Lecture 3.1: Project Planning: Work Breakdown Structure (WBS) [SEF Ch 9]

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Lecture 3.1 Project Planning Work Breakdown
Structure (WBS) SEF Ch 9
Dr. John MacCarthy UMBC CMSC 615 Fall, 2006
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Agenda

• WBS Overview
• Levels and Types of WBSs
• WBS Examples
• System of Systems Program WBS
• System Program WBS
• Subsystem/Subcontract WBS
• Software Program WBS
• WBS Dictionary
• Work Packages
• Cost/Control Accounts
• WBS Conclusions

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Work Breakdown Structure(WBS) Overview 1

• References
• Systems Engineering Fundamentals, Chapter 9
• MIL-HDBK-881A (30 July 2005), DoD Handbook Work
  Breakdown Structures for Defense Materiel Items
• Definition
• A logical decomposition of project products and
  activities to work packages.
• A means of organizing system development
  activities based on system and product
  decompositions. - SEF

• Purpose
• Defines the total system
• Provides the framework for planning,
  prioritizing, managing and tracking all work done
  on a project
• Products
• Activities
• Work Packages
• Provides the framework for
• Cost Estimating and cost reporting (i.e., the
  Cost Structure)
• Resource allocation
• Status Reporting
• Performance Measurement
• Managing program risk

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Work Breakdown Structure(WBS) Overview 2

• Characteristics
• Hierarchical
• Numbering System
• Multi-Level
• Product-Oriented
• Formats
• Table (Spreadsheet)
• Org Chart (Graphic)
• Outline (Text)

• Structure
• End Products the prime mission product(s)
• Based on the System (Physical) Architecture
• Enabling Products/Services
• Products and services required to develop,
  produce, and support the end items
• Based on Life Cycle
• The first three (end product) WBS levels are
  organized as
• Level 1 Overall System
• Level 2 Major Element (or Segment)
• Level 3 Subordinate Components (or Prime Items)
• Levels 4 continue the decomposition to the CI
  level

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Types of WBS

• Program WBS
• High-Level (First 3 levels)
• Provides Program Structure
• Generally developed/controlled by Customer
  (Government)
• Contract WBS
• Detailed (Levels 4)
• Provides framework for Contract Work Packages and
  Costing
• Generally developed by Contractor
• Generally follows Program WBS
• Subcontract WBS
• Detailed (Level 4)
• Provides framework for Subcontract Work Packages
  and Costing
• Generally developed by Subcontractor
• Generally follows Contract WBS

• Each WBS ALWAYS includes a WBS Dictionary
• WBS Dictionary A Description of each element of
  the WBS, it identifies
• Key deliverables (by CLIN) allocated to that
  element
• Key activities
• Key milestones/events
• Organization responsible for the element

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WBS Development

• Developed by Systems Engineering-led IPT
• SE generally provides structure for
• Levels 1-3 of all WBS based on MIL-HDBK-881
• Levels 4 of the End Product and Systems
  Engineering portions of the WBS
• Program Control IPT/ suborganization
  participation
• Develop Project Management portion of WBS
• Develop other parts of WBS as appropriate
• Oversee entire WBS development since it serves as
  framework for project control and management
  (costing, resourcing, reporting, risk, etc.)
• Design/Development IPT participation (development
  of End Product portion of WBS)
• TE IPT participation (development of TE portion
  of WBS)
• Other IPT/ suborganization participation (to
  ensure all work activities are properly
  represented)

By the book, Systems Engineering generally leads
WBS development, since the WBS should be based on
the system (physical) architecture
In reality, Program Control often develops the
WBS with SE support
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WBS Best Practices

• Use MIL-HDBK-881A as GUIDANCE
• Start by following 881A to the extent possible
• Reduces Why did you questions
• Forces consideration of most potential sources of
  cost (50 years of experience)
• Provides structure that has proven successful for
  50 years
• Generally a WBS will be tailored to meet program
  needs
• There is no perfect WBS
• WBSs should be Product Oriented, not Activity
  Oriented
• Focus on Products and Services, not Activities
• First Element should reflect the System
  Architecture End Products
• Contractor WBSs should follow the Program WBSs to
  the extent possible
• Generally Subcontract WBS(s) should fit
  seamlessly into the Contract WBS

• Decompose to product-oriented (or event-oriented)
  work packages, to the extent possible. Examples
  include
• Specific Requirements Documents
• Design Packages
• Specific Studies or Classes of Studies
• Specific Technical Reviews
• Training Documentation
• Some work packages will have to be LOE
  activities, but minimize these. Examples include
• Management
• Configuration Management
• IPT Integration

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WBS Levels (PMP Element)

• (Level 0 System of Systems)
• Level 1 Overall System
• Level 2 System PMP(s)
• Level 3 Subsystem PMPs
• Level 4 Component PMPs
• Level 5 CI/SCSI

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Generic System of Systems WBS
System Level WBS is provide in following Slide
Note Design Prototype Development are all
considered part of the PMP WBS Elements
Note This basic structure is followed at lower
levels.
Note Program Management Systems Engineering WBS
Elements. These also appear in lower-level System
and Subsystem WBSs
Note Product-Oriented structure of first WBS
Element Activity Oriented structure of
following Elements
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Generic System WBS
Note Structure of System PM SE is same as SoS
structure.
End Products
Enabling Products
Note Product-Oriented structure of first WBS
Element Activity Oriented structure of
following Elements
Detailed HW and SW Subsystem Level WBSs are
provide in later Slides.
Note Design Prototype Development are all
considered part of the PMP WBS Elements.
Note This basic structure is followed at lower
levels.
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Aircraft System WBSSpreadsheet Format 1
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Aircraft System WBSGraphic Format 2
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Subsystem/Subcontract WBS

