Read the Course Overview.
1. The Work Breakdown Structure
3. Verifying the Breakdown of Deliverables
Major projects – such as building a large townhouse development, for example – involve hundreds of decisions made by a range of professionals. Planning, designing, and building such a development calls for architects, lawyers, engineers, and construction workers to contribute their expertise at the appropriate stages.
The challenge for anyone supervising the entire project is how to structure it so participants can undertake their tasks at the optimum moment and prepare the ground for the next stage.
So lawyers obtain permits for the developer, architects ready plans for the engineers, and engineers are able to direct construction workers on the site.
A work breakdown structure, or WBS, is what you need to make all this work more manageable.
A WBS is a hierarchy diagram that has a box for the project name at the top, joined by lines to boxes in the next level down that contain phase names, which are joined to boxes at the next level down that contain key deliverable names for each phase. The structure keeps expanding at each level, with boxes that represent subcomponents for the boxes in the level above. The lowest level in the diagram contains work packages.
The WBS gives you an at-a-glance view of an entire project and the scope of the work, and enables you to assign durations, costs, and human resources to the different tasks that make up the project. It also helps you monitor performance and quality once the work gets underway.
A WBS contains all tasks in the project, from the largest deliverable to the work package level.
Suppose you're managing a project to renovate a public park. One of the major deliverables might be "safety and security."
A work package may be to erect fencing around the park.
The Create WBS process occurs during planning and is part of the Project Scope Management Knowledge Area.
In this course, you'll learn about the WBS and the roles it plays in project management. You'll find out how it's used in project control and reporting, and how it makes work performance analysis possible.
You'll learn about the five important steps involved in decomposition to break down project requirements and deliverables in order to create a WBS.
And you'll learn what inputs you need for this process.
You'll also learn about the other outputs of the Create WBS process: the scope baseline and project documents updates.
Examples of project documents include project requirements. A Project Requirements document contains space for the project name, date, WBS number and name, parent WBS number and name, person or organization responsible, associated requirements, scope description, child WBS number and name, cost estimate basis, and the names and titles of who the document was prepared and approved by, plus the date signed.
And you'll learn the important role that the scope baseline plays in managing project scope.
After completing this topic, you should be able to
Think about climbing a mountain. At first, the task seems too intimidating to undertake. Yet if you start by focusing on how to climb the first 50 feet and then think about the next handhold or foothold, each small decision will add up to help you reach your goal. Similarly, you can tackle any major job in your working life by breaking it down into manageable and achievable steps.
In the context of project management, the work breakdown structure, or WBS, is a means to do just that. It gives you control of a project by breaking work down into manageable units.
An example structure of a WBS consists of five hierarchical levels. A single node at the top is broken down into increasing numbers of subcomponents at each level, with each item connected by arrows.
To create a WBS, you use a process of decomposition.
During decomposition, you subdivide the elements of your project into progressively smaller components, starting with the project name and refining each level of decomposition until you are able to identify the smallest units of work that must be done.
In an example WBS, a single node representing a project name occupies the top level. The second level breaks this down into a set of phases. Each phase is decomposed into deliverables and, where relevant, subdeliverables. Subdeliverables have been decomposed into work packages.
What do you think are the advantages of breaking down a project into its smallest units of work?
Enter your thoughts about the possible advantages in the field provided and then select the Compare button for more information.
Write down your response or enter it in a text file in your word-processor application (or in a text editor such as Notepad) and save it to your hard drive for later viewing and for comparison with the alternate opinion that follows.
Advantages of defining smaller units of work
Because work packages are clearly defined and of a manageable size, you can assign responsibility for them to team members or individuals. You can also estimate costs more accurately and keep better control of tasks. This level of control isn't possible if you don't break down the work that must go into a project.
The top level in any WBS is the project name, which represents the ultimate goal of the project. This is the starting point for the breakdown you'll create.
An example WBS broken into four stacked levels flowing downward from the top. A single node labeled project name occupies the top level. The second level flows from the top and is broken into four nodes. The third level has six nodes flowing out of three of the second-level nodes, and a seventh node flowing out of the fourth second-level node. The fourth level has four nodes, with two nodes flowing from each of two third-level nodes.
It's at the second level that you have to decide how best to structure project work. This means identifying the broadest divisions you can break it down into.
There's no right or wrong method of structuring a WBS. It will depend on the size and nature of the project, and on company or personal preferences.
For example, you might choose to structure the second level of a WBS in different ways:
Select each WBS structure option for more information about when it might be appropriate to use.
This is an example of a project structured by phases. A pharmaceutical company is working on a project to develop a new drug. Time is an important constraint due to competitive pressure. Because of the risk involved around FDA approvals, each phase must be completed before the next can begin. So the project manager decides to structure the WBS according to the project phases – research, design, production, and rollout. Each phase must be completed sequentially for the project to succeed.
In the example WBS for a new drug project, the second level is divided into four phases: Research, Design, Production, and Rollout.
For a project that must deliver a tangible product – such as a computer chip – using phases might not be the best way to divide the production process. Work on the different sub-components can take place concurrently.
In the WBS for a new computer chip project, the top level of the example WBS is labeled New computer chip.
In this case, it might make sense to structure work by major deliverables. For instance, these might be a circuitry diagram, the silicon base for the chip, its actual circuitry, and the assembled computer chip.
The second level of the WBS contains the deliverables Circuitry diagram, Silicon base, Circuitry, and Assembled computer chip.
In a road works project for a municipality, all work is subcontracted. So here it makes sense to structure the WBS by external sub-projects.
In the example WBS for the Road works project, the second level is divided into four sub-projects: Surface, Tarmac, Cable, and Drainage and piping.
It would be up to the contracted companies to create the lower levels of the WBS for the work they'll be handling.
It's important that the WBS accurately represent all the work that must go into a project. So the second level must also include the work that goes into project management, which is central for any project. Project management breaks down into activities such as planning, coordinating meetings, and administration.
A WBS node labeled Project management has been added to the New drug project at the second level of decomposition. It has been subdivided into Planning, Coordinating meetings, and Administration.
You can structure a WBS in different ways. What's important is that you make it clear what the major areas of work are and how deliverable components will come together to ensure the successful completion of the project.
A software company is designing a new computer game, which it hopes to launch at the beginning of December.
Access the learning aid Examples of Work Breakdown Structures to answer the question.
Which WBS is most appropriate for the project?
Options:
Option 1: This an incorrect option. Although WBS A does include some of the key deliverables, it's missing a box to represent the project management work, as well as the pre- and postproduction work that WBS B contains.
Option 2: This is the correct option. In the case of WBS B, the project manager has chosen to define the project by its life cycle phases. These are detailed enough to allow decomposition into all required work. The manager has also remembered to include project management work in the total work required.
Option 3: This is an incorrect option. While WBS C does include project management in its decomposition, fixing software issues would probably be a work package and should be represented lower down in the WBS. In addition, consumer response should not appear at all because this doesn't fall within the scope of the project, which includes releasing a game by a specified time.
Correct answer(s):
Once you have decided on the upper structure for a WBS, you need to break it down further into tasks, sub-tasks, and work packages.
A generic WBS shows a further subdivision of the upper nodes into a third, fourth, and fifth layer of decomposition. The first node is labeled Project and the second level is divided into three nodes representing different major deliverables. Each major deliverable has been subdivided into tasks at the third level. At the fourth level, two of the tasks are divided into sub-tasks. At the fifth level, one of the sub-tasks has been divided into two work packages.
Typically, it makes sense to include from four to six levels of decomposition. This is to ensure the WBS is not overly complex and remains manageable.
A generic WBS in which the nodes contain a numbering system to show the hierarchy of the levels. In this example, the first node is labeled Project 1. The second level is divided into three nodes: Process 1.1, 1.2, and 1.3. Each process has been subdivided into tasks at the third level labeled Task 1.1.1, and so on. At the fourth level, two of the tasks are divided into sub-tasks labeled Sub-task 1.1.2.1 and so on. At the fifth level, one of the sub-tasks has been divided into two work packages labeled Work package 1.1.2.2.1 and so on.
