My Blog

Work Breakdown Structure and Product Breakdown Structure

—

by

haroonkhan
in

Work Breakdown Structure

Successful project management relies on thorough planning to define the project objectives in sufficient detail to support effective management. The WBS provides the foundation for defining the work as it relates to project objectives and it also establishes a structure for managing the work to its completion.

The WBS is used to accomplish the following:

  • • Define the project’s scope of work in terms of deliverables and further decompose these deliverables into components. Depending on the decomposition method used, the WBS can also define the project’s lifecycle process as well as deliverables appropriate to the project, program, or any higher-order entity. This project scope decomposition balances management’s need for control with an appropriate level of detail.
  • • Provide the project management team with a framework on which to base project status and progress reports.
  • • Facilitate communication between the project manager and stakeholders throughout the life of the project. The WBS can be used to communicate information regarding project scope, dependencies, and risk, as well as budget and schedule progress and performance.
  • • Provide input to other project management processes and deliverables.

The WBS clearly articulates the project work scope, and it is a critical input to other project management processes and deliverables such as activity definitions, project schedule network diagrams, project and program schedules, performance reports, and project organization and control tools. Although the WBS is a key input to these project management processes and deliverables, the WBS cannot, in and of itself, act as a substitute for or represent any of these on its own.

For the purposes of this Practice Standard for WBSs, a project can be defined as internally focused, externally focused, or both. Additionally, deliverables for the projects can take the form of products, services, or results.

Internally focused projects can produce deliverables as inputs to other project steps, other individuals, or other organizations within the company sponsoring the project. Externally focused projects typically produce outputs and deliverables for people or organizations outside the company, such as customers or project sponsors. Many projects produce both internally and externally focused deliverables. Regardless of the focus of the project, a WBS should be prepared in all cases.

Fig. 2.2.1 shows the relationship between the WBS and the SOW.

Fig. 2.2.1
FIG. 2.2.1 WBS and SOW relationship.

Fig. 2.2.2 shows the WBS and organizational breakdown structure (OBS) is a model used by organizations that helps to identify employees or departments are responsible for completing specific tasks related to a project.

Fig. 2.2.2
FIG. 2.2.2 WBS and OBS relationship.

Fig. 2.2.3 shows the WBS, OBS, and responsibility accountability matrix (RAM) relationships.

Fig. 2.2.3
FIG. 2.2.3 WBS, OBS, and RAM relationships.

2.2.2 Product Breakdown Structure

The product breakdown structure (PBS) organization (see Fig. 2.2.4) groups activities based on the differentiation of goods and services according to their manufacture or their end use. All or most of the resources necessary to accomplish specific objectives are set up as a self-contained unit headed by a product manager. The department manager is given considerable authority and may obtain resources from either inside or outside the overall organization. All personnel on the project are under the direct authority of the manager for the duration of the project or product development cycle.

Fig. 2.2.4
FIG. 2.2.4 Three basic organizational structures. Functional organization: The functional organization was the most commonly used organizational structure in the world in the early 1970s and 1980s. The essence of a functional organization is that each employee reports to one and only one superior and takes orders from only that person. The hierarchy is a chain of command that links groups of workers to the level above through a single person. The insistence upon the single individual as the only issuer of orders is referred to as “unity of command” [2]. Matrix organization: The matrix organization evolved to maximize the strengths and minimize the weaknesses of both the functional and product structures. The matrix organization superimposes the lateral or horizontal structure of a product or project coordinator on a standard vertical hierarchical structure. Matrix organizational designs originally evolved in aerospace technology, where changing conditions caused managers to focus on lateral relationships to develop a flexible and adaptable system of resources and procedures to achieve a series of project objectives [3].

General Motors (GM) was one of the best-known PBS companies. It was divided into five car divisions: Chevrolet, Buick, Pontiac, Oldsmobile, and Cadillac. Each division was self-contained, with most functions necessary to produce a particular line of vehicles. In 1984 GM reorganized into a two-division, product-oriented firm, with one division for large vehicles (Buick, Oldsmobile, and Cadillac) and one for small (Chevrolet and Pontiac) [1].

The product structure, a goal-oriented structure, contains elements of all the needed functions to complete a product. Whenever specialized knowledge of certain products is required, departmentalization by product is suitable.

The advantages of PBS are as follows:

  1. 1. Better within-unit coordination
  2. 2. Faster response time
  3. 3. Clearer understanding of unit goals
  4. 4. Increased team knowledge due to cross training

The disadvantages of PBS are as follows:

  1. 1. Inefficient use of resources
  2. 2. Coordination of problems between divisions
  3. 3. Displacement of goals
  4. 4. Less interaction between teammates

Comments

Leave a Reply

Your email address will not be published. Required fields are marked *