Initiated by: Office of Engineering and Construction Management
U.S. Department of Energy
Project Management Practices Rev E, June 2003
Work Breakdown
Structure
Office of Management, Budget and Evaluation
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Project Management Practices: Understanding Work Breakdown Structures, Exams of Construction
This document from the U.S. Department of Energy explains the concept and importance of Work Breakdown Structures (WBS) in project management. A WBS is a deliverable-oriented framework that organizes and subdivides the total work scope of a project into manageable, integratable, and measurable components. It is essential for building realistic schedules, cost estimates, and reporting/tracking/controlling project progress.
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Initiated by: Office of Engineering and Construction Management
U.S. Department of Energy
Project Management Practices Rev E, June 2003
Work Breakdown
Structure
Office of Management, Budget and Evaluation
PROJECT MANAGEMENT PRACTICES 2
- Measurable—can be used to measure progress; has start and completion dates and measurable interim milestones.
- Adaptable—sufficiently flexible so the addition/elimination of work scope can be readily accommodated in the WBS framework.
Relationships among WBS elements and detailed descriptions of each element are presented in the WBS dictionary accompanying the hierarchical diagram. The WBS dictionary is a key project definition tool that defines in-depth the scope for each work element; documents assumptions about the work, including deliverables, milestones/key performance parameters, and quantities (if applicable); lists required resources and processes to accomplish the work; identifies a completion schedule, including measurable milestones; and provides links to key technical design or engineering documents.
Within DOE, there are typically two types or levels of WBSs that are developed to correspond to different needs:
- The Project Summary WBS. This WBS summarizes an entire project and usually consists of three levels of project and work definition. This WBS may serve as a starting point for contractors to develop their own contract-specific WBS. The Project Summary WBS is the responsibility of the integrated project team A typical project summary WBS is shown in Figure 1.
- The Contractor WBS. This WBS is developed by individual project contractors, based on the scope of the contract work. The contractor is generally responsible for extending the Project Summary WBS elements to create the Contractor WBS, for DOE evaluation. The Contractor WBS is built based on the scope and deliverables that are in the contract—not force-fit to the Project Summary WBS. The Contractor WBS should provide the basis for all management activities between the contractor and DOE; ensure agreement on scope, schedule, and cost; and serve as the basis for contractor accountability and reporting. A contractor WBS is shown in Figure 2. The WBS hierarchical methodology includes all project phases, critical decision points, and other activities required. However, a project WBS is to be deliverable- oriented. Even though various organizational functions and project deliverables are involved, they should be related to the individual breakdowns, not aligned with a given organization. The following elements are not included in a WBS:
PROJECT MANAGEMENT PRACTICES 3
Figure 1. Project Work Breakdown Structure
1.1.1.1 Conceptual Design 1.1.1.2 Criteria Development & Conceptual Design Reviews
1.1.1 Conceptual Design
1.1.2.1 Definitive Design 1.1.2.2 CADD Consultant 1.1.2.3 Engineering Support During Construction
1.1.2 Design
1.1.3.1 Construction Preparation 1.1.3.2 Building 1.1.3.3 Process & Service Systems & Equipment 1.1.3.4 Quality Assurance
1.1.3 Government Furnished Equipment
1.1.4.1 Construction Preparation 1.1.4.2 Building 1.1.4.3 Process & Service Systems & Equipment 1.1.4.4 Construction Inspection 1.1.4.5 Construction Management 1.1.4.6 Construction Services 1.1.4.7 Constructability Reviews
1.1.4 Construction
1.1.5.1 Project Control 1.1.5.2 Records Management 1.1.5.3 Support Services 1.1.5.4 Engineering 1.1.5.5 Independent Construction Cost Estimate
1.1.5 Project Administration
1.1.6.1 Process Development 1.1.6.2 Design Support 1.1.6.3 Plant Liaison 1.1.6.4 Computer/Control System Development
1.1.6 Systems Development
1.1.7.1 SO Test Preparation 1.1.7.2 SO Test Performance 1.1.7.3 Manuals 1.1.7.4 Integrated Testing 1.1.7.5 Cold Run 1.1.7.6 SO Test Resources 1.1.7.7 Deleted 1.1.7.8 Preventative Maintenance
1.1.7 Startup
1.1.8.1 Environmental Assessment 1.1.8.2 PSD Document 1.1.8.3 Safety Analysis Report 1.1.8.4 Probabilistic Risk Assessment 1.1.8.5 Document Coordination 1.1.8.6 RAM Study 1.1.8.7 Hazardous Waste
1.1.8 Safety/Environmental
1.1 Fuel Processing Facility
1.2.1 Construction 1.2.2 Government Furnished Material 1.2.3 Construction Inspection 1.2.4 Project Administration 1.2.5 Design
1.2 Liquid Effluent Treatment & Disposal
1.0 FPR PROJECT
PROJECT MANAGEMENT PRACTICES 5
