I am uploading all these notes only for the sake of Allah SWT. A very comprehensive and detailed Lecture Slide for Management Students (Related to Engineering)

1. Lecture NO.3
Muhammad Bilal
Ms. Engineering Management

2. WHAT IS Work Breakdown
Structure WBS
Work Breakdown structure (WBS):
A hierarchical method that successively
subdivides the work of the project into smaller
detail.
Or
The outcome of this hierarchical process is
called the work breakdown structure (WBS).
Or
The work of the project can be successively
subdivided into smaller and smaller work
elements.

3. Work Breakdown Structure
WBS
– Complex projects consist of numerous smaller
subprojects, interrelated tasks, and work
elements.
– The procedure for subdividing the overall project
into smaller elements is called the work
breakdown structure or WBS, and its purpose is
to define the total project into “ pieces of work”
called work packages.
– Dividing the project into work packages makes it
easier to prepare project schedules and cost
estimates, and to assign management and task
responsibilities

4. Work Breakdown Structure
WBS (Cont…)
– The first step in creating a WBS is to divide the
total project into major categories.
– These major categories then are divided into
subcategories that, in turn, are subdivided, and so
on.
– This level-by-level breakdown continues so that
the scope and complexity of work elements is
reduced with each level of breakdown.
– The objective of the procedure is to reduce the
project into work elements that are so clearly
defined that they, individually, can be accurately
budgeted, scheduled, and controlled.

5. Work Breakdown Structure
WBS (Cont…)
– A typical WBS might consist of the following
four levels (the number of levels varies, as
does the name of the element description at
each level; different project methodologies use
different terms):

6. Work Breakdown Structure
WBS (Cont…)
– Level 1 represents the total project.
– At Level 2 the project is broken down into several
(usually between 4 and 10) major elements or
subprojects.
– These subprojects should conform to the
deliverables or work areas specified in the scope
statement.
– All of the subprojects when taken together must
make up the total project effort.
– Each subproject, in turn, is broken down into
activities, the sum of which must comprise
everything in the subproject.

7. Work Breakdown Structure
WBS (Cont…)
– When the process is completed, the tasks at the
lowest levels, whatever the levels might be, are
termed work packages; these work packages
become the basis for further planning steps.
– In the table above, that the term “ work package ”
that appeared
at Level 4 is for illustration only.
– The actual number of levels in the WBS varies, as
does the name of the element description at each
level. In fact, the levels and names are often
prescribed by the project methodology in use.

8. Work Breakdown Structure
WBS (Cont…)
– Figure shows a typical WBS. Note the
different levels and usage of different names
for each.

9. Figure: Work Breakdown Structure WBS

10. Figure: Work Breakdown Structure WBS

11. Figure: Work Breakdown Structure WBS

12. Work Packages
– How far down does the breakdown go?
– Simply, as far as needed to completely define all
work necessary for the project.
– Sometimes a Level 2 breakdown will be adequate,
though usually a Level 3 or higher-level breakdown
will be necessary.
– The work in each “ box ” of the WBS must be “ well
defined ” ; if it is not, then the box must be
subdivided into smaller boxes.

13. Work Packages (Cont…)
– What is necessary for a box to be “ well defined? ” The
box should include the following
1.Clear, comprehensive SOW:
The work task defined well enough so the parties
responsible know exactly what they must do.
2. Resource requirements:
The labor, skills, equipment, facilities, and materials for
the task.
3. Time:
Estimated time necessary to perform the task.
4. Costs:
Estimated costs for the required resources, management,
and related expenses for the task.
5. Responsibility:
The parties, individuals, and job titles responsible for
performing the task and approving it.

14. Work Packages (Cont…)
6. Outcomes:
The deliverables, end-items, or end-results and
associated requirements and specifications for the task.
7. Inputs:
The preconditions or predecessors necessary to begin the
task.
8. Quality assurance:
The entry, process, and exit conditions to which the task
must conform; these are specified in the quality plan.
9. Risk:
Uncertainty about time, cost, and resources, identified as
high, medium, or low risk, with migration and
contingencies measures for high risks.
10. Other:
Additional information as necessary.

15. Work Packages (Cont…)
– If any of the properties listed cannot be defined, the
task in the box is too broad and must be broken
down further.
– In most cases, all or most of these properties can be
eventually determined by breaking tasks down into
small-enough pieces.
– A well-defined piece, which by definition includes
the properties summarized in Figure is called a
work package.

16. Work Packages (Cont…)
– As illustrated in Figure different portions of the
project will require different levels of breakdown to
define work packages, meaning that work packages
in different portions of the project might appear at
different levels.

17. Organization Breakdown
Structure (OBS)
– What is Organization Breakdown Structure:
Organization Breakdown Structure (OBS) is a
structure used to assign responsibility for work
packages.
• The OBS depicts how the firm has organized to
discharge work responsibility.
• The purposes of the OBS are to provide a framework
to summarize organization unit work performance,
identify organization units responsible for work
packages, and tie the organizational unit to cost
control accounts.

18. Organization Breakdown
Structure (OBS)
– The OBS defines the organization sub deliverables in a
hierarchical pattern in successively smaller and
smaller units. Frequently, the traditional organization
structure can be used.
– Even if the project is completely performed by a team,
it is necessary to break down the team structure for
assigning responsibility for budgets, time, and
technical performance.

19. Organization Breakdown
Structure (OBS)
– As in the WBS, the OBS assigns the lowest
organizational unit the responsibility for work
packages within a cost account.
– Herein lies one major strength of using WBS and OBS;
they can be integrated as shown in Figure Below.

20. Figure: Integration of WBS and OBS

21. Explanation of the above Figure