Professional Documents
Culture Documents
Instructional Objectives
At the end of this module, the learners will be able to
1. Given the product, process, and organization structures for the project, as members of a
project team, develop the following:
x work breakdown structure
x responsibility matrix
x master summary schedule.
2. Describe what is meant by the following:
x activity
x chart of accounts
x master summary schedule
x responsibility matrix
x summary activity
x work breakdown structure
x work package.
3. Use the terms from objective 2 when planning a project.
4. List at least three key attributes of a work package.
5. Describe the principles used in setting the control period for a project.
Sessions
Session 6.1
Session 6.2
Session 6.3
Instructional Objectives
At the end of this session, the learners will be able to
1. As members of a project team, develop a WBS when given product, process, and
organization structures for the project.
2. List at least three key attributes of a work package.
Session Schedule
Introduction:
Lecture 6.1.1:
Discussion:
Activity 6.1.1:
Discussion:
5 minutes
Preparing the Work Breakdown Structure40 minutes
20 minutes
Water Supply and Sewerage Project for Islandia: Preparing the Work Breakdown
Structure60 minutes
30 minutes
Class Handouts
x
x
Instructional Objective
This lecture describes how to develop three planning
aids: the work breakdown structure (WBS), the responsibility matrix (RM), and the master summary
schedule (MSS).
By the end of the module, given the project objectives, the product and process structures, and an organization chart, participants should be able to develop a work breakdown structure, a responsibility
matrix, and a master summary schedule.
Visual 1
Visual 2
Visual 2
Importance of WBS
Creation of these three planning aids is part of the
process of planning for implementation which we
began in the last module. Together, they provide a
common structure or framework for organizing the
work on the project, assigning responsibilities, developing a rough estimate of the overall schedule for the
project, and controlling costs. This means the same
framework will be used for organizing budgets, cost
accounts, schedules, and work assignments.
These three tools supply information so that the project team can engage in detailed project planning at
the activity level in Module 7, where we introduce
the critical path method of planning (CPM). As you
will learn, the critical path plan is a fundamental
planning tool because it integrates activities, schedules, resources, and responsibilities. It enables the
project manager to determine the sequence of activities that controls the duration of the project, and it
provides a means of assessing progress.
Module 6: Preparing the Work Breakdown Structure, Responsibility Matrix, Master Summary Schedule
Session 6.1, Lecture 6.1.1: Preparing the Work Breakdown Structure (WBS)
Page 1 of 17
Units of analysis
Module 5
Deliverables
Phase
Module 6
Work packages
Summary activities
Visual 3
Units of Analysis
In the previous module we learned about the product
and process structures. We disaggregated deliverables
into components and elements for the product structure, and we broke down life-cycle phases into subphases and process elements for the process structure.
We will continue to work with components, elements, subphases, and process elements in this module. We also will discuss two new units of analysis,
work packages and summary activities. Work packages are important because they are the basis for
planning and tracking project costs and, in some
cases, letting contracts. Summary activities are important because they link nouns from the product
structure with verbs from the process structure and in
the next module they will be further disaggregated
into activities, which are the fundamental units of
work needed to create the critical path plan.
Visual 4
Terminology
Activity
Chart of accounts
Master summary schedule
Responsibility matrix
Summary activity (Subproject)
Work breakdown structure
Work package
Module 6 Session 6.1 Lecture 6.1.1
Visual 4
Terminology
Key terms that will be taught in the module include:
Activity
Chart of accounts
Master summary schedule
Responsibility matrix
Summary activity
Work breakdown structure
Work package
Note: A glossary of these terms is provided at the end
of lecture 6.2 for use as a study aid.