Remember, your goal is to get a clear view of all the work that must go into the project. So simplicity and clarity are key.
When decomposing the lower levels of your project, you need to consult with team members who will be performing the tasks or get an expert opinion.
This is important because any inaccuracies in your WBS could compromise a project.
An IT company has been contracted to design and install a computer system that will enable managers to monitor a production line.
Select sections of levels two and three of the WBS to learn how the project was structured.
In a WBS, Level 1 is Monitoring system.
Level 2 consists of System components, System assembly, and Operator training.
In Level 3, System components is divided into Electronic hardware and Mechanical parts. System assembly is divided into Hardware setup and Operating system installation. Operator training is divided into Manual, Training assessment, and Instructor-lead training.
Now each high-level task should be decomposed into work packages.
Select the sections in level four to learn how the tasks are further decomposed.
In Level 4, Operating system installation has been divided into Software installation, System integration, and System testing. Manual has been divided into Text and graphic design, and Instructor-led training is divided into Course structure and Course presentation.
In Level 5, Course structure has been divided into Objectives and Modules, and Course presentation is divided into Materials and Handouts.
A good way to analyze the accuracy of a WBS is by using what's called the 100% rule.
According to this, each level of decomposition must add up to 100% of the work required for the level above it. If you find this isn't applying, you need to re-evaluate the structure of the WBS.
In this case, Software installation, System integration, and System testing on level 4 must make up 100% of the work of level 3, Operating system installation.
So far, the WBS has been represented as a diagram that uses a tree structure with boxes or nodes to represent each junction. But you can also choose to use an outline made up of an ordered list of the items in your decomposition.
WBS in outline format for Design component of a water supply project. The five items in the first level are Site and geotechnical survey, Select pipeline route, Design water main, Design pumping station, and Design elevated storage tank. The three subitems for the Design water main task are Specify trench requirements, Specify pipe diameters, and Specify valve and jointing. The three subitems in the Design pumping station are Design building architecture, Design mechanical pump plant, and Design electrical, which has two subitems called Utility electrical supply and Backup generator supply. The Design elevated storage tank task has one subitem: Design foundation.
The benefit of the outline format is that it's easier to create. Often a hierarchical diagram requires specialized charting software or diagramming know-how.
But one disadvantage of using an outline format is that it is more difficult to visualize the full scope of a project at a glance. Because it's text-based, it's less intuitive.
Your company has just received a contract to design and install a new type of barcode reader in retail outlets nationwide. The major deliverables are the system design, system components, assembled system, and installed system.
Match each project component to the appropriate level in the WBS hierarchy.
Options:
Targets:
Because the assembled system is a major deliverable, it would be most appropriate to place it in the second level of the WBS.
The parts of the scanning unit, such as the laser sensor, would likely fall within the fourth level.
The scanning unit would likely be one of the sub-deliverables under the system components deliverable.
The name of the project goes at the top level of a WBS.
Correct answer(s):
Target 1 = Option A
Target 2 = Option C
Target 3 = Option B
Target 4 = Option D
Most organizations that carry out project-based work use automated project management programs to generate digital WBS diagrams or layouts.
These systems automatically assign a code to each component of the WBS.
Coding minimizes confusion by giving you an idea of how each level of work relates to levels above it. The code for each work element is generally comprised of the number of coded work levels preceding it plus its own identifier. Coding also lets you track each element in the WBS so you can assign work and estimate and track costs and effort.
Each component of a WBS has a number that denotes its level in the hierarchy. For example, the top level, Monitoring system, is 1. One of the components in the next level down – System components – is 1.1. One of its components is Electronic hardware, numbered 1.1.1, and so on.
If you have structured your WBS correctly, it should be invaluable in helping you achieve four distinct goals:
The WBS breaks down project deliverables into work packages, each of which is small enough to assign to particular project team members.
This makes it possible to allocate clear responsibilities for each required unit of work.
Take the example of a water supply project. One of the deliverables is a pumping station.
In a WBS, Level 1 is Water supply project. Level 2 is Design, Construction, and Commissioning. At Level 3, Construction is divided into Land acquisition, Site permit, Water main, Pumping station, and Elevated storage tank.
The task of constructing the pumping station is divided into three sub-tasks: building construction, pump installation, and electrical installation. The electrical installation for the pumping station requires a team to set up the utility electrical supply and a team to install a backup generator.
At Level 4 of the WBS, Pumping station is divided into Building construction, Pump installation, and Electrical installation. At level 5, Electrical installation is divided into Utility electrical supply and Backup generator installation.
The project manager uses the WBS to review the work required and determine who to assign to perform the tasks.
For example, he will assign resources to the utility electrical supply and install the backup generator.
He then assembles two teams with the necessary skills, draws up a description of the tasks the members of the team must perform, and informs the foreman of the team's responsibilities.
The foremen's responsibilities include overseeing and coordinating the work of their teams and monitoring and reporting on progress of the work. The laborers are responsible for aiding the electricians in all manual tasks. The electricians are responsible for setting up the pumping station electrical systems.
When assigning responsibility to team members, is it always necessary to dictate how they should approach a task and to reflect this in the WBS?
Options:
Option 1: This is the correct option. It's tempting to try to control every aspect of a project. But once you have assigned responsibility, you have also delegated some of the decision making. Not everything must be represented in the WBS down to the minutest detail. It's often good enough to know what must be done rather than specifying exactly how it should be done.
Option 2: This is the incorrect option. A WBS is of limited use if it becomes overly detailed or complex. As a project manager, you should be more focused on seeing the larger picture.
Correct answer(s):
When the project manager for the water supply project finds that one of the electricians assigned to install the backup generator is going to be absent for eight weeks, he checks the WBS.
He wants to assess how this affects the work package for installing the backup generator. To avoid delays, he hires another electrician. This will add to the cost of the project.
By running this change in cost up through the WBS, he is able to get an idea of the impact this could have on the project as a whole.
The project manager uses the WBS to monitor and control the project budget. So if the addition of another electrician to the project costs $3,000, he will be able to use the WBS to see the areas of the project that would be impacted by this change and judge the implications for the project as a whole.
In the WBS for the water supply project, $3,000 has been added to the work package Backup generator installation. This cost is in turn added to Electrical installation. This will add $3,000 to Pumping station, Construction, and the eventual cost of the project as a whole.
Using the WBS, the project manager can ensure that no extra cost is overlooked. He can see how budgetary changes will impact the project and so can quickly take steps to deal with problems.
By breaking work down into manageable units, the WBS also facilitates accurate progress reports and can give stakeholders a context for interpreting reported progress.
An example progress report includes Completed, In progress, Not started, Identified risks, and General comments columns.
You can include the latest version of the WBS in regular status reports for key stakeholders.
Will a change in the project budget mean an instant change in the layout of your WBS?
Options:
Option 1: This is the correct option. A change in project budget could necessitate a change to the WBS. However, this would not always be the case; it would depend on whether the budgetary change is dramatic enough to impact the goals of the project.
Option 2: This is the incorrect option. The WBS is focused on identifying work that must be done. Unless the change in budget requires a change in work planned for the project, an unexpected cost will not necessarily affect the structure of the WBS.
Correct answer(s):
The WBS facilitates effective project scheduling by enabling you to create a schedule that includes all the work needed to complete a project. A good way to observe its effectiveness is to turn the WBS 90 degrees clockwise. You will notice that all the elements required to complete a project from the most basic activities to the final objective are laid out from left to right. This provides you with a start-to-finish work flow for your project.
The WBS also facilitates budget creation. The cost associated with each decomposed element of a WBS will be the sum of the costs of all the elements underneath it.
If you have identified all the work at each level, you can be certain that the costs associated with each identified area will be budgeted for.
A WBS shows that backup generator installation will cost $28,578, and utility electrical supply will cost $6,522. The sum of these costs – $35,100 – is the total cost for electrical installation, which the two components make up.
