Presented by

Week 5: Define 2
Dr M. Leon
Senior Lecturer
Work Breakdown Structure &
Product Breakdown Structure

Engineering
Practice 1
Key Performance Indicators Introduction
Overview

• Work scope & Work Packages

• Product Breakdown Structure (PBS)
o Controls
o Work packages
• Work Breakdown Structure (WBS)
• Creating WBS
Work Scope

• Scope: One of the most difficult tasks in

project management is that of properly
defining the scope of the work to be
undertaken. In a large project involving
large numbers of staff, suppliers and
contractors, structuring the project
work scope is critical in ensuring that
everyone knows their responsibilities,
and that the project manager is not
overwhelmed with detail.
 Work scope & work packages (1)

Scope:
Without a sound understanding of
the scope of work, planning and
estimating will be difficult, and
effective project control will be
impossible.
Work scope & work packages (2)

From the definition of the work scope it is possible to proceed to define the
project in terms of assigning responsibility for the execution of the work.
This is one of the first stages in project planning.

The key to effective work scope definition and project control is to reduce the
overall scope into units or elements which are smaller, easier to understand
and easier to manage. These units are normally referred to as ‘work
packages’ and the sum of all defined work packages will constitute the
project as a whole.
Product Breakdown Structure (PBS)

• A Product Breakdown Structure (PBS)

is a hierarchical structure of things
that the project will make or
outcomes that it will deliver. It can be
thought of as the project “shopping
list.”
• It decomposes a "Main Project
Product" into its constituent parts in
the form of a hierarchical structure.
Lester, E.I.A. and Lester, E.I.A. (2017), “Work Breakdown Structures”, Project
Management, Planning and Control, Butterworth-Heinemann, pp. 53–59.
PBS Controls

Critically review the PBS and ask the following questions:

• Does the PBS contain "work"? If so it has gotten muddled and this work
needs either moving to the WBS or converting into "product.”
• Are all high-level products broken down to an adequate level of detail?
• Have all external products been identified and sourcing confirmed? If they
are outputs from other projects these represent risks that should go in the
risks log and/or be defined as project interfaces/dependencies.
• Are all products couched as nouns or outcomes in the past tense?
Work packages

• Many businesses break down their projects using the work package
concept. These are the smaller bits of work that make up the overall
project. It is usually necessary to build up the project from these work
package elements.
• Work packages can vary quite considerably, particularly in terms of size
and cost. There are, however, a number of work package ‘attributes’ which
are common to most definitions and which are fundamental to the success
of the approach in project management terms.
Work packages, or, how to eat an elephant

The effective work package should:

• Be unique
• Contain objectives and goals (deliverables)
• Have a clearly definable start and finish
• Have a clearly definable budget
• Be owned by a single responsible individual
Work packages example:

How would you break down the work packages of making a sandwich?
Work Breakdown Structure (WBS) (1)

• The Work Breakdown Structure (WBS) provides a hierarchical

structure of project activity. If you like it represents the project “to
do list.” Its focus is on “work” not “things.”
• A WBS Dictionary can be produced in conjunction with the WBS to
store relevant detailed information in support of the planning
process.
• The WBS dictionary is a narrative documentation of the effort needed to accomplish
all work defined in the WBS.
• The project team will use the WBS Dictionary as a statement of work for each WBS
element.
Work Breakdown Structure (WBS) (2)

• The WBS forms the basis of the Project Plan, decomposing the
main project into stages, then work packages then into sub-
activities per work-package. The levels of detail are dependent
upon the complexity of the project.
• Once completed the WBS gives confidence that the tasks required
to deliver all outcomes are understood and that the ordering is
correct.
APMBoK 7
From PBS to WBS
• Prioritise PBS first so that the project outcome is clearly understood and can
be agreed with the client/stakeholder. The PBS clarifies what is to be built or
imported. It is therefore a useful source of risks and external dependencies for
the project manager.
•The Product Log is a tool to record suppliers of external products and a Product
Flow Diagram enables to identify the order in which products are required. This
enables the logic of the plan to be understood at a high level before detailed
planning begins.
• Following PBS, WBS can be built to organise the construction of products as a
set of work-packages and associated tasks/ planning.
WBS (1)
▪ Entire project team should be involved
▪ Final box is a product or deliverable which is measurable and definable
▪ Lowest level indicate work packages, which can be used for estimates,
schedule monitoring and control
WBS becomes the basis for establishing:
▪ All of the effort/cost to be expended to create the deliverables and
supporting processes.
▪ The assigned responsibility for accomplishing and coordinating the work.
WBS (2)
▪ Identify the work that needs to be done - Work breakdown structure (WBS)
▪ Identify the dependency between work units - Dependency Graph
▪ Estimate the duration of the work to be done - Schedule
Creating a WBS (1)
•The entire project is represented as a Level 1 component.
•This can be subdivided into Level 2 components, and some or all Level 2
components can be subdivided into Level 3 components.
•You can continue to subdivide all the components in the same manner until
you reach a point at which you think the components you defined are
sufficiently detailed. At this point, you now have Level “n” components, where
n is the number of the lowest-level component in a particular WBS branch.
Level “n” components are called work packages.
Creating a WBS (2)
Identify next level of work:
• List major component under each top level group
• Note: 2 ways to do this 1) Indented lists or 2) Graphically in an organisation
chart

Level 1
Level 1
Indented Level 2-1
list/ Level 2-2 Level 2 Level 2
Outline Level 3-1
format Level 3-2 Level 3 Level 3 Level 3
Level 3-3
Organisational chart/ Graphical Chart
Creating a WBS: types of structures
Three different formats are typically used:

• Organization-chart format
o Effectively portrays an overview of your project and the hierarchical relationships
of different activities and tasks.