Visual 5
On-the-job tasks
The module will prepare participants
to perform these tasks:
Determine an appropriate control period (set unit
On-the-job Tasks
This module will enable participants to better perform these on-the-job tasks when managing projects:
of time)
Convert the product structure into a tree diagram
(WBS)
Review the process structure of the implementation
be useful
Module 6 Session 6.1 Lecture 6.1.1
Visual 5
Module 6: Preparing the Work Breakdown Structure, Responsibility Matrix, Master Summary Schedule
Session 6.1, Lecture 6.1.1: Preparing the Work Breakdown Structure (WBS)
Page 2 of 17
Visual 6
On-the-job Tasks
Assign numerical codes to the WBS so that each entry has a unique identification number which shows
its family relationship.
On-the-job tasks
Code the WBS
Determine if the WBS can be
Visual 6
Visual 7
WBS
The WBS displays the scope of the project
PROJECT
PROJECT
MANAGEMENT
HARDWARE
From organization
chart
Module 6 Session 6.1 Lecture 6.1.1
SOFTWARE
SERVICES
Visual 7
DOCUMENTATION
PLAN
From process
structure
WBS Defined
The work breakdown structure is a hierarchical,
product-oriented family tree that accounts for all
the work to be performed within a project.
The WBS can be created using a top-down or bottom-up approach. We recommend the top-down approach, especially for complex projects, because it
reduces the chance of forgetting to include an important element of work.
The top-down approach involves combining and
categorizing information form the product structure,
the life cycle (process structure), and the projects
organization chart. The bottom-up approach usually
involves a brainstorming technique so that the project
team can list as many activities, deliverables, components, and elements of work as possible (usually
without concern for sequence, relationships, or coherence). These items are then grouped into broader
Module 6: Preparing the Work Breakdown Structure, Responsibility Matrix, Master Summary Schedule
Session 6.1, Lecture 6.1.1: Preparing the Work Breakdown Structure (WBS)
Page 3 of 17
and broader categories until a hierarchy of work elements is built up. This hierarchy of grouped work
elements forms the basis for the WBS.
Regardless of which method one uses, the information must be combined so that all project-related
work has a place on the WBS and only one place (i.e.
categories are mutually exclusive). This includes
work related to HARD deliverables, such as
schools or roads SOFT deliverables, such as feasibility study or training, and any other work that must
be performed that is not directly related to any one
deliverable. This latter category includes processrelated work, such as assemble and test, and organizational work, such as project management. (This
will be explained in more detail later on).
Visual 8
Format
Styles: product, process, geographical,
or combinations
Recommended: product orientation
Highlights deliverables
products
Best when project includes more than one
deliverable
Better for CPM planning
Display as tree diagram or outline
Module 6 Session 6.1 Lecture 6.1.1
Format
The work breakdown structure is usually organized so that
it emphasizes the product structure, but sometimes it is organized in terms of process structure (life cycle) or geography. The WBS also can involve combinations of these formats, for example, process and geography or product and
geography, as in the bridge case study you will work on
later in this module. Each phase of the project life cycle can
have different deliverables. For example, the product at the
feasibility phase would be a report. Thus each phase
might have a different WBS.
Visual 8
Our recommendation is to use the product-oriented structure, because it highlights the deliverables better than the
other approaches. Any time a project has more than one
deliverable, the product-oriented organization should be
used for the WBS. This approach helps ensure that all product components are included in the planning and that nothing is omitted. Use of a product-oriented work breakdown
structure also will make the upcoming CPM analysis easier
to plan for and to interpret. (The CPM analysis produces a
diagram that shows how activities depend upon one another. Using the product-oriented WBS to plan for the CPM
reduces the number of intersecting lines and makes the
drawing easier to read.)
Although the WBS may be displayed as either a tree diagram or an outline, the tree diagram makes it easier to see
the hierarchical relationships among the work elements on
complex projects. However, many project management
Module 6: Preparing the Work Breakdown Structure, Responsibility Matrix, Master Summary Schedule
Session 6.1, Lecture 6.1.1: Preparing the Work Breakdown Structure (WBS)
Page 4 of 17
top down
1
successive level
Stops before
3
***
reaching individual
activities
n
Module 6 Session 6.1 Lecture 6.1.1
Visual 9
Labeling convention
Level of Indenture
~
~
Name
Level 0
Project
Level 1
Deliverables
Subphases
Organizational work
Level 2
Components
Process elements
Level 3
* * *
Subcomponents
(elements)
Process subelements
Labeling Convention
Labeling the different levels of indenture in the WBS
may vary from organization to organization and from
project to project. The convention we are using is the
following:
The top level of the WBS describes the project, for
example, building a house. It is labeled Level 0 in the
visual.