The cost of electrical installation plus constructing the building for the pumping station, which will cost $230,000, and installing the pump, which will cost $120,400, gives you a total cost of $385,500 for constructing the pumping station.
There are four other components that make up the construction costs. Acquiring land will cost $250,000, obtaining site permits will cost $28,000, constructing the water main will cost $3,727,600, and constructing the elevated storage tank will cost $8,600,000. This makes the total for the Construction phase $12,991,100.
If you forget something, your budget may be deficient.
The Design phase costs $770,000 and the Commissioning phase costs $430,500. With the Construction phase of $12,991,100, this makes the cost of the water supply project add up to $14,191,600.
The project manager for the water supply project can determine what the construction phase will cost simply by adding all costs from the lower levels of the WBS that feed into this phase. You could use this method to gauge costs at any level of the WBS, setting control accounts to monitor important cost components of the project.
One final point to bear in mind about the WBS is that it should identify work products or deliverables – the results of effort rather than the effort itself.
A good way to do this is to make sure you list all components as nouns instead of verbs. This is because the names in the WBS tell you what should be achieved, not how it should be achieved.
Correct examples of the wording for components are "Training materials" and "Operating system." Incorrect examples are "Develop training materials" and "Program operating system."
What are the purposes for which you use a WBS?
Options:
Option 1: This is a correct option. The WBS can be used to control and monitor the cost of a project. Because it identifies all the work that must be completed and breaks this down into components, you can assign and track costs at different levels – for the project as a whole, down to individual work packages.
Option 2: This is a correct option. The WBS can be used to facilitate scheduling because it represents all the tasks that must be completed during a project. You can assign a duration estimate to the smallest units of work, as well as to divisions at higher levels, like phases or deliverables.
Option 3: This is a correct option. The WBS is a good tool for assigning responsibility because it enables you to identify specific tasks that must be completed for a project.
Option 4: This is a correct option. The WBS is a good mechanism for project control and reporting. Because it identifies each component of the work that must be performed, you can use it to report progress on each of these components, as well as on the project as a whole.
Option 5: This is an incorrect option. You would use the WBS to monitor costs during the project, but not to assess results after the project is completed.
Option 6: This is an incorrect option. Although a WBS might define responsibilities for work on a project, it is not used to monitor day-to-day company information.
Correct answer(s):
You use a work breakdown structure, or the WBS, to plan and monitor projects.
To create a WBS, you decompose a project into high-level categories like phases, deliverables, or subprojects, based on the nature of a project. For instance, the structure you use may be based on whether it's necessary to complete work sequentially or concurrently. Once you have defined the upper levels of decomposition, you break these down into tasks, sub-tasks, and work packages, which are the smallest units of work. Together, all the required work on one level should add up to all the work for the parent element on the level above it.
The WBS has four main purposes. It enables you to assign responsibility to team members and control a project as it progresses. It also enables you to create an accurate project schedule and facilitates accurate cost estimates.
After completing this topic, you should be able to
To implement a well-designed work breakdown structure, otherwise known as the WBS, you first need to analyze a range of inputs for the Create WBS process. These inputs are developed during the initiating and planning processes for a project.
A flow diagram shows that outputs from initiating and planning processes feed into the Create WBS process as inputs. The Create WBS process then leads to the creation of a WBS.
Remember, processes completed during a project build on each other. So outputs from the initiating and planning processes become inputs for the Create WBS process.
Take the Develop Project Charter process, for example:
In addition to the project scope statement, the Create WBS process has four other inputs derived from preceding processes. They are requirements documentation, the scope management plan, enterprise environmental factors, and organizational process assets.
In a diagram, the outputs from the Initiating and Planning Process Groups feed into and become the inputs for the Create WBS process. The inputs are the project scope statement, requirements documentation, scope management plan, enterprise environmental factors, and organizational process assets.
A detailed project scope statement contains six elements:
Now select each element of the project scope statement for a hospital management information system project to learn how it is used to create the WBS.
How do the elements of the project scope statement contribute to creating the WBS?
Options:
Option 1: That is a correct option. A comprehensive description of the product or service allows you to accurately plan your WBS.
Option 2: That is an incorrect option. Based on project assumptions, certain tasks are included or excluded when structuring the WBS. However, the assumptions themselves are in no way confirmed when creating the WBS.
Option 3: This is a correct option. Project deliverables can be translated into tasks in the WBS.
Option 4: This is a correct option. The project exclusions assist in identifying tasks that are not applicable to the project.
Option 5: This is an incorrect option. The product acceptance criteria outline the requirements the project must meet before stakeholders accept the final deliverables.
Correct answer(s):
The second input for the Create WBS process is requirements documentation. This input is important because all requirements must map to specific deliverables in the WBS. The more accurate the input is, the more accurate the WBS will be in ensuring all requirements are met.
A diagram shows the project scope statement and requirements documentation feed into the Create WBS process as inputs.
Requirements documentation can also identify the priority of each requirement. This can affect how you structure the WBS. For example, it may determine the order in which work on deliverables should be carried out during project execution so that higher-priority deliverables are completed first.
In a WBS for a new drug project, the project named New drug branches out into four quarters: Quarter 1, Quarter 2, Quarter 3, and Quarter 4.
Quarter 1 branches out into a Research phase, which has three deliverables: Lab work, Clinical trials, and Market research.
Quarter 2 branches out into a Design phase, which has three deliverables: Package insert, Marketing strategy, and Factory planning.
Quarter 3 branches out into a Production phase, which has three deliverables: Raw chemicals, Factory construction, and Packaging.
Quarter 4 branches out into a Rollout phase, which also has three deliverables: Advertising, Distribution, and Production.
You use requirements documentation to ensure that the WBS reflects stakeholder expectations for the project and its deliverables.
Why does requirements documentation play an important role in the Create WBS process?
Options:
Option 1: This is a correct option. The deliverables in the WBS and the elements you break them down into must map to stakeholder requirements.
Option 2: This is an incorrect option. Requirements documentation identifies requirements a project should meet. It doesn't ensure these requirements will actually be met or that there will be effective communication between the project team and stakeholders.
Option 3: This option is correct. Knowing the specific requirements of stakeholders assists you in planning a WBS that will meet these requirements.
Option 4: This is a correct option. Requirements documentation identifies the relative importance of each requirement. This helps you structure the WBS to ensure high-priority deliverables are completed first. Knowing the importance of the priority indicates how your WBS should be structured.
Option 5: This option is incorrect. Requirements documentation doesn't identify tasks or who should be assigned to them. It's the responsibility of the project manager to delegate tasks.
Correct answer(s):
The next input to the Create WBS process is the scope management plan. It provides guidance on how to create the WBS and identifies how the WBS will be maintained and approved.
A diagram shows the project scope statement and requirements documentation feed into the Create WBS process as inputs along with the scope management plan.
Enterprise environmental factors are also inputs to this process.
The external factor most relevant to creating a WBS would be any industry or government standard that must be taken into account while scoping the work.
An example of a government standard may be a document titled AST-E247, Standard Guide for Pharmaceutical Manufacture and Control.
Organizational process assets are the final input for the Create WBS process.
These are some examples of organizational process assets that may be inputs for creating a WBS:
Which of the following project documents are key inputs to the Create WBS process?
Options:
Option 1: This is a correct option. The project scope statement identifies the key deliverables that must be represented in the WBS. It also specifies what work lies within the scope of the project and so should be included in the WBS. Organizational process assets and enterprise environmental factors are also inputs to the Create WBS process.
Option 2: This is a correct option. The scope management plan outlines the process for creating the WBS and identifies how the WBS will be maintained and approved. Organizational process assets and enterprise environmental factors are also inputs to the Create WBS process.
Option 3: This is an incorrect option. The budget is not an input you use when creating a WBS. However, the WBS can be used later when performing cost estimates.
Option 4: This option is incorrect. The WBS is actually an input for creating a project schedule, not the other way around.
Option 5: This option is correct. Requirements documentation identifies the key deliverables you must include in the WBS if the project is to meet stakeholder expectations. It also identifies the priority of each requirement, which can affect the way you choose to structure the WBS. Organizational process assets and enterprise environmental factors are also inputs to the Create WBS process.
