Ayush Parajuli

074BCE024
Work Breakdown Structure
A project work breakdown structure is an outcome-oriented grouping of project elements
that organizes and defines the total scope of the project—work not in the WBS is outside
the scope of the project. When presented in a graphical format, it becomes obvious why
the WBS is often described as a project tree diagram, hierarchically displaying project
outcomes, which are further broken down into more detailed task . The project WBS
provides the project manager the means to divide a project into manageable increments,
helping to ensure the completeness of all work that is required for successful completion of
a project. Projects are planned, organized, and controlled around the lowest level of the
WBS or work packages that are assigned to a project team member for responsibility for
completion.

Terms used in Work Breakdown Structure

Work elements:
Any project outcome in the WBS is called a work element, consisting of an item of
hardware, software, service, or data. While some elements are the direct outcome of work,
others are the aggregation of several logically grouped deliverables.
WBS level:
This is the hierarchical location of a work element in the WBS. Work elements at the same
stage of structuring are on the same level. There is no universal system for numbering
levels. We number the overall project level as 0 and subsequent levels as Level 1, Level 2,
and so forth. Using level numbers enables us to uniquely code each work element.

Work package. These are work elements at the lowest level of the WBS. We assign each of
them to individuals (often called work package managers), who are responsible for
managing tasks such as planning, scheduling, resource planning, budgeting, risk response,
and quality assurance.
Cost account:
This is a summary work element that is one level higher than the work package. A cost
account includes one or several work packages and is often described as a management
control point where actual performance data may be accumulated and reported.

Uses of Work Breakdown Structure

A major problem in project planning is determining how long tasks will take and what it will
cost to do them. Inaccurate estimates are a leading cause of project failures, and missed
cost targets are a common cause of stress and recrimination in project management. The
most useful tool for accomplishing all of these tasks is the work breakdown structure
(WBS). The idea behind the WBS is simple: You can subdivide a complicated task into
smaller tasks until you reach a level that cannot be further subdivided. At that point, it is
usually easier to estimate how long the small task will take and how much it will cost to
perform than it would have been to estimate these factors for the higher levels.
Assigning responsibility for tasks is another important use of the WBS. Each task to be
performed should be assigned to a particular person who will be responsible for its
completion. These assignments can then be listed on a separate form, often called a
responsibility chart.
WBS can also be used to identify potential scope risks if it has a branch that is not well
defined. It provides a visual of entire scope. it can be used to identify communication
points.

Levels of Work Breakdown Structure

The typical WBS has three to six levels. It is, of course, possible to have projects that
require a lot more levels. Twenty levels is considered to be the upper limit, and that is a
huge project. Level 1 is called the program level. The difference between a program and a
project is just one of degree. Name of the six levels of the WBS are
i. Total Project
ii. Project
iii. Task
iv. Sub-tasks
v. Work package
vi. Level of efforts
Level 1, 2 and 3 of the WBS are normally specified by the project management office,
while the lower levels are generated by the contractor for in-house control. Level 1 is the
total program and is composed of a set of projects, it is generally used for the
authorization and release of all work, budgets are prepared at level 2, and schedules are
prepared at level 3.

Level 1 Project Goal (Impact)

Outcome
Level 2
Outcome1
2

Ouput 1.1 Level 3Output 1.2 Outpt2.1 Output2.1

Output Output Output Output Output Output Output Output

1.1.1 1.1.2 Level
1.2.14 1..2.2 2.1.1 2.1.2 2.2.1 2.2.2
Guidelines for developing the Work Breakdown Structure
One important question in constructing a WBS is “When to stop breaking down the work?”
The general guideline is to stop when you reach a point where either you can estimate time
and cost to the desired degree of accuracy or the work will take an amount of time equal to
the smallest units you want to schedule. If, for instance, you want to schedule to the
nearest day, you break down the work to the point where tasks take about a day to
perform. If you are going to schedule to the nearest hour, then you stop when task
durations are in that range. Important point is the WBS should be developed before the
schedule. In fact, the WBS is the device that ties the entire project together. It allows the
manager to assign resources and to estimate time and cost and shows the scope of the job
in graphic form. Later, as the project is tracked, the work can be identified as falling in a
particular box in the WBS. There are a number of approaches to developing the WBS.
Ideally, we proceed top-down, following development of a good problem statement and
mission statement. The WBS does not have to be symmetrical. That is, all paths need not be
broken down to a particular level. Since the rule is to break work down to a level sufficient
to achieve the estimating accuracy you desire, one path may take six levels, while another
may need only three.

Types of WBS
i. Phase based approach
The first level of a phase-based work breakdown structure will be elements that are typical
phases of a project. The second phase will usually be elements that are distinctive
deliverables in each of the phases highlighted. The lower level of both phase-based and
deliverable-based work breakdown structures are elements that are deliverables.
For a phase-based work breakdown structure, work associated with different elements will
be divided into work unique to the element in the first level of your work breakdown
structure.
 ii. Responsibility-Based Work Breakdown Structure
The responsibility-based work breakdown structure defines the project’s elements by the
organizational units that will work on the project. The first level of the structure in a
responsibility-based work breakdown structure will be the organization units, the rest of
the levels will often follow the same format as the other two work breakdown structures.

iii. Deliverable-based Structures

A work breakdown structure based on the deliverables identifies connections
between the project’s deliverables and the scope. For this guide, we will focus on
deliverable-based work breakdown structures since they are the more common
choice.
Major Benefits of Work Breakdown Structure (WBS) in Project
Management
i. It facilitates team communication and coordination.
ii. It dwindles the chances of unnecessary changes.
iii. It helps in estimating the workforce, cost, and time required for project success.
iv. It lends a hand by shedding light on potential risks in the initial stage of projects,
which further prevents financial loss.
v. It smoothens the whole lifecycle of projects.
vi. It reduces the delay factor to a large extent.
vii. It makes the job of assigning responsibilities easier.
viii. It provides better control over each crucial task.
ix. It streamlines the way of project planning so that the hassle of repeat work doesn’t
take place in the later stages.
x. It works as a brainstorming tool for stakeholders.

Characteristics of an Effective Work Breakdown Structure

i. Deliverable-oriented structure of project elements
ii. Formulated by those doing work on the project
iii. Includes the complete work defined by the scope, capturing all deliverables in terms
of the work that needs to be completed
iv. Defines the project, describes the work and project scope clearly
v. Created in a chart, illustration or outline format
vi. Arranges deliverables in a hierarchal layout
vii. Contains at least two levels
viii. Uses nouns or adjectives, and avoids the use of verbs
ix. Is adaptable allowing for continual improvement
x. Employs a coding scheme for each element that identifies the hierarchal nature of
the work breakdown structure when viewed.
References
Martinelli, Russ J and Dragan Z. Milosevic. Project Management Toolbox.2nd ed, Hoboken,
New Jersey, John Wiley & Sons,2016
Heagney, Joshep. Fundamentals of Project Management. 4th ed, Broadway, New York,
American Management Association,2012.
Work Breakdown Structure: Type, Guidelines & Benefits (proprofs.com)