work-breakdown-structure

What Is A Work Breakdown Structure? Work Breakdown Structure In A Nutshell

A work breakdown structure is a simple and methodical means of organizing and understanding project scope. The approach enables businesses to take a top-down look at a project and break it into smaller tasks and subtasks that will assist in project completion. It also guides time and cost estimates and schedule development and control. A work breakdown structure (WBS) is a component of project management and systems engineering that breaks a project down into a hierarchy of tasks and deliverables.

ComponentDescription
DefinitionA Work Breakdown Structure (WBS) is a hierarchical decomposition of a project into smaller, manageable components or work packages. It is a visual representation that organizes the project’s tasks, deliverables, and activities in a structured manner. The WBS is a fundamental tool in project management for planning, organizing, and controlling project work.
Key ElementsHierarchy: The WBS is organized in a hierarchical structure, with the project at the top level and progressively detailed levels below.
Work Packages: Each level of the hierarchy represents a different level of detail, with work packages at the lowest level, which are the smallest units of work that can be assigned, estimated, and tracked.
Deliverables: The WBS represents both the project’s deliverables (end results) and the work required to produce them.
How It Works1. Define the Project Scope: Clearly define the scope of the project, including its objectives and deliverables.
2. Identify Major Phases: Break the project into major phases or milestones.
3. Create the WBS: Starting with the project’s main phases, progressively decompose each phase into smaller, more manageable components, using a hierarchical structure.
4. Assign Codes: Assign unique codes to each element of the WBS to facilitate organization and reference.
5. Review and Validate: Review the WBS with stakeholders to ensure completeness and alignment with project objectives.
6. Use for Planning: Utilize the WBS for project planning, resource allocation, scheduling, and budgeting.
7. Track Progress: As work progresses, use the WBS to track the completion of work packages and monitor project status.
BenefitsClarity: Provides a clear and structured view of the project’s scope and components.
Organizational Tool: Facilitates project organization, management, and communication.
Scope Control: Helps in controlling scope creep by clearly defining project boundaries.
Resource Allocation: Aids in resource allocation and assignment of responsibilities.
Estimation: Supports accurate time and cost estimation for each work package.
Risk Management: Helps identify potential risks and dependencies.
DrawbacksComplexity: Creating a detailed WBS for large projects can be time-consuming and complex.
Resource Intensive: Requires resources for the initial creation and ongoing management.
Scope Changes: May need revisions if project scope changes significantly.
Over-Emphasis on Detail: Can lead to an excessive focus on low-level tasks at the expense of high-level project goals.
ApplicationsProject Management: Used in various industries for project planning and execution.
Construction: Commonly employed in construction projects to break down tasks and phases.
Software Development: Applied to organize software development projects.
Engineering: Utilized in engineering projects to structure tasks and deliverables.
Event Planning: Useful for organizing and managing events and conferences.
Product Development: Helps in product development by breaking it into manageable steps.
ExamplesProject: Construction of a new office building.
Phase: Design phase of a software development project.
Deliverable: Creation of a marketing campaign for a new product launch.
Work Package: Writing a specific module of code for a software project.
Task: Procurement of materials for a construction project.
Subtask: Researching suppliers for construction materials.

Understanding a work breakdown structure

The work breakdown structure diagram illustrates the components of a project vital to its overall success.

The final project deliverable is placed at the top of the diagram, with multiple levels below that denoting the systems, sub-systems, components, tasks, subtasks, and work packages critical to project completion.

Work packages describe the work required to complete a specific job or process and occupy the lowest level of the WBS diagram.

The number of levels required depends on project complexity.

For moderately complex projects,  practitioners suggest using three or four levels.

More complex projects may require the full complement of six levels.

This process of breaking down the project into progressively smaller parts is called decomposition.

Developing a system for the construction of a new aircraft is one example of a complex project with many moving parts.

Using a work breakdown structure, the manufacturer may assign one system to aircraft construction and another to pilot training.

Within the system tasked with aircraft construction, there may be sub-elements for the airframe, navigation system, and landing gear.

Similarly, the airframe construction sub-system itself can be further divided into wings, tail, and fuselage components, and so on.

Creating a work breakdown structure

Following is a very general overview of the steps involved in creating a robust project estimate.

1 – List high-level deliverables 

The process starts with defining the project scope. What will the team need to deliver to meet the project end goal? 

For example, deliverables for a new company website may include blog content, page design, a sitemap, and front and back end code.

Discussing project deliverables as a team is vital because it allows expectations to be set around individual task responsibility.

2 – Segment each deliverable into tasks 

These tasks define how the deliverable will be met. In other words, what needs to be done to create the deliverable?

What are the task requirements? Are there other project tasks that will assist in its creation? Indeed, are there task interdependencies?