• Outline format
o Sub-activities and tasks are indented

• Bubble format
o The bubble in the center represents your project
o Lines from the center bubble lead to activities
o Lines from activities lead to tasks
Creating a WBS: types of structures:
Org-Chart Format

Prepare Report

Prepare Review Prepare

Draft Report Draft Report Final Report

Write Print
Final Report Final Report
Creating a WBS: types of structures:
Outline Format

Prepare Report
1.0 Prepare draft report
2.0 Review draft report
3.0 Prepare final report
3.1 Write final report
3.2 Print final report
Creating a WBS: types of structures:
Bubble Format

Review
Final Report
Review
Draft Report Prepare
Report

Review Write Print

Draft Report Final Report Final Report
Creating a WBS: Top Down Approach
• Specify all activities required for the entire project to be finished
• Determine all task required to complete each activity
• If necessary, specify sub-activities required to complete each task
• Continue in this way until you have adequately detailed your project.

• Approach is good if
̶ You are or your team is familiar with the problem.
̶ You have successfully managed a similar project in the past
̶ You are not introducing new methodologies, methods or tools
Creating a WBS: Brainstorming Approach Process
FIVE STEPS (01/02)
1. On a single list, write any activities you think will have to be
performed for your project.

2. Brainstorming means you

o Don’t worry about overlap or level of detail
o Don’t discuss activity wordings or other details
o Don’t make any judgements
o Write everything down
Creating a WBS: Brainstorming Approach Process
FIVE STEPS (02/02)
3. Then study the list and group activities into a few major
categories with common characteristics.

4. If appropriate group activities under a smaller number of tasks

5. Consider each category & use the top-down WBS approach to

determine any additional activities you may have overlooked.
Shtub, A., et al. (1994), Project Management Engineering Technology and Implementation, Prentice Hall International Editions
Creating a WBS in 15 steps (1)
1) Obtain inputs 8) Assign WBS ID
2) Define team to create the WBS 9) Organise the levels
3) Analyse the scope of work 10) Check components naming (nouns
4) Determine if you will use WBS not verbs)
structures 11) Insert levels
5) Determine the WBS approach and 12) Stakeholders input
organisation 13) WBS dictionary
6) Software to create WBS 14) WBS approval & communication
7) Decomposition technique (reverse 15) Link with budget/ scope/ schedule
design)
Creating a WBS in 15 steps (2)
• The WBS is the table of contents for the project. It captures the contents in an organized
fashion (chapters, subchapter).

• The WBS dictionary is the book itself. It tells the story. In our case the story is what work will
be accomplished and what outputs will be produced in each of the WBS elements. The total
of these descriptions will determine how and what is needed for our project.

Level WBS Element Description of Deliverables Budget Resources

Code Name Work
Connecting WBS with project schedule

Sutrisna, M., Ramanayaka, C.D.D. and Goulding, J.S. (2018), “Developing work breakdown structure matrix for managing offsite
construction projects”, Architectural Engineering and Design Management, Taylor & Francis, Vol. 14 No. 5, pp. 381–397.
WBS Controls 01

Critically review the WBS and ask the following questions:

• Does the WBS contain "things"? If so these things need to be
moved to the Product Breakdown Structure (PBS) and the "things"
replaced in the WBS by "make thing" work-packages.
• Is there a work-package or combination of work-packages for all
project products?
WBS Controls 02

Critically review the WBS and ask the following questions:

• Is work couched as nouns with associated verbs?
• Are all work-packages broken down into sufficient detail to be
clear to the deliverer what is required?
• Are work-packages aligned to contracts where required?
Summary
• PBS + WBS → correctness and
completeness of project plans
• Attention required not to blur
“things” with “activities”
• PBS for reporting – WBS for
assigning work - WBS
dictionary as the story of the
project
Further Reading
• Buchtik, L. (2013). Secrets to mastering the WBS in real-world projects : The
most practical approach to work breakdown structures (WBS)! (2nd ed.).
Newtown Square, PA: Project Management Institute.
• Lester, E.I.A. and Lester, E.I.A. (2017), “Work Breakdown Structures”, Project
Management, Planning and Control, Butterworth-Heinemann, pp. 53–59.
• “Use of product breakdown structures and work breakdown structures |
APM”. (n.d.). , available at: https://www.apm.org.uk/resources/find-a-
resource/use-of-product-breakdown-structures-and-work-breakdown-
structures/