DTU ProjectLab - User contributions [en-gb]

Work Breakdown Structure (WBS)

2015-09-29T12:56:18Z

S141530:

Work Breakdown Structure (WBS) is a tool used in project management context that separates in different levels of details a deliverable-oriented project in hierarchical order. The primary objective is to support the project manager by giving an overview of different steps, resources and costs involved in the project.
Moreover during the project executions it may include the percentage of steps completed. This ensures better control and guidance in case during the project development occur changes. It is graphically represented by a hierarchical tree, where the job of each components is given by the sum of elements underneath connected (sublevels). These elements may represent a product, data, service or any combination thereof.

==History==

The WBS was initially developed by the U.S. defense, back to the 1950’s and 60’s in cooperation with NASA. Both agencies were adopting the Program Evaluation and Review Technique (PERT) <ref>S1 Cleland, David I. and Roland Gareis, Global Project Management Handbook, McGraw-Hill Professional, 2006</ref> . During 1962, United State Airforce released “Study Of Methods For Evaluation Of The Pert/Cost Management System”. In this document was mentioned WBS as a useful tool for Controlling and Planning large acquisition projects <ref> Eric S. Norman, Shelly A. Brotherton, Robert T. Fried Work Breakdown Structures: The Foundation for Project Management Excellence, Wiley, 2010</ref> . As understandable, most of NASA projects involve many actors (contractors) with totally different tasks. Nevertheless, all of them are parts of the same project and work for the same final purpose. The WBS was used to ‘‘ . . . ensure that the total project is fully planned and that all derivative plans contribute directly to the desired objectives’’ (NASA, 1962)<ref>"Background and Key Concepts COPYRIGHTED MATERIAL." Web. 20 Sep. 2015</ref>. After this first approach NASA decided to keep update this document because believed valid and useful. In 1968, due to its success, the Department of Defense released "Work Breakdown Structures for Defense Materiel Items" (MIL-STD-881), a military standard procedure which is obligatory for all programs under the Department of Defense.
This standard is constantly updated; the latest version refers to 2001 <ref>''[http://www.mcri.com/wp-content/uploads/2014/09/Military-Standard-881C-----Department-of-Defense-Standard-Practice-----Work-Breakdown-Structures-for-Defense-Materiel-Items-MIL-STD-881C-3-Oct-11.pdf Military-Standard-881C]'', 3 October 2011</ref>.
During 1987 Project Management Institute (PMI) started to release a number of documents for a non-military purpose. These documents have been collected in one, as result The Project Management Body of Knowledge (PMBOK) has been released. The first version is from 1987, other versions have been released during 1987, 1996, 2000, 2004, 2009, 2013 <ref>"Guide, A. "Project Management Body of Knowledge (PMBOK® GUIDE & STANDARD)." Project Management Institute. 2001.</ref>. The main concept of subdividing different activities through different levels remains the same of the early years. However, the approach goes from “A task- oriented ‘family tree’ of activities 1987” PMBOKfirst Guide to “A deliverable- oriented hierarchical decomposition of the work to be executed by the project team to accomplish the project objectives and create the required deliverables” (PMBOK Guide — Third).

On one hand, the documents from PMI give an overview of the WBS concept, on the other hand, the document released from the Department of Defense can be considered as a Handbook.

==Work Breakdown Structure main Charactheristics==

WBS could be considered a general tool that can be used in most of projects and program. Due to this reason its features can vary from a WBS to another to best adapt the project manager needs.
However, is important to underline which core characteristics that this tool should have to define a quality WBS.

In this case the term “quality” is properly define from Project Management Institute’s (PMI) that in 2006 released the paper “Practice Standard for Work Breakdown Structures”. In this document the definition of a quality WBS is given from two statements:

# A quality WBS is constructed in such a way that it satisfies all of the requirements for its use in a project.
# For the all level of the WBS, quality characteristics must be implemented.

In other words a quality WBS must comply with all requirements for its use, no matters is the scope project, program or portfolio.

This first requirement is the most important one, it state that a WBS should be deliverable-oriented, this guaranty a WBS that can be taken under control thanks to a “Milestone Structure”. Moreover, the final scope of the Project is more easily defined. To underpin the importance of this requirement, the PMI includes deliverable orientation as part of definition of a WBS.
A WBS must take into consideration the full scope of the project including all internal, external and interim deliverables. For facilitating this task a WBS has an hierarchal approach with at least two levels, to understand better the connection between the elements a coding scheme of different levels should be provided [[File:Coding_wbs.png‎|200px|thumb|right| Figure 1: WBS with Coding scheme]] '''Figure 1''', each level must include100% of works connection belonging to the lower level 6, Nevertheless is not permitted to included element out of this project scope.
Nouns and adjectives define each level’s component but the use of verbs is not permitted. This ensures the deliverable of the element otherwise could be understood as a task. In case arises the need of clarification a “WBS Dictionary” can be added for defining the outcomes. In addition, since this tool is used for “real-case” applications require to be updated while work are in progress.

A quality WBS is constructed by definition in a way that satisfies all of its intended needs, so why do we need to develop different types of WBS ? Of course, all Work Breakdown Structures are different from each other depending on the scope. For this reason a WBS is defined as a Use-Related Characteristics tool, where additional attributes that vary from one project to next, among industries, environments or in the way the WBS is applied within the project. Then this implies that the quality of the WBS increase with the number of the listed features that it meets:

* Achieves a sufficient level of decomposition to enable appropriate management and control
* Provides sufficient detail for bounding and communicating the scope of the project in its entirety
* Contains specific types of WBS elements necessary for the project
* Clearly enables the assignment of accountability at the appropriate level, regardless of whether the WBS is for a program or an
individual project
<ref> Eric S. Norman, Shelly A. Brotherton, Robert T. Fried Work Breakdown Structures: The Foundation for Project Management Excellence, Wiley, 2010</ref>

==Representation==
As mentioned before the aim of a WBS is to show at best the purpose of the project, program or portfolio taken into consideration. There is no one exact or mandatory way of representing a WBS. Nevertheless, all of them have in common a tree structure. The most use tree structure is the inverted Tree Structure [[File: Horizontal_WBS.png‎|200px|thumb|right| Figure 2: Inverted tree structure]] '''''Figure 2''''', in this representation the project has the aspect of an organization chart. However there are other two types of representation: the one shown In [[File: Horizontal_WBS.png‎|200px|thumb|left| Figure 3: Horizontal WBS]] '''''Figure 3''''', that has the root on the left side and growth from the right side and the last one called centralized tree structure .[[File:Centralized_tree_structure_WBS.png‎‎|200px|thumb|right| Figure 4: Centralized_tree_structure_WBS]] '''''Figure 4''''' This can help the project development session.

The graphical representation is not the only way of representing a WBS: tabular views are also used. This approach has the advantage to be clearer in case the WBS has many levels. An example is shown in figure [[File: List_wbs.png‎‎|200px|thumb|right| Figure 5: Tabular WBS]] '''''Figure 5'''''. Usually at top level is shown the main deliverable that can change depending what kind of project is analyzed. Lower level provide information to the project managers like schedule development, cost estimating, resource allocation, and risk assessment. The lowest level called Work Packages, is defined by PMI as:” A deliverable or project work component at the lowest level of the Work Breakdown Structure. The work package includes the schedule activities and schedule milestones required to complete the work package deliverable or project work component’.It is a good habit as suggested by NASA of not having more than seven levels. Each element of a WBS is recognizable by a clear, descriptive title and by a numbering scheme

Depending on the level the management might assign responsibility for technical, schedule, and cost performance. A Control Account is usually established to guaranty at best he intersection between of WBS element and organization unit.

==Decomposition procedures==
Overall a WBS is the result of a decomposition process, which goes from the project's aim and terminates to a certain level of details necessary for effective communication at the project's stakeholder. Meaning that there no rule regarding how much in detail the WBS should go, it depends from project to project. This supports the statement that identify WBS as Use-Related Characteristics tool. Nevertheless, is important to find a good balance between communication, complexity and the need for control <ref> Stephen A. Devaux. 1 edition (September 18, 2014). Managing Projects as Investments: Earned Value to Business Value </ref>.

The most common method for decomposing a WBS are the following methods:
*Function
Project’s deliverables are collected by business function for facilitating communication to stakeholders. This WBS is focusing on operations or activities that should be performed.
*Role
Similar to the previous one, this focuses more on responsibility.
*Method
The project derivable is based on methodology or delivery process, this type of WBS is easy to understand and is mainly use for showing the projects outcomes.
*Deliverables (components)
This is most common used.It can be used for every types of projects. The project’s deliverables are collected by business function

==100% Rule==

One of the most important principles for developing a WBS is called 100% rule. This rule is set from Project Management Institute (PMI).

This 100% rule establish that a WBS must Include the 100% of the work defined from the project and includes all the necessary for its realization (Internal, contractor, subcontractor) included the management of the project itself. The 100% rule is one of the most important guideline for developing the decomposition and evaluation of a WBS. The rule is applied at all levels of the hierarchical structure : ‘the next level of decomposition of a WBS element (child level) must represent 100 percent of the work applicable to the next higher (parent) element’’ <ref> Haugan, Gregory T. 2002. Effective Work Breakdown Structures. Vienna, VA Management Concepts</ref> (Haugan p. 17)..
The WBS can not include jobs out of the project’s border, meaning that should not include more of the 100%.

The application of the 100% Rule permit the manager to know that all efforts in each area are caught where they belong and also that nothing unrelated is included in an element. Application of the 100% Rule allows all outcomes to be defined before the schedule planning begins. The WBS is the initiator in the planning process. If output are insufficiently defined, the project will not succeed. Awareness of the 100% Rule ensure and communicates the full understanding of all necessary output. Once the project is in progress the 100% Rule assists in assuring that project costs are well presented in the accounting system. This is valid for all projects, either they are performed for another division in a company or a regular paying customer. Application of the 100% Rule permits accurate costing, which is essential to budget similar efforts in the future.

===100% Rule Application===

This example provides a practical use of the 100% rule and the "progressive elaboration" technique. [[File:Wbs_house.png‎‎|200px|thumb|right| Figure 6: Work Breakdown Structure of a House]] '''''Figure 6''''' , is shown a WBS that has the objective the Construction of an house.
At the top level (Level 1) the project manager has assigned 100 points to the whole project, meaning the entire building process of the house. Breaking down to level number 2 we have more than one deliverable. By summing the points of each deliverable the result will be of 100. The points allocated in each element are the result of a project manager’s consideration, meaning that these points are not an estimation of Cost/Time, etc. but represent the overall effort needed to complete the task. Some elements (the once that needs a higher detail of decomposition) have a lower level (Level 3) that represents in this case the lowest level of this WBS. However, if is needed this breaks down process can continue until the project manager is not satisfed regarding the level of details that want to achieve. The procedure just used is called “progressive elaboration”.

As in this example, is totally fine if have different level of decomposition through different elements

It is suggested that the project manager uses a software support, as a spreadsheet, to have an auto-sum operations. This could seem a silly recommendation, but the WBS of a portfolio can have hundred of branches a spreadsheet will be very useful. Another recommended procedure is to discuss together with the project team regarding the numbers of points that belong to each element, this collaborative practice helps to achieve an high resolution of the reality because different people with different skills are involved during this process.

==Specific Type of WBS==
As mentioned previously WBS is a tool introduced during the 60’.However up to present different WBS’s related tools have been developed.

===Value breakdown structure===

This tool is mainly used for assessing a project’s expected value, as WBS has a hierarchical structure. There is one fundamental difference: in this tool the 100% rule is not used, this because the value is not additive as the cost. For instance, a Helicopter manufacturer wants to produce a 10-seat helicopter the budget is 1000000$, and the Expected monetary value is 1700000$. By using an hierarchical approach we should decompose the helicopter in different parts and define for each part all the necessary process until to get these components (cockpit, landing skid, passenger seats, engine, rotor, tail rotor, blade ). Let's image that we have all the components except the engine. The cost resources until this stage could be 900000$, but the actual value of this helicopter without the engine is namely 0 because no one wants a Helicopter without the engine. Meaning that the added Value of the engine is equal or close to the entire value of the projects. On one hand, we do not have any value until the motor is not mounted on the helicopter (VBS approach), on the other hand, we have costs for the resources used until now (WBS approach).

===Goals Breakdown Structure===
As a WBS, the Goals Breakdown Structure (GBS) has a hierarchical tree structure. It can be considered like a WBS specially design for goal’s achievement. In the highest level is positioned the overall goal of the projects, at the lower level are located mid-term goals needed for achieving the top level mission. The GBS elements might include different peculiarities that characterize each goal, for instance, profit, market share, etc. At the third level the products/process needed for achieving the organizational goals are defined.

As written in A Guide to the Project Management Body of Knowledge (PMBOK(R)[1] Guide) it follows rules similar to WBS. For the breakdown decomposition the WBS follows two general rules:

*'''Nothing Extra''' Is not allowed to include an element that does not contribute to the upper-level goals. No layer should contain any extraneous goals.
*'''Nothing Missing''' Each level must define all the goals necessary to ensure that the project achieves the next higher-level goals.

The first rule is needed to make sure that the project is focused in only one objective without losing the resource that does not contribute any organization’s value. The second one ensures that everything that is needed for adding value to the project is take into consideration.
The general scope of a GBS is to analyze all the goals and only the goals needed to achieve the project's higher-level goals.

==Potential Misunderstanding, Disadventages and Advantages==

A WBS is not an organizational hierarchy chart. A common error is to develop a WBS in accordance to the organizational hierarchy, so is important to decompose the works depending the relations between processes than between organizational hierarchy.

A WBS is not a project’s development planning neither a list in chronological order. Is not suggested to plan a project without having developed its WBS. In other words, is like plan the manufacturing process for building an airplane, even before the completion of its project. In this case is even difficult to apply the 100% rules, because the goals are not well defined. Moreover once that a WBS is defined, in case of error is not possible to fix it without starting from the beginning, because all the processes are connected to each other.
For this reason building and maintaining a WBS is a process that require a strong effort in terms of times and HR , due to that fact that many people should be involved to increase the common sharing knowledge about the projects. Moreover, it should be periodically review to ensure the WBS’s reliability, this has influence on future decision that the PM will take. As said reviewing a WBS has a cost, due to that WBS encourages rigid structure for the project. Thus, it reduces managerial flexibility to initiate and lead changes during the project life cycle. (Salvendy, 2001) <ref> Salvendy, G. 2001, Handbook of Industrial Engineering, 3rd ed, John Wiley & Sons, Inc, Canada</ref>.
However
# The WBS reflects the project objectives, by listing all the activities required to accomplish these objectives, it prevents confusion and doubts as to the aim of the project.
# It creates a common database and dictionary of common notation that serve as a reference point for all involved parties.
# The WBS permit smooth communications among the project team members and between them and customers, suppliers.
# It can be used as an archive that can later facilitate knowledge transfer to other projects or learning by new members of the Human-resources.
# The WBS is a powerful tool for resource management.