ß Do not include elements that are not products. A signal processor, for example, is clearly a product, as are mock-ups and computer software configuration items. On the other hand, things such as design engineering, requirements analysis, test engineering, aluminum stock, and direct costs, are not products. Design engineering, test engineering, and requirements analysis are all engineering functional efforts; aluminum is a material resource; and direct cost is an accounting classification. Thus, none of these are appropriate WBS elements. ß Program phases (e.g., design, development, production, and types of funds, or research, development, test and evaluation) are inappropriate as elements in a WBS. ß Rework, retesting and refurbishing are not separate elements in a WBS. They should be treated as part of the appropriate WBS element affected. ß Non-recurring and recurring classifications are not WBS elements. The reporting requirements of the contract will segregate each element into its recurring and non-recurring parts. ß Cost-saving efforts such as total quality management initiatives and warranty are not part of the WBS. These efforts should be included in the cost of the item they affect, not captured separately. ß Do not use the structure of the program office or the contractor’s organization as the basis of a WBS. ß Do not treat costs for meetings, travel, computer support, etc. as separate WBS elements. They are to be included with the WBS elements with which they are associated. ß Use actual system names and nomenclature. Generic terms are inappropriate in a WBS. The WBS elements should clearly indicate the character of the product to avoid semantic confusion. For example, if the Level 1 system is vitrification, then the Level 2 item (prime mission product) is melter. ß Treat tooling as a functional cost, not a WBS element. Tooling (e.g., special test equipment, and factory support equipment like assembly tools, dies, jigs, fixtures, master forms, and handling equipment) should be included in the cost of the equipment being produced. If the tooling cannot be assigned to an identified subsystem or component, it should be included in the cost of integration, assembly, test, and checkout. ß Include software costs in the cost of the equipment. For example, when a software development facility is created to support the development of software, the effort associated with this element is considered part of the computer
PROJECT MANAGEMENT PRACTICES 6
software configuration items it supports. If more than one item is involved, the software effort should be included under integration, assembly, test, and checkout. Software developed to reside on specific equipment must be identified as a subset of that equipment. Organizational elements do intersect the WBS, see Figure 3, but are not the WBS.
Figure 3. Sample Translation from Function to Project Deliverables
A WBS is a critical tool for organizing work, building realistic schedules and cost estimates, and reporting/tracking/controlling. It is developed and used for all projects and, in the Program Manager’s case, is used for all programs. During WBS development, the WBS structure should be designed with sufficient flexibility so that future activities, elimination of work scope, and addition of work scope can be easily accommodated.
As appropriate, project team members should be involved in the design, review, comment, and approval of the WBS. In addition, project team members should be directly involved in developing the WBS dictionary, particularly those pages that describe their respective assigned scopes of work. Once completed and issued, the PD/Project Manager (PM) should conduct training sessions for project management, the Integrated Project Team and the project team in the organization/ structure, composition, purpose, value, and use of the WBS
Project HLW Treatment
Vitrification System HLW Transfer
Melter Off-Gas
Melter Feed Melter Viewing Melter Pouring
Cost Account
Cost Account
Mechanical Design
Cost Account
Cost Account
Electrical Design
Cost Account
Cost Account
Drafting/ Checking
~
~
~
~~
Design
~
~
Engineering
Manufacturing
~
~
Test
Company
~
~
~
Functional Organization
Level 1
Level 2
Level 3
Work Packages by CA
PROJECT MANAGEMENT PRACTICES 8
- A tabular summary of the dictionary elements cross-referenced to the WBS indenture level, the WBS revision, the element title, the project contractor WBS code, and (if desired) the contractor’s accounting code.
- A work element dictionary sheet that provides the title of the work element, the project contractor WBS and the contractor’s accounting codes, the budget and reporting number, and a detailed description of the work to be performed by this element, including deliverables. Examples of these two documents are provided in Figures 4 and 5.
3.0 ORGANIZATIONAL BREAKDOWN STRUCTURE
Through the WBS, work is defined to a level where unique organizational and personal responsibilities can be established. This may occur at any one of several levels within the project and functional organization. The individual assigned responsibility for accomplishing work at the control account level is often designated a control account manager. Control accounts are divided into smaller, discrete scopes of work called work packages, and a work package manager is assigned to each work package. Integrating the WBS with the project and functional organizations assures that all contract work is accounted for, and that each element of work is assigned to the level of responsibility necessary for planning, tracking progress, accumulating costs, and reporting. Assignment of responsibility is depicted on a responsibility matrix discussed in Section 4.
