PROJECT WBS/OBS

Reference: Gray and Larson, Project Management, Irwin/McGraw-Hill, 2000

Hierarchical Breakdown of the WBS

Level
1

Hierarchical breakdown

Description Complete project

Project Deliverable Subdeliverable Lowest subdeliverable Cost account* Work package

Major deliverables Supporting deliverables Lowest management responsibility level Grouping of work packages for monitoring progress and responsibility Identifiable work activities

3 4

*This breakdown groups work packages by type of work within a deliverable and allows assignment of responsibility to an organizational unit. This extra step facilities a system for monitoring project progress (discussed in Chapter 12).

Irwin/McGraw-Hill

The McGraw-Hill Companies, 2000

Work Breakdown Structure

Level 1

Personal computer prototype

Vendor, software, applications ~ Mouse, keyboard, voice Disk storage units Optical Hard Internal memory unit Microprocessor unit

More items

~ Floppy
~

BIOS (basic input/output system)

ROM ~
Lowest manageable subdeliverables

RAM ~

I/O ~

File ~

Utilities ~

Motor

Circuit board WP-1 CB WP-2 CB WP-3 CB WP-4 CB WP-5 CB WP-6 CB WP-7 CB

Chassis frame WP-1 CF WP-2 CF WP-3 CF

Read/write head WP-1 RWH WP-2 RWH WP-3 RWH WP-4 RWH WP-5 RWH

WP-1M

Work packages

Irwin/McGraw-Hill

The McGraw-Hill Companies, 2000

Integration of WBS and OBS

Level 1

Personal computer prototype

1.0

1.2
2

1.3

1.1

1.4

More items

Vendor, software, applications ~

Mouse, keyboard, voice ~ 1.1.1 Floppy ~

Disk storage units

1.1.2 1.1.3 1.4.1

Microprocessor unit
1.4.2

Optical ~

Hard

Internal memory unit

1.4.1.1 1.4.1.2

BIOS (basic input/output system)

1.4.2.1 1.4.2.2 1.4.2.3

ROM
~

RAM ~
1.1.3.4

I/O ~

File ~

Utilities ~

Lowest manageable subdeliverables

1.1.3.1

1.1.3.2

1.1.3.3

Motor

Circuit board
Cost account Cost account Cost account

Chassis frame

Read/write head
1.1.3.4.1

Design Manufacturing Production Organization Test Purchasing Software

Cost account

Cost account number

Cost account Cost account

Work packages WP1.1.3.4.2.1 WP1.1.3.4.2.2 WP1.1.3.4.2.3

Budget by period
Time

Cost account

Irwin/McGraw-Hill

The McGraw-Hill Companies, 2000

Read/Write Head Design

Work package cost estimate
Cost Direct Costs Design engineers Proto engineers Materials Equipment rental Total direct costs Low $ 80 130 25 25 $260 Average $100 150 25 25 $300 High $150 280 25 30 $485

Irwin/McGraw-Hill

The McGraw-Hill Companies, 2000

Summary Guidelines for Work Package Estimating

Time and resource estimates should be made by those most familiar with the task Estimates should be based on normal conditions Time units employed should be consistent. Work task estimates should be treated as independent estimates and not influenced by other project tasks . Contingencies should not be built into estimates. Top management will have a contingency fund to use if necessary. Remember, these are estimates. Errors and mistakes should be allowed and not punished.

END