N
+ Some branches will have more levels than others
Module 6 Session 6.1 Lecture 6.1.1
Visual 10
Module 6: Preparing the Work Breakdown Structure, Responsibility Matrix, Master Summary Schedule
Session 6.1, Lecture 6.1.1: Preparing the Work Breakdown Structure (WBS)
Page 5 of 17
Work packages
Work packages are at
the lowest level of a
branch.
~
~
= Work package
Visual 11
Work Packages
The work package is usually the smallest element of
a WBS. Work packages can occur at any level of the
WBS, as you can see in the visual.
Perspective is important when thinking about work
packages. Work package is a relative concept and it is
not always easy to define. One persons work package can be another persons component or someone
elses project. It depends upon where the person is in
the management hierarchy in relationship to the
work. For example, developing a new informatics
curriculum may be a major project for the person in
the Ministry of Education who is responsible for its
completion, but it is only one small part of an overall
project for educational reform from the Ministers
perspective. From the Ministers perspective, it is just
a work package.
Module 6: Preparing the Work Breakdown Structure, Responsibility Matrix, Master Summary Schedule
Session 6.1, Lecture 6.1.1: Preparing the Work Breakdown Structure (WBS)
Page 6 of 17
Visual 12
Visual 12
Easy to identify expensesA single accounting number can be given to the package for budgeting and
cost accounting purposes.
BoundedThere are clear start and finish points.
Easy to assess qualityThere are clear quality criteria associated with the set of activities.
UniqueEach work package can be clearly distinguished from all other work packages and none share
any work elements.
Work packages are as a means of assigning work to
entities within the organization or of letting the work
to contractors. In some organizations work packages
are part of a formal system of procurement and expense management. In such cases work packages, or
collections of work packages, usually form the basis
for formal contracts or subcontracts. Within an organization, they also can be used to establish informal contracts with other departments or individuals.
Module 6: Preparing the Work Breakdown Structure, Responsibility Matrix, Master Summary Schedule
Session 6.1, Lecture 6.1.1: Preparing the Work Breakdown Structure (WBS)
Page 7 of 17
House project
Work breakdown structure (WBS)
Level
Label
Project
Deliverables
or
Subprojects
HOUSE
PROJECT
PLAN
(Process work)
MANUALS
HOUSE
LANDSCAPING
Components
or
Work
packages
3-10 SITE
3-20
3-30 FRAME
FOUNDATION
Subcomponents or Work
packages
3
Module 6 Session 6.1 Lecture 6.1.1
Visual 13
3-40 ROOF
3-510
PLUMBING
PROJ.
MANAGE.
(Organizational
Work)
A WBS Example
This is a sample work breakdown structure for the
construction phase of the house project. Work elements are hierarchically listed. This is also referred to
as levels of indenture.
3-50
SYSTEMS
3-520
3-530
ELECTRICAL TELEPHONE
Module 6: Preparing the Work Breakdown Structure, Responsibility Matrix, Master Summary Schedule
Session 6.1, Lecture 6.1.1: Preparing the Work Breakdown Structure (WBS)
Page 8 of 17
Coding
Use numbering system
Numbering system should
Visual 14
Coding
When preparing a WBS, a numbering system is usually used to identify the work elements and clarify
their relationships.
The coding system has a number of purposes:
It provides a structure for setting up the budget and
various tracking systems.
It serves as the basis for generating plans and management reports of varying levels of detail.
