Project Management Institute Practice Standard for Work Breakdown Structures Second Edition 92312$CHFM 09-07-0611:49:03 PracticeStandardforWorkBreakdownStructures—SecondEdition ISBN10:1-933890-13-4 ISBN13:978-1-933890-13-5 Publishedby: ProjectManagementInstitute,Inc. FourCampusBoulevard NewtownSquare,Pennsylvania19073-3299USA. Phone:(cid:2)610-356-4600 Fax:(cid:2)610-356-4647 E-mail:[email protected] Internet:www.pmi.org ©2006ProjectManagementInstitute,Inc.Allrightsreserved. ‘‘PMI’’,thePMIlogo,‘‘PMP’’,thePMPlogo,‘‘PMBOK’’,‘‘ProjectManagementJournal’’,‘‘PMNetwork’’,andthePMITodaylogoare registeredmarksofProjectManagementInstitute,Inc.TheQuarterGlobeDesignisatrademarkoftheProjectManagementInstitute, Inc.ForacomprehensivelistofPMImarks,contactthePMILegalDepartment. 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Anyone using this document should rely on his or her own independent judgment or, as appropriate, seek the advice of a competent professional in determining the exercise of reasonable care in any given circumstances. Information and other stan- dards on the topic covered by this publication may be available from other sources, which the user may wish to consult for additional views or information not covered by this publication. PMIhasnopower,nordoesitundertaketopoliceorenforcecompliancewiththe contents of this document. PMI does not certify, tests, or inspect products, designs, or installations for safety or health purposes. Any certification or other statement of compliance with any health or safety-related information in this document shall not be attributable to PMI and is solely the responsibility of the certifier or maker of the statement. ©2006ProjectManagementInstitute,FourCampusBoulevard,NewtownSquare,PA19073-3299USA iii 92312$CHFM 09-07-0611:49:03 92312$CHFM 09-07-0611:49:03 Contents ListofFigures .....................................................................................................................vii PrefacetotheSecondEdition ...............................................................................................ix Chapter1—IntroductiontothePracticeStandardforWorkBreakdownStructures— SecondEdition ....................................................................................................1 1.1 Overview ............................................................................................................1 1.2 Concept .............................................................................................................1 1.3 Objectives ..........................................................................................................2 Chapter2—DefiningtheWBS ................................................................................................3 2.1 Overview ............................................................................................................3 2.2 CommonUsageofTerms ....................................................................................3 2.3 Concept .............................................................................................................5 2.4 The100%Rule ...................................................................................................8 2.5 WBSforConstructionofaBicycle ........................................................................8 2.6 RepresentationsoftheWBS .............................................................................11 2.7 Summary .........................................................................................................11 Chapter3—ImportanceoftheWBS .....................................................................................13 3.1 Overview ..........................................................................................................13 3.2 IntegrationwithProjectManagementProcesses .................................................14 3.3 RelationshiptoOtherTools ...............................................................................15 3.4 WBSIntegrationandUsebyOtherStandards .....................................................17 3.5 Summary .........................................................................................................18 Chapter4—DefiningWBSQuality ........................................................................................19 4.1 Overview ..........................................................................................................19 4.2 WBSQualityPrinciple1 .....................................................................................19 4.3 WBSQualityPrinciple2 .....................................................................................22 4.4 AnnotatedExampleofaHigh-QualityWBS ..........................................................22 4.5 ProblemDiagnosticChecklist ............................................................................24 4.6 Summary .........................................................................................................25 Chapter5—ConsiderationsWhileCreatingaWBS ................................................................27 5.1 Overview ..........................................................................................................27 5.2 PreparingaWBS ..............................................................................................27 5.3 GeneralFactorstoBeConsidered .....................................................................32 5.4 EssentialJudgments .........................................................................................35 5.5 EvaluatingWBSQuality .....................................................................................38 5.6 WBSUsageContinuum .....................................................................................39 5.7 WBSforProgramandPortfolioManagement ......................................................40 5.8 Summary .........................................................................................................40 AppendixA—GuidelinesforaProjectManagementInstitutePracticeStandard ....................41 AppendixB—EvolutionoftheProjectManagementInstitutePracticeStandardfor WorkBreakdownStructures ............................................................................43 AppendixC—ContributorsandReviewersofthe PracticeStandardforWorkBreakdown Structures—SecondEdition ............................................................................47 AppendixD—BicycleWorkBreakdownStructure(WBS)Example .........................................51 AppendixE—Oil,Gas,andPetrochemical(OGP)WorkBreakdownStructure(WBS)Example 65 AppendixF—EnvironmentalManagementWorkBreakdownStructure(WBS)Example ..........71 ©2006ProjectManagementInstitute,FourCampusBoulevard,NewtownSquare,PA19073-3299USA v 92312$CTOC 09-08-0609:41:26 AppendixG—ProcessImprovementWorkBreakdownStructure(WBS)Example ...................73 AppendixH—PharmaceuticalWorkBreakdownStructure(WBS)Example ............................77 AppendixI—ProcessPlantConstructionWorkBreakdownStructure(WBS)Example ............81 AppendixJ—ServiceIndustryOutsourcingWorkBreakdownStructure(WBS)Example .........85 AppendixK—WebDesignWorkBreakdownStructure(WBS)Example ..................................87 AppendixL—TelecomWBSExample ....................................................................................91 AppendixM—RefineryTurnAroundWBSExample .................................................................95 AppendixN—GovernmentDesign-Bid-BuildWBSExample .....................................................97 AppendixO—SoftwareImplementationWBSExample ..........................................................99 AppendixP—HorizontalTreeStructureFormatWBSExample .............................................101 References ........................................................................................................................103 Glossary ............................................................................................................................107 IndexbyKeyword ..............................................................................................................111 vi ©2006ProjectManagementInstitute,FourCampusBoulevard,NewtownSquare,PA19073-3299USA 92312$CTOC 09-08-0609:41:26 List of Tables and Figures Chapters1–5: Figure2-1. WBSBicycleExample ...............................................................................8 Figure2-2. AnnotatedBicycleExample .......................................................................9 Figure2-3. WBSExample ........................................................................................10 Figure2-4. WBSRepresentationsComparison ..........................................................11 Table3-1. ProjectManagementProcesses ..............................................................14 Figure4-1. AnnotatedExampleofaHigh-QualityWBS ...............................................23 Table5-1. WBSCreationMethods ..........................................................................29 Figure5-1. WBSUsageContinuum ...........................................................................39 Appendices: TableD-1. HierarchicalStructure .............................................................................52 TableD-2. TabularView1 .......................................................................................53 TableD-3. TabularView2 .......................................................................................53 FigureD-1. WBSTreeStructureView1 .....................................................................54 FigureD-2. WBSTreeStructureView2 .....................................................................55 FigureD-3. WBSTreeStructureView3 .....................................................................56 FigureD-4. WBSHorizontalTreeStructureView ........................................................57 FigureD-5. WBSCentralizedTreeStructureView1 ...................................................58 FigureD-6. WBSCentralizedTreeStructureView2 ...................................................59 TableD-4. WBSDictionary ......................................................................................60 FigureD-7. WBSDictonary .......................................................................................62 FigureF-1. HorizontalTreeStructure ........................................................................72 TableG-1. ProcessImprovementWBSExample .......................................................76 FigureK-1. HorizontalPortraitView ..........................................................................89 FigureK-2. HorizontalLandscapeView .....................................................................90 FigureL-1. Top-DownTreeStructure ........................................................................92 FigureO-1. SoftwareImplementationWBSExample ................................................100 FigureP-1. HorizontalTreeStructureFormatWBSExample .....................................102 ©2006ProjectManagementInstitute,FourCampusBoulevard,NewtownSquare,PA19073-3299USA vii 92312$CTOC 09-14-0610:49:35 92312$CTOC 09-07-0612:15:42 Preface to the Second Edition WhentheWorkBreakdownStructure(WBS)PracticeStandardUpdateTeamgathered in April of 2003, the progression of this standard to its current level of advancement could not have been anticipated. To