==References==
<references/>

Work Breakdown Structure (WBS)

2015-09-29T05:55:55Z

S141530: /* 100% Rule */

Work Breakdown Structure (WBS) is a tool used in project management context that separates in different levels of details a deliverable-oriented project in hierarchical order. The primary objective is to support the project manager by giving an overview of different steps, resources and costs involved in the project.
Moreover during the project executions it may include the percentage of steps completed. This ensures better control and guidance in case during the project development occur changes. It is graphically represented by a hierarchical tree, where the job of each components is given by the sum of elements underneath connected (sublevels). These elements may represent a product, data, service or any combination thereof.

==History==

The WBS was initially developed by the U.S. defense, back to the 1950’s and 60’s in cooperation with NASA. Both agencies were adopting the Program Evaluation and Review Technique (PERT) <ref>S1 Cleland, David I. and Roland Gareis, Global Project Management Handbook, McGraw-Hill Professional, 2006</ref> . During 1962, United State Airforce released “Study Of Methods For Evaluation Of The Pert/Cost Management System”. In this document was mentioned WBS as a useful tool for Controlling and Planning large acquisition projects <ref> Eric S. Norman, Shelly A. Brotherton, Robert T. Fried Work Breakdown Structures: The Foundation for Project Management Excellence, Wiley, 2010</ref> . As understandable, most of NASA projects involve many actors (contractors) with totally different tasks. Nevertheless, all of them are parts of the same project and work for the same final purpose. The WBS was used to ‘‘ . . . ensure that the total project is fully planned and that all derivative plans contribute directly to the desired objectives’’ (NASA, 1962)<ref>"Background and Key Concepts COPYRIGHTED MATERIAL." Web. 20 Sep. 2015</ref>. After this first approach NASA decided to keep update this document because believed valid and useful. In 1968, due to its success, the Department of Defense released "Work Breakdown Structures for Defense Materiel Items" (MIL-STD-881), a military standard procedure which is obligatory for all programs under the Department of Defense.
This standard is constantly updated; the latest version refers to 2001 <ref>''[http://www.mcri.com/wp-content/uploads/2014/09/Military-Standard-881C-----Department-of-Defense-Standard-Practice-----Work-Breakdown-Structures-for-Defense-Materiel-Items-MIL-STD-881C-3-Oct-11.pdf Military-Standard-881C]'', 3 October 2011</ref>.
During 1987 Project Management Institute (PMI) started to release a number of documents for a non-military purpose. These documents have been collected in one, as result The Project Management Body of Knowledge (PMBOK) has been released. The first version is from 1987, other versions have been released during 1987, 1996, 2000, 2004, 2009, 2013 <ref>"Guide, A. "Project Management Body of Knowledge (PMBOK® GUIDE & STANDARD)." Project Management Institute. 2001.</ref>. The main concept of subdividing different activities through different levels remains the same of the early years. However, the approach goes from “A task- oriented ‘family tree’ of activities 1987” PMBOKfirst Guide to “A deliverable- oriented hierarchical decomposition of the work to be executed by the project team to accomplish the project objectives and create the required deliverables” (PMBOK Guide — Third).

On one hand, the documents from PMI give an overview of the WBS concept, on the other hand, the document released from the Department of Defense can be considered as a Handbook.

==Work Breakdown Structure main Charactheristics==

WBS could be considered a general tool that can be used in most of projects and program. Due to this reason its features can vary from a WBS to another to best adapt the project manager needs.
However, is important to underline which core characteristics that this tool should have to define a quality WBS.

In this case the term “quality” is properly define from Project Management Institute’s (PMI) that in 2006 released the paper “Practice Standard for Work Breakdown Structures”. In this document the definition of a quality WBS is given from two statements:

# A quality WBS is constructed in such a way that it satisfies all of the requirements for its use in a project.
# For the all level of the WBS, quality characteristics must be implemented.

In other words a quality WBS must comply with all requirements for its use, no matters is the scope project, program or portfolio.

This first requirement is the most important one, it state that a WBS should be deliverable-oriented, this guaranty a WBS that can be taken under control thanks to a “Milestone Structure”. Moreover, the final scope of the Project is more easily defined. To underpin the importance of this requirement, the PMI includes deliverable orientation as part of definition of a WBS.
A WBS must take into consideration the full scope of the project including all internal, external and interim deliverables. For facilitating this task a WBS has an hierarchal approach with at least two levels, to understand better the connection between the elements a coding scheme of different levels should be provided [[File:Coding_wbs.png‎|200px|thumb|right| Figure 1: WBS with Coding scheme]] '''Figure 1''', each level must include100% of works connection belonging to the lower level 6, Nevertheless is not permitted to included element out of this project scope.
Nouns and adjectives define each level’s component but the use of verbs is not permitted. This ensures the deliverable of the element otherwise could be understood as a task. In case arises the need of clarification a “WBS Dictionary” can be added for defining the outcomes. In addition, since this tool is used for “real-case” applications require to be updated while work are in progress.

If it is true that a quality WBS is constructed in such a way that it satisfies all of its intended needs, then what is it about those needs that differentiate one WBS from another? We are certain that all Work Breakdown Structures are not the same—so what then, separates and makes them unique? This is where the concept of Use-Related Characteristics comes into play.
Use-Related Characteristics include those additional attributes that vary from one project to next, across industries, environments or in the way the WBS is applied within the project. With Use-Related Characteristics, the quality of the WBS depends on how well the specific content and types of WBS elements address the full set of needs of the project or program. Then this implies that the quality of the WBS increase with the number of the listed features that it meets:

* Achieves a sufficient level of decomposition to enable appropriate management and control
* Provides sufficient detail for bounding and communicating the scope of the project in its entirety
* Contains specific types of WBS elements necessary for the project
* Clearly enables the assignment of accountability at the appropriate level, regardless of whether the WBS is for a program or an
individual project

==Representation==
As mentioned before the aim of a WBS is to show at best the purpose of the project, program or portfolio taken into consideration. There is no one exact or mandatory way of representing a WBS. Nevertheless, all of them have in common a tree structure. The most use tree structure is the inverted Tree Structure [[File: Horizontal_WBS.png‎|200px|thumb|right| Figure 2: Inverted tree structure]] '''''Figure 2''''', in this representation the project has the aspect of an organization chart. However there are other two types of representation: the one shown In [[File: Horizontal_WBS.png‎|200px|thumb|left| Figure 3: Horizontal WBS]] '''''Figure 3''''', that has the root on the left side and growth from the right side and the last one called centralized tree structure .[[File:Centralized_tree_structure_WBS.png‎‎|200px|thumb|right| Figure 4: Centralized_tree_structure_WBS]] '''''Figure 4''''' This can help the project development session.

The graphical representation is not the only way of representing a WBS: tabular views are also used. This approach has the advantage to be clearer in case the WBS has many levels. An example is shown in figure [[File: List_wbs.png‎‎|200px|thumb|right| Figure 5: Tabular WBS]] '''''Figure 5'''''. Usually at top level is shown the main deliverable that can change depending what kind of project is analyzed. Lower level provide information to the project managers like schedule development, cost estimating, resource allocation, and risk assessment. The lowest level called Work Packages, is defined by PMI as:” A deliverable or project work component at the lowest level of the Work Breakdown Structure. The work package includes the schedule activities and schedule milestones required to complete the work package deliverable or project work component’.It is a good habit as suggested by NASA of not having more than seven levels. Each element of a WBS is recognizable by a clear, descriptive title and by a numbering scheme

Depending on the level the management might assign responsibility for technical, schedule, and cost performance. A Control Account is usually established to guaranty at best he intersection between of WBS element and organization unit.

==Decomposition procedures==
Overall a WBS is the result of a decomposition process, which goes from the project's aim and terminates to a certain level of details necessary for effective communication at the project's stakeholder. Meaning that there no rule regarding how much in detail the WBS should go, it depends from project to project. This supports the statement that identify WBS as Use-Related Characteristics tool. Nevertheless, is important to find a good balance between communication, complexity and the need for control <ref> Stephen A. Devaux. 1 edition (September 18, 2014). Managing Projects as Investments: Earned Value to Business Value </ref>.

The most common method for decomposing a WBS are the following methods:
*Function
Project’s deliverables are collected by business function for facilitating communication to stakeholders. This WBS is focusing on operations or activities that should be performed.
*Role
Similar to the previous one, this focuses more on responsibility.
*Method
The project derivable is based on methodology or delivery process, this type of WBS is easy to understand and is mainly use for showing the projects outcomes.
*Deliverables (components)
This is most common used.It can be used for every types of projects. The project’s deliverables are collected by business function

==100% Rule==

One of the most important principles for developing a WBS is called 100% rule. This rule is set from Project Management Institute (PMI).

This 100% rule establish that a WBS must Include the 100% of the work defined from the project and includes all the necessary for its realization (Internal, contractor, subcontractor) included the management of the project itself. The 100% rule is one of the most important guideline for developing the decomposition and evaluation of a WBS. The rule is applied at all levels of the hierarchical structure : ‘the next level of decomposition of a WBS element (child level) must represent 100 percent of the work applicable to the next higher (parent) element’’ <ref> Haugan, Gregory T. 2002. Effective Work Breakdown Structures. Vienna, VA Management Concepts</ref> (Haugan p. 17)..
The WBS can not include jobs out of the project’s border, meaning that should not include more of the 100%.

The application of the 100% Rule permit the manager to know that all efforts in each area are caught where they belong and also that nothing unrelated is included in an element. Application of the 100% Rule allows all outcomes to be defined before the schedule planning begins. The WBS is the initiator in the planning process. If output are insufficiently defined, the project will not succeed. Awareness of the 100% Rule ensure and communicates the full understanding of all necessary output. Once the project is in progress the 100% Rule assists in assuring that project costs are well presented in the accounting system. This is valid for all projects, either they are performed for another division in a company or a regular paying customer. Application of the 100% Rule permits accurate costing, which is essential to budget similar efforts in the future.

===100% Rule Application===

This example provides a practical use of the 100% rule and the "progressive elaboration" technique. [[File:Wbs_house.png‎‎|200px|thumb|right| Figure 6: Work Breakdown Structure of a House]] '''''Figure 6''''' , is shown a WBS that has the objective the Construction of an house.
At the top level (Level 1) the project manager has assigned 100 points to the whole project, meaning the entire building process of the house. Breaking down to level number 2 we have more than one deliverable. By summing the points of each deliverable the result will be of 100. The points allocated in each element are the result of a project manager’s consideration, meaning that these points are not an estimation of Cost/Time, etc. but represent the overall effort needed to complete the task. Some elements (the once that needs a higher detail of decomposition) have a lower level (Level 3) that represents in this case the lowest level of this WBS. However, if is needed this breaks down process can continue until the project manager is not satisfed regarding the level of details that want to achieve. The procedure just used is called “progressive elaboration”.

As in this example, is totally fine if have different level of decomposition through different elements

It is suggested that the project manager uses a software support, as a spreadsheet, to have an auto-sum operations. This could seem a silly recommendation, but the WBS of a portfolio can have hundred of branches a spreadsheet will be very useful. Another recommended procedure is to discuss together with the project team regarding the numbers of points that belong to each element, this collaborative practice helps to achieve an high resolution of the reality because different people with different skills are involved during this process.

==Specific Type of WBS==
As mentioned previously WBS is a tool introduced during the 60’.However up to present different WBS’s related tools have been developed.

===Value breakdown structure===

This tool is mainly used for assessing a project’s expected value, as WBS has a hierarchical structure. There is one fundamental difference: in this tool the 100% rule is not used, this because the value is not additive as the cost. For instance, a Helicopter manufacturer wants to produce a 10-seat helicopter the budget is 1000000$, and the Expected monetary value is 1700000$. By using an hierarchical approach we should decompose the helicopter in different parts and define for each part all the necessary process until to get these components (cockpit, landing skid, passenger seats, engine, rotor, tail rotor, blade ). Let's image that we have all the components except the engine. The cost resources until this stage could be 900000$, but the actual value of this helicopter without the engine is namely 0 because no one wants a Helicopter without the engine. Meaning that the added Value of the engine is equal or close to the entire value of the projects. On one hand, we do not have any value until the motor is not mounted on the helicopter (VBS approach), on the other hand, we have costs for the resources used until now (WBS approach).

===Goals Breakdown Structure===
As a WBS, the Goals Breakdown Structure (GBS) has a hierarchical tree structure. It can be considered like a WBS specially design for goal’s achievement. In the highest level is positioned the overall goal of the projects, at the lower level are located mid-term goals needed for achieving the top level mission. The GBS elements might include different peculiarities that characterize each goal, for instance, profit, market share, etc. At the third level the products/process needed for achieving the organizational goals are defined.

As written in A Guide to the Project Management Body of Knowledge (PMBOK(R)[1] Guide) it follows rules similar to WBS. For the breakdown decomposition the WBS follows two general rules:

*'''Nothing Extra''' Is not allowed to include an element that does not contribute to the upper-level goals. No layer should contain any extraneous goals.
*'''Nothing Missing''' Each level must define all the goals necessary to ensure that the project achieves the next higher-level goals.

The first rule is needed to make sure that the project is focused in only one objective without losing the resource that does not contribute any organization’s value. The second one ensures that everything that is needed for adding value to the project is take into consideration.
The general scope of a GBS is to analyze all the goals and only the goals needed to achieve the project's higher-level goals.

==Potential Misunderstanding, Disadventages and Advantages==

A WBS is not an organizational hierarchy chart. A common error is to develop a WBS in accordance to the organizational hierarchy, so is important to decompose the works depending the relations between processes than between organizational hierarchy.

A WBS is not a project’s development planning neither a list in chronological order. Is not suggested to plan a project without having developed its WBS. In other words, is like plan the manufacturing process for building an airplane, even before the completion of its project. In this case is even difficult to apply the 100% rules, because the goals are not well defined. Moreover once that a WBS is defined, in case of error is not possible to fix it without starting from the beginning, because all the processes are connected to each other.
For this reason building and maintaining a WBS is a process that require a strong effort in terms of times and HR , due to that fact that many people should be involved to increase the common sharing knowledge about the projects. Moreover, it should be periodically review to ensure the WBS’s reliability, this has influence on future decision that the PM will take. As said reviewing a WBS has a cost, due to that WBS encourages rigid structure for the project. Thus, it reduces managerial flexibility to initiate and lead changes during the project life cycle. (Salvendy, 2001) <ref> Salvendy, G. 2001, Handbook of Industrial Engineering, 3rd ed, John Wiley & Sons, Inc, Canada</ref>.
However
# The WBS reflects the project objectives, by listing all the activities required to accomplish these objectives, it prevents confusion and doubts as to the aim of the project.
# It creates a common database and dictionary of common notation that serve as a reference point for all involved parties.
# The WBS permit smooth communications among the project team members and between them and customers, suppliers.
# It can be used as an archive that can later facilitate knowledge transfer to other projects or learning by new members of the Human-resources.
# The WBS is a powerful tool for resource management.