Most organizations have a chart of accounts that is
used with data processing and accounting systems to
plan, track, and report expenditures. The chart of accounts is simply a list of items, often grouped into
categories, such as personnel, travel, office supplies,
and equipment rentals. Each category and each item
within a category is assigned a code number. For example, 001 for personnel or 002 for travel. These
code numbers from the chart of accounts are used to
plan, track, and report expenditures. This system
maintains order in the organizations accounts and
keeps the controller happy.
Ideally, the numbering system used on the WBS will
relate in some way to the account structure and coding system used by an organizations financial department to budget and track expenses (i.e., its chart
of accounts). When the chart of accounts and the
WBS are related through a relational database management system, planning and tracking progress and
expense are much easier. This may not be possible,
however, and it is likely that the project manager will
have to create an additional, informal expense tracking system for the project. Care should be taken to
develop a coding system that will meet a variety of
Module 6: Preparing the Work Breakdown Structure, Responsibility Matrix, Master Summary Schedule
Session 6.1, Lecture 6.1.1: Preparing the Work Breakdown Structure (WBS)
Page 9 of 17
Benefits of WBS
Graphically depicts all project work
Relates work elements to each other and to
Benefits of WBS
Creating a WBS can be challenging, but it yields numerous benefits.
Project budget
Visual 15
and training
Check for appropriate detail
Do not include activities on WBS
Utilize team expertise
Visual 16
Module 6: Preparing the Work Breakdown Structure, Responsibility Matrix, Master Summary Schedule
Session 6.1, Lecture 6.1.1: Preparing the Work Breakdown Structure (WBS)
Page 10 of 17
deliverables flow from the objectives of the project. We suggest changing the outline format into a
family-tree diagram so that you can see the hierachical relationships more easily. However, if you
are using a software package that only accepts information in outline form, you may want to work
in outline form.
Make sure soft items, such as documentation and
training, are included if they are part of the projects deliverables.
Determine if the product structure has enough detail or if any branches need additional detail. (Consider how much information a given level of management needs.)
Only go to the level of detail that is useful for a
given level of management.
Always stop before reaching individual activities.
The team member with the most expertise in a particular component should be responsible for dissaggregating that component. (This can be an assignment completed before the team meeting if the
team member participated in the definition meeting
that was described in Module 5.
Visual 17
To
Tree diagram
HOUSE PROJECT
House project
Manuals
Landscaping
House
Site
Foundation
Frame
Roof
Systems
SITE
Plumbing
Electrical
Telephone
Module 6 Session 6.1 Lecture 6.1.1
MANUALS
HOUSE
LANDSCAPING
FOUNDATION
FRAME
ROOF
SYSTEMS
PLUMBING
ELECTRICAL TELEPHONE
Visual 17
Module 6: Preparing the Work Breakdown Structure, Responsibility Matrix, Master Summary Schedule
Session 6.1, Lecture 6.1.1: Preparing the Work Breakdown Structure (WBS)
Page 11 of 17
Inspection/test/review
Assemble
Initial planning
Visual 18
Project management
Contracts
Quality assurance
branch to branch
Code the WBS
Module 6 Session 6.1 Lecture 6.1.1
Visual 19
Module 6: Preparing the Work Breakdown Structure, Responsibility Matrix, Master Summary Schedule
Session 6.1, Lecture 6.1.1: Preparing the Work Breakdown Structure (WBS)
Page 12 of 17
Our rule is that the WBS must account for all project
work. If developing the implementation plan is not
included in the product structure, then we need to add
it as a process element.
Add any missing organizational work to the appropriate level of the WBS.
Determine if additional disaggregation would be
useful for any of these.
Not every deliverable has to be broken down to the
same level of detail. Some will stop at the second
or third level. Others may have four or five levels.
Code the WBS. Give each element a unique number that relates it to its category and level.
Many projects run into problems with cost control
during implementation because the categories in
the cost accounting system do not match the categories in the WBS and the CPM. This makes it difficult, if not impossible, for the cost accounting
system to match expenditures with the work completed. For example, if the organizations chart of
accounts only provides one account number for
charging the costs for ready-mix concrete, the project manager will not be able to easily determine if
the concrete is being used for roadways or the
bridge foundation. The WBS should provide a
structure so that when the project-level accounting
system is developed, it is possible to relate costs
with specific components and deliverables.
