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ENGG1860
Project Initiation &
Scope
Week 6 – Creating Work
Breakdown structure (WBS)
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WELCOME
Overview of today’s workshop
• Project Charter components covered
today
• In & Out of scope activities
• WBS – what is it?
• Constructing WBS
Group Activity
1. Prepare an in/out of scope activities
list, construct WBS for Case Study
project
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1 Project title
2 Scope statement
3 Business case
4 In/out of scope
activities
5 WBS 7 Constrains
6 Stakeholders 8 Assumptions
9 Project risks
10 Estimated
budget
11 Success
criteria
12 Signatures
Project
Charter
components
• Project sponsor owns the Project Charter, but project manager and project
team members often develop it.
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‘‘If you don’t know where
you’re going, any road
will take you there’’
–Anon
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4. IN AND OUT OF SCOPE ACTIVITIES
– Defines the boundaries of
the project – what is in and
what is out.
– In scope activities
a list of tasks that your
team will complete or
outsource to others to
successfully deliver the
project
– Out of scope activities
a list of tasks and
responsibilities outside
the project scope
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WHAT IF THE PROJECT SCOPE IS NOT PROPERLY DEFINED…
http://conversationagent.typepad.com/.a/6a00d8341c03bb53ef017c33368777970b-pi
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The WBS is a hierarchical decomposition of the total
scope of work to be carried out by the project team to
accomplish the project objectives and create the required
deliverables.
The WBS organises and defines the total scope of the
project and represents the work specified in the
approved projects scope statement.
The planned work is contained within the lowest level of
WBS components, which are called work packages.
18
THE WBS – DEFINITION BY PMBOK GUIDE
Project Management Institute, Inc.. (2017). Guide to the Project Management Body of Knowledge (PMBOK® Guide) (6th
Edition) - 5.3.3.1 Project Scope Statement. Project Management Institute, Inc. (PMI). Retrieved from
https://app.knovel.com/hotlink/pdf/id:kt011DX662/guide-project-management/project-scope-statement
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The WBS is a hierarchical decomposition of the
total scope of work to be carried out by the
project team to accomplish the project
objectives and create the required
deliverables.
The WBS organises and defines the total scope
of the project and represents the work
specified in the approved projects scope
statement.
The planned work is contained within the lowest
level of WBS components, which are called
work packages.
18
THE WBS – DEFINITION by PMBOK GUIDE
Project Management Institute, Inc.. (2017). Guide to the Project Management Body of Knowledge (PMBOK® Guide) (6th
Edition) - 5.3.3.1 Project Scope Statement. Project Management Institute, Inc. (PMI). Retrieved from
https://app.knovel.com/hotlink/pdf/id:kt011DX662/guide-project-management/project-scope-statement
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The WBS represents an explicit description of the
project’s scope, deliverables and outcomes—the “what”
of the project. The WBS is not a description of the
processes followed to perform the project…nor does it
address the schedule that defines how or when the
deliverables will be produced, but rather is specifically
limited to describing and detailing the project’s outcomes
or scope.
The WBS is a foundational project management
component, and as such, is a critical input to other project
management processes and deliverables such as activity
definitions, project schedule network diagrams, project
and program schedules, performance reports, risk
analysis and response, control tools, or project
organisation.
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WBS ROLE
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o Creating WBS is a process of subdividing project deliverables and project work
into smaller, more manageable components. This provides a framework of what
has to be delivered. This process is performed once or at predefined points in
the project.
CONSTRUCTING WBS
Project Management Institute, Inc.. (2017). Guide to the Project Management Body of Knowledge (PMBOK® Guide) (6th
Edition) - 5.3.3.1 Project Scope Statement. Project Management Institute, Inc. (PMI). Retrieved from
https://app.knovel.com/hotlink/pdf/id:kt011DX662/guide-project-management/project-scope-statement
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• Decomposition is a technique used for dividing and subdividing the project
scope and project deliverables into smaller, more manageable parts. The work
package is the work defined at the lowest level of the WBS for which cost is
defined at the lowest level of the WBS for which cost and duration can be
estimated and managed. The level of decomposition is often guided by the
degree of control needed to effectively manage the project. The level of detail
for work packages will vary with the size and complexity of the project.