==References==
<references/>

Work Breakdown Structure (WBS)

2015-09-29T05:46:48Z

S141530: /* Potential Misunderstanding, Disadventages and Advantages */

Work Breakdown Structure (WBS) is a tool used in project management context that separates in different levels of details a deliverable-oriented project in hierarchical order. The primary objective is to support the project manager by giving an overview of different steps, resources and costs involved in the project.
Moreover during the project executions it may include the percentage of steps completed. This ensures better control and guidance in case during the project development occur changes. It is graphically represented by a hierarchical tree, where the job of each components is given by the sum of elements underneath connected (sublevels). These elements may represent a product, data, service or any combination thereof.

==History==

The WBS was initially developed by the U.S. defense, back to the 1950’s and 60’s in cooperation with NASA. Both agencies were adopting the Program Evaluation and Review Technique (PERT) <ref>S1 Cleland, David I. and Roland Gareis, Global Project Management Handbook, McGraw-Hill Professional, 2006</ref> . During 1962, United State Airforce released “Study Of Methods For Evaluation Of The Pert/Cost Management System”. In this document was mentioned WBS as a useful tool for Controlling and Planning large acquisition projects <ref> Eric S. Norman, Shelly A. Brotherton, Robert T. Fried Work Breakdown Structures: The Foundation for Project Management Excellence, Wiley, 2010</ref> . As understandable, most of NASA projects involve many actors (contractors) with totally different tasks. Nevertheless, all of them are parts of the same project and work for the same final purpose. The WBS was used to ‘‘ . . . ensure that the total project is fully planned and that all derivative plans contribute directly to the desired objectives’’ (NASA, 1962)<ref>"Background and Key Concepts COPYRIGHTED MATERIAL." Web. 20 Sep. 2015</ref>. After this first approach NASA decided to keep update this document because believed valid and useful. In 1968, due to its success, the Department of Defense released "Work Breakdown Structures for Defense Materiel Items" (MIL-STD-881), a military standard procedure which is obligatory for all programs under the Department of Defense.
This standard is constantly updated; the latest version refers to 2001 <ref>''[http://www.mcri.com/wp-content/uploads/2014/09/Military-Standard-881C-----Department-of-Defense-Standard-Practice-----Work-Breakdown-Structures-for-Defense-Materiel-Items-MIL-STD-881C-3-Oct-11.pdf Military-Standard-881C]'', 3 October 2011</ref>.
During 1987 Project Management Institute (PMI) started to release a number of documents for a non-military purpose. These documents have been collected in one, as result The Project Management Body of Knowledge (PMBOK) has been released. The first version is from 1987, other versions have been released during 1987, 1996, 2000, 2004, 2009, 2013 <ref>"Guide, A. "Project Management Body of Knowledge (PMBOK® GUIDE & STANDARD)." Project Management Institute. 2001.</ref>. The main concept of subdividing different activities through different levels remains the same of the early years. However, the approach goes from “A task- oriented ‘family tree’ of activities 1987” PMBOKfirst Guide to “A deliverable- oriented hierarchical decomposition of the work to be executed by the project team to accomplish the project objectives and create the required deliverables” (PMBOK Guide — Third).

On one hand, the documents from PMI give an overview of the WBS concept, on the other hand, the document released from the Department of Defense can be considered as a Handbook.

==Work Breakdown Structure main Charactheristics==

WBS could be considered a general tool that can be used in most of projects and program. Due to this reason its features can vary from a WBS to another to best adapt the project manager needs.
However, is important to underline which core characteristics that this tool should have to define a quality WBS.

In this case the term “quality” is properly define from Project Management Institute’s (PMI) that in 2006 released the paper “Practice Standard for Work Breakdown Structures”. In this document the definition of a quality WBS is given from two statements:

# A quality WBS is constructed in such a way that it satisfies all of the requirements for its use in a project.
# For the all level of the WBS, quality characteristics must be implemented.

In other words a quality WBS must comply with all requirements for its use, no matters is the scope project, program or portfolio.

This first requirement is the most important one, it state that a WBS should be deliverable-oriented, this guaranty a WBS that can be taken under control thanks to a “Milestone Structure”. Moreover, the final scope of the Project is more easily defined. To underpin the importance of this requirement, the PMI includes deliverable orientation as part of definition of a WBS.
A WBS must take into consideration the full scope of the project including all internal, external and interim deliverables. For facilitating this task a WBS has an hierarchal approach with at least two levels, to understand better the connection between the elements a coding scheme of different levels should be provided [[File:Coding_wbs.png‎|200px|thumb|right| Figure 1: WBS with Coding scheme]] '''Figure 1''', each level must include100% of works connection belonging to the lower level 6, Nevertheless is not permitted to included element out of this project scope.
Nouns and adjectives define each level’s component but the use of verbs is not permitted. This ensures the deliverable of the element otherwise could be understood as a task. In case arises the need of clarification a “WBS Dictionary” can be added for defining the outcomes. In addition, since this tool is used for “real-case” applications require to be updated while work are in progress.

If it is true that a quality WBS is constructed in such a way that it satisfies all of its intended needs, then what is it about those needs that differentiate one WBS from another? We are certain that all Work Breakdown Structures are not the same—so what then, separates and makes them unique? This is where the concept of Use-Related Characteristics comes into play.
Use-Related Characteristics include those additional attributes that vary from one project to next, across industries, environments or in the way the WBS is applied within the project. With Use-Related Characteristics, the quality of the WBS depends on how well the specific content and types of WBS elements address the full set of needs of the project or program. Then this implies that the quality of the WBS increase with the number of the listed features that it meets:

* Achieves a sufficient level of decomposition to enable appropriate management and control
* Provides sufficient detail for bounding and communicating the scope of the project in its entirety
* Contains specific types of WBS elements necessary for the project
* Clearly enables the assignment of accountability at the appropriate level, regardless of whether the WBS is for a program or an
individual project

==Representation==
As mentioned before the aim of a WBS is to show at best the purpose of the project, program or portfolio taken into consideration. There is no one exact or mandatory way of representing a WBS. Nevertheless, all of them have in common a tree structure. The most use tree structure is the inverted Tree Structure [[File: Horizontal_WBS.png‎|200px|thumb|right| Figure 2: Inverted tree structure]] '''''Figure 2''''', in this representation the project has the aspect of an organization chart. However there are other two types of representation: the one shown In [[File: Horizontal_WBS.png‎|200px|thumb|left| Figure 3: Horizontal WBS]] '''''Figure 3''''', that has the root on the left side and growth from the right side and the last one called centralized tree structure .[[File:Centralized_tree_structure_WBS.png‎‎|200px|thumb|right| Figure 4: Centralized_tree_structure_WBS]] '''''Figure 4''''' This can help the project development session.

The graphical representation is not the only way of representing a WBS: tabular views are also used. This approach has the advantage to be clearer in case the WBS has many levels. An example is shown in figure [[File: List_wbs.png‎‎|200px|thumb|right| Figure 5: Tabular WBS]] '''''Figure 5'''''. Usually at top level is shown the main deliverable that can change depending what kind of project is analyzed. Lower level provide information to the project managers like schedule development, cost estimating, resource allocation, and risk assessment. The lowest level called Work Packages, is defined by PMI as:” A deliverable or project work component at the lowest level of the Work Breakdown Structure. The work package includes the schedule activities and schedule milestones required to complete the work package deliverable or project work component’.It is a good habit as suggested by NASA of not having more than seven levels. Each element of a WBS is recognizable by a clear, descriptive title and by a numbering scheme

Depending on the level the management might assign responsibility for technical, schedule, and cost performance. A Control Account is usually established to guaranty at best he intersection between of WBS element and organization unit.

==Decomposition procedures==
Overall a WBS is the result of a decomposition process, which goes from the project's aim and terminates to a certain level of details necessary for effective communication at the project's stakeholder. Meaning that there no rule regarding how much in detail the WBS should go, it depends from project to project. This supports the statement that identify WBS as Use-Related Characteristics tool. Nevertheless, is important to find a good balance between communication, complexity and the need for control <ref> Stephen A. Devaux. 1 edition (September 18, 2014). Managing Projects as Investments: Earned Value to Business Value </ref>.

The most common method for decomposing a WBS are the following methods:
*Function
Project’s deliverables are collected by business function for facilitating communication to stakeholders. This WBS is focusing on operations or activities that should be performed.
*Role
Similar to the previous one, this focuses more on responsibility.
*Method
The project derivable is based on methodology or delivery process, this type of WBS is easy to understand and is mainly use for showing the projects outcomes.
*Deliverables (components)
This is most common used.It can be used for every types of projects. The project’s deliverables are collected by business function

==100% Rule==

One of the most important principles for developing a WBS is called 100% rule. This rule is set from Project Management Institute (PMI).

This 100% rule establish that a WBS must Include the 100% of the work defined from the project and includes all the necessary for its realization (Internal, contractor, subcontractor) included the management of the project itself. The 100% rule is one of the most important guideline for developing the decomposition and evaluation of a WBS. The rule is applied at all levels of the hierarchical structure : ‘the next level of decomposition of a WBS element (child level) must represent 100 percent of the work applicable to the next higher (parent) element’’ <ref> Haugan, Gregory T. 2002. Effective Work Breakdown Structures. Vienna, VA Management Concepts</ref> (Haugan p. 17)..
The WBS can not include jobs out of the project’s border, meaning that should not include more of the 100%.

The application of the 100% Rule allows the manager to know that all efforts in each area are captured where they belong and also that nothing unrelated is included in an element. Application of the 100% Rule enables all outcomes to be defined before the schedule planning begins. The work breakdown structure is the initiator in the planning process, as planned outcomes must be defined before methods and schedules can be considered. If outcomes are insufficiently defined, the project cannot succeed. Awareness of the 100% Rule enables and communicates the full understanding of all necessary outcomes. Once the project is underway the 100% Rule assists in assuring that project costs are properly shown in the accounting system. This is true for all projects, whether they are accomplished for another division in a company or a regular paying customer. Application of the 100% Rule enables accurate costing, which is essential to budget similar efforts in the future.

===100% Rule Application===

This example provides a practical use of the 100% rule and the "progressive elaboration" technique. [[File:Wbs_house.png‎‎|200px|thumb|right| Figure 6: Work Breakdown Structure of a House]] '''''Figure 6''''' , is shown a WBS that has the objective the Construction of an house.
At the top level (Level 1) the project manager has assigned 100 points to the whole project, meaning the entire building process of the house. Breaking down to level number 2 we have more than one deliverable. By summing the points of each deliverable the result will be of 100. The points allocated in each element are the result of a project manager’s consideration, meaning that these points are not an estimation of Cost/Time, etc. but represent the overall effort needed to complete the task. Some elements (the once that needs a higher detail of decomposition) have a lower level (Level 3) that represents in this case the lowest level of this WBS. However, if is needed this breaks down process can continue until the project manager is not satisfed regarding the level of details that want to achieve. The procedure just used is called “progressive elaboration”.

As in this example, is totally fine if have different level of decomposition through different elements

It is suggested that the project manager uses a software support, as a spreadsheet, to have an auto-sum operations. This could seem a silly recommendation, but the WBS of a portfolio can have hundred of branches a spreadsheet will be very useful. Another recommended procedure is to discuss together with the project team regarding the numbers of points that belong to each element, this collaborative practice helps to achieve an high resolution of the reality because different people with different skills are involved during this process.

==Specific Type of WBS==
As mentioned previously WBS is a tool introduced during the 60’.However up to present different WBS’s related tools have been developed.

===Value breakdown structure===

This tool is mainly used for assessing a project’s expected value, as WBS has a hierarchical structure. There is one fundamental difference: in this tool the 100% rule is not used, this because the value is not additive as the cost. For instance, a Helicopter manufacturer wants to produce a 10-seat helicopter the budget is 1000000$, and the Expected monetary value is 1700000$. By using an hierarchical approach we should decompose the helicopter in different parts and define for each part all the necessary process until to get these components (cockpit, landing skid, passenger seats, engine, rotor, tail rotor, blade ). Let's image that we have all the components except the engine. The cost resources until this stage could be 900000$, but the actual value of this helicopter without the engine is namely 0 because no one wants a Helicopter without the engine. Meaning that the added Value of the engine is equal or close to the entire value of the projects. On one hand, we do not have any value until the motor is not mounted on the helicopter (VBS approach), on the other hand, we have costs for the resources used until now (WBS approach).

===Goals Breakdown Structure===
As a WBS, the Goals Breakdown Structure (GBS) has a hierarchical tree structure. It can be considered like a WBS specially design for goal’s achievement. In the highest level is positioned the overall goal of the projects, at the lower level are located mid-term goals needed for achieving the top level mission. The GBS elements might include different peculiarities that characterize each goal, for instance, profit, market share, etc. At the third level the products/process needed for achieving the organizational goals are defined.

As written in A Guide to the Project Management Body of Knowledge (PMBOK(R)[1] Guide) it follows rules similar to WBS. For the breakdown decomposition the WBS follows two general rules:

*'''Nothing Extra''' Is not allowed to include an element that does not contribute to the upper-level goals. No layer should contain any extraneous goals.
*'''Nothing Missing''' Each level must define all the goals necessary to ensure that the project achieves the next higher-level goals.

The first rule is needed to make sure that the project is focused in only one objective without losing the resource that does not contribute any organization’s value. The second one ensures that everything that is needed for adding value to the project is take into consideration.
The general scope of a GBS is to analyze all the goals and only the goals needed to achieve the project's higher-level goals.

==Potential Misunderstanding, Disadventages and Advantages==

A WBS is not an organizational hierarchy chart. A common error is to develop a WBS in accordance to the organizational hierarchy, so is important to decompose the works depending the relations between processes than between organizational hierarchy.