Determining whether a specific scope of work is to be performed in-house or by a subcontractor or supplier is done through the use of the Make-or-Buy Plan. This plan helps define the project’s acquisition management approach. This determination also enables performance of work at least cost, minimum technical risk and maximum competition, and with both customer and stakeholder involvement. However, all work scope, whether performed in-house or through a subcontract, is included in the WBS, and the WBS dictionary, and is contained in a control account(s).
Figure 4. Project Work Breakdown Structure Dictionary
PART 1 – INDEX
Indenture Level Project
PART 1 – INDEX (cont.)
Indenture Level FPR Project
- PROJECT MANAGEMENT PRACTICES
- X FPR Project 1 2 3 4 5 Element Title CWBS Code
- X Fuel Processing Facility 1.
- X Conceptual Design 1.1. - X Conceptual Design 1.1.1. - X Criteria Development 1.1.1.
- X Government Furnished Equipment 1.1. - X Construction Preparation GFE 1.1.3. - X Site Preparation (CP–1A) GFE 1.1.3.1. - X Building GFE 1.1.3. - X Building Substructure (CP–2B) GFE 1.1.3.2. - X Concrete (CP-3A)GFE 1.1.3.2. - X Steel Structure (CP–3B) GFE 1.1.3.2. - X Process and Service Systems 1.1.3. - X Yard Mechanical (CP-5A) GFE 1.1.3.3. - X Process/Service (CP-5B) GFE 1.1.3.3.
- X HVAC Systems (CP-5C) GFE 1.1.3.3. - X Mechanical Systems (CP-5D) GFE 1.1.3.3. - X Electrical (CP-6A) GFE 1.1.3.3. - X Instrumentation (CP-6B) GFE 1.1.3.3.
- X Quality Assurance 1.1.3.
- X Construction 1.1. - X Construction Preparation 1.1.4. - X Site Preparation (CP-1A) 1.1.4.1. - X Building Excavation (CP-1B) 1.1.4.1. - X Underground Utilities (CP-2C) 1.1.4.1. - X Construction Inspection 1.1.4. - X Inspection of Construction Preparation 1.1.4.4. - X Laboratory Services 1.1.4.4. - X HP Support 1.1.4.4. - X Inspection of Construction Utilities 1.1.4.4. - X Inspection Support 1.1.4.4. - X Constructability Review 1.1.4.
- X Fuel Processing Facility 1.
- PROJECT MANAGEMENT PRACTICES
- X Project Administration 1.1. 1 2 3 4 5 Element Title CWBS Code
- X Project Control 1.1.5.
- X Design/Construction 1.1.5.1.
- X Startup 1.1.5.1.
- X Records Management 1.1.5.
- X Design/Construction 1.1.5.2.
- X Startup 1.1.5.2.
- X Support Services 1.1.5.
- X Consultants 1.1.5.3.
- X Facilities 1.1.5.3.
- X Management Services 1.1.5.3.
- X Engineering 1.1.5.
- X Construction Eng. 1.1.5.4.
- X Procurement Eng. 1.1.5.4.
- X Indep. Constr. Cost Est. 1.1.5.
- X DOE Order Compliance 1.1.5.
- X Project Control 1.1.5.
- X Systems Development 1.1.
- X Process Development 1.1.6.
- X Design Support 1.1.6.
- X Tech. Direction and Review 1.1.6.2.
- X Eng. Change Management 1.1.6.2.
- X Plant Liaison 1.1.6.
- X Computer/CS Development 1.1.6.
- X Tech. Support of DCS Design 1.1.6.4.
- X DCS Purchase Support 1.1.6.4.
- X Combined with 1.1.6.4.2 1.1.6.4.
- X Software Configuration 1.1.6.4.
- X Computer Security 1.1.6.4.
- X Microdata Support 1.1.6.4.
- X Startup 1.1.
- X SO Test Preparation 1.1.7.
- X Administrative 1.1.7.1.
- X Electrical and Instr. 1.1.7.1.
- X HVAC 1.1.7.1.
- X Miscellaneous 1.1.7.1.
- X Process 1.1.7.1.
- X Remote 1.1.7.1.
- X SO Test Preparation 1.1.7.