Visual 20
House project WBS
Process structure
PLAN
CONSTRUCT
Organization chart
INSPECT
HOUSE PROJECT
ARCHITECT
OWNER
SITE
MANUALS
HOUSE
FOUNDATION
FRAME
Visual 20
PROJECT
MANAGER
CONTRACTOR
LANDSCAPING
ROOF
SYSTEMS
PLUMBING
ELECTRICAL
TELEPHONE
Module 6: Preparing the Work Breakdown Structure, Responsibility Matrix, Master Summary Schedule
Session 6.1, Lecture 6.1.1: Preparing the Work Breakdown Structure (WBS)
Page 13 of 17
Process structure
PLAN
CONSTRUCT
HOUSE
PROJECT
INSPECT
ARCHITECT
OWNER
PLAN
(Process work)
MANUALS
HOUSE
LANDSCAPING
3-10 SITE
3-20
3-30 FRAME
FOUNDATION
3-40 ROOF
3-510
PLUMBING
PROJECT
MANAGER
CONTRACTOR
PROJ.
MANAGE.
(Organizational
Work)
3-50
SYSTEMS
3-520
3-530
ELECTRICAL TELEPHONE
(2) We did not add Inspection from the process structure to the WBS.
Visual 21
Module 6: Preparing the Work Breakdown Structure, Responsibility Matrix, Master Summary Schedule
Session 6.1, Lecture 6.1.1: Preparing the Work Breakdown Structure (WBS)
Page 14 of 17
(2) The plan for the house deliverable will be for all
the components of the house deliverable (e.g., frame,
roof, systems, etc.) and the components will not have
individual plans of their own.
The first assumption leads us to list Plan under the
house deliverable (not as a Level 1 item on the
WBS). The second assumption results in our listing
Plan as a separate work package on the WBS rather
than treating it as an activity associated with each
component and, consequently, not showing it on the
WBS.
We did not show Inspection on the WBS because it
seemed to be an activity within each component
rather than a separate work package. That is, it was
not clearly bounded. There was no single period
when all inspection would occur. Rather, the foundation would be inspected at one time, the frame at another, the roof at another, and landscaping at still another. Personnel would probably vary with each inspection, as would the quality criteria and methodology employed. It would not be easy to create a single
budget category for Inspection or to assign the responsibility to one organization. Under such circumstances, Inspection seemed less a work package than
a series of unique and relatively independent activities, each closely associated with a specific component, such as foundation, frame, or roof.
Consequently, we opted to treat Inspection as an activity within each component and not explicitly list it
on the WBS, either at the project level or under a deliverable. (Each separate inspection activity will be
broken out later when we prepare the detailed CPM
plan and schedule.)
Module 6: Preparing the Work Breakdown Structure, Responsibility Matrix, Master Summary Schedule
Session 6.1, Lecture 6.1.1: Preparing the Work Breakdown Structure (WBS)
Page 15 of 17
PLAN
(Process work)
MANUALS
HOUSE
LANDSCAPING
3-10 SITE
3-20
3-30 FRAME
FOUNDATION
PROJ.
MANAGE.
(Organizational
Work)
3-40 ROOF
3-50
SYSTEMS
3-510
PLUMBING
3-520
ELECTRICAL
3-530
TELEPHONE
Visual 22
Visual 23
Visual 23
Mistakes to Avoid
You now know what a WBS is, why it is useful, and
how to create one. The checklist handout at the end
of lecture 6.2 has directions for creating the WBS.
But before introducing our second planning tool for
this module, the master summary schedule, lets discuss some of the mistakes project managers often
make when preparing the WBS. This discussion will
help you to avoid making these mistakes.
1. The first mistake is skipping the WBS and either
going right to the CPM, or skipping both the
WBS and the CPM analysis and moving right to
execution. In time pressured situations the project
manager will often be tempted to do this. However, the WBS should never be eliminated. It will
almost always result in major errors later on and
will ultimately increase the cost and duration of
the project.