A WBS is not a project’s development planning neither a list in chronological order. Is not suggested to plan a project without having developed its WBS. In other words, is like plan the manufacturing process for building an airplane, even before the completion of its project. In this case is even difficult to apply the 100% rules, because the goals are not well defined. Moreover once that a WBS is defined, in case of error is not possible to fix it without starting from the beginning, because all the processes are connected to each other.
For this reason building and maintaining a WBS is a process that require a strong effort in terms of times and HR , due to that fact that many people should be involved to increase the common sharing knowledge about the projects. Moreover, it should be periodically review to ensure the WBS’s reliability, this has influence on future decision that the PM will take. As said reviewing a WBS has a cost, due to that WBS encourages rigid structure for the project. Thus, it reduces managerial flexibility to initiate and lead changes during the project life cycle. (Salvendy, 2001) <ref> Salvendy, G. 2001, Handbook of Industrial Engineering, 3rd ed, John Wiley & Sons, Inc, Canada</ref>.
However
# The WBS reflects the project objectives, by listing all the activities required to accomplish these objectives, it prevents confusion and doubts as to the aim of the project.
# It creates a common database and dictionary of common notation that serve as a reference point for all involved parties.
# The WBS permit smooth communications among the project team members and between them and customers, suppliers.
# It can be used as an archive that can later facilitate knowledge transfer to other projects or learning by new members of the Human-resources.
# The WBS is a powerful tool for resource management.

==References==
<references/>

Talk:Work Breakdown Structure (WBS)

2015-09-28T22:53:46Z

S141530:

Mette: I like your idea for a topic. I seems like you have a clear idea of what to write the article about and have remembered the structure for a "method article". Maybe you could short mention the Goal Breakdown Structure (GBS) in the article and outline the different.

Reviewer 1: s142581

* The topic was a wise choice, very relevant for practitioners and related to the course.
* Another positive aspect is that it follows the method structure.
* In addition, it has a good structure of sections and you did a good job with the references.
''Thanks for the all positive comments''
* I would suggest to separate the text into more paragraphs, especially in sections like ''History'' and ''Value breakdown structure''. This way, you could improve the reading flow.
I tried as you suggested to improve the reading flow as you suggested. specially by concentrating on punctuation.
* Also, I recommend you to be careful with “,” and “.”. You should separate some sentences, for example:
** ''Moreover, during the project executions the percentage of steps completed must be included. This ensure better control and guidance in case of any changes during the project development''.
** ''During 1962, United State Airforce released “STUDY OF METHODS FOR EVALUATION OF THE PERT/COST MANAGEMENT SYSTEM”. In this document WBS was mention as a useful tool for controlling and planning large acquisition projects''.
''Did it.''
** ''WBS could be considered a general tool that can be use in most of projects and program, due to this reason a WBS to another may vary to best adapts the project manager needs''.
* Also, you should revise the grammar carefully. For example:
** must includes = must include
** since this tool is use = since this tool is used
''Did it.''
* I would suggest that you transform the questions in the ''Main characteristics'' section into indirect questions.
* In addition, be careful with the paragraph spacing.
* You should introduce with a sentence the bullet points at the end of the ''Main characteristics'' section.
* I think you should rephrase the sentence “The most common method for decomposing a WBS are the following methods”. In addition, I recommend that you continue the explanation to every concept in the same line.
* Although you have noted “Picture under construction”, do not forget to numerate them and align them properly in the text. I would also suggest that you mention the figures in the text.
* I think you should use “:” after ''Nothing extra'' and ''Nothing Missing''.
* Finally, correct the spelling of the words ''advantages'' and ''disadvantages'' in the last section title.
''Did it.''

''I really appreciate your suggestion. You have been really precise and you gave me the exact location of some errors.''

Reviewer 2: S102935
# '''Pros'''
## Highly relevant topic
## Follows the outlines for the course neatly
## Good overall structure of the article
## Good references
## I can see you intend to Include more figures and pictures to illustrate some of the main points of the article, which is good

''Now all the pictures are uploaded''

# '''Missing content and formalities'''
## The annotated bibliography seem like an important part of the article, so remember to include annotations in your final article.
''I do not get exactly what do you mean.''
## A few grammatical errors, which unfortunately makes the article difficult to understand. These should be thinned out before the final hand-in, such as missing words and punctuation.
''Both grammar and punctuation errors have been fixed.''
# '''Suggestions'''
## Try to link your subject to other articles, where work break down structure is used, such as scheduling, time and cost estimation etc.
## Remember to focus on keeping a logical flow between the chapters, so one part leads to the next.
## Reread your article to thin out grammatical errors.''Did It''
## Remember to include the figures and mention them in the text with their associated number

'''Reviewer 3: AndreasAndersen'''
* The introduction to the topic is really good
* The language and grammar of the article are fine but with some formulation mistakes. You have to read the article a few more times to correct the last of the grammar. For example ” no matter is the scope project, program or portfolio”
''Thanks, I hope that now the article is more readable''
* There is a very good flow of the article and the different sections are linked
* Remember to put pictures that you mention into the article. That would make the article more reader-friendly
''Pictures added''
''* I think that the history section is too long. Maybe you could write the same information with fewer sentences

''Honestly I think that the length of history is fine''
* Remember to describe the concepts or information to the reader. For example in the ”Work Breakdown Structure main Characteristics” are you talking about lower levels, level 6 etc. I cant find any description of these levels and therefore i think that the different states of levels has to be introduced
* It is important that there are no spelling errors in your headlines. There are for example spelling errors in the headline ”Potential misunderstand, Disadventage and adventage”
* You need to link your Wiki article to other relevant pages in the APPPM Wiki
* The article meets the requirement of the 3000 words
* It is good that you have different types of references

Talk:Work Breakdown Structure (WBS)

2015-09-28T22:50:05Z

S141530:

Mette: I like your idea for a topic. I seems like you have a clear idea of what to write the article about and have remembered the structure for a "method article". Maybe you could short mention the Goal Breakdown Structure (GBS) in the article and outline the different.

Reviewer 1: s142581

* The topic was a wise choice, very relevant for practitioners and related to the course.
* Another positive aspect is that it follows the method structure.
* In addition, it has a good structure of sections and you did a good job with the references.
''Thanks for the all positive comments''
* I would suggest to separate the text into more paragraphs, especially in sections like ''History'' and ''Value breakdown structure''. This way, you could improve the reading flow.
I tried as you suggested to improve the reading flow as you suggested. specially by concentrating on punctuation.
* Also, I recommend you to be careful with “,” and “.”. You should separate some sentences, for example:
** ''Moreover, during the project executions the percentage of steps completed must be included. This ensure better control and guidance in case of any changes during the project development''.
** ''During 1962, United State Airforce released “STUDY OF METHODS FOR EVALUATION OF THE PERT/COST MANAGEMENT SYSTEM”. In this document WBS was mention as a useful tool for controlling and planning large acquisition projects''.
'''Did it.'''
** ''WBS could be considered a general tool that can be use in most of projects and program, due to this reason a WBS to another may vary to best adapts the project manager needs''.
* Also, you should revise the grammar carefully. For example:
** must includes = must include
** since this tool is use = since this tool is used
'''Did it.'''
* I would suggest that you transform the questions in the ''Main characteristics'' section into indirect questions.
* In addition, be careful with the paragraph spacing.
* You should introduce with a sentence the bullet points at the end of the ''Main characteristics'' section.
* I think you should rephrase the sentence “The most common method for decomposing a WBS are the following methods”. In addition, I recommend that you continue the explanation to every concept in the same line.
* Although you have noted “Picture under construction”, do not forget to numerate them and align them properly in the text. I would also suggest that you mention the figures in the text.
* I think you should use “:” after ''Nothing extra'' and ''Nothing Missing''.
* Finally, correct the spelling of the words ''advantages'' and ''disadvantages'' in the last section title.
'''Did it.'''

''I really appreciate your suggestion. You have been really precise and you gave me the exact allocation of some errors.
''
Reviewer 2: S102935
# '''Pros'''
## Highly relevant topic
## Follows the outlines for the course neatly
## Good overall structure of the article
## Good references
## I can see you intend to Include more figures and pictures to illustrate some of the main points of the article, which is good

''Now all the pictures are uploaded''

# '''Missing content and formalities'''
## The annotated bibliography seem like an important part of the article, so remember to include annotations in your final article.
''I do not get exactly what do you mean.''
## A few grammatical errors, which unfortunately makes the article difficult to understand. These should be thinned out before the final hand-in, such as missing words and punctuation.
''Both grammar and punctuation errors have been fixed.''
# '''Suggestions'''
## Try to link your subject to other articles, where work break down structure is used, such as scheduling, time and cost estimation etc.
## Remember to focus on keeping a logical flow between the chapters, so one part leads to the next.
## Reread your article to thin out grammatical errors.''Did It''
## Remember to include the figures and mention them in the text with their associated number

'''Reviewer 3: AndreasAndersen'''
* The introduction to the topic is really good
* The language and grammar of the article are fine but with some formulation mistakes. You have to read the article a few more times to correct the last of the grammar. For example ” no matter is the scope project, program or portfolio”
''Thanks, I hope that now the article is more readable''
* There is a very good flow of the article and the different sections are linked
* Remember to put pictures that you mention into the article. That would make the article more reader-friendly
''Pictures added''
''* I think that the history section is too long. Maybe you could write the same information with fewer sentences
''Honestly I think that the length of history is fine''
* Remember to describe the concepts or information to the reader. For example in the ”Work Breakdown Structure main Characteristics” are you talking about lower levels, level 6 etc. I cant find any description of these levels and therefore i think that the different states of levels has to be introduced
* It is important that there are no spelling errors in your headlines. There are for example spelling errors in the headline ”Potential misunderstand, Disadventage and adventage”
* You need to link your Wiki article to other relevant pages in the APPPM Wiki
* The article meets the requirement of the 3000 words
* It is good that you have different types of references

Work Breakdown Structure (WBS)

2015-09-28T22:39:53Z

S141530: /* Potential Misunderstanding, Disadventages and Advantages */

Work Breakdown Structure (WBS) is a tool used in project management context that separates in different levels of details a deliverable-oriented project in hierarchical order. The primary objective is to support the project manager by giving an overview of different steps, resources and costs involved in the project.
Moreover during the project executions it may include the percentage of steps completed. This ensures better control and guidance in case during the project development occur changes. It is graphically represented by a hierarchical tree, where the job of each components is given by the sum of elements underneath connected (sublevels). These elements may represent a product, data, service or any combination thereof.

==History==

The WBS was initially developed by the U.S. defense, back to the 1950’s and 60’s in cooperation with NASA. Both agencies were adopting the Program Evaluation and Review Technique (PERT) <ref>S1 Cleland, David I. and Roland Gareis, Global Project Management Handbook, McGraw-Hill Professional, 2006</ref> . During 1962, United State Airforce released “Study Of Methods For Evaluation Of The Pert/Cost Management System”. In this document was mentioned WBS as a useful tool for Controlling and Planning large acquisition projects <ref> Eric S. Norman, Shelly A. Brotherton, Robert T. Fried Work Breakdown Structures: The Foundation for Project Management Excellence, Wiley, 2010</ref> . As understandable, most of NASA projects involve many actors (contractors) with totally different tasks. Nevertheless, all of them are parts of the same project and work for the same final purpose. The WBS was used to ‘‘ . . . ensure that the total project is fully planned and that all derivative plans contribute directly to the desired objectives’’ (NASA, 1962)<ref>"Background and Key Concepts COPYRIGHTED MATERIAL." Web. 20 Sep. 2015</ref>. After this first approach NASA decided to keep update this document because believed valid and useful. In 1968, due to its success, the Department of Defense released "Work Breakdown Structures for Defense Materiel Items" (MIL-STD-881), a military standard procedure which is obligatory for all programs under the Department of Defense.
This standard is constantly updated; the latest version refers to 2001 <ref>''[http://www.mcri.com/wp-content/uploads/2014/09/Military-Standard-881C-----Department-of-Defense-Standard-Practice-----Work-Breakdown-Structures-for-Defense-Materiel-Items-MIL-STD-881C-3-Oct-11.pdf Military-Standard-881C]'', 3 October 2011</ref>.
During 1987 Project Management Institute (PMI) started to release a number of documents for a non-military purpose. These documents have been collected in one, as result The Project Management Body of Knowledge (PMBOK) has been released. The first version is from 1987, other versions have been released during 1987, 1996, 2000, 2004, 2009, 2013 <ref>"Guide, A. "Project Management Body of Knowledge (PMBOK® GUIDE & STANDARD)." Project Management Institute. 2001.</ref>. The main concept of subdividing different activities through different levels remains the same of the early years. However, the approach goes from “A task- oriented ‘family tree’ of activities 1987” PMBOKfirst Guide to “A deliverable- oriented hierarchical decomposition of the work to be executed by the project team to accomplish the project objectives and create the required deliverables” (PMBOK Guide — Third).

On one hand, the documents from PMI give an overview of the WBS concept, on the other hand, the document released from the Department of Defense can be considered as a Handbook.

==Work Breakdown Structure main Charactheristics==

WBS could be considered a general tool that can be used in most of projects and program. Due to this reason its features can vary from a WBS to another to best adapt the project manager needs.
However, is important to underline which core characteristics that this tool should have to define a quality WBS.

In this case the term “quality” is properly define from Project Management Institute’s (PMI) that in 2006 released the paper “Practice Standard for Work Breakdown Structures”. In this document the definition of a quality WBS is given from two statements:

# A quality WBS is constructed in such a way that it satisfies all of the requirements for its use in a project.
# For the all level of the WBS, quality characteristics must be implemented.

In other words a quality WBS must comply with all requirements for its use, no matters is the scope project, program or portfolio.

This first requirement is the most important one, it state that a WBS should be deliverable-oriented, this guaranty a WBS that can be taken under control thanks to a “Milestone Structure”. Moreover, the final scope of the Project is more easily defined. To underpin the importance of this requirement, the PMI includes deliverable orientation as part of definition of a WBS.
A WBS must take into consideration the full scope of the project including all internal, external and interim deliverables. For facilitating this task a WBS has an hierarchal approach with at least two levels, to understand better the connection between the elements a coding scheme of different levels should be provided [[File:Coding_wbs.png‎|200px|thumb|right| Figure 1: WBS with Coding scheme]] '''Figure 1''', each level must include100% of works connection belonging to the lower level 6, Nevertheless is not permitted to included element out of this project scope.
Nouns and adjectives define each level’s component but the use of verbs is not permitted. This ensures the deliverable of the element otherwise could be understood as a task. In case arises the need of clarification a “WBS Dictionary” can be added for defining the outcomes. In addition, since this tool is used for “real-case” applications require to be updated while work are in progress.

