Work breakdown structure and project cost estimation. Download construction cost estimating breakdown form. A typical example is documented in the bible where moses divided the people of. The foundation for project management excellence e. The work breakdown structure wbs is used for defining work packages and developing and tracking the cost and schedule for the project. Requirements workshop work breakdown structure reference introduction to part ii in requirements by collaboration by ellen gottesdiener, addisonwesley, 2002. Structure the work based on the work products examples. It encourages systematic planning and reduces the possibility of omitting key project elements. This post provides a simple example of what a requirements breakdown can look like. The resulting briefing document produced by the apm is summarised here 1 with some additional commentary. Work breakdown structurebased cost model for nontreatment.
Preliminary engineering wbs work breakdown structure. From this last overall project cost estimation results in the sum of the products as indicated in equation 2. Agile requirements breakdown structure by david bulkin. If you ran a cupcake shop, youd need a lot of ingredients to make the cupcakes and. It is an enabler that ensures clear definition and communication of project scope while performing a critical role as a monitoring and controlling tool. Pdf the role of cost breakdown structure in life cycle. Motivated by the lack of a standard wlc data collection and analysis procedure. That is not the end of the work breakdown structure. Design documents, manuals, the delivered system, functional approach structure the work based on development activities and project functions examples.
A work breakdown structure wbs is a description of the work that will be done for a project. The contents of the requirements documentation will also drive subsequent actions to deliver the product or project results. Wbs work breakdown structure what is wbs and what is its purpose each project is complex. Creating the work breakdown structure the wbs can be structured in either of two ways. Work break down structure wbs step by step guide to create wbs 5 only steps. Cost breakdown planning overview of cost breakdown planning. The wbs tool is used to decompose the whole into smaller parts that will be easier for the team to plan and manage. Conclusions the workbreakdown structure is the backbone of the proper planning, execution and control of a project, although it is not as well known as cpm or pert. A work breakdown structure wbs is a fundamental project management technique for defining and organizing the total scope of a project, using a hierarchical tree structure. How to design a proper project execution cost breakdown structure. Work breakdown structure a work breakdown structure wbs is a decomposition of all the work necessary to complete a.
The chapter discusses the purpose of the work breakdown structure wbs and code of account coa cost code. The cost structure describes all costs incurred to operate a business model this building block describes the most important costs incurred while operating under a particular business model. This will obviously be the cost for the component e. Cost codes and the work breakdown structure doe directives. Project work breakdown structure wbs september 28, 2012. Its a helpful tool that defines a detailed cost or time estimate and provides guidance for schedule development and control. Figure 3 shows the common format, and figure 4 gives an example. Section 2 focuses on the work breakdown structure wbs as a tool that supports division of labor in. A work breakdown structure wbs is a tool used to define and group a projects discrete work elements or tasks in a way that helps organise and define the total work scope of the project it provides the framework. The compliance cost models described in this document differ from the drinking water cost models previously used by the agency in that the new models are based on a work breakdown structure wbs approach to developing cost estimates. Impact of various workbreakdown structures on project. A work breakdown structure in project management and systems engineering, is a deliverable oriented decomposition of a project into smaller components.
Uses the pm wbs as template for project time allocation, cost. This is a working draft document for discussion purposes only. Define workshop purpose and participants tangible deliverables. It helps you plan, track and report project costs based on a hierarchical structure of userdefined cost codes. What is different is that the breakdown structure now includes a cost component. Work breakdown structure a wbs is a deliverableoriented grouping of project components oriented grouping of project components that organizes and defines the total scope of the project work not in the wbs is outswork not in the wbs is outside the scope of the projectide the scope of the project wbs is usually an operative tool used by contractorswbs is usually an operative. Work breakdown structures overview finance dynamics. Product breakdown structure pbs a product breakdown structure pbs is an exhaustive, hierarchical tree structure of components that make up an item, arranged in wholepart relationship. A cost breakdown structure cbs is not that different from a pbs product breakdown structure or wbs work breakdown structure. Work breakdown structure element dictionary construction procedures are subject to change without notice.
I know that the cost breakdown structure is similar to a wbs, but with the difference that it shows the cost elements instead of the work elements. We would like to show you a description here but the site wont allow us. A life cycle cost is the total cost of owning an asset during its predicted useful life, while a cost breakdown structure illustrates all the costs emerged in each single phase of the assets. Oracle projects helps you manage projects with complex cost structures by providing you the ability to enable a project for cost breakdown planning. Work breakdown structure a good wbs simplifies the project by dividing the effort into manageable pieces.