The elements in each level must be mutually exclusive.

To avoid duplication and reduce miscommunication, there must be no overlap in deliverables.

3 – Decompose with subtasks 

To make the work breakdown structure as detailed as possible, every task must be defined in terms of subtasks.

Every level of decomposition must comprise 100% of the level above it and incorporate at least two “child” subtasks. 

The process of meticulously ensuring that 100% of the scope is captured can be exhaustive, but investing in the approach now means a reduced likelihood of later budget blowouts and missed deadlines. 

The company developing a new website may test its navigation menu with ten users.

This task can be broken down into subtasks, including recruiting users, scheduling sessions, conducting sessions, compensating users for their time, and writing up findings and subsequent recommendations.

The decomposition process should continue until each element can be managed by a single individual or organization.

4 – Format the work breakdown structure and estimate the work 

Formatting is usually achieved through Gantt charts because they provide a convenient task hierarchy and are easily referenced.

However, a whiteboard or spreadsheet is just as effective. 

Once formatted, the team must discuss each task together and estimate a completion time. 

Summing the estimated completion time for each task will then let the team know whether the project is in or out of the scope defined at the outset.

Key takeaways

  • A work breakdown structure is a component of project management and systems engineering that breaks a project down into a hierarchy of tasks and deliverables
  • A work breakdown structure is particularly useful in complex projects requiring diligent and detailed planning. In a process called decomposition, the project is broken down into progressively smaller levels of deliverables and associated tasks.
  • The work breakdown structure process can be performed in four steps. The team starts by defining high-level deliverables and then segments them into tasks and sub-tasks. During the final step, the team assigns a time to completion estimate for each task and uses this information to determine whether the project can be delivered within scope.

Key Highlights

  • Project Scope Organization:
    • A Work Breakdown Structure (WBS) is a systematic approach to organize and understand the scope of a project.
  • Hierarchical Structure:
    • The WBS breaks down a project into a hierarchical structure with multiple levels, starting from the final project deliverable at the top and breaking down into systems, sub-systems, components, tasks, subtasks, and work packages.
  • Decomposition:
    • The process of breaking down the project into progressively smaller parts is called decomposition. It involves segmenting high-level deliverables into tasks, then further decomposing those tasks into subtasks.
  • Project Complexity and Levels:
    • The number of levels in the WBS depends on project complexity. Moderately complex projects may use three or four levels, while more complex projects might use up to six levels.
  • Detailed Planning:
    • The WBS is particularly useful for complex projects that require detailed planning and management. It helps ensure that all aspects of the project are considered and accounted for.
  • Segmenting Deliverables:
    • The process starts by listing high-level deliverables that the project team needs to achieve. For example, a new company website project might include deliverables like blog content, design, and coding.
  • Task Definition and Subtasks:
    • Each deliverable is then segmented into tasks, defining how each deliverable will be achieved. Tasks can be broken down further into subtasks for greater detail.
  • Mutually Exclusive Elements:
    • To prevent overlap and miscommunication, each level of deliverables and tasks should be mutually exclusive.
  • Decomposing Subtasks:
    • To enhance detail, tasks are decomposed into subtasks. Each level of decomposition should cover 100% of the level above and include at least two “child” subtasks.
  • Format and Estimation:
    • The WBS can be formatted using tools like Gantt charts, spreadsheets, or whiteboards. The team estimates completion times for each task, and the sum of these estimates determines if the project is within scope.
  • Effective Project Management:
    • WBS helps in effective project management by providing a structured approach to planning, organizing, and tracking tasks and deliverables.
Related FrameworksDescriptionImplications
Work Breakdown Structure (WBS)Hierarchical decomposition of project deliverables into smaller, manageable tasks. – Organizes work into a logical structure. – Defines the scope, schedule, and resources required for each task. – Facilitates planning, coordination, and tracking of project activities.Clarity and organization: Provides a clear roadmap of project tasks and deliverables. – Facilitates planning and coordination: Enables effective allocation of resources and scheduling of activities. – Challenges with granularity: Requires careful consideration to ensure tasks are neither too broad nor too detailed. – Risk of scope creep: Changes to the WBS may impact project scope and timeline if not managed effectively.
Gantt ChartVisual representation of project tasks and their dependencies over time. – Displays tasks as horizontal bars along a timeline. – Highlights task duration, start dates, and dependencies. – Facilitates scheduling, monitoring, and resource allocation.Visualization of project timeline: Provides a clear overview of task durations and dependencies. – Facilitates resource allocation: Helps identify resource constraints and bottlenecks. – Challenges with complexity: Large projects may require detailed planning and management of dependencies. – Risk of misalignment: Changes to task dependencies may impact project schedule and execution if not updated accordingly.
PERT ChartProject management tool used to analyze and represent the tasks and timeline of a project. – Consists of nodes (representing tasks) and arrows (representing dependencies). – Includes estimated durations and critical path analysis. – Facilitates scheduling, risk assessment, and optimization of project timelines.Identification of critical path: Helps prioritize tasks and allocate resources effectively. – Facilitates risk assessment: Enables identification of potential delays and bottlenecks. – Challenges with complexity: Large projects may require detailed analysis and management of dependencies. – Risk of delays: Changes to task durations or dependencies may impact project timeline if critical path is not managed effectively.
Resource Breakdown StructureHierarchical representation of project resources. – Organizes resources by type, category, or department. – Defines resource roles, responsibilities, and availability. – Facilitates resource planning, allocation, and tracking.Effective resource utilization: Enables matching of resources to project tasks based on skills and availability. – Facilitates resource allocation: Helps ensure adequate staffing and workload distribution. – Challenges with coordination: Requires alignment between project needs and resource availability. – Risk of overallocation: Lack of visibility into resource availability may lead to overcommitment and burnout.
Cost Breakdown StructureHierarchical breakdown of project costs. – Categorizes costs by type, category, or work package. – Includes labor, materials, equipment, overhead, etc.. – Facilitates budgeting, cost estimation, and tracking.Accurate cost estimation: Enables better forecasting and budget management. – Facilitates cost tracking: Provides visibility into spending across project categories. – Challenges with granularity: Requires detailed breakdown of costs to ensure accuracy. – Risk of budget overrun: Inaccurate cost estimation or unforeseen expenses may lead to budget overruns if not managed effectively.
Risk Breakdown StructureHierarchical breakdown of project risks. – Identifies and categorizes potential risks by type, category, or impact. – Includes assessment of likelihood and severity. – Facilitates risk identification, analysis, and mitigation.Comprehensive risk management: Enables proactive identification and mitigation of potential threats. – Facilitates risk assessment: Provides visibility into the likelihood and impact of different risks. – Challenges with complexity: Requires thorough analysis and prioritization of risks based on potential impact. – Risk of oversight: Failure to identify and address key risks may lead to project delays or failures.