If it is true that a quality WBS is constructed in such a way that it satisfies all of its intended needs, then what is it about those needs that differentiate one WBS from another? We are certain that all Work Breakdown Structures are not the same—so what then, separates and makes them unique? This is where the concept of Use-Related Characteristics comes into play.
Use-Related Characteristics include those additional attributes that vary from one project to next, across industries, environments or in the way the WBS is applied within the project. With Use-Related Characteristics, the quality of the WBS depends on how well the specific content and types of WBS elements address the full set of needs of the project or program. Then this implies that the quality of the WBS increase with the number of the listed features that it meets:

* Achieves a sufficient level of decomposition to enable appropriate management and control
* Provides sufficient detail for bounding and communicating the scope of the project in its entirety
* Contains specific types of WBS elements necessary for the project
* Clearly enables the assignment of accountability at the appropriate level, regardless of whether the WBS is for a program or an
individual project

==Representation==
As mentioned before the aim of a WBS is to show at best the purpose of the project, program or portfolio taken into consideration. There is no one exact or mandatory way of representing a WBS. Nevertheless, all of them have in common a tree structure. The most use tree structure is the inverted Tree Structure [[File: Horizontal_WBS.png‎|200px|thumb|right| Figure 2: Inverted tree structure]] '''''Figure 2''''', in this representation the project has the aspect of an organization chart. However there are other two types of representation: the one shown In [[File: Horizontal_WBS.png‎|200px|thumb|left| Figure 3: Horizontal WBS]] '''''Figure 3''''', that has the root on the left side and growth from the right side and the last one called centralized tree structure .[[File:Centralized_tree_structure_WBS.png‎‎|200px|thumb|right| Figure 4: Centralized_tree_structure_WBS]] '''''Figure 4''''' This can help the project development session.

The graphical representation is not the only way of representing a WBS: tabular views are also used. This approach has the advantage to be clearer in case the WBS has many levels. An example is shown in figure [[File: List_wbs.png‎‎|200px|thumb|right| Figure 5: Tabular WBS]] '''''Figure 5'''''. Usually at top level is shown the main deliverable that can change depending what kind of project is analyzed. Lower level provide information to the project managers like schedule development, cost estimating, resource allocation, and risk assessment. The lowest level called Work Packages, is defined by PMI as:” A deliverable or project work component at the lowest level of the Work Breakdown Structure. The work package includes the schedule activities and schedule milestones required to complete the work package deliverable or project work component’.It is a good habit as suggested by NASA of not having more than seven levels. Each element of a WBS is recognizable by a clear, descriptive title and by a numbering scheme

Depending on the level the management might assign responsibility for technical, schedule, and cost performance. A Control Account is usually established to guaranty at best he intersection between of WBS element and organization unit.

==Decomposition procedures==
Overall a WBS is the result of a decomposition process, which goes from the project's aim and terminates to a certain level of details necessary for effective communication at the project's stakeholder. Meaning that there no rule regarding how much in detail the WBS should go, it depends from project to project. This supports the statement that identify WBS as Use-Related Characteristics tool. Nevertheless, is important to find a good balance between communication, complexity and the need for control <ref> Stephen A. Devaux. 1 edition (September 18, 2014). Managing Projects as Investments: Earned Value to Business Value </ref>.

The most common method for decomposing a WBS are the following methods:
*Function
Project’s deliverables are collected by business function for facilitating communication to stakeholders. This WBS is focusing on operations or activities that should be performed.
*Role
Similar to the previous one, this focuses more on responsibility.
*Method
The project derivable is based on methodology or delivery process, this type of WBS is easy to understand and is mainly use for showing the projects outcomes.
*Deliverables (components)
This is most common used.It can be used for every types of projects. The project’s deliverables are collected by business function

==100% Rule==

One of the most important principles for developing a WBS is called 100% rule. This rule is set from Project Management Institute (PMI).

This 100% rule establish that a WBS must Include the 100% of the work defined from the project and includes all the necessary for its realization (Internal, contractor, subcontractor) included the management of the project itself. The 100% rule is one of the most important guideline for developing the decomposition and evaluation of a WBS. The rule is applied at all levels of the hierarchical structure : ‘the next level of decomposition of a WBS element (child level) must represent 100 percent of the work applicable to the next higher (parent) element’’ <ref> Haugan, Gregory T. 2002. Effective Work Breakdown Structures. Vienna, VA Management Concepts</ref> (Haugan p. 17)..
The WBS can not include jobs out of the project’s border, meaning that should not include more of the 100%.

The application of the 100% Rule allows the manager to know that all efforts in each area are captured where they belong and also that nothing unrelated is included in an element. Application of the 100% Rule enables all outcomes to be defined before the schedule planning begins. The work breakdown structure is the initiator in the planning process, as planned outcomes must be defined before methods and schedules can be considered. If outcomes are insufficiently defined, the project cannot succeed. Awareness of the 100% Rule enables and communicates the full understanding of all necessary outcomes. Once the project is underway the 100% Rule assists in assuring that project costs are properly shown in the accounting system. This is true for all projects, whether they are accomplished for another division in a company or a regular paying customer. Application of the 100% Rule enables accurate costing, which is essential to budget similar efforts in the future.

===100% Rule Application===

This example provides a practical use of the 100% rule and the "progressive elaboration" technique. [[File:Wbs_house.png‎‎|200px|thumb|right| Figure 6: Work Breakdown Structure of a House]] '''''Figure 6''''' , is shown a WBS that has the objective the Construction of an house.
At the top level (Level 1) the project manager has assigned 100 points to the whole project, meaning the entire building process of the house. Breaking down to level number 2 we have more than one deliverable. By summing the points of each deliverable the result will be of 100. The points allocated in each element are the result of a project manager’s consideration, meaning that these points are not an estimation of Cost/Time, etc. but represent the overall effort needed to complete the task. Some elements (the once that needs a higher detail of decomposition) have a lower level (Level 3) that represents in this case the lowest level of this WBS. However, if is needed this breaks down process can continue until the project manager is not satisfed regarding the level of details that want to achieve. The procedure just used is called “progressive elaboration”.

As in this example, is totally fine if have different level of decomposition through different elements

It is suggested that the project manager uses a software support, as a spreadsheet, to have an auto-sum operations. This could seem a silly recommendation, but the WBS of a portfolio can have hundred of branches a spreadsheet will be very useful. Another recommended procedure is to discuss together with the project team regarding the numbers of points that belong to each element, this collaborative practice helps to achieve an high resolution of the reality because different people with different skills are involved during this process.

==Specific Type of WBS==
As mentioned previously WBS is a tool introduced during the 60’.However up to present different WBS’s related tools have been developed.

===Value breakdown structure===

This tool is mainly used for assessing a project’s expected value, as WBS has a hierarchical structure. There is one fundamental difference: in this tool the 100% rule is not used, this because the value is not additive as the cost. For instance, a Helicopter manufacturer wants to produce a 10-seat helicopter the budget is 1000000$, and the Expected monetary value is 1700000$. By using an hierarchical approach we should decompose the helicopter in different parts and define for each part all the necessary process until to get these components (cockpit, landing skid, passenger seats, engine, rotor, tail rotor, blade ). Let's image that we have all the components except the engine. The cost resources until this stage could be 900000$, but the actual value of this helicopter without the engine is namely 0 because no one wants a Helicopter without the engine. Meaning that the added Value of the engine is equal or close to the entire value of the projects. On one hand, we do not have any value until the motor is not mounted on the helicopter (VBS approach), on the other hand, we have costs for the resources used until now (WBS approach).

===Goals Breakdown Structure===
As a WBS, the Goals Breakdown Structure (GBS) has a hierarchical tree structure. It can be considered like a WBS specially design for goal’s achievement. In the highest level is positioned the overall goal of the projects, at the lower level are located mid-term goals needed for achieving the top level mission. The GBS elements might include different peculiarities that characterize each goal, for instance, profit, market share, etc. At the third level the products/process needed for achieving the organizational goals are defined.

As written in A Guide to the Project Management Body of Knowledge (PMBOK(R)[1] Guide) it follows rules similar to WBS. For the breakdown decomposition the WBS follows two general rules:

*'''Nothing Extra''' Is not allowed to include an element that does not contribute to the upper-level goals. No layer should contain any extraneous goals.
*'''Nothing Missing''' Each level must define all the goals necessary to ensure that the project achieves the next higher-level goals.

The first rule is needed to make sure that the project is focused in only one objective without losing the resource that does not contribute any organization’s value. The second one ensures that everything that is needed for adding value to the project is take into consideration.
The general scope of a GBS is to analyze all the goals and only the goals needed to achieve the project's higher-level goals.

==Potential Misunderstanding, Disadventages and Advantages==

A WBS is not an organizational hierarchy chart. A common error is to develop a WBS in accordance to the organizational hierarchy, so is important to decompose the works depending the relations between processes than between organizational hierarchy.

A WBS is not a project’s development planning neither a list in chronological order. Is not suggested to plan a project without having developed its WBS. In other words, is like plan the manufacturing process for building an airplane, even before the completion of its project. In this case is even difficult to apply the 100% rules, because the goals are not well defined. Moreover once that a WBS is defined, in case of error is not possible to fix it without starting from the beginning, because all the processes are connected to each other.
For this reason building and maintaining a WBS is a process that require a strong effort in terms of times and HR , due to that fact that many people should be involved to increase the common sharing knowledge about the projects. Moreover, it should be periodically review to ensure the WBS’s reliability, this has influence on future decision that the PM will take. As said reviewing a WBS has a cost, due to that WBS encourages rigid structure for the project. Thus, it reduces managerial flexibility to initiate and lead changes during the project life cycle. (Salvendy, 2001) <ref> Salvendy, G. 2001, Handbook of Industrial Engineering, 3rd ed, John Wiley & Sons, Inc, Canada</ref>.
However
# The WBS reflects the project objectives, by listing all the activities required to accomplish these objectives, it prevents confusion and doubts as to the aim of the project.
# It creates a common database and dictionary of common notation that serve as a reference point for all involved parties.
# The WBS enables smooth communications among the project team members and between them and customers, suppliers, regulators and etc.
# It serves as an archive that can later facilitate knowledge transfer to other projects or learning by new members of the work force.
# The WBS is an effective tool for resource management.

==References==
<references/>

Work Breakdown Structure (WBS)

2015-09-28T22:30:30Z

S141530: /* 100% Rule Application */

Work Breakdown Structure (WBS) is a tool used in project management context that separates in different levels of details a deliverable-oriented project in hierarchical order. The primary objective is to support the project manager by giving an overview of different steps, resources and costs involved in the project.
Moreover during the project executions it may include the percentage of steps completed. This ensures better control and guidance in case during the project development occur changes. It is graphically represented by a hierarchical tree, where the job of each components is given by the sum of elements underneath connected (sublevels). These elements may represent a product, data, service or any combination thereof.

==History==

The WBS was initially developed by the U.S. defense, back to the 1950’s and 60’s in cooperation with NASA. Both agencies were adopting the Program Evaluation and Review Technique (PERT) <ref>S1 Cleland, David I. and Roland Gareis, Global Project Management Handbook, McGraw-Hill Professional, 2006</ref> . During 1962, United State Airforce released “Study Of Methods For Evaluation Of The Pert/Cost Management System”. In this document was mentioned WBS as a useful tool for Controlling and Planning large acquisition projects <ref> Eric S. Norman, Shelly A. Brotherton, Robert T. Fried Work Breakdown Structures: The Foundation for Project Management Excellence, Wiley, 2010</ref> . As understandable, most of NASA projects involve many actors (contractors) with totally different tasks. Nevertheless, all of them are parts of the same project and work for the same final purpose. The WBS was used to ‘‘ . . . ensure that the total project is fully planned and that all derivative plans contribute directly to the desired objectives’’ (NASA, 1962)<ref>"Background and Key Concepts COPYRIGHTED MATERIAL." Web. 20 Sep. 2015</ref>. After this first approach NASA decided to keep update this document because believed valid and useful. In 1968, due to its success, the Department of Defense released "Work Breakdown Structures for Defense Materiel Items" (MIL-STD-881), a military standard procedure which is obligatory for all programs under the Department of Defense.
This standard is constantly updated; the latest version refers to 2001 <ref>''[http://www.mcri.com/wp-content/uploads/2014/09/Military-Standard-881C-----Department-of-Defense-Standard-Practice-----Work-Breakdown-Structures-for-Defense-Materiel-Items-MIL-STD-881C-3-Oct-11.pdf Military-Standard-881C]'', 3 October 2011</ref>.
During 1987 Project Management Institute (PMI) started to release a number of documents for a non-military purpose. These documents have been collected in one, as result The Project Management Body of Knowledge (PMBOK) has been released. The first version is from 1987, other versions have been released during 1987, 1996, 2000, 2004, 2009, 2013 <ref>"Guide, A. "Project Management Body of Knowledge (PMBOK® GUIDE & STANDARD)." Project Management Institute. 2001.</ref>. The main concept of subdividing different activities through different levels remains the same of the early years. However, the approach goes from “A task- oriented ‘family tree’ of activities 1987” PMBOKfirst Guide to “A deliverable- oriented hierarchical decomposition of the work to be executed by the project team to accomplish the project objectives and create the required deliverables” (PMBOK Guide — Third).

On one hand, the documents from PMI give an overview of the WBS concept, on the other hand, the document released from the Department of Defense can be considered as a Handbook.

==Work Breakdown Structure main Charactheristics==

WBS could be considered a general tool that can be used in most of projects and program. Due to this reason its features can vary from a WBS to another to best adapt the project manager needs.
However, is important to underline which core characteristics that this tool should have to define a quality WBS.

In this case the term “quality” is properly define from Project Management Institute’s (PMI) that in 2006 released the paper “Practice Standard for Work Breakdown Structures”. In this document the definition of a quality WBS is given from two statements:

# A quality WBS is constructed in such a way that it satisfies all of the requirements for its use in a project.
# For the all level of the WBS, quality characteristics must be implemented.

In other words a quality WBS must comply with all requirements for its use, no matters is the scope project, program or portfolio.

This first requirement is the most important one, it state that a WBS should be deliverable-oriented, this guaranty a WBS that can be taken under control thanks to a “Milestone Structure”. Moreover, the final scope of the Project is more easily defined. To underpin the importance of this requirement, the PMI includes deliverable orientation as part of definition of a WBS.
A WBS must take into consideration the full scope of the project including all internal, external and interim deliverables. For facilitating this task a WBS has an hierarchal approach with at least two levels, to understand better the connection between the elements a coding scheme of different levels should be provided [[File:Coding_wbs.png‎|200px|thumb|right| Figure 1: WBS with Coding scheme]] '''Figure 1''', each level must include100% of works connection belonging to the lower level 6, Nevertheless is not permitted to included element out of this project scope.
Nouns and adjectives define each level’s component but the use of verbs is not permitted. This ensures the deliverable of the element otherwise could be understood as a task. In case arises the need of clarification a “WBS Dictionary” can be added for defining the outcomes. In addition, since this tool is used for “real-case” applications require to be updated while work are in progress.