Correct answer(s):
The five inputs to the Create WBS process are the project scope statement, requirements documentation, the scope management plan, enterprise environmental factors, and organizational process assets.
Selecting the link title opens the resource in a new browser window.
Follow-on Activity
Access the follow-on activity WBS Templates to become familiar with the templates your company uses.
After completing this topic, you should be able to
There is a saying that the only way to eat an elephant is to eat it one small piece at a time. This is true of any daunting task and of projects in particular. The Create WBS process helps you break down deliverables into smaller, more manageable work components. Two techniques you use to do this are decomposition and expert judgment.
Decomposition is used to break down deliverables until they are defined at the lowest level of the WBS, the work package level.
In a decomposition diagram, a deliverable is broken into component 1 and component 2. Each component is broken down into a work package.
It involves creating increasingly detailed descriptions of small sections of work that are easier to plan, execute, monitor, and control.
In a WBS for a remote access project, the project is broken down into three deliverables, one of which is training. Training is divided up into work packages – design, implement, and evaluate.
What do you think the benefits of decomposition are?
Options:
Option 1: This option is correct. Breaking down deliverables into smaller, more manageable components makes it easier to estimate accurately what resources will be needed, how much the work will cost, and how long the work will take.
Option 2: This option is correct. It's easier to work out how to measure and control performance for a small, manageable component of work than to do this for all the varied types of work that go into a project at once.
Option 3: This option is incorrect. Decomposition provides a detailed perspective of the work required rather than the project management processes. It breaks down project work, detailing its smaller components.
Option 4: This option is incorrect. Decomposition does not provide contextual information for the project. It breaks work down into smaller and more manageable components.
Correct answer(s):
So the benefits of using the decomposition technique are that it makes cost and schedule estimates more accurate and the work of the project easier to control and measure.
There are some pitfalls, however.
It takes time to break down and detail small work components. If you break work packages and activities down too far, you may be wasting time and effort. So over-decomposition leads to inefficiency in terms of work performance and resource use.
For example, a small work package may be broken down into three tasks.
Another potential problem is that an overly detailed WBS can be overwhelming. This causes it to lose its effectiveness in communicating what needs to be done.
For example, a communication breakdown may occur at the point where the work package was broken down unnecessarily.
One of the purposes of the WBS is to give an "at-a-glance" look at the entire project scope.
For example, for an IT project, all the phases, deliverables, and tasks for the project are together in one image.
A project to provide a sales team with remote access to customer and product information requires a WBS. When decomposing the training work component of this project, the project manager adds too much detail and lists the activities for this work package rather than simply the deliverables.
The training branch of a WBS is decomposed into Plan, Create slides, Book training rooms B&D, Training, and Evaluate.
Select each mistake that the manager made for more information about the consequences.
Although there is no one "right" method of decomposition, there are generally four steps in the decomposition technique. The first is to identify and analyze the main deliverables. Next you need to decompose the deliverables into work packages. The third step is to develop and assign identification codes to each component. Finally, you verify the WBS, ensuring that the degree of decomposition is necessary and sufficient.
Select each step in the decomposition technique for more information about it.
Place each step in the decomposition technique in the correct sequence.
Options:
Correct answer(s):
You can simplify the decomposition process by using a WBS template. The template used should be based on the type of project you're managing. For example, a template for a software development project won't be much use for managing a construction project. However, the template for another construction project may provide you with the essential outline you need. WBS templates are another form of expert judgment.
The template for the construction project may contain three phases: plans, area preparation, and procurement.
Many organizations carry out projects that are similar in size and type. When this is the case, you can save a lot of time and effort by repurposing a WBS from a previous similar project.
Work breakdown structures from the same department in the same organization are often useful templates for a new project. Although each project is unique, projects in one department often have similar life cycle phases and other basic similarities.
Examples of project types include software, training, and ad campaign.
Some organizations may even have a standardized template as part of the organizational process assets that is required in all projects. If you don't have a template available, you can check with your Project Management Office, or PMO, for any templates it may have.
Consider the projects that your company generally embarks on. Which projects or project types would benefit from repurposing an existing WBS?
Enter your thoughts on this in the text box provided and then select the Next button to continue.
Write down your response or enter it in a text file in your word-processor application (or in a text editor such as Notepad) and save it to your hard drive for later viewing.
Suppose you are managing a project to upgrade company databases. It involves upgrading the server, testing all the upgrades, and training the end users how to use it.
A colleague ran a similar project recently that provided the sales team with remote access via a VPN server.
In a WBS, the project name Remote access project is at the top level. The second level contains three components: VPN server, Testing, and Training. Subcomponents of the VPN server are Research, Purchase, and Implement. Subcomponents of Testing are Software and Data transfer rates. Subcomponents of Training are Design, Implement, and Evaluate.
You decide to use this WBS as a template to create a WBS for your project.
The template for the remote access project has three main components. The "VPN server" component can be replaced with the label "Database server." A fourth component, "Security," can be added at the same level. After changing the project title, the rest of the information can be used as is. Now you simply have to build out the Security component. Optionally, if you knew of yet another project that had a Security component, you could borrow that aspect of that project for yours.
The Remote access project name is replaced by Database project. The VPN server deliverable is replaced by the Database server. The Security deliverable is added between Database server and Testing on level 2.
Because the projects are similar, many components can be reused in the new template.
What makes a WBS template a good tool to use for a current project?
Options:
Option 1: This is the correct option. Templates you use should be from projects that are similar in size and type, or they won't be useful for the current project.
Option 2: This is an incorrect option. The number of levels into which the work is broken down should depend on the nature of the project. You might customize the levels in an existing template to meet requirements for the current project, for example.
Option 3: This option is incorrect. WBS templates should list components of a particular set of deliverables and corresponding work packages, rather than project tasks.
Correct answer(s):
There are two tools and techniques for the Create WBS process: decomposition and expert judgment.
Decomposition helps you break down deliverables into smaller, more manageable work components. The decomposition process generally follows four steps: identify the main deliverables, break them down into smaller work components and then work packages, assign a unique identifier code to each component, and verify the work breakdown structure, or WBS, is complete and correct.
To simplify the decomposition process, you can customize WBS templates from similar projects if one exists.
After completing this topic, you should be able to
Before you begin work on a project, you have to know exactly what it must deliver. The decomposition technique is what you use to identify deliverables and break them down into manageable units of work.
The four steps in the decomposition technique are to identify the main deliverables, decompose deliverables, assign identification to components, and verify the work breakdown structure, or WBS. This topic deals with the first two steps of decomposition.
There is no right or wrong way to structure the work for a project. Three different project managers could take the exact same project and identify completely different components and work packages, and still have organized the project appropriately.
Consider projects you know about.
What factors do you think might influence how a project manager would structure work for a project?
Enter your thoughts in the text box provided and revisit them at the end of the topic. Select the Next Page button to continue.
Write down your response or enter it in a text file in your word-processor application (or in a text editor such as Notepad) and save it to your hard drive for later viewing.
During the first step of decomposition, the project team needs to focus on deliverables – the unique product or results the project must deliver. To do this, it should consider the nature of the product and the size of the project, and then organize the work logically.
When identifying deliverables for a small project with just one simple deliverable or end result, you could organize deliverables by project life cycle phases.
For example, a project to install phones in an office can be divided into starting the project, organizing and preparing, installing the phones, and closing the project.
During the installation phase, there are four deliverables: specifications for the phones, a list of phone types and suppliers, the installation of the phones, and finally, the closure documents.
Factors influencing how deliverables are identified and organized include the complexity of the project, whether phases are run concurrently, and whether the project has interim deliverables.
Select each factor for an example of how it affects the way deliverables are identified.
The WBS for a large, complex project composed of several sub-projects would show the sub-projects in row two.
Examples of sub-projects for a large construction project would be an environmental impact assessment, building plans, and site preparation.
Each sub-project would have its own distinct end product, service, or result.