• Radar Subsystem WBS

• Generic Subcontract WBS

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Generic Software Program WBS Structure
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WBS Element/WBS Dictionary

• WBS Level
• WBS Number (1.X.Y)
• Name of Element
• Description of Element
• Scope of Element
• Major Activities/Tasks
• Major Artifacts
• Major Subelements
• Major Deliverables (CLIN reference)
• Cost Description
• SOW References

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Work Packages

• Purpose
• Provides a description of the work that is to be
  assigned to a given organization from a given WBS
  element
• Use
• Basis for assigning work
• Basis for prioritizing work
• Basis for costing work
• Basis for scheduling work
• Rules of thumb
• All activities are led by a single organization
• May include work from other organizations
• Value 200 K

• Contents
• WBS Reference
• Work Package Title
• Work Package Number
• Assigned Organization
• Type of Activity
• Earned Value
• Level of Effort
• Work Package Description
• Work Package Basis of Estimate (BOE)
• Work Package Schedule

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Work Package Descriptions

• Contents
• List of Artifacts to be developed
• List of Tasks to be performed
• Description of Tasks and Artifacts
• Purpose of Tasks and Artifacts
• Key Output Dependencies
• Key Input Dependencies
• Principal and/or Intermediate Milestones for
  Earned Value Reporting

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Typical SE Services and Products

• Some Typical Services
• Systems Engineering Management
• System Architecting
• Requirements Generation
• Configuration Management
• Systems Analysis
• Modeling and Simulation
• Validation and Verification Support
• Reviews and Audits

• Some Typical Products
• Work Packages
• Plans
• Systems Engineering Plan
• Risk Management Plan
• Configuration Management Plan
• Selected Quality Management Procedures
• Architecture Artifacts
• Specifications
• Analyses/Trade Studies
• System Models/Simulations

This is a partial list. Services and Products
provided by SE vary from project to project.
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WBS Cost Accounts, Work Packages, and
Organizational Structure

• Cost/Control Account identifies
• the portions of a WBS Elements
• Work Packages
• that are allocated to
• each Organization/ Suborganization
• Cost/Control Accounts tie the (Product-Oriented)
  WBS to the Organizational Structure
• It enables Cost Reporting, Monitoring, Control

Note Organizational Structures will be addressed
next week.
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WBS Summary 1

• MIL-HDBK-881A provides guidance, definitions and
  examples
• Three types of WBSs (PWBS, CWBS, SWBS)
• They should be consistent to the extent possible
• WBSs should be product-oriented (not activity
  oriented)
• First Level 2 Element (PMPs) reflects System
  Architecture End Products
• Generally the structure of a Level 2 Element
  (PMP) will mirror the Level 1 structure
• Decompose to Work Package Level (Lowest Level WBS
  element)
• Large programs will have complex multi-layer
  WBSs.

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WBS Summary 2

• The WBS Defines the Program
• WBS reflects
• System Structure
• Program Structure
• WBS (with Work Packages WBS Dictionary) is used
  to
• Organize/Define Work
• Organize Cost
• Provide framework to support
• Risk Management
• Cost and Schedule Reporting/Monitoring
• Earned Value Management
• Life Cycle Costing

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Notes on WBSs

• Level 4
• Generally developed by Contractor
• Generally Product/Service Oriented (vs. Activity)
• Pre-verification development and unit testing are
  generally allocated to the CI
• There is generally pressure to organize the WBS
  by Organization Structure
• Customer
• Contractor
• gt Conflict

• Level 2
• Breakdown into End Product and Enabling
  Product Elements is generally adhered to
• There is a great deal of variation as to how that
  is done
• It is generally driven by customer
• It is generally influenced by contractor Project
  Management (and Systems Engineering input)
• Level 3
• Parts are driven by Customer
• Parts are driven by Contractor

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Summary Points (9.4)

• The WBS is an essential tool for the organization
  and coordination of systems engineering
  processes, and is a product of the systems
  engineering process
• The importance of the WBS extends to business
  professionals and contracting officers.
• The needs of all stakeholders must be considered
  in its development
• The Program Office develops the Program WBS (and
  a high level contract WBS for each contract).
  Each contractor develops the lower levels of the
  Contract WBS for their contract
• The System (Physical) Architecture provides the
  basic structure for the Product part of the WBS
• SOW tasks should flow from the WBS
• The WBS provides a structure for organizing IPTs
  and tracking metrics

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BACKUP
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WBS-Backup

• Purpose
• Provides a coordinated, complete, and
  comprehensive view of program management
• Establishes a structure of organizing system
  development activities
• Provides a structure for budgets and cost
  estimates
• Provides a structure for to organize the
  collection of detailed costs
• Provides a structure for
• Identifying products, processes, and data
• Organizing risk management analysis and tracking
• Enabling configuration and data management
• Developing work packages
• Organizing technical reviews and audits
• Establishes the work that is required for a
  project
• Provides a framework for structuring a projects
  work (work packages)
• Provides a method for organizing feedback
• Used to genera a cost structure
• Provides a framework for prioritizing work

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Relationship between Physical Architecture and WBS