If it is true that a quality WBS is constructed in such a way that it satisfies all of its intended needs, then what is it about those needs that differentiate one WBS from another? We are certain that all Work Breakdown Structures are not the same—so what then, separates and makes them unique? This is where the concept of Use-Related Characteristics comes into play.
Use-Related Characteristics include those additional attributes that vary from one project to next, across industries, environments or in the way the WBS is applied within the project. With Use-Related Characteristics, the quality of the WBS depends on how well the specific content and types of WBS elements address the full set of needs of the project or program. Then this implies that the quality of the WBS increase with the number of the listed features that it meets:

* Achieves a sufficient level of decomposition to enable appropriate management and control
* Provides sufficient detail for bounding and communicating the scope of the project in its entirety
* Contains specific types of WBS elements necessary for the project
* Clearly enables the assignment of accountability at the appropriate level, regardless of whether the WBS is for a program or an
individual project

==Representation==
As mentioned before the aim of a WBS is to show at best the purpose of the project, program or portfolio taken into consideration. There is no one exact or mandatory way of representing a WBS. Nevertheless, all of them have in common a tree structure. The most use tree structure is the inverted Tree Structure [[File: Horizontal_WBS.png‎|200px|thumb|right| Figure 2: Inverted tree structure]] '''''Figure 2''''', in this representation the project has the aspect of an organization chart. However there are other two types of representation: the one shown In [[File: Horizontal_WBS.png‎|200px|thumb|left| Figure 3: Horizontal WBS]] '''''Figure 3''''', that has the root on the left side and growth from the right side and the last one called centralized tree structure .[[File:Centralized_tree_structure_WBS.png‎‎|200px|thumb|right| Figure 4: Centralized_tree_structure_WBS]] '''''Figure 4''''' This can help the project development session.

The graphical representation is not the only way of representing a WBS: tabular views are also used. This approach has the advantage to be clearer in case the WBS has many levels. An example is shown in figure [[File: List_wbs.png‎‎|200px|thumb|right| Figure 5: Tabular WBS]] '''''Figure 5'''''. Usually at top level is shown the main deliverable that can change depending what kind of project is analyzed. Lower level provide information to the project managers like schedule development, cost estimating, resource allocation, and risk assessment. The lowest level called Work Packages, is defined by PMI as:” A deliverable or project work component at the lowest level of the Work Breakdown Structure. The work package includes the schedule activities and schedule milestones required to complete the work package deliverable or project work component’.It is a good habit as suggested by NASA of not having more than seven levels. Each element of a WBS is recognizable by a clear, descriptive title and by a numbering scheme

Depending on the level the management might assign responsibility for technical, schedule, and cost performance. A Control Account is usually established to guaranty at best he intersection between of WBS element and organization unit.

==Decomposition procedures==
Overall a WBS is the result of a decomposition process, which goes from the project's aim and terminates to a certain level of details necessary for effective communication at the project's stakeholder. Meaning that there no rule regarding how much in detail the WBS should go, it depends from project to project. This supports the statement that identify WBS as Use-Related Characteristics tool. Nevertheless, is important to find a good balance between communication, complexity and the need for control <ref> Stephen A. Devaux. 1 edition (September 18, 2014). Managing Projects as Investments: Earned Value to Business Value </ref>.

The most common method for decomposing a WBS are the following methods:
*Function
Project’s deliverables are collected by business function for facilitating communication to stakeholders. This WBS is focusing on operations or activities that should be performed.
*Role
Similar to the previous one, this focuses more on responsibility.
*Method
The project derivable is based on methodology or delivery process, this type of WBS is easy to understand and is mainly use for showing the projects outcomes.
*Deliverables (components)
This is most common used.It can be used for every types of projects. The project’s deliverables are collected by business function

==100% Rule==

One of the most important principles for developing a WBS is called 100% rule. This rule is set from Project Management Institute (PMI).

This 100% rule establish that a WBS must Include the 100% of the work defined from the project and includes all the necessary for its realization (Internal, contractor, subcontractor) included the management of the project itself. The 100% rule is one of the most important guideline for developing the decomposition and evaluation of a WBS. The rule is applied at all levels of the hierarchical structure : ‘the next level of decomposition of a WBS element (child level) must represent 100 percent of the work applicable to the next higher (parent) element’’ <ref> Haugan, Gregory T. 2002. Effective Work Breakdown Structures. Vienna, VA Management Concepts</ref> (Haugan p. 17)..
The WBS can not include jobs out of the project’s border, meaning that should not include more of the 100%.

The application of the 100% Rule allows the manager to know that all efforts in each area are captured where they belong and also that nothing unrelated is included in an element. Application of the 100% Rule enables all outcomes to be defined before the schedule planning begins. The work breakdown structure is the initiator in the planning process, as planned outcomes must be defined before methods and schedules can be considered. If outcomes are insufficiently defined, the project cannot succeed. Awareness of the 100% Rule enables and communicates the full understanding of all necessary outcomes. Once the project is underway the 100% Rule assists in assuring that project costs are properly shown in the accounting system. This is true for all projects, whether they are accomplished for another division in a company or a regular paying customer. Application of the 100% Rule enables accurate costing, which is essential to budget similar efforts in the future.

===100% Rule Application===

This example provides a practical use of the 100% rule and the "progressive elaboration" technique. [[File:Wbs_house.png‎‎|200px|thumb|right| Figure 6: Work Breakdown Structure of a House]] '''''Figure 6''''' , is shown a WBS that has the objective the Construction of an house.
At the top level (Level 1) the project manager has assigned 100 points to the whole project, meaning the entire building process of the house. Breaking down to level number 2 we have more than one deliverable. By summing the points of each deliverable the result will be of 100. The points allocated in each element are the result of a project manager’s consideration, meaning that these points are not an estimation of Cost/Time, etc. but represent the overall effort needed to complete the task. Some elements (the once that needs a higher detail of decomposition) have a lower level (Level 3) that represents in this case the lowest level of this WBS. However, if is needed this breaks down process can continue until the project manager is not satisfed regarding the level of details that want to achieve. The procedure just used is called “progressive elaboration”.

As in this example, is totally fine if have different level of decomposition through different elements

It is suggested that the project manager uses a software support, as a spreadsheet, to have an auto-sum operations. This could seem a silly recommendation, but the WBS of a portfolio can have hundred of branches a spreadsheet will be very useful. Another recommended procedure is to discuss together with the project team regarding the numbers of points that belong to each element, this collaborative practice helps to achieve an high resolution of the reality because different people with different skills are involved during this process.

==Specific Type of WBS==
As mentioned previously WBS is a tool introduced during the 60’.However up to present different WBS’s related tools have been developed.

===Value breakdown structure===

This tool is mainly used for assessing a project’s expected value, as WBS has a hierarchical structure. There is one fundamental difference: in this tool the 100% rule is not used, this because the value is not additive as the cost. For instance, a Helicopter manufacturer wants to produce a 10-seat helicopter the budget is 1000000$, and the Expected monetary value is 1700000$. By using an hierarchical approach we should decompose the helicopter in different parts and define for each part all the necessary process until to get these components (cockpit, landing skid, passenger seats, engine, rotor, tail rotor, blade ). Let's image that we have all the components except the engine. The cost resources until this stage could be 900000$, but the actual value of this helicopter without the engine is namely 0 because no one wants a Helicopter without the engine. Meaning that the added Value of the engine is equal or close to the entire value of the projects. On one hand, we do not have any value until the motor is not mounted on the helicopter (VBS approach), on the other hand, we have costs for the resources used until now (WBS approach).

===Goals Breakdown Structure===
As a WBS, the Goals Breakdown Structure (GBS) has a hierarchical tree structure. It can be considered like a WBS specially design for goal’s achievement. In the highest level is positioned the overall goal of the projects, at the lower level are located mid-term goals needed for achieving the top level mission. The GBS elements might include different peculiarities that characterize each goal, for instance, profit, market share, etc. At the third level the products/process needed for achieving the organizational goals are defined.

As written in A Guide to the Project Management Body of Knowledge (PMBOK(R)[1] Guide) it follows rules similar to WBS. For the breakdown decomposition the WBS follows two general rules:

*'''Nothing Extra''' Is not allowed to include an element that does not contribute to the upper-level goals. No layer should contain any extraneous goals.
*'''Nothing Missing''' Each level must define all the goals necessary to ensure that the project achieves the next higher-level goals.

The first rule is needed to make sure that the project is focused in only one objective without losing the resource that does not contribute any organization’s value. The second one ensures that everything that is needed for adding value to the project is take into consideration.
The general scope of a GBS is to analyze all the goals and only the goals needed to achieve the project's higher-level goals.

==Potential Misunderstanding, Disadventage and adventage==

A WBS is not an organizational hierarchy chart. A common error is to develop a WBS in accordance to the organizational hierarchy, so is important to decompose the works depending the relations between processes than between organizational hierarchy.

A WBS is not a project’s development planning neither a list in chronological order. Is not suggested to plan a project without having developed its WBS. In other words, is like plan the manufacturing process for building an airplane, even before the completion of its project. In this case is even difficult to apply the 100% rules, because the goals are not well defined. Moreover once that a WBS is defined, in case of error is not possible to fix it without starting from the beginning, because all the processes are connected to each other.
For this reason building and maintaining a WBS is a process that require a strong effort in terms of times and HR , due to that fact that many people should be involved to increase the common sharing knowledge about the projects. Moreover, it should be periodically review to ensure the WBS’s reliability, this has influence on future decision that the PM will take. As said reviewing a WBS has a cost, due to that WBS encourages rigid structure for the project. Thus, it reduces managerial flexibility to initiate and lead changes during the project life cycle. (Salvendy, 2001) <ref> Salvendy, G. 2001, Handbook of Industrial Engineering, 3rd ed, John Wiley & Sons, Inc, Canada</ref>.
However
# The WBS reflects the project objectives, by listing all the activities required to accomplish these objectives, it prevents confusion and doubts as to the aim of the project.
# It creates a common database and dictionary of common notation that serve as a reference point for all involved parties.
# The WBS enables smooth communications among the project team members and between them and customers, suppliers, regulators and etc.
# It serves as an archive that can later facilitate knowledge transfer to other projects or learning by new members of the work force.
# The WBS is an effective tool for resource management.

==References==
<references/>

Work Breakdown Structure (WBS)

2015-09-28T22:30:02Z

S141530: /* 100% Rule Application */

Work Breakdown Structure (WBS) is a tool used in project management context that separates in different levels of details a deliverable-oriented project in hierarchical order. The primary objective is to support the project manager by giving an overview of different steps, resources and costs involved in the project.
Moreover during the project executions it may include the percentage of steps completed. This ensures better control and guidance in case during the project development occur changes. It is graphically represented by a hierarchical tree, where the job of each components is given by the sum of elements underneath connected (sublevels). These elements may represent a product, data, service or any combination thereof.

==History==

The WBS was initially developed by the U.S. defense, back to the 1950’s and 60’s in cooperation with NASA. Both agencies were adopting the Program Evaluation and Review Technique (PERT) <ref>S1 Cleland, David I. and Roland Gareis, Global Project Management Handbook, McGraw-Hill Professional, 2006</ref> . During 1962, United State Airforce released “Study Of Methods For Evaluation Of The Pert/Cost Management System”. In this document was mentioned WBS as a useful tool for Controlling and Planning large acquisition projects <ref> Eric S. Norman, Shelly A. Brotherton, Robert T. Fried Work Breakdown Structures: The Foundation for Project Management Excellence, Wiley, 2010</ref> . As understandable, most of NASA projects involve many actors (contractors) with totally different tasks. Nevertheless, all of them are parts of the same project and work for the same final purpose. The WBS was used to ‘‘ . . . ensure that the total project is fully planned and that all derivative plans contribute directly to the desired objectives’’ (NASA, 1962)<ref>"Background and Key Concepts COPYRIGHTED MATERIAL." Web. 20 Sep. 2015</ref>. After this first approach NASA decided to keep update this document because believed valid and useful. In 1968, due to its success, the Department of Defense released "Work Breakdown Structures for Defense Materiel Items" (MIL-STD-881), a military standard procedure which is obligatory for all programs under the Department of Defense.
This standard is constantly updated; the latest version refers to 2001 <ref>''[http://www.mcri.com/wp-content/uploads/2014/09/Military-Standard-881C-----Department-of-Defense-Standard-Practice-----Work-Breakdown-Structures-for-Defense-Materiel-Items-MIL-STD-881C-3-Oct-11.pdf Military-Standard-881C]'', 3 October 2011</ref>.
During 1987 Project Management Institute (PMI) started to release a number of documents for a non-military purpose. These documents have been collected in one, as result The Project Management Body of Knowledge (PMBOK) has been released. The first version is from 1987, other versions have been released during 1987, 1996, 2000, 2004, 2009, 2013 <ref>"Guide, A. "Project Management Body of Knowledge (PMBOK® GUIDE & STANDARD)." Project Management Institute. 2001.</ref>. The main concept of subdividing different activities through different levels remains the same of the early years. However, the approach goes from “A task- oriented ‘family tree’ of activities 1987” PMBOKfirst Guide to “A deliverable- oriented hierarchical decomposition of the work to be executed by the project team to accomplish the project objectives and create the required deliverables” (PMBOK Guide — Third).

On one hand, the documents from PMI give an overview of the WBS concept, on the other hand, the document released from the Department of Defense can be considered as a Handbook.

==Work Breakdown Structure main Charactheristics==

WBS could be considered a general tool that can be used in most of projects and program. Due to this reason its features can vary from a WBS to another to best adapt the project manager needs.
However, is important to underline which core characteristics that this tool should have to define a quality WBS.

In this case the term “quality” is properly define from Project Management Institute’s (PMI) that in 2006 released the paper “Practice Standard for Work Breakdown Structures”. In this document the definition of a quality WBS is given from two statements:

# A quality WBS is constructed in such a way that it satisfies all of the requirements for its use in a project.
# For the all level of the WBS, quality characteristics must be implemented.

In other words a quality WBS must comply with all requirements for its use, no matters is the scope project, program or portfolio.

This first requirement is the most important one, it state that a WBS should be deliverable-oriented, this guaranty a WBS that can be taken under control thanks to a “Milestone Structure”. Moreover, the final scope of the Project is more easily defined. To underpin the importance of this requirement, the PMI includes deliverable orientation as part of definition of a WBS.
A WBS must take into consideration the full scope of the project including all internal, external and interim deliverables. For facilitating this task a WBS has an hierarchal approach with at least two levels, to understand better the connection between the elements a coding scheme of different levels should be provided [[File:Coding_wbs.png‎|200px|thumb|right| Figure 1: WBS with Coding scheme]] '''Figure 1''', each level must include100% of works connection belonging to the lower level 6, Nevertheless is not permitted to included element out of this project scope.
Nouns and adjectives define each level’s component but the use of verbs is not permitted. This ensures the deliverable of the element otherwise could be understood as a task. In case arises the need of clarification a “WBS Dictionary” can be added for defining the outcomes. In addition, since this tool is used for “real-case” applications require to be updated while work are in progress.