The nature of the product is also a factor in determining deliverables.
For example, a training project has a set of skills and knowledge as its deliverables, whereas a manufacturing project has a product such as a laptop as its deliverable.
What factors influence the identification of deliverables in the decomposition of a project's work?
Options:
Option 1: This is a correct option. The type of product or end result a project must deliver helps determine what work is required and how it should be broken down.
Option 2: This option is correct. Deliverables for large, complex projects must be broken down more than those for simple projects. They can often be identified according to sub-projects or project phases.
Option 3: This option is correct. Logical ways to break down a project's deliverables could be by phase, deliverable type, release, or other criteria. The best way to do this will depend on the nature of the project and its deliverables.
Option 4: This option is incorrect. The style of the project manager doesn't affect what a project must deliver. So it doesn't affect the process of identifying deliverables.
Option 5: This is an incorrect option. Organizational structure and context will influence a project. However, they don't alter the deliverables that have been established during planning or how these could be broken down into subdeliverables.
Correct answer(s):
After you identify key deliverables, you need to decompose them into components, and then into work packages. A work package is the smallest unit of work in a WBS. It should include an amount of work that can be realistically managed and completed within a specific time frame.
The WBS of a project shows it has two deliverables. The first deliverable is broken down into a component and then a work package. The other deliverable is broken down into a work package.
There are no hard rules for how many levels you should have in a WBS. The degree of decomposition depends on two main factors:
A large and complex project is likely to have more levels than a small, simple one. For example, a construction project for high-rise corporate offices will need a high degree of decomposition in the WBS.
The decomposition of the high-rise construction project may extend to five levels with two or three components per level.
A small, simple project like building a storage shed will need very little decomposition.
The decomposition of the storage shed project may go just three levels with only one or two components per level.
Which of these are examples of projects that would require many levels in the WBS?
Options:
Option 1: This option is correct. A mission to an orbiting satellite is a large and very complex project involving things like the creation of a robot that takes readings, the launch of the space rocket, and so on.
Option 2: This is a correct option. The creation of a new computer operating system is a large and complex project. It would include creating applications, designing an interface, creating help file documentation, and so on.
Option 3: This is an incorrect option. Updating the documentation for an existing process is a small and relatively simple project.
Option 4: This is an incorrect option. The publication of a project management article is a fairly small and simple project.
Correct answer(s):
The experience of the project manager and team is the second factor to consider when deciding on the level of decomposition needed. The more familiar the team is with the required work, the more general the WBS can be. However, if the project type is unfamiliar or there are many unknowns, the project manager may want to break it down further to facilitate monitoring and controlling.
Select the level of familiarity for an example of how it affects the degree of decomposition needed in a WBS for a given project.
You're a project manager at a company that specializes in providing businesses with financial software solutions. Your company has been contracted to set up an open-source voice over IP network for a major client. This will be a new type of project for your company, so there are a lot of unknowns and risks.
What degree of decomposition do you feel this project will require?
Options:
Because the project is unfamiliar, the WBS will need a high degree of decomposition to facilitate monitoring and control.
Correct answer(s):
The core purpose of decomposition is making sure the WBS contains all the deliverables and that work packages are manageable. For a work package to be manageable, you should be able to assign, monitor, and control it, and determine when it's complete.
There are some questions you could ask to determine whether work packages are sufficiently broken down:
Select each question for more information on how it assists you in the decomposition of deliverables.
Whereas some experts feel that the durations of work packages should be based on reporting periods, others recommend the 8/80 rule. According to this rule, work package durations should be within defined limits, typically between 8 to 80 hours of work. If a work package will take less than 8 hours, you know you've broken the deliverable down too far. If it will take more than 80 hours, you should break it down further.
A work package of 80 hours will typically take up two weeks in the project calendar, given five work days per week and eight hours per work day.
What questions might a project manager ask to determine if work packages are sufficiently decomposed?
Options:
Option 1: This option is correct. You should be able to easily estimate the cost and duration of each work package outlined in the WBS.
Option 2: This is a correct option. You need to be able to apply quality criteria to the deliverable. To do this, you should be able to determine whether the work outlined in each work package is complete, so it should be verifiable or measurable.
Option 3: This option is correct. If you need to pass feedback control information to the project team, each work package should be completed before a specified reporting period.
Option 4: This is a correct option. The 8/80 rule states that work packages should be between 8 and 80 hours in duration. Work packages that take less than 8 hours are likely to be overdecomposed, while work that takes longer than 80 hours should be broken down further.
Option 5: This is an incorrect option. This question helps you to determine the required level of decomposition, but doesn't let you know if a work package is sufficiently broken down.
Option 6: This option is incorrect. Determining whether the work required to produce deliverables is within scope is not an aspect of decomposition.
Correct answer(s):
Answering criteria-based questions for each identified work package can help you and the project team ensure the WBS is set at a manageable level.
Questions could include "Can the cost and time required be reliably estimated at this level?," "Is the product, service, or result verifiable or measurable at this level?," and "Does the duration of this work package exceed a reporting period?"
What are the criteria for determining whether a work package is sufficiently decomposed?
Options:
Option 1: This is a correct option. Work packages should be small enough to allow easy and accurate estimates of cost and duration.
Option 2: This option is correct. In order to determine whether each work package is complete, you should be able to verify or measure the work package using quality criteria.
Option 3: This is a correct option. Work packages should include work of a manageable length. Typically, this duration should fall between reporting periods or include between 8 and 80 hours of work.
Option 4: This is an incorrect option. Each work package contributes to the project-end deliverable – just one package won't meet all success criteria for this.
Option 5: This option is incorrect. Work packages can be carried out by a single person or by a group of people. This doesn't relate to whether the packages are sufficiently decomposed.
Correct answer(s):
Here's a quick review of the first and second steps of decomposition. In the first step of the decomposition technique, deliverables are identified and divided into components. When identifying deliverables, you need to consider the size and complexity of the project, and how to organize work logically.
During the first step, you add the second tier of the WBS.
The second step of decomposition is breaking deliverables into components and work packages.
Factors to consider here are the size and complexity of the project and the level of familiarity the project manager or management team has with the required work.
To determine whether work packages have been sufficiently decomposed, you need to ensure their time or cost can be estimated. You should also be able to apply quality criteria to determine whether they're completed correctly, and their durations should meet the 8/80 rule or fall within reporting periods.
A medical products company is relocating an operations division to Puerto Rico. The project manager is in the process of creating a WBS.
The project is large and complex. Some phases will run concurrently, and the project has interim deliverables. The project manager considers these factors while identifying deliverables as well as looking at quality criteria and task durations. The company follows the 8/80 rule.
Selecting the link title opens the resource in a new browser window.
Learning Aid
Access the learning aid Medical Products Company for information about the project. Keep this learning aid open and refer to it as you work through the topic.
The considerations for the first step in decomposition are the nature of the product, service, or end result; the size and complexity of the project; and the most logical way to organize the work. Given this, consider how you would organize the work or identify deliverables for the medical products company's relocation project.
Enter the deliverables you would identify for this project in the text box provided. Then select the Compare button for details of what the project manager did.
Write down your response or enter it in a text file in your word-processor application (or in a text editor such as Notepad) and save it to your hard drive for later viewing and for comparison with the alternate opinion that follows.
Project manager's strategy
The project manager decides to divide the work by interim deliverables because these can be considered logical phases.
The project manager decides to divide the work into the following interim deliverables: manufacturing facilities, relocated and purchased machinery, operating and quality procedures, and training. These categories were based on interim deliverables to provide a logical breakdown.
The top level of an operations relocation project WBS contains the project name – Operations Relocation Project. The second level identifies the deliverables Facilities, Machinery, Procedures, and Training.
In the second phase of decomposition, each deliverable is broken down into components and work packages.
The first component the project team tackles is the Facilities deliverable.
For the Facilities deliverable, the team identifies the following work packages: updated design, construction schedule, prepared facilities, and fitted equipment. Each of these work packages is an expected deliverable and can be easily measured or verified.