Related Business Concepts

Business Plan

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A business plan is a document that details key operational and financial goals for a business and how they will be achieved in the future. Essentially, a business plan is an exercise in due diligence. While no business plan can accurately predict the future, they do demonstrate and give insight into the likelihood of eventual profitability. This in turn removes some of the entrepreneurial risk associated with investing large amounts of time and capital into a new venture.

Innovation Theory

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The innovation loop is a methodology/framework derived from the Bell Labs, which produced innovation at scale throughout the 20th century. They learned how to leverage a hybrid innovation management model based on science, invention, engineering, and manufacturing at scale. By leveraging individual genius, creativity, and small/large groups.

Business Competition

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In a business world driven by technology and digitalization, competition is much more fluid, as innovation becomes a bottom-up approach that can come from anywhere. Thus, making it much harder to define the boundaries of existing markets. Therefore, a proper business competition analysis looks at customer, technology, distribution, and financial model overlaps. While at the same time looking at future potential intersections among industries that in the short-term seem unrelated.

Business Scaling

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Business scaling is the process of transformation of a business as the product is validated by wider and wider market segments. Business scaling is about creating traction for a product that fits a small market segment. As the product is validated it becomes critical to build a viable business model. And as the product is offered at wider and wider market segments, it’s important to align product, business model, and organizational design, to enable wider and wider scale.

Disruptive Innovation

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Disruptive innovation as a term was first described by Clayton M. Christensen, an American academic and business consultant whom The Economist called “the most influential management thinker of his time.” Disruptive innovation describes the process by which a product or service takes hold at the bottom of a market and eventually displaces established competitors, products, firms, or alliances.

Innovation Funnel

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An innovation funnel is a tool or process ensuring only the best ideas are executed. In a metaphorical sense, the funnel screens innovative ideas for viability so that only the best products, processes, or business models are launched to the market. An innovation funnel provides a framework for the screening and testing of innovative ideas for viability.

Four-Step Innovation Process

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A four-step innovation process is a simple tool that businesses can use to drive consistent innovation. The four-step innovation process was created by David Weiss and Claude Legrand as a means of encouraging sustainable innovation within an organization. The process helps businesses solve complex problems with creative ideas instead of relying on low-impact, quick-fix solutions.

History of Innovation

innovation
Innovation in the modern sense is about coming up with solutions to defined or not defined problems that can create a new world. Breakthrough innovations might try to solve in a whole new way, well-defined problems. Business innovation might start by finding solutions to well-defined problems by continuously improving on them.

Read also: Business Strategy, Examples, Case Studies, And Tools

Read Next: Lean CanvasAgile Project ManagementScrumMVPVTDF.

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