If it is true that a quality WBS is constructed in such a way that it satisfies all of its intended needs, then what is it about those needs that differentiate one WBS from another? We are certain that all Work Breakdown Structures are not the same—so what then, separates and makes them unique? This is where the concept of Use-Related Characteristics comes into play.
Use-Related Characteristics include those additional attributes that vary from one project to next, across industries, environments or in the way the WBS is applied within the project. With Use-Related Characteristics, the quality of the WBS depends on how well the specific content and types of WBS elements address the full set of needs of the project or program. Then this implies that the quality of the WBS increase with the number of the listed features that it meets:

* Achieves a sufficient level of decomposition to enable appropriate management and control
* Provides sufficient detail for bounding and communicating the scope of the project in its entirety
* Contains specific types of WBS elements necessary for the project
* Clearly enables the assignment of accountability at the appropriate level, regardless of whether the WBS is for a program or an
individual project

==Representation==
As mentioned before the aim of a WBS is to show at best the purpose of the project, program or portfolio taken into consideration. There is no one exact or mandatory way of representing a WBS. Nevertheless, all of them have in common a tree structure. The most use tree structure is the inverted Tree Structure [[File: Horizontal_WBS.png‎|200px|thumb|right| Figure 2: Inverted tree structure]] '''''Figure 2''''', in this representation the project has the aspect of an organization chart. However there are other two types of representation: the one shown In [[File: Horizontal_WBS.png‎|200px|thumb|left| Figure 3: Horizontal WBS]] '''''Figure 3''''', that has the root on the left side and growth from the right side and the last one called centralized tree structure .[[File:Centralized_tree_structure_WBS.png‎‎|200px|thumb|right| Figure 4: Centralized_tree_structure_WBS]] '''''Figure 4''''' This can help the project development session.

The graphical representation is not the only way of representing a WBS: tabular views are also used. This approach has the advantage to be clearer in case the WBS has many levels. An example is shown in figure [[File: List_wbs.png‎‎|200px|thumb|right| Figure 5: Tabular WBS]] '''''Figure 5'''''. Usually at top level is shown the main deliverable that can change depending what kind of project is analyzed. Lower level provide information to the project managers like schedule development, cost estimating, resource allocation, and risk assessment. The lowest level called Work Packages, is defined by PMI as:” A deliverable or project work component at the lowest level of the Work Breakdown Structure. The work package includes the schedule activities and schedule milestones required to complete the work package deliverable or project work component’.It is a good habit as suggested by NASA of not having more than seven levels. Each element of a WBS is recognizable by a clear, descriptive title and by a numbering scheme

Depending on the level the management might assign responsibility for technical, schedule, and cost performance. A Control Account is usually established to guaranty at best he intersection between of WBS element and organization unit.

==Decomposition procedures==
Overall a WBS is the result of a decomposition process, which goes from the project's aim and terminates to a certain level of details necessary for effective communication at the project's stakeholder. Meaning that there no rule regarding how much in detail the WBS should go, it depends from project to project. This supports the statement that identify WBS as Use-Related Characteristics tool. Nevertheless, is important to find a good balance between communication, complexity and the need for control <ref> Stephen A. Devaux. 1 edition (September 18, 2014). Managing Projects as Investments: Earned Value to Business Value </ref>.

The most common method for decomposing a WBS are the following methods:
*Function
Project’s deliverables are collected by business function for facilitating communication to stakeholders. This WBS is focusing on operations or activities that should be performed.
*Role
Similar to the previous one, this focuses more on responsibility.
*Method
The project derivable is based on methodology or delivery process, this type of WBS is easy to understand and is mainly use for showing the projects outcomes.
*Deliverables (components)
This is most common used.It can be used for every types of projects. The project’s deliverables are collected by business function

==100% Rule==

One of the most important principles for developing a WBS is called 100% rule. This rule is set from Project Management Institute (PMI).

This 100% rule establish that a WBS must Include the 100% of the work defined from the project and includes all the necessary for its realization (Internal, contractor, subcontractor) included the management of the project itself. The 100% rule is one of the most important guideline for developing the decomposition and evaluation of a WBS. The rule is applied at all levels of the hierarchical structure : ‘the next level of decomposition of a WBS element (child level) must represent 100 percent of the work applicable to the next higher (parent) element’’ <ref> Haugan, Gregory T. 2002. Effective Work Breakdown Structures. Vienna, VA Management Concepts</ref> (Haugan p. 17)..
The WBS can not include jobs out of the project’s border, meaning that should not include more of the 100%.

The application of the 100% Rule allows the manager to know that all efforts in each area are captured where they belong and also that nothing unrelated is included in an element. Application of the 100% Rule enables all outcomes to be defined before the schedule planning begins. The work breakdown structure is the initiator in the planning process, as planned outcomes must be defined before methods and schedules can be considered. If outcomes are insufficiently defined, the project cannot succeed. Awareness of the 100% Rule enables and communicates the full understanding of all necessary outcomes. Once the project is underway the 100% Rule assists in assuring that project costs are properly shown in the accounting system. This is true for all projects, whether they are accomplished for another division in a company or a regular paying customer. Application of the 100% Rule enables accurate costing, which is essential to budget similar efforts in the future.

===100% Rule Application===

This example provides a practical use of the 100% rule and the "progressive elaboration" technique. [[File:Wbs_house.png‎‎|200px|thumb|right| Figure 6: Work Breakdown Structure of a House]] '''''Figure 6''''' , is shown a WBS that has the objective the Building of an house.
At the top level (Level 1) the project manager has assigned 100 points to the whole project, meaning the entire building process of the house. Breaking down to level number 2 we have more than one deliverable. By summing the points of each deliverable the result will be of 100. The points allocated in each element are the result of a project manager’s consideration, meaning that these points are not an estimation of Cost/Time, etc. but represent the overall effort needed to complete the task. Some elements (the once that needs a higher detail of decomposition) have a lower level (Level 3) that represents in this case the lowest level of this WBS. However, if is needed this breaks down process can continue until the project manager is not satisfed regarding the level of details that want to achieve. The procedure just used is called “progressive elaboration”.

As in this example, is totally fine if have different level of decomposition through different elements

It is suggested that the project manager uses a software support, as a spreadsheet, to have an auto-sum operations. This could seem a silly recommendation, but the WBS of a portfolio can have hundred of branches a spreadsheet will be very useful. Another recommended procedure is to discuss together with the project team regarding the numbers of points that belong to each element, this collaborative practice helps to achieve an high resolution of the reality because different people with different skills are involved during this process.

==Specific Type of WBS==
As mentioned previously WBS is a tool introduced during the 60’.However up to present different WBS’s related tools have been developed.

===Value breakdown structure===

This tool is mainly used for assessing a project’s expected value, as WBS has a hierarchical structure. There is one fundamental difference: in this tool the 100% rule is not used, this because the value is not additive as the cost. For instance, a Helicopter manufacturer wants to produce a 10-seat helicopter the budget is 1000000$, and the Expected monetary value is 1700000$. By using an hierarchical approach we should decompose the helicopter in different parts and define for each part all the necessary process until to get these components (cockpit, landing skid, passenger seats, engine, rotor, tail rotor, blade ). Let's image that we have all the components except the engine. The cost resources until this stage could be 900000$, but the actual value of this helicopter without the engine is namely 0 because no one wants a Helicopter without the engine. Meaning that the added Value of the engine is equal or close to the entire value of the projects. On one hand, we do not have any value until the motor is not mounted on the helicopter (VBS approach), on the other hand, we have costs for the resources used until now (WBS approach).

===Goals Breakdown Structure===
As a WBS, the Goals Breakdown Structure (GBS) has a hierarchical tree structure. It can be considered like a WBS specially design for goal’s achievement. In the highest level is positioned the overall goal of the projects, at the lower level are located mid-term goals needed for achieving the top level mission. The GBS elements might include different peculiarities that characterize each goal, for instance, profit, market share, etc. At the third level the products/process needed for achieving the organizational goals are defined.

As written in A Guide to the Project Management Body of Knowledge (PMBOK(R)[1] Guide) it follows rules similar to WBS. For the breakdown decomposition the WBS follows two general rules:

*'''Nothing Extra''' Is not allowed to include an element that does not contribute to the upper-level goals. No layer should contain any extraneous goals.
*'''Nothing Missing''' Each level must define all the goals necessary to ensure that the project achieves the next higher-level goals.

The first rule is needed to make sure that the project is focused in only one objective without losing the resource that does not contribute any organization’s value. The second one ensures that everything that is needed for adding value to the project is take into consideration.
The general scope of a GBS is to analyze all the goals and only the goals needed to achieve the project's higher-level goals.

==Potential Misunderstanding, Disadventage and adventage==

A WBS is not an organizational hierarchy chart. A common error is to develop a WBS in accordance to the organizational hierarchy, so is important to decompose the works depending the relations between processes than between organizational hierarchy.

A WBS is not a project’s development planning neither a list in chronological order. Is not suggested to plan a project without having developed its WBS. In other words, is like plan the manufacturing process for building an airplane, even before the completion of its project. In this case is even difficult to apply the 100% rules, because the goals are not well defined. Moreover once that a WBS is defined, in case of error is not possible to fix it without starting from the beginning, because all the processes are connected to each other.
For this reason building and maintaining a WBS is a process that require a strong effort in terms of times and HR , due to that fact that many people should be involved to increase the common sharing knowledge about the projects. Moreover, it should be periodically review to ensure the WBS’s reliability, this has influence on future decision that the PM will take. As said reviewing a WBS has a cost, due to that WBS encourages rigid structure for the project. Thus, it reduces managerial flexibility to initiate and lead changes during the project life cycle. (Salvendy, 2001) <ref> Salvendy, G. 2001, Handbook of Industrial Engineering, 3rd ed, John Wiley & Sons, Inc, Canada</ref>.
However
# The WBS reflects the project objectives, by listing all the activities required to accomplish these objectives, it prevents confusion and doubts as to the aim of the project.
# It creates a common database and dictionary of common notation that serve as a reference point for all involved parties.
# The WBS enables smooth communications among the project team members and between them and customers, suppliers, regulators and etc.
# It serves as an archive that can later facilitate knowledge transfer to other projects or learning by new members of the work force.
# The WBS is an effective tool for resource management.

==References==
<references/>

File:Wbs house.png

2015-09-28T22:28:40Z

S141530: Figure 6. Work Breakdown Structure of a House. http://www.workbreakdownstructure.com/100-percent-rule-work-breakdown-structure.php

Figure 6. Work Breakdown Structure of a House.
http://www.workbreakdownstructure.com/100-percent-rule-work-breakdown-structure.php

Work Breakdown Structure (WBS)

2015-09-28T22:21:00Z

S141530: /* Potential Misunderstanding, Disadventage and adventage */

Work Breakdown Structure (WBS) is a tool used in project management context that separates in different levels of details a deliverable-oriented project in hierarchical order. The primary objective is to support the project manager by giving an overview of different steps, resources and costs involved in the project.
Moreover during the project executions it may include the percentage of steps completed. This ensures better control and guidance in case during the project development occur changes. It is graphically represented by a hierarchical tree, where the job of each components is given by the sum of elements underneath connected (sublevels). These elements may represent a product, data, service or any combination thereof.

==History==

The WBS was initially developed by the U.S. defense, back to the 1950’s and 60’s in cooperation with NASA. Both agencies were adopting the Program Evaluation and Review Technique (PERT) <ref>S1 Cleland, David I. and Roland Gareis, Global Project Management Handbook, McGraw-Hill Professional, 2006</ref> . During 1962, United State Airforce released “Study Of Methods For Evaluation Of The Pert/Cost Management System”. In this document was mentioned WBS as a useful tool for Controlling and Planning large acquisition projects <ref> Eric S. Norman, Shelly A. Brotherton, Robert T. Fried Work Breakdown Structures: The Foundation for Project Management Excellence, Wiley, 2010</ref> . As understandable, most of NASA projects involve many actors (contractors) with totally different tasks. Nevertheless, all of them are parts of the same project and work for the same final purpose. The WBS was used to ‘‘ . . . ensure that the total project is fully planned and that all derivative plans contribute directly to the desired objectives’’ (NASA, 1962)<ref>"Background and Key Concepts COPYRIGHTED MATERIAL." Web. 20 Sep. 2015</ref>. After this first approach NASA decided to keep update this document because believed valid and useful. In 1968, due to its success, the Department of Defense released "Work Breakdown Structures for Defense Materiel Items" (MIL-STD-881), a military standard procedure which is obligatory for all programs under the Department of Defense.
This standard is constantly updated; the latest version refers to 2001 <ref>''[http://www.mcri.com/wp-content/uploads/2014/09/Military-Standard-881C-----Department-of-Defense-Standard-Practice-----Work-Breakdown-Structures-for-Defense-Materiel-Items-MIL-STD-881C-3-Oct-11.pdf Military-Standard-881C]'', 3 October 2011</ref>.
During 1987 Project Management Institute (PMI) started to release a number of documents for a non-military purpose. These documents have been collected in one, as result The Project Management Body of Knowledge (PMBOK) has been released. The first version is from 1987, other versions have been released during 1987, 1996, 2000, 2004, 2009, 2013 <ref>"Guide, A. "Project Management Body of Knowledge (PMBOK® GUIDE & STANDARD)." Project Management Institute. 2001.</ref>. The main concept of subdividing different activities through different levels remains the same of the early years. However, the approach goes from “A task- oriented ‘family tree’ of activities 1987” PMBOKfirst Guide to “A deliverable- oriented hierarchical decomposition of the work to be executed by the project team to accomplish the project objectives and create the required deliverables” (PMBOK Guide — Third).

On one hand, the documents from PMI give an overview of the WBS concept, on the other hand, the document released from the Department of Defense can be considered as a Handbook.

==Work Breakdown Structure main Charactheristics==

WBS could be considered a general tool that can be used in most of projects and program. Due to this reason its features can vary from a WBS to another to best adapt the project manager needs.
However, is important to underline which core characteristics that this tool should have to define a quality WBS.

In this case the term “quality” is properly define from Project Management Institute’s (PMI) that in 2006 released the paper “Practice Standard for Work Breakdown Structures”. In this document the definition of a quality WBS is given from two statements:

# A quality WBS is constructed in such a way that it satisfies all of the requirements for its use in a project.
# For the all level of the WBS, quality characteristics must be implemented.

In other words a quality WBS must comply with all requirements for its use, no matters is the scope project, program or portfolio.