When checking each work package, the project manager finds that preparing the premises will take three weeks.
Do you think that the work package should be broken down further?
The top level of an operations relocation project WBS contains the project name: Operations relocation project. The second level identifies the deliverables Facilities, Machinery, Procedures, and Training. The Facilities deliverable is broken down into Updated design, Construction schedule, Prepared premises, and Equipment fitting.
Options:
The company follows the 8/80 rule, so the work package will need to be broken down further.
Correct answer(s):
The team breaks the Machinery deliverable down into four work packages. These are packed and shipped machinery, machinery converted to US power supplies, additional equipment purchased, and tested and validated production line.
Using expert judgment, the team determines that packing the machinery should take three days and shipping should take a further five days.
Converting the power source for the machinery is expected to take one day.
Sourcing equipment is likely to take ten days. The equipment will then need to be purchased and installed, which is likely to take a further week or more.
Which work package for the Machinery deliverable is not adequately decomposed?
The top level of an operations relocation project WBS contains the project name: Operations relocation project. The second level identifies the deliverables Facilities, Machinery, Procedures, and Training. The Machinery deliverable is broken down into Packed and shipped machinery, Converted power, Purchased equipment, and Tested and validated. The Tested and validated subdeliverable is further broken down into Procedures, Completed testing, Validation, and Evaluation radiating.
Options:
Option 1: This option is incorrect. Packing and shipping the machinery should not take longer than the maximum of 80 hours. The cost and duration of the work package is easy to estimate and the results can be measured.
Option 2: This option is incorrect. Converting machinery for US power supplies should not take long. The cost and duration of the work package is easy to estimate and the results can be measured.
Option 3: This is the correct option. The new equipment needs to be sourced, purchased, and installed. This is likely to take longer than two weeks to accomplish, so the work package should be broken down into source equipment and purchase equipment.
Correct answer(s):
The purchased equipment work package should be broken down further to include research or sourcing of equipment, purchasing of equipment, and installing equipment.
The tested and validated work package may need to be broken down further too. For example, it could be divided into test and validation procedures set, completed testing, validated procedures, and results evaluated.
The first step in developing a work breakdown structure, or WBS, is identifying a project's deliverables. How this is organized depends on project size and complexity, and on logical ways in which the work can be broken down.
The second step is decomposing deliverables into components and then work packages. The degree of decomposition needed depends on the size and complexity of the project, and on the familiarity of the project manager and team with the required work.
Criteria you can use to determine if a work package has been sufficiently broken down include whether cost and duration can be estimated and whether the result can be verified or measured. You should also verify that its duration falls within reporting periods or meets the 8/80 rule – including between 8 and 80 hours of work.
After completing this topic, you should be able to
Without a system, it's easy to lose track of things. For example, you may move a component on to the integration phase without testing its performance first.
Or you may forget to transition a completed component to the next phase of the project, and so hold up the project work.
So what system is used with the work breakdown structure, or WBS, to ensure that work is monitored, controlled, and integrated correctly?
The first steps in developing a WBS involve identifying deliverables and decomposing them into components and work packages. This topic deals with the final two steps of the process: assigning identification and verifying the WBS.
Once you've identified deliverables, components, and work packages, it's important to assign them with identification codes.
The codes enable you to sum and track the costs, schedule, and resources associated with each element. For example, if you need to trace the cost of purchasing a resource, the same code is used in accounting and in the WBS.
These codes are usually associated with the organization's chart of accounts, which tracks costs by category.
The type of identifier you use will depend on company standards, industry-specific requirements, or your own particular style. There are various formatting options for identification codes. You can use:
You can use a code in the WBS to track a deliverable, component, or work package using the company's accounting or resource management system. This lets you identify deviations so you can correct them. Suppose there is a delay in a project element with the code 1.1, which represents shipping. To prevent slippage and to record the deviation, the unbudgeted cost of an extra day's storage can be booked against the work package 1.1.2, which represents stored goods.
A coding system includes the rows 1.1 Shipping, 1.1.1 Packaged goods, 1.1.2 Stored goods, and 1.1.3 Shipped goods.
Why should each item in the WBS have a unique identifier?
Options:
Option 1: This option is correct. Providing each item of the WBS with a unique identifier makes it possible to track these items as you monitor and control project work.
Option 2: This option is correct. Assigning unique identifiers to WBS elements ensures you can use these identifiers in the organization's accounting or management system.
Option 3: This is an incorrect option. Unique identifiers don't directly link elements in the WBS to the project team members who are responsible for carrying out the work.
Option 4: This is an incorrect option. Unique identifiers help in monitoring and controlling project work and link project work to accounting and management systems. This doesn't necessarily affect how you file project documentation.
Correct answer(s):
Most companies use some type of project management software to generate codes automatically for elements in a WBS.
You can use this software to simplify the process and to integrate the WBS with project accounts and change management.
The final step in developing a WBS is verifying that the degree of decomposition you've used is sufficient. You have to determine if the lower-level elements are both necessary and sufficient for creating the higher-level deliverables.
In the four steps of decomposition, Step 1 is Identify main deliverables, step 2 is Decompose deliverables, step 3 is Assign identification, and step 4 is Verify the WBS.
The lowest level of decomposition is the work package.
At the top of the WBS hierarchy is the project title. The second level contains deliverables 1 and 2, numbered 1.1 and 1.2 respectively. Deliverable 1 is broken down into component 1.1.1 and then it is broken down into work package 1.1.1.1. Deliverable 1.2 has a work package called 1.2.1.
Each package should be a result or deliverable, rather than an activity.
It should have a manageable duration and be measurable so you can determine when it's completed successfully.
When verifying work packages, you should check whether all the elements are clear and complete. You also check whether each component and work package listed is absolutely necessary to meet the requirements of the deliverable it relates to.
Select the criteria you should check each element meets for more information about them.
Generally, someone other than the person who originally developed a WBS should verify it. This helps ensure objectivity. Someone with a fresh eye is more likely to spot areas that are unclear, incomplete, or unnecessary.
When verifying the breakdown of deliverables in a WBS, to prevent the duplication of project work, you should check that each deliverable is clearly defined. And you should ensure that each work package has a reasonable duration. You should also ensure that the identification code for each element is logical and can be integrated into accounting and management systems within the organization.
When checking deliverables and work packages, expert judgment is the tool used to verify the WBS.
For example in a software development project, you need to confer with coding experts to ensure that work packages are within the 8/80 rule in terms of their duration.
You can discuss whether all aspects needed for training are included in the WBS by asking an experienced facilitator to review your breakdown of a training component.
Often, separate deliverables within a project need to be integrated at some point. For example, this happens when product components are assembled into the final product. You should check that this integration work is included as an element of the WBS.
A WBS shows that an IT project has five deliverables: Online service design, User interface, Programmed application, Web site, and Integration.
Other areas you need to review when verifying the WBS include ensuring that project management elements are included and that contractual work is entered correctly.
A draft WBS of a Research project includes the deliverables Scope document, Project plan, and Contracted environmental assessment report.
A good rule of thumb is to check whether there is a project management element at the second level of the WBS, such as project plan. Most projects have a project management plan as a project deliverable.
For each component that involves contractual or outsourced work, you should use a single discrete element. And if any of the parent elements represent organizations, you should consider reworking them so they reflect deliverables.
Finally, when verifying the completed WBS, you need to assess whether it logically reflects how your particular organization does business.
This may involve ensuring that the coding system used matches that of the organization's accounting system. It may also involve ensuring work package durations match with weekly reporting periods.
Selecting the link title opens the resource in a new browser window.
Job Aid
Access the job aid The Steps of Decomposition for a summary of how to break down a project into its components.
What should you check when verifying a WBS?
Options:
Option 1: This is a correct option. The WBS should clearly reflect all the work needed to meet project requirements. If the descriptions of all elements are clear, duplication and confusion can be avoided.
Option 2: This is a correct option. The WBS should represent only the work in the project scope. Any work that falls outside this scope should not be included.