• Decomposition of the total project work into work packages generally involves
the following activities:
o Identifying and analysing the deliverables and related work,
o Structuring and organising the WBS,
o Decomposing the upper WBS levels into lower-level detailed components,
o Developing and assigning identification codes to the WBS components, an
o Verifying that the degree of decomposition of the deliverables is appropriate.
WBS: DECOMPOSING THE DELIVERABLES
Project Management Institute, Inc.. (2017). Guide to the Project Management Body of Knowledge (PMBOK® Guide) (6th
Edition) - 5.3.3.1 Project Scope Statement. Project Management Institute, Inc. (PMI). Retrieved from
https://app.knovel.com/hotlink/pdf/id:kt011DX662/guide-project-management/project-scope-statement
Page 12The University of Sydney
WBS DECOMPOSED TO WORK PACKAGES
Project Management Institute, Inc.. (2017). Guide to the Project Management Body of Knowledge (PMBOK® Guide) (6th
Edition) - 5.3.3.1 Project Scope Statement. Project Management Institute, Inc. (PMI). Retrieved from
https://app.knovel.com/hotlink/pdf/id:kt011DX662/guide-project-management/project-scope-statement
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There is no ‘right’ way to construct a
WBS
A WBS could be composed into
different types of diagrams:
• Indented list - also known as an outline view,
this is a list of tasks or deliverables, with
subtasks. The simplest method to make a
WBS.
• Tree structure - the most commonly seen
version, it’s an organisational chart that has
all the same elements of the list (phases,
deliverables, sub deliverables and work
packages) but represents the workflow or
progress as defined by a diagrammatic
representation.
• Gantt Chart – is both a spreadsheet and a
timeline. The Gantt chart can link
dependencies, set milestones, even set a
baseline. This is the most common version in
project management software.
CONSTRUCTING THE WBS
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There are two main ways to organise a WBS:
1. Deliverable-based - identifies the project’s deliverables and scope
2. Phase-based - displays the final deliverable on top, with the level below
showing the five phases of a project (initiation, planning, execution, control
and closeout).
There are also less common ways of organising a WBS as well:
– A verb-oriented WBS defines the deliverables in terms of actions.
– A noun-oriented WBS defines work in terms of components (this is also called a
product breakdown structure).
– A time-phased WBS breaks the project into phases for long-term projects.
ORGANISING the WBS – MULTIPLE WAYS
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– A deliverable-oriented WBS (also known as product-oriented WBS)
decomposes the project scope into smaller and more manageable
deliverables. Deliverable are tangible components that need to be
delivered to complete the project. They are typically a physical
component or an item that needs to be produced, obtained, or
supplied as a result of executing project activities. These deliverables
are either interim or ultimate deliverables that are delivered to
satisfy project requirements. In construction projects, preliminary
plans and specifications, bid documents, and pre-construction mock-
ups are example interim project deliverables. Example of ultimate
project deliverables in a construction project may include concrete
structures, structural steels, building facade, and a building’s
mechanical system.
– WBS elements in a deliverable-oriented WBS are typically in the
form of a noun because WBS elements identify tangible components
that are typically a physical item that needs to be produced,
obtained, or supplied.
