major project segments or subsections. Level 3 Contains definable components or subsets, necessary to accomplish the Level 2 major project segments.

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