Option 3: This is an incorrect option. Although each work package should be assigned to those responsible for it, this is not generally included in a WBS.
Option 4: This option is incorrect. Work packages should describe deliverables or results, rather than activities.
Correct answer(s):
Once you have all your deliverables broken down, you may feel the WBS is finished. However, projects change as they progress, and the WBS needs to reflect these changes. So you may need to come back to it as planning progresses. Further decomposition may then be needed to estimate costs and durations.
In the third step of developing a work breakdown structure, or WBS, you assign an identification code to each element. This ensures each element can be tracked, monitored, and controlled. It also enables you to connect specific project activities with an organization's accounting and management systems.
The fourth step is verifying the WBS. To do this, you need to ensure all the element descriptions are clear and complete, and that no unnecessary work is included.
Selecting the link title opens the resource in a new browser window.
Follow-on Activity
Access the follow-on activity Verification Checklist to help you verify that your organization's WBS is complete and clear, and includes only necessary work.
After completing this topic, you should be able to
Once you've generated a work breakdown structure, or WBS, using the Create WBS process, it's time to finalize that WBS. This means first identifying its components that need extra monitoring, and placing control points at them. This way, you establish the control you need over the work and the project's scope.
A WBS has no text. It illustrates only the hierarchical structure, with some deliverables and sub-deliverables. The deliverables are highlighted to indicate that they are control points.
Control points enable you to monitor and analyze work performance. This process is known as earned value analysis, or EVA.
When you conduct an EVA, you detect scope creep by comparing work performance against the project's baselines.
You do this by comparing the work measurements against the project's baselines, particularly scope, cost performance, and schedule.
To analyze work performance, you first roll up, or collate, the performance information that's measured below a control point. In this instance, there are two phases: Week 1 and Week 2. To obtain the performance for each phase, you roll up the values from the elements of that phase. You then roll up the measurements from all the control points in the project to get a snapshot view of the project's overall performance, and compare this to the baseline performance.
A WBS has three levels. There are two phases, Week 1 and Week 2, each containing two components that contain one unit respectively. Week 1 contains the units 5 and 4, which add up to 9. Week 2 contains the units 6 and 7, which add up to 13. The result of the overall performance is 22.
The baseline graph shows that a performance of ten units for Week 1 and ten units for Week 2 are required.
A project manager has just completed the WBS for constructing a scientific research unit, and she's identified a deliverable that will require especially careful monitoring.
Has the project manager finalized the WBS?
Options:
To finalize a WBS and gain the level of control you need over the work, you must add control points. The project manager has not added control points, so she has not finalized the WBS.
Correct answer(s):
Imagine you're managing the relocation of a large organization to a new office development. You realize that the IT Department relocation work requires extra monitoring and control, starting with the preparation deliverable. So you make preparation a control point.
The Preparation control account in a WBS is broken down into work packages called Backup, Audit equipment, Tag all hardware, and Pack PCs.
Each component of the preparation has an estimated cost and duration.
The backup, for example, is estimated to take ten days, at $1,200 per day.
During the backup, you discover an error that takes two days to repair, increasing the cost by $2,400. Then as you complete the other work packages in the preparation work, you get their cost performance figures. The audit equipment work package is $2,000 under budget, tag all hardware is on budget, and pack PCs is $1,500 over budget. In total, the preparation deliverable is $1,900 over budget.
During the moving and installation stages of the project, you continue monitoring the IT Department's relocation costs in this way.
Moving comes in $2,000 over budget, and installation is $3,000 under budget.
Then you roll up the data for the three control accounts. The IT relocation control account exceeds its budget by $900.
Why do you need control points in a WBS?
Options:
Option 1: This is an incorrect option. The decomposition of project activities into work packages makes it possible to assign manageable units of work to team members. This isn't one of the functions of control accounts.
Option 2: This is an incorrect option. Baselines are created within their own Knowledge Areas, and their development is not related to establishing control accounts in a WBS.
Option 3: This is the correct option. Control accounts are placed at selected management points of the WBS. These identify an area where it's critical to monitor and control work performance. The project manager uses this information to analyze earned value as work progresses.
Option 4: This option is incorrect. Stakeholders receive performance reports from the project manager, not directly from control accounts.
Correct answer(s):
Do you think every item in a WBS needs to be monitored by a control point?
Type your ideas in the text box provided and then select the Compare button for more information.
Write down your response or enter it in a text file in your word-processor application (or in a text editor such as Notepad) and save it to your hard drive for later viewing and for comparison with the alternate opinion that follows.
Control points
You wouldn't place a control point for every element in a WBS. They're only required for critical parts of the project work. Generally, larger projects will require more EVAs, so you'll create more control accounts.
Each WBS component already contains all the work required to complete it.
So when you place a control point, it must be high enough to contain all the work you want to analyze, and low enough to exclude other work that you don't need to analyze.
A control point may consist of one work package, a few elements, or even a major deliverable, depending on what you need to monitor closely.
Suppose you're managing a project to build a large football stadium with a retractable roof.
The WBS for the Football stadium project shows that there are two phases: Planning and Construction. Construction has three deliverables: Foundations, Stands, and Roof.
The roof is technically difficult to build and requires close performance monitoring.
The Roof deliverable has five work packages: Electronics, Testing, Structure, Manufacturing, and Controls.
After studying the WBS, you decide to locate a control point at the Roof deliverable level. You do this by highlighting the deliverable.
You wouldn't place it higher – at the construction phase, for example – because then the EVA would be larger than necessary. If you position it lower, at the manufacturing work package, you will exclude parts of the roof work packages from the EVA, and the analysis will be incomplete. Now suppose you want to include the polycarbonate sheeting used in manufacturing the stands. Because of the structure of the WBS, you can't do this.
Project management software has made creating the WBS – and in many cases, conducting an EVA – easier. It can typically assign numbers to tasks or work packages, which can then be used to represent the WBS structure.
Some packages automatically integrate the WBS with other enterprise-wide automated systems – for example, cost, configuration, and resource management packages.
To conduct an EVA, you'd use the software to generate a report for a particular component in the WBS.
A blank resource usage report contains a line for the WBS component, resource number, Units used, Value, Units remaining, Value, and Reorder date.
Suppose you're using project management software to manage the football stadium project. When you're assigning resources to the manufacturing work package, you add polycarbonate sheeting to it from the list of resources. The software then tracks stock levels automatically, assuming that you consistently update it with the latest work measurements. Then when you want to analyze the resource usage for each deliverable, you generate the resource usage report for that component.
A resource usage report for the football stadium project states that the WBS name and ID is Manufacturing, 23e. The resource 1, usage by week displays Polycarbonate sheeting – week 27. 158 units have been used, at a value of $15,800. There are 490 units remaining, at a value of $49,000. The reorder date is October 1.
How can you tell that a WBS has been finalized?
Options:
Option 1: This is an incorrect option. It can be useful to create and track items in a WBS using project management software. However, this doesn't relate to ensuring the WBS is fully completed.
Option 2: This option is incorrect. Updates to requirements documentation can result from the Create WBS process, but this does not indicate that the WBS has been finalized.
Option 3: This is the correct option. The WBS is finalized once control accounts have been added to it. These accounts identify critical areas where work progress must be monitored and controlled.
Option 4: This is an incorrect option. Work packages are created during the decomposition process you use to develop the WBS. This happens before the WBS is finalized.
Correct answer(s):
To establish control over a project, you finalize the work breakdown structure, or WBS, by adding control accounts at strategic management points. Control accounts enable project managers to perform earned value analysis, otherwise known as EVA, on work performance information at each level of the WBS.
The larger and more complex a project, the more control accounts you need to create. Each control account can have a number of work packages, but a work package can belong to only one control account.
After completing this topic, you should be able to
If you're careful about evaluating work performance throughout a project, you'll probably end up with the results you want and complete your projects on time, within scope, and on budget.
The Create WBS process generates the tools you need to evaluate work performance and has two outputs:
Select each of the outputs of the Create WBS process to learn more about it.