ORGANISING THE WBS – MULTIPLE WAYS
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DELIVERABLE-BASED WBS STRUCTURE EXAMPLE
https://www.adroitprojectconsultants.com/tag/deliverable-oriented-wbs/
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DELIVERABLE-BASED WBS STRUCTURE EXAMPLE
Project Management Institute, Inc.. (2017). Guide to the Project Management Body of Knowledge (PMBOK® Guide) (6th
Edition) - 5.3.3.1 Project Scope Statement. Project Management Institute, Inc. (PMI). Retrieved from
https://app.knovel.com/hotlink/pdf/id:kt011DX662/guide-project-management/project-scope-statement
Page 18The University of Sydney
PHASE-BASED WBS STRUCTURE EXAMPLE
Project Management Institute, Inc.. (2017). Guide to the Project Management Body of Knowledge (PMBOK® Guide) (6th
Edition) - 5.3.3.1 Project Scope Statement. Project Management Institute, Inc. (PMI). Retrieved from
https://app.knovel.com/hotlink/pdf/id:kt011DX662/guide-project-management/project-scope-statement
Page 19The University of Sydney
PHASE-BASED WBS STRUCTURE EXAMPLE
https://www.adroitprojectconsultants.com/tag/deliverable-oriented-wbs/
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– Criteria for deciding how much detail or how many levels to put
in the WBS:
– Level at which a single individual or organisation can be assigned responsibility
and accountability for accomplishing the work package, and
– Level at which you want to control the budget and monitor and collect cost data
during the project.
– There are four main levels of a WBS:
– The Top Level: The project title or final deliverable.
– Controls Account: The main project phases and deliverables.
– Work Packages: The group of tasks that lead to the controls account level.
– Activities: The tasks needed to complete the work package.
• Large, complex projects are often composed of several subprojects that collectively
make up the main project.
• WBS templates can be used for same kinds of projects to save time.
UNDERSTANDING VARIOUS WBS LEVELS
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WORK PACKAGES
The work package is the point
at which:
– work activities are
defined
– the timeline is formed
– resources are assigned
– control features will be
developed
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• Each level must contain all the work required to achieve the level above
• No duplication of work in different categories
• No “1-within-1s” – categories containing only one activity
• Activities cannot belong to more than one parent category
• Organise the activities into categories that make sense to the team
• e.g. according to cost accounts; technical domains; phases; suppliers;
etc
• Chronology and resources are irrelevant here
oThe schedule will organise the work chronologically
oThe RAM will organise the work according to “who does what”
WBS RULES
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o The WBS is a tool for defining scope (inclusions only) - It defines all the work for a project
o It breaks down the deliverables into increasingly detailed definitions of work as higher level items
are ‘unpacked’ to define the lower level items within them
o It provides a baseline for future changes. So it helps to control scope creep.
o It is a foundation and input for many processes like cost estimation, budgeting, schedule development,
risk identification – so it must capture everything that you are planning to do and buy
o It’s a foundation for communication with stakeholders.
o It is a framework for monitoring and controlling processes.
o Harold Kerzner writes: “The WBS provides the framework on which costs, time, and
schedule/performance can be compared against the budget for each level of the WBS” (1997, p.
791)
o Dr. Gregory T. Haugan: “The WBS is the key tool used to assist the project manager in defining the
work to be performed to meet the objectives of a project” (2002, p. 15)
o Carl L. Pritchard: “… the WBS serves as the framework for project plan development. Much like the
frame of a house, it supports all basic components as they are developed and built” (1998, p. 2)
KEY POINTS
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o Is a deliverable-oriented grouping of project elements
o Is created by those doing the work
o Contains 100% of the work defined by the scope or contract and captures all
deliverables (Internal, External, Interim) in terms of work to be completed, including
Project Management
o Defines the context of the project, clarifies the work and communicates project scope
to all stakeholders
o Is expressed as a chart or outline, providing a graphical or textual breakdown
o Arranges all major and minor deliverables in a hierarchical structure - and is
constructed so that each level of decomposition contains 100% of the work in the
parent level
o Should contain at least 2 levels
o Uses nouns and adjectives – not verbs
o Evolves along with the progressive elaboration of project scope, up to the point of
scope baseline, and thereafter in accordance with project change control - allowing
for continual improvement
o Employs a coding scheme for each WBS element that clearly identifies the
hierarchical nature of the WBS when viewed in any format
“CORE CHARACTERISTICS” OF EFFECTIVE WBS:
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EXAMPLE: PREPARING HOUSE FOR SALE
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• 100% Rule: This is the most important guiding principle to construct a WBS. It consists in
including 100% of the work defined by the project scope, which guarantees that the WBS
covers all the deliverables of the project (internal, external and interim). This rule applies to all
the levels of the WBS, so the sum of the work at a “child” level must equal the 100% of the
work represented by the “parent” level without exception.
