Work Breakdown Structure

1
Work Breakdown Structure
2
What is Work Breakdown Structure?

• A work breakdown structure is a product-oriented
  family tree composed of hardware, services, and
  data which result from project engineering
  efforts during the development and production of
  a defense material item, and, which completely
  defines the project/program. A WBS displays and
  defines the products to be developed or produced
  and relates the elements of work to be
  accomplished to each other and to the end
  product MIL-STD-881A

3
What is Work Breakdown Structure?

• The WBS is a schematic presentation of the
  disaggregation-integration process by which the
  project manger plans to execute the project.

4
What is the purpose of Work Breakdown Structure?

• To subdivide a complicated task into several
  smaller tasks that can be assigned and performed
  by one of the participating organizational units,
  personnel, etc
• This process can be continued until the task can
  no longer be subdivided, at which time you will
  probably find it easier to estimate how long each
  small task will take and how much it will cost to
  perform.
• For example, consider the project of cleaning up
  your room.
• What are the tasks required to clean up your
  room?

5
Elements of a WBS

• Objectives a statement of what is to be
  achieved by performing this task
• Deliverables examples include a report, a
  recommendation, or hardware such as a pump
• Schedule For each task, at least 2 milestones
  should be specified its planned start time and
  its planned finish time
• Budget Project outlays should be synchronized
  with the planned schedule and estimated cost of
  the respective task

6
Elements of a WBS

• Performance measures these measures will be
  used in part to judge if the project was
  successful.
• Responsibility the organizational unit
  responsible for on-budget and on-schedule
  performance of each task has to be defined. The
  lower level tasks much be associated with an
  organizational unit.
• Work package consists of a task to be performed
  by an organizational unit for a given schedule
  and budget

7
WBS Example Develop a New MBA ProgramTwo
Level 30 Work Packets

• 1. Development of an MBA curriculum

1.1 Introduction to Finance
1.2 Introduction to Operations
1.30 Corporate Accounting
8
WBS Example Develop a New MBA ProgramTwo
Level 30 Work Packets

• Development of an MBA Program
• 1.1 Introduction to Finance
• 1.2 Introduction to Operations
• ..
• 1.30 Corporate Accounting

9
WBS Example Develop a New MBA ProgramThree
Level Disaggregate the work content by
functional area

• 1. Development of an MBA curriculum

1.1 Courses in Finance
1.2 Courses in Operations
1.30 Courses in Accounting
1.2.1 Introduction to Operations
1.1.1 Introduction to Finance
1.30.1 Corporate Accounting
10
WBS Example Develop a New MBA ProgramThree
Level Disaggregate the work content by
functional area

• Development of an MBA Program
• 1.1 Introduction to Finance
• 1.1.1 Introduction to Finance
• 1.2.1 Financial Management
• ..

11
WBS Example Develop a New MBA ProgramFour
Level Divide the work content according to the
year in the program

• 1. Development of an MBA curriculum

1.1 First-year Courses
1.2 Second-year Courses
1.1.1 Courses in Finance
1.6.1 Courses in Accounting
1.2.6 Courses in Accounting
1.2.1 Courses in Finance
1.1.1 Introduction to Finance
1.2.1.2 Corporate Finance
1.2.6.3 Corporate Accounting
1.1.6.4 Managerial Accounting
12
WBS Example Develop a New MBA ProgramFour
Level Divide the work content according to the
year in the program

• Development of an MBA Program
• 1.1 First-year courses
• 1.1.1 Development of courses in Finance
• 1.1.1.1 Introduction to Finance
• ..
• 1.2 Second-year courses
• 1.2.1 Development of courses in finance
• 1.2.1.1 Financial Management

13
When do you stop decomposing the tasks?

• You stop when you reach a point at which you can
  estimate to the desired degree of accuracy or at
  which the work will take an amount of time equal
  to the smallest units you want to schedule.
• If you are scheduling to the nearest day, then
  each task should be considered in units of days
  (same for projects scheduled in terms of house,
  months, etc)

14
Development of WBS

• The people who must do the work should
  participate in planning it
• The division of the project work content into
  work packages should reflect the way in which the
  project will be executed
• Usually a core group identifies top-level parts
  of the WBS, then those parts are refined further
  by other members of the team and integrated to
  obtain the entire WBS.
• The WBS should be developed before the schedule.
  
• The WBS allows you to assign resources and to
  estimate costs and resources, and it shows the
  scope of the job in graphic form.

15
Development of WBS

• The decision on how to disaggregate the work
  content of a project is entwined with the
  decision on how to structure the project
  organization
• The distribution of work is tied closely to the
  reporting structure and how the project will be
  monitored

16
Development of WBS

• Structure of the project depends on
• Duration of the project
• Work content
• Levels of uncertainty
• Organizational structure
• Resource availability
• Management style
• Others

17
Approaches to Developing a WBS

• There are a number of approaches to developing a
  WBS.
• Some professionals prefer formal methods while
  others are ad hoc.
• Choose what works best for you.
• Most people use a top-down method where a problem
  statement and mission are decomposed into tasks.

18
Approaches to Developing a WBS

• WBS does not have to be symmetrical.
• All paths need not be broken down to whatever
  level you stop at.
• The rule is to break work down to a sufficient
  level to achieve the estimating accuracy you
  desire, so you may have one path with 5 levels
  and another at 1.

19
Estimating Time, Costs, and Resources

• Take into account who will be performing the
  tasks.
• People have varying levels of knowledge, skills
  and attitude in regard to a task.
• Base your estimate on historical data where
  possible.
• Use average times to plan projects.
• Maybe use a triangular distribution. Using a
  Triangular distribution, you will be taking into
  account variation.
• One of your operating goals is to reduce
  variation in every aspect of the project.

20
Estimating Time, Costs, and Resources

• WBS should be complete in the sense that it
• Captures all the work to be performed during the
  project
• Depict all the organizational units that will
  participate in the project
• WBS should be detailed in the sense that
• At its lowest level, executable tasks with
  specific schedules, budgets and objectives are
  specified
• Each organizational unit is represented down to
  the level where the work is actually performed
• WBS should be accurate in the sense that it
• Represents the way management envisions first
  decomposing the work content and then integrating
  the complete tasks into a unified whole
• Reflects the true lines of authority,
  responsibility, and communication

21
Parkinson's Law

• Remember Parkinson's law work always expands to
  take the time allowed.
• That means that tasks may take longer than the
  estimated time, but they almost never take less.
• Why?

22
Parkinson's Law

• When people find themselves with time left, they
  tend to refine what they have done.
• If people turn in work early, they may be
  expected to do the same work faster the next
  time, or they may be given additional work to do.
  
• This possibility discourages people from handling
  work in ahead of time if they are penalized for
  performing better than the target, they will quit
  doing so.

23
WBS Team Assignment

• Develop a WBS for an end of year party for our
  class
• Requirements
• Must include all areas of a WBS as listed below.
• Must entertain 25 people for 3 hours after final
  exam
• Objectives
• Deliverables
• Schedule
• Budget
• Performance measures
• Responsibility