2. The second mistake is forgetting to include certain deliverables when preparing the WBS. This
is particularly easy to do if you break the work
down purely by process, organizational responsibility, or geography. It is one of the reasons we
suggest always using the product format. The
product format requires the project team to constantly keep the deliverables, components, and
elements in mind.
3. Failing to include all the work on the project is
the third mistake. Dont forget that the WBS
must account for all the work on the project.
Work that is not specifically included in any
work package but that relates to all of them, such
Module 6: Preparing the Work Breakdown Structure, Responsibility Matrix, Master Summary Schedule
Session 6.1, Lecture 6.1.1: Preparing the Work Breakdown Structure (WBS)
Page 16 of 17
programs
Visual 24
Mistakes to Avoid
6. The sixth mistake is forgetting that groupings
must be mutually exclusive. Categories on the
WBS cannot overlap. This means the same work
cannot appear in two places. If it does, youll end
up with mistakes in planning, scheduling, and
cost accounting!
7. Using too much or too little detail is the eighth
mistake. It is important to consider who will be
using the information when deciding how many
levels of indenture to include on a WBS. Different levels of management need different levels of
detail. The project manager should be sensitive to
the needs of the various levels of management for
whom reports are being prepared.
8. Not keeping automation in mind is the last mistake. This is an area of growing importance as
more project managers use project management
software packages. These packages often require
information to be entered as an outline and the
numbering system used to establish the relationships between various items. The project team
needs to consider the particular software program
it is using when developing a coding system for
the WBS. The project team will want to modify
aspects of the software program so that it better
meets the needs of the project.
This concludes our discussion of the WBS. The exercise portion of this module will provide participants
with opportunities to create simple work breakdown
structures.
Module 6: Preparing the Work Breakdown Structure, Responsibility Matrix, Master Summary Schedule
Session 6.1, Lecture 6.1.1: Preparing the Work Breakdown Structure (WBS)
Page 17 of 17
Learners should review the Islandia case study from activity 5.2.1, their teams
solution to activity 5.3.1, as well as the authors solution to activity 5.3.1.
Step 2
Step 3
Distribute the problem statement to the class. Also distribute the Checklist for
Preparing the Work Breakdown Structure appended at the end of lecture 6.2.
Step 4
Have each team prepare a WBS using a flip chart or some other means by
which they can share their work with the class.
Step 5
Each team presents its WBS and explains the reasoning that went into creating
the WBS.
Step 6
Module 6: Preparing the WBS, Responsibility Matrix, and Master Summary Schedule
Session 6.1, Activity 6.1.1: Water Supply and Sewerage Project for Islandia: Preparing the WBS
Teaching Notes, Page 1 of 2
Step 7
Distribute the authors version of the WBS and compare it to those developed
in class.
Discuss the similarities and differences and advantages and disadvantages of
the authors version with those of the project teams.
The authors version of the WBS is based on the product structure. We have
added project management from the organization structure and Setup
(Administration) and Termination from the process structure because these
items are not accounted for by the deliverables.
Step 8
Module 6: Preparing the WBS, Responsibility Matrix, and Master Summary Schedule
Session 6.1, Activity 6.1.1: Water Supply and Sewerage Project for Islandia: Preparing the WBS
Teaching Notes, Page 2 of 2
Module 6: Preparing the WBS, Responsibility Matrix, and Master Summary Schedule
Session 6.1, Activity 6.1.1: Water Supply and Sewerage Project for Islandia: Preparing the WBS
Problem, Page 1 of 1
11.1
11.2
11.3
12.0
13.0
Staff recruitment
Government approvals
Procurement organization
Project management
Termination
Module 6: Preparing the WBS, Responsibility Matrix, and Master Summary Schedule
Session 6.1, Activity 6.1.1: Water Supply and Sewerage Project for Islandia: Preparing the WBS
Solution, Page 2 of 2