begin the work, the team received the charter for the update process, the original chapters and appendices from the first edition, as well as approximately 450 comments about the content of the document that had been received from readers and project management practitioners since the time of its publication. WhilethechallengetoupdatethePracticeStandardforWorkBreakdownStructures initially did not appear particularly difficult, the project team spent a great deal of time planning and developing an appropriate approach. At the time the update was being initiated, the Practice Standard for Work Breakdown Structures had achieved widespreadpopularityacrosstheprojectmanagementcommunity,andhadtakenits place beside the A Guide to the Project Management Body of Knowledge (PMBOK(cid:2) Guide)—ThirdEditionasafrequentlyrequestedpublicationavailablefromPMI.Any modifications to this document, therefore, had to be weighed carefully. Withthisinmind,theUpdateTeamsetinmotionaseriesofdiscussions,presenta- tions, and interviews designed to surface and accurately illuminate how the WBS is put into play across a broad array of industries today. The resulting conclusions regardingWBSapplicationandpracticehavenowbeenincorporatedintothisstandard andhavebeenbroughttogetherasa‘‘whitepaper’’thataccompaniesthepublication on the Practice Standard for Work Breakdown Structures—Second Edition CD-ROM. FromthetimethefirsteditionofthePracticeStandardforWorkBreakdownStruc- tures was being developed a little more than five years ago, there has been a vast expansion in rapid electronic access to information through the Internet, CD-ROMS, DVDs, instant messaging, and wireless technology. Knowing that the WBS Practice Standard will be delivered into this rapidly evolving communications environment, theUpdateTeamwascompelledtoconsiderhowthisstandardwouldbeviewedand used by current and future project management practitioners. Considering these factors, the Update Team came to understand that what had at firstseemedreadilyachievablewas,infact,considerablymorecomplexanddifficult. Team leaders and members alike were convinced the design for the WBS Practice Standard would need to reflect not only the progressive application of the WBS in practicetoday,butmustincludeandincorporateanawarenessofthenewenvironment in which it will be used. To ensure this edition met those requirements, the Practice Standardfor WorkBreakdown Structures—SecondEdition willnow bedelivered asa hard copy document as well as a CD-ROM. Specificallyrelatingtothecontentofthestandard,manyofthecommentsreceived since the first publication focused on the need for more detail and a broader overall perspective.Manycommentsincludeddetailedrequestsformoreandvariedexamples, checklists, job aids, and reference material. The Update Team has taken particular ©2006ProjectManagementInstitute,FourCampusBoulevard,NewtownSquare,PA19073-3299USA ix 92312$CPRE 10-03-0608:53:26 PrefacetotheSecondEdition care to address these comments, while ensuring that material accurately reflects the applicationofstandardpracticeintheindustry.Throughoutthestandard,thereader will find additional guidance regarding the characteristics that make up a high- quality WBS, as well as considerably more discussion about the use of the WBS in real-life practical situations. Additionally, many of the checklists, sets of questions, and sectional examples have been extracted, reformatted, and placed in the appen- dices as individual elements that can be used as job aids and guides for developing a WBS. The Practice Standard for Work Breakdown Structures—Second Edition provides guidance in the initial generation, subsequent development, and application of the WBS. The Practice Standard for Work Breakdown Structures—Second Edition is not, however,atextbook,anditdoesnotprovidespecific‘‘how-to’’instructions.Thetarget audienceforthisstandardincludesprojectmanagers,projectteammembers,contract personnel,andotherswhoparticipateorhaveaninterestinanyaspectofthemanage- ment of projects or programs. In using this practice standard, it must be recognized thatasprojectsvary,socantheresultingWBSs.Thereare,however,certainuniversal principles that this practice standard addresses. ThePracticeStandardforWorkBreakdownStructures—SecondEditionisconsistent with the PMBOK(cid:2) Guide—Third Edition. The Practice Standard for Work Breakdown Structures—Second Edition also includes information derived from accepted project managementindustrysources.TheProjectManagementInstitute’sstandardsprogram will periodically update the Practice Standard for Work Breakdown Structures as part of the planned evolution of its standards. Your comments are invited. ThePracticeStandardforWorkBreakdownStructures—SecondEditionisorganized as follows: Chapter 1 Introduction to Introduces the WBS concept. the Work Break- down Structure Chapter 2 Defining the WBS Defines the WBS and its characteristics. Defines the benefits derived from using a WBS. Chapter 3 Importance of the How the WBS fits with other project WBS management practices. Chapter 4 Defining WBS Documents the characteristics of a Quality high-quality WBS. Presents guidelines for determining if the WBS is sufficient for subsequent planning and control. Chapter 5 Considerations Provides guidance and presents while Creating a questions that can be asked during the WBS development of a WBS to help ensure that the finished product meets all the needs of the project it will serve. Appendices Provides background information on A–D the PMI Standards Program and the Practice Standard for Work Breakdown Structures—Second Edition project. x ©2006ProjectManagementInstitute,FourCampusBoulevard,NewtownSquare,PA19073-3299USA 92312$CPRE 10-03-0608:53:26