The three typical items required to drive the project to successful completion, namely scope, schedule and cost, are greatly enhanced by the ability of the project manager and his. A gantt chart uses horizontal bars in a lineartype calendar. A fixture in classic project management methodology and systems engineering, the work breakdown structure wbs is a method that breaks a project down into a hierarchy of deliverables, tasks, and subtasks. Work breakdown structure wbs in project management. Pdf integration of cost and work breakdown structures in the. Analysis, design, implementation, integration, geographical area approach structure the work based on geographical location. A breakdown of the amount into its various elements, i. Example of threelevel wbs number code used in andritz oy. A separate schedule of the information required per note 4 above for each subcontracts if this item is subcontracted. Steps to create a wbs identify the major deliverables. The cost breakdown structure is often an adjunct to the wbs it shows the costs associated with each work package. Creating and delivering value, maintaining customer relationships, and generating revenue all incur costs. In this way, the requirements will identify specific actions that must show up in the work breakdown structure. Breakdown structure wbs and other supporting documents.
Documentation to enable the agency to easily track changes to. In this paper we explain what the important characteristics of such a breakdown structure are, and how it should be. Wbs also provides the necessary framework for detailed cost estimation and control along with providing guidance for schedule development and control. The effectiveness of project cost control lies very much in the design and implementation of a proper cost breakdown structure that is fit for purpose. To undertake a wholelife costing wlc exercise, it is necessary to breakdown a built asset into its constituent elements whose costs can be distinctly defined and estimated. View work breakdown structure research papers on academia. Applying the work breakdown structure to the project. The project management working breakdown structure pmwbs project. Simple method proposal for cost estimation from work.
Work breakdown structure element dictionary construction. Download construction cost estimating breakdown form sample pdf free. Pdf application of the work breakdown structure in determining. In this case, it would be a part of the project managers responsibility to create the chart through facilitation with the project team. Breakdown structures revisited dedicated to project controls. The following discussion will examine the current trends and practice regarding work breakdown structures. Uniformat a publication of csi and csc, is a method of arranging construction information based on functional elements, or parts of a facility characterized by their functions, without regard to the materials and methods used to accomplish them.
How to design a proper project execution cost breakdown. Creating the work breakdown structure by kim colenso, managing principal, artemis management systems the work breakdown structure wbs is the foundation for project planning and control. This is nothing new and is similar to a functional breakdown structure, or product oriented work breakdown structure that has been used since i started my career over 25 years ago. Abstract the integration of cost and schedule control systems has been an issue of. It is the connecting point for work and cost estimates, schedule information, actual work effort cost expenditures, and accountability.
Wbs quality characteristics apply at all levels of scope definition b. Work breakdown structure element dictionary preliminary engineering procedures are subject to change without notice. Work and resource breakdown structures for formalized. Auidp1 edition 1 nato guidance on unique identification uid of items is a nonclassified nato publication.
Its a hierarchy of tasks that represents the project teams understanding of the composition of work, and of the size, cost, and duration of each component or task. Pdf scope management allows project managers to react when a project. Include any applicable taxes, customs charges, etc, on finished articles. The prince2 project management method mandates the use of product based planning, part of which is developing a product breakdown structure. Chalmers, material and manufacturing technology, masters thesis 2011. The importance of the wbs experienced project managers know there are many things that can go wrong in projects. The first approach structures the wbs primarily from a deliverables perspective, in that the highest level level 1 entries represent the major deliverables that the project is committed to create. Discussion this approach is a simple method for cost estimation from work breakdown structure. If you have any questions regarding this document or if you have a suggestion for. Construction cost estimate breakdown sheet contains all cost in. Cdc unified process practices guide work breakdown structure up version. Wbs element may be a product, data, service, or any combination thereof.
Example of work breakdown structure for requirements. Understand and apply new concepts regarding work breakdown structures the work breakdown structure wbs has emerged as a foundational concept and tool in project management. A work breakdown structure element may be a product, data, a service, or any combination. This cost estimate breakdown sheet is very important for a building construction contractor before they budget and start any project. Describe the breakdown or composition of work in tasks. Presenters christopher bucksa, senior project manager, university services pmo. But can you provide a real life example of the cost breakdown structure so that i can understand the concept. Below is a simplified wbs example with a limited number of organizing levels.
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