- X Project Administration 1.1. 1 2 3 4 5 Element Title CWBS Code
- PROJECT MANAGEMENT PRACTICES - X Security 1.1.7.1. 1 2 3 4 5 Element Title CWBS Code - X Utilities 1.1.7.1. - X Integrated 1.1.7.1. - X SO Test Performance 1.1.7. - X SO Testing Support 1.1.7.2. - X Electrical and Instrumentation 1.1.7.2. - X HVAC 1.1.7.2. - X Miscellaneous 1.1.7.2. - X Process 1.1.7.2. - X Remote 1.1.7.2. - X Security 1.1.7.2. - X Utilities 1.1.7.2. - X Shield Integrity Tests 1.1.7.2. - X Manuals 1.1.7. - X Information Manuals 1.1.7.3. - X Operating Procedures 1.1.7.3. - X Op. Documentary Photography 1.1.7.3. - X Integrated Testing 1.1.7. - X Cold Run 1.1.7. - X SO Test Resources 1.1.7. - X SO Test Spares 1.1.7.6. - X SO Test Equipment 1.1.7.6. - X Operational Readiness 1.1.7. - X Operational Readiness Planning 1.1.7.7. - X Preventive Maintenance 1.1.7. - X PM Procedures 1.1.7.8. - X PM Performance 1.1.7.8.
- X Safety/Environmental 1.1.
- X PSD Document 1.1.8.
- X Safety Analysis Report 1.1.8.
- X Preliminary SAR 1.1.8.3.
- X Final SAR 1.1.8.3.
- X Probabilistic Risk Assessment 1.1.8.
- X PRA Preparation 1.1.8.4.
- X PRA Review 1.1.8.4.
- X Document Coordination 1.1.8.
- X R/A/M Study 1.1.8.
- X Hazardous Waste Program 1.1.8.
- X Safety/Environmental 1.1.
- PROJECT MANAGEMENT PRACTICES
- X Action Teams 1.1.
- X Recovery Action Teams 1.1.9.
- X Rebaselining 1.1.9.
- X Rebaselining/Operating 1.1.9.2.
- X Rebaselining/Capital 1.1.9.2.
- X Action Teams 1.1.
PROJECT MANAGEMENT PRACTICES 14
PART II – ELEMENT DEFINITION (cont.)
Program Title ___________________________________________ Project No.____________ Contractor_____________________________________________________________________ Contract No. __________________________
Indenture Level 5
CWBS Code 1.1.3.3.
Title: Process/Service Systems Government Furnished Equipment
Date:
Revision No. 6
Approved Changes:
Accounting Code: Budget and Reporting Number:
Element Task Description: Work Statement (cont.) 1 Kerosene Waste Tank 2 Solvent Collection Tanks 2 Solvent Waste Tanks 1 Third Cycle Solvent Feed Tanks 2 Organic Wash Collection Tanks 2 Process Condensate Tanks 2 Uranium Salvage Collection Tanks 2 Pre-Decontamination Sampling Tanks 1 1E Condensate Tank 2 Sodium Carbonate Wash Tanks 6 Decanters 2 CWS Decanters (First, Second, and Third Cycles) 1 Kerosene Wash Decanter 1 OWS Decanter 4 Extraction Columns 3 Scrub Columns 3 Strip Columns 2 Wash Columns 3 Carbonate Wash Columns 2 Acid Wash Columns 1 Denitrator Vessel and Auxiliary Items 1 Denitrator Off-Gas Filter Vessel 4 Evaporators 4 Concentrate Tanks (First and Third Cycles)
PROJECT MANAGEMENT PRACTICES 15
4.0 RESPONSIBILITY ASSIGNMENT MATRIX
Once a project WBS and organizational breakdown structure are developed, these documents may be used to develop a project responsibility assignment matrix. This matrix is simply a table for which one axis is the project WBS and the other axis is the project (and support organizations) organizational breakdown structure. Each point at which these two structures intersect becomes a work execution element, and an individual is identified who is responsible for executing the work. If desired, each intersection can also identify the value of that specific element of work in terms of both dollars and hours. An example of a portion of a responsibility assignment matrix is provided in Figure 6.
The development and use of a responsibility assignment matrix provides several advantages for the PD/PM:
- Identifies individual work responsibility and authority in a structured, easily understood format.
- Establishes a basis for a project’s records management and configuration management systems.
- Serves as a basis for identifying, planning, progressing, and reporting the work of other organizations, i.e., subcontractors, suppliers.
- Develops and defines individual ownership for specific project tasks.
- Provides a basis for developing budgets, schedules, and milestones; tracking costs and spending; and preparing progress reports.
5.0 CONFIGURATION MANAGEMENT
Once an organizational breakdown structure, a WBS and dictionary, and a responsibility matrix are prepared, approved, and issued, all are maintained under change control, and all proposed changes are evaluated, reviewed, dispositioned, and documented. This is important with these particular documents because they relate to and influence the project’s scope, schedule, and cost baselines.
In addition, once responsible individuals are assigned to the work tasks, these individuals assume ownership of the assigned work: baselines, milestones, performance, reporting, changes, procurements, subcontracts, testing, etc. In essence, each of these individuals becomes a sub-project manager for their assigned scope of work.