The scope baseline consists of three components: the scope statement, WBS, and WBS dictionary. Other baselines, like those for the budget and schedule, typically have only one component. Although all of the components describe the deliverables and the work required to create these, each one brings unique and important information to the scope baseline.
Select each document to learn more about its unique contribution to the scope baseline.
Now consider the relationships among these components in the creation of the scope baseline.
Requirements documentation:
First the requirements documentation is created during the Collect Requirements process.
Project scope statement:
During the Define Scope process, you use requirements documentation to produce the project scope statement.
WBS:
You then use the project scope statement and requirements to produce the WBS. You finalize the WBS by adding control points.
WBS dictionary:
Using the finalized WBS, you create the WBS dictionary.
Scope baseline:
The finalized WBS, the WBS dictionary, and the project scope statement make up the scope baseline.
Update project documents:
Finally, you update project documents with any approved changes that may have resulted from the Create WBS process.
So by integrating these three scope planning elements, the scope baseline gives you an important set of tools to analyze work performance.
Selecting the link title opens the resource in a new browser window.
Job Aid
Access the job aid Scope Baseline to review key documents used in the Create WBS process and the order in which they are developed.
Take the case of a large software integration project. The project manager needs to create the scope baseline from the project scope statement, WBS, and WBS dictionary.
Select each component to learn how it contributes to the scope baseline for the integration project.
Which components form the scope baseline?
Options:
Option 1: This option is incorrect. Requirements documentation is one of the inputs used to create the project scope statement, but it isn't directly a component of the scope baseline.
Option 2: This is a correct option. The project scope statement contributes the broad definitions of the project scope to the scope baseline and indicates the stakeholder's understanding of the scope.
Option 3: This is an incorrect option. Updates to project documents are an output of the Create WBS process, but they aren't part of the scope baseline. They don't provide information about project or product scope.
Option 4: This is a correct option. The finalized WBS contains the structure and sequence of the work, as well as indicating where control accounts are located. This enables you to keep the structure of the project in mind when you're using the scope baseline to evaluate work performance.
Option 5: This is a correct option. The WBS dictionary contributes the detailed scope of each work item, as well as all other relevant information that will be used to measure work performance.
Correct answer(s):
Match the scope baseline components to the roles they play in scope management. Not all roles have a match.
Options:
Targets:
The WBS provides a summary of the entire project, and it reveals the relationships between deliverables.
The WBS dictionary contains a written description of the scope of each work package. It also contains references to requirements and other baselines.
None of the scope baseline components match to this role. The scope baseline does not define the schedule or relate it to stakeholder requirements.
The project scope statement describes the entire scope of the project for the benefit of stakeholders. It also outlines constraints, assumptions, and exclusions.
The scope baseline does not describe procedures for control and monitoring.
Correct answer(s):
Target 1 = Option A
Target 2 = Option B
Target 3 =No Option Specified.
Target 4 = Option C
Target 5 =No Option Specified.
The WBS dictionary is an important element of the scope baseline because it contains information and details about the work that won't fit in the WBS itself. You can think of it as an expanded version of the finalized WBS. It consists of a set of forms with details about each element in the WBS. Taken together, the forms in the WBS dictionary describe all the required work.
An example of a WBS dictionary form that contains the project name, date, WBS number, WBS name, parent WBS number and name, responsible individual or organization, associated requirements, scope description, budget cost account, child WBS number and name, cost estimate basis, and spaces for the individuals who prepared and approved the form to sign and date it.
In addition to the project's name, and the name and number of the WBS component, the dictionary form includes information about the following:
The scope of work description in a WBS dictionary form is a complete set of instructions for a work package.
An example of a WBS dictionary form for a project called Hospital new roof, dated June 23. The WBS number is 2.3.1, WBS name is Sheeting, parent WBS number is 2.3, and parent WBS name is Construct roof. The responsible organization is the Construction team. The associated requirements are 2FF. The child WBS number is 2.3.1.1 and name is water proofing. The form was prepared by Gina Rosetti, project manager, and approved by Anthony Caruso, sponsor, on June 24.
It must be specific, including as much technical and operational information as required.
But it should not provide excessive instructions covering areas that those doing the work would be expected to know as part of their jobs.
In order for a WBS dictionary form to be useful, it should integrate the project's baselines into the details it provides about the work packages.
In other words, the form should describe the projected performance for each work package.
You could include this information in the scope description. As part of this integration, it may include fields such as the cost estimate basis.
So schedule and cost performance baselines are integrated with each work package in the WBS dictionary.
The sections Scope of work, Schedule, and Budget of a WBS dictionary display. The Scope of work states that the project should supply stationery to the corporate office in each city. The Schedule section states that this is a one-year contract and the milestone is six months, and includes a statement that says "We will hear if the contract will be renewed or not." The Budget section gives an activity number of 15 and a cost estimate of $450 per week toward travel and purchase.
Select each baseline to learn more about how you would integrate it into a WBS dictionary form.
By drawing information about each work package together in one easily accessible form, the WBS dictionary becomes a powerful management tool.
When you're monitoring the work, it puts the relevant cost, budget, and resource for each work package at your fingertips.
Consider a software integration project. The project manager uses the scope baseline to monitor performance. The WBS dictionary is proving especially useful – it has helped the manager to control costs, as well as resolve a product scope issue.
A WBS dictionary for the Software integration project states that the project name is Software integration project, the date is June 23, the WBS number is 4.2.2, The WBS name is end user, the parent WBS number is 4.2, the parent WBS name is coding. The development team is the responsible individual/organization. 2G1 is the associated requirements number in traceability matrix. The scope of work states that the front-end software to be integrated consists of 42 separate packages. Each package should require no more than four days to analyze and integrate. The packages are used in financial services so a secure 128-bit encryption algorithm must be instituted throughout. The software will be managed via an SQL database.
Select "Control costs" and "Resolve product scope issue" to learn how the WBS dictionary helps to manage the software integration project.
In a large project with a complex WBS, the WBS dictionary could contain many separate forms. When you're looking for a particular form, you need to be able to find it easily. So it's critical that you arrange the forms logically and conveniently.
You always follow the WBS numbering system and arrange the forms in sequence.
The component on level 1 of a WBS is numbered 1. It branches out into two components on level 2, one labeled 2., the other labeled 3. The component 2. branches out into level 3, which contains components 2.1, 2.2, and 2.3. The component 2.2 leads to level 4, which contains a block labeled 2.2.1. The component 2.2.1 branches out into level 5, which contains the components labeled 2.2.1.1. and 2.2.1.2. respectively. The component 3. on level 2 branches out into 3.1 and 3.2. on level 3. Component 3.1 leads to level 4, which contains components 3.1.1. Component 3.2. leads on to component 3.2.1.
But within the WBS, some components are major deliverables or phases, and some are control accounts.
Components 2 and 3 on level 2 are highlighted.
So it might be convenient to file the forms separately by major deliverable, phase, or control account, while maintaining the numbering sequence.
Which roles does the WBS dictionary play in the scope baseline?
Options:
Option 1: This is a correct option. The WBS dictionary contains full details of all the information that the WBS shows in summary form. For each work package, it includes information on the schedule, budget, quality requirements, methods, and responsibilities.
Option 2: This is an incorrect option. You may update requirements documentation while you're preparing the WBS, but the WBS dictionary itself does not enable you to do this.
Option 3: This is a correct option. The WBS dictionary correlates the unique identifier of each work package to the codes for the corresponding stakeholder requirements. So it's this component of the scope baseline that indicates how requirements have been translated into work packages.
Option 4: This option is incorrect. The project scope statement is an output of the Define Scope process. It isn't something you use the WBS dictionary to define.
Correct answer(s):
The Create WBS process has two outputs: the scope baseline and updates to project documents, such as requirements documentation.
The scope baseline includes the WBS, the WBS dictionary, and the project scope statement.
The WBS dictionary provides a detailed description of the scope of each work package. It identifies the team members responsible for each work package, and the requirements to which it relates. It also includes relevant schedule, cost, and quality information.
© 2017 Skillsoft Ireland Limited