• Use Nouns: WBS is about deliverables and the tasks that will lead to your final deliverable.
Therefore, you’re dealing more on the what than the how. Verbs are great for action, and
should be used in your descriptions, but for clarity, stick to nouns for each of the steps in your
WBS.
• Be Thorough: For a WBS to do its job, there must be no holes. Everything is important if it’s
part of the course that leads to your final deliverable. To manage that schedule, you need a
complete listing of every task, big and small, that takes you there.
• Keep Tasks Mutually Exclusive: This simply means that there’s no reason to break out
individual tasks for work that is already part of another task. If the work is covered in a task
because it goes together with that task, then you don’t need to make it a separate task.
• Go Just Deep Enough: You can get crazy with subtasks on your WBS. The WBS has to be
detailed, but not so deep that it becomes confusing. Ideally, think maybe three or five at most
levels.
Source: https://www.projectmanager.com/work-breakdown-structure
WBS BEST PRACTICE
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Project
Planning Implementation
PM during
Implementa tion
Status Reports
Team meetings,
etc
Deliverables
Work Package
1
Work Package
2
Closure
• Remember to include project management Planning
and Closure phases, and PM during
Implementation
– Top-down or bottom-up approach
– Unpack a level by listing the items
underneath horizontally
– When do you stop? Rules of thumb:
• Stop when you get to a level at which items
can be allocated to one person
• Stop at work package level if you
have work package managers on
your team
• Break down lower if:
o Team members need more task
direction (e.g. novices)
o Apportion of work is ambiguous,
complex or important
WBS TIPS
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Questions?
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ENGG1860
Project Initiation &
Scope
Group Work
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GROUP ACTIVITY 1
In groups, for your Case Study project:
1. Prepare in / out of scope activities list
2. Prepare a WBS (up to 3 levels – appx 20 items)
3. Present group work
Time: 40min + 30min
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Presentations (3 minutes eachgroup)
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NEXT WEEK
• Estimating project resources
TO DO:
• Complete online readings
for the week
• Watch videos
• Prepare for next week’s
group activity
Thanks!
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References
Gray, C.F. and Larson, E.W. (2008), Project Management: The Managerial Process, 4th edn, McGraw Hill,
New York.
Haugan, Gregory T. (2002), Effective Work Breakdown Structures, Management Concepts, Vienna,
Virginia
Independent Verification and Validation White Paper (December 2002) Macdonald Bradley, Inc.,
retrieved 2/20/2005, Website:
http://www.mcdonaldbradley.com/comps/white%20papers/IVV%20white%20paper.pdf
Kerzner H. (1997). Project management: A systems approach to planning, scheduling, and controlling (6th
ed.). New York: John Wiley & Sons
Practice Standard for Work Breakdown Structures (2001). Newtown Square, Pennsylvania: Project
Management Institute Inc.
Pritchard, Carl (1998), How to build a work Breakdown Structure, The cornerstone of Project
Management. Arlington, Virginia: ESI International
Project Management Body of Knowledge (PMBOK® Guide, Sixth Edition.). Newtown Square,
Pennsylvania: Project Management Institute Inc.
Brotherton, S. A., Fried, R. T., & Norman, E. S. (2008). Applying the work breakdown structure to the
project management lifecycle. Paper presented at PMI® Global Congress 2008—North America,
Denver, CO. Newtown Square, PA: Project Management Institute.
Norman, E. S. (2005). Creating effective work breakdown structures— or how to recognize a quality work
breakdown structure when you see one. Paper presented at PMI® Global Congress 2005—EMEA,
Edinburgh, Scotland. Newtown Square, PA: Project Management Institute.