This first requirement is the most important one, it state that a WBS should be deliverable-oriented, this guaranty a WBS that can be taken under control thanks to a “Milestone Structure”. Moreover, the final scope of the Project is more easily defined. To underpin the importance of this requirement, the PMI includes deliverable orientation as part of definition of a WBS.
A WBS must take into consideration the full scope of the project including all internal, external and interim deliverables. For facilitating this task a WBS has an hierarchal approach with at least two levels, to understand better the connection between the elements a coding scheme of different levels should be provided [[File:Coding_wbs.png‎|200px|thumb|right| Figure 1: WBS with Coding scheme]] '''Figure 1''', each level must include100% of works connection belonging to the lower level 6, Nevertheless is not permitted to included element out of this project scope.
Nouns and adjectives define each level’s component but the use of verbs is not permitted. This ensures the deliverable of the element otherwise could be understood as a task. In case arises the need of clarification a “WBS Dictionary” can be added for defining the outcomes. In addition, since this tool is used for “real-case” applications require to be updated while work are in progress.

If it is true that a quality WBS is constructed in such a way that it satisfies all of its intended needs, then what is it about those needs that differentiate one WBS from another? We are certain that all Work Breakdown Structures are not the same—so what then, separates and makes them unique? This is where the concept of Use-Related Characteristics comes into play.
Use-Related Characteristics include those additional attributes that vary from one project to next, across industries, environments or in the way the WBS is applied within the project. With Use-Related Characteristics, the quality of the WBS depends on how well the specific content and types of WBS elements address the full set of needs of the project or program. Then this implies that the quality of the WBS increase with the number of the listed features that it meets:

* Achieves a sufficient level of decomposition to enable appropriate management and control
* Provides sufficient detail for bounding and communicating the scope of the project in its entirety
* Contains specific types of WBS elements necessary for the project
* Clearly enables the assignment of accountability at the appropriate level, regardless of whether the WBS is for a program or an
individual project

==Representation==
As mentioned before the aim of a WBS is to show at best the purpose of the project, program or portfolio taken into consideration. There is no one exact or mandatory way of representing a WBS. Nevertheless, all of them have in common a tree structure. The most use tree structure is the inverted Tree Structure [[File: Horizontal_WBS.png‎|200px|thumb|right| Figure 2: Inverted tree structure]] '''''Figure 2''''', in this representation the project has the aspect of an organization chart. However there are other two types of representation: the one shown In [[File: Horizontal_WBS.png‎|200px|thumb|left| Figure 3: Horizontal WBS]] '''''Figure 3''''', that has the root on the left side and growth from the right side and the last one called centralized tree structure .[[File:Centralized_tree_structure_WBS.png‎‎|200px|thumb|right| Figure 4: Centralized_tree_structure_WBS]] '''''Figure 4''''' This can help the project development session.

The graphical representation is not the only way of representing a WBS: tabular views are also used. This approach has the advantage to be clearer in case the WBS has many levels. An example is shown in figure [[File: List_wbs.png‎‎|200px|thumb|right| Figure 5: Tabular WBS]] '''''Figure 5'''''. Usually at top level is shown the main deliverable that can change depending what kind of project is analyzed. Lower level provide information to the project managers like schedule development, cost estimating, resource allocation, and risk assessment. The lowest level called Work Packages, is defined by PMI as:” A deliverable or project work component at the lowest level of the Work Breakdown Structure. The work package includes the schedule activities and schedule milestones required to complete the work package deliverable or project work component’.It is a good habit as suggested by NASA of not having more than seven levels. Each element of a WBS is recognizable by a clear, descriptive title and by a numbering scheme

Depending on the level the management might assign responsibility for technical, schedule, and cost performance. A Control Account is usually established to guaranty at best he intersection between of WBS element and organization unit.

==Decomposition procedures==
Overall a WBS is the result of a decomposition process, which goes from the project's aim and terminates to a certain level of details necessary for effective communication at the project's stakeholder. Meaning that there no rule regarding how much in detail the WBS should go, it depends from project to project. This supports the statement that identify WBS as Use-Related Characteristics tool. Nevertheless, is important to find a good balance between communication, complexity and the need for control <ref> Stephen A. Devaux. 1 edition (September 18, 2014). Managing Projects as Investments: Earned Value to Business Value </ref>.

The most common method for decomposing a WBS are the following methods:
*Function
Project’s deliverables are collected by business function for facilitating communication to stakeholders. This WBS is focusing on operations or activities that should be performed.
*Role
Similar to the previous one, this focuses more on responsibility.
*Method
The project derivable is based on methodology or delivery process, this type of WBS is easy to understand and is mainly use for showing the projects outcomes.
*Deliverables (components)
This is most common used.It can be used for every types of projects. The project’s deliverables are collected by business function

==100% Rule==

One of the most important principles for developing a WBS is called 100% rule. This rule is set from Project Management Institute (PMI).

This 100% rule establish that a WBS must Include the 100% of the work defined from the project and includes all the necessary for its realization (Internal, contractor, subcontractor) included the management of the project itself. The 100% rule is one of the most important guideline for developing the decomposition and evaluation of a WBS. The rule is applied at all levels of the hierarchical structure : ‘the next level of decomposition of a WBS element (child level) must represent 100 percent of the work applicable to the next higher (parent) element’’ <ref> Haugan, Gregory T. 2002. Effective Work Breakdown Structures. Vienna, VA Management Concepts</ref> (Haugan p. 17)..
The WBS can not include jobs out of the project’s border, meaning that should not include more of the 100%.

The application of the 100% Rule allows the manager to know that all efforts in each area are captured where they belong and also that nothing unrelated is included in an element. Application of the 100% Rule enables all outcomes to be defined before the schedule planning begins. The work breakdown structure is the initiator in the planning process, as planned outcomes must be defined before methods and schedules can be considered. If outcomes are insufficiently defined, the project cannot succeed. Awareness of the 100% Rule enables and communicates the full understanding of all necessary outcomes. Once the project is underway the 100% Rule assists in assuring that project costs are properly shown in the accounting system. This is true for all projects, whether they are accomplished for another division in a company or a regular paying customer. Application of the 100% Rule enables accurate costing, which is essential to budget similar efforts in the future.

===100% Rule Application===

This example provides a practical use of the 100% rule and the "progressive elaboration" technique. In ! ('''''Picture Under construction''''') , is shown a WBS that has the objective the Building of an house.
At the top level (Level 1) the project manager has assigned 100 points to the whole project, meaning the entire building process of the house. Breaking down to level number 2 we have more than one deliverable. By summing the points of each deliverable the result will be of 100. The points allocated in each element are the result of a project manager’s consideration, meaning that these points are not an estimation of Cost/Time, etc. but represent the overall effort needed to complete the task. Some elements (the once that needs a higher detail of decomposition) have a lower level (Level 3) that represents in this case the lowest level of this WBS. However, if is needed this breaks down process can continue until the project manager is not satisfed regarding the level of details that want to achieve. The procedure just used is called “progressive elaboration”.

As in this example, is totally fine if have different level of decomposition through different elements

It is suggested that the project manager uses a software support, as a spreadsheet, to have an auto-sum operations. This could seem a silly recommendation, but the WBS of a portfolio can have hundred of branches a spreadsheet will be very useful. Another recommended procedure is to discuss together with the project team regarding the numbers of points that belong to each element, this collaborative practice helps to achieve an high resolution of the reality because different people with different skills are involved during this process.

==Specific Type of WBS==
As mentioned previously WBS is a tool introduced during the 60’.However up to present different WBS’s related tools have been developed.

===Value breakdown structure===

This tool is mainly used for assessing a project’s expected value, as WBS has a hierarchical structure. There is one fundamental difference: in this tool the 100% rule is not used, this because the value is not additive as the cost. For instance, a Helicopter manufacturer wants to produce a 10-seat helicopter the budget is 1000000$, and the Expected monetary value is 1700000$. By using an hierarchical approach we should decompose the helicopter in different parts and define for each part all the necessary process until to get these components (cockpit, landing skid, passenger seats, engine, rotor, tail rotor, blade ). Let's image that we have all the components except the engine. The cost resources until this stage could be 900000$, but the actual value of this helicopter without the engine is namely 0 because no one wants a Helicopter without the engine. Meaning that the added Value of the engine is equal or close to the entire value of the projects. On one hand, we do not have any value until the motor is not mounted on the helicopter (VBS approach), on the other hand, we have costs for the resources used until now (WBS approach).

===Goals Breakdown Structure===
As a WBS, the Goals Breakdown Structure (GBS) has a hierarchical tree structure. It can be considered like a WBS specially design for goal’s achievement. In the highest level is positioned the overall goal of the projects, at the lower level are located mid-term goals needed for achieving the top level mission. The GBS elements might include different peculiarities that characterize each goal, for instance, profit, market share, etc. At the third level the products/process needed for achieving the organizational goals are defined.

As written in A Guide to the Project Management Body of Knowledge (PMBOK(R)[1] Guide) it follows rules similar to WBS. For the breakdown decomposition the WBS follows two general rules:

*'''Nothing Extra''' Is not allowed to include an element that does not contribute to the upper-level goals. No layer should contain any extraneous goals.
*'''Nothing Missing''' Each level must define all the goals necessary to ensure that the project achieves the next higher-level goals.

The first rule is needed to make sure that the project is focused in only one objective without losing the resource that does not contribute any organization’s value. The second one ensures that everything that is needed for adding value to the project is take into consideration.
The general scope of a GBS is to analyze all the goals and only the goals needed to achieve the project's higher-level goals.

==Potential Misunderstanding, Disadventage and adventage==

A WBS is not an organizational hierarchy chart. A common error is to develop a WBS in accordance to the organizational hierarchy, so is important to decompose the works depending the relations between processes than between organizational hierarchy.

A WBS is not a project’s development planning neither a list in chronological order. Is not suggested to plan a project without having developed its WBS. In other words, is like plan the manufacturing process for building an airplane, even before the completion of its project. In this case is even difficult to apply the 100% rules, because the goals are not well defined. Moreover once that a WBS is defined, in case of error is not possible to fix it without starting from the beginning, because all the processes are connected to each other.
For this reason building and maintaining a WBS is a process that require a strong effort in terms of times and HR , due to that fact that many people should be involved to increase the common sharing knowledge about the projects. Moreover, it should be periodically review to ensure the WBS’s reliability, this has influence on future decision that the PM will take. As said reviewing a WBS has a cost, due to that WBS encourages rigid structure for the project. Thus, it reduces managerial flexibility to initiate and lead changes during the project life cycle. (Salvendy, 2001) <ref> Salvendy, G. 2001, Handbook of Industrial Engineering, 3rd ed, John Wiley & Sons, Inc, Canada</ref>.
However
# The WBS reflects the project objectives, by listing all the activities required to accomplish these objectives, it prevents confusion and doubts as to the aim of the project.
# It creates a common database and dictionary of common notation that serve as a reference point for all involved parties.
# The WBS enables smooth communications among the project team members and between them and customers, suppliers, regulators and etc.
# It serves as an archive that can later facilitate knowledge transfer to other projects or learning by new members of the work force.
# The WBS is an effective tool for resource management.

==References==
<references/>

Work Breakdown Structure (WBS)

2015-09-28T22:12:38Z

S141530: /* Specific Type of WBS */

Work Breakdown Structure (WBS) is a tool used in project management context that separates in different levels of details a deliverable-oriented project in hierarchical order. The primary objective is to support the project manager by giving an overview of different steps, resources and costs involved in the project.
Moreover during the project executions it may include the percentage of steps completed. This ensures better control and guidance in case during the project development occur changes. It is graphically represented by a hierarchical tree, where the job of each components is given by the sum of elements underneath connected (sublevels). These elements may represent a product, data, service or any combination thereof.

==History==

The WBS was initially developed by the U.S. defense, back to the 1950’s and 60’s in cooperation with NASA. Both agencies were adopting the Program Evaluation and Review Technique (PERT) <ref>S1 Cleland, David I. and Roland Gareis, Global Project Management Handbook, McGraw-Hill Professional, 2006</ref> . During 1962, United State Airforce released “Study Of Methods For Evaluation Of The Pert/Cost Management System”. In this document was mentioned WBS as a useful tool for Controlling and Planning large acquisition projects <ref> Eric S. Norman, Shelly A. Brotherton, Robert T. Fried Work Breakdown Structures: The Foundation for Project Management Excellence, Wiley, 2010</ref> . As understandable, most of NASA projects involve many actors (contractors) with totally different tasks. Nevertheless, all of them are parts of the same project and work for the same final purpose. The WBS was used to ‘‘ . . . ensure that the total project is fully planned and that all derivative plans contribute directly to the desired objectives’’ (NASA, 1962)<ref>"Background and Key Concepts COPYRIGHTED MATERIAL." Web. 20 Sep. 2015</ref>. After this first approach NASA decided to keep update this document because believed valid and useful. In 1968, due to its success, the Department of Defense released "Work Breakdown Structures for Defense Materiel Items" (MIL-STD-881), a military standard procedure which is obligatory for all programs under the Department of Defense.
This standard is constantly updated; the latest version refers to 2001 <ref>''[http://www.mcri.com/wp-content/uploads/2014/09/Military-Standard-881C-----Department-of-Defense-Standard-Practice-----Work-Breakdown-Structures-for-Defense-Materiel-Items-MIL-STD-881C-3-Oct-11.pdf Military-Standard-881C]'', 3 October 2011</ref>.
During 1987 Project Management Institute (PMI) started to release a number of documents for a non-military purpose. These documents have been collected in one, as result The Project Management Body of Knowledge (PMBOK) has been released. The first version is from 1987, other versions have been released during 1987, 1996, 2000, 2004, 2009, 2013 <ref>"Guide, A. "Project Management Body of Knowledge (PMBOK® GUIDE & STANDARD)." Project Management Institute. 2001.</ref>. The main concept of subdividing different activities through different levels remains the same of the early years. However, the approach goes from “A task- oriented ‘family tree’ of activities 1987” PMBOKfirst Guide to “A deliverable- oriented hierarchical decomposition of the work to be executed by the project team to accomplish the project objectives and create the required deliverables” (PMBOK Guide — Third).

On one hand, the documents from PMI give an overview of the WBS concept, on the other hand, the document released from the Department of Defense can be considered as a Handbook.

==Work Breakdown Structure main Charactheristics==

WBS could be considered a general tool that can be used in most of projects and program. Due to this reason its features can vary from a WBS to another to best adapt the project manager needs.
However, is important to underline which core characteristics that this tool should have to define a quality WBS.

In this case the term “quality” is properly define from Project Management Institute’s (PMI) that in 2006 released the paper “Practice Standard for Work Breakdown Structures”. In this document the definition of a quality WBS is given from two statements:

# A quality WBS is constructed in such a way that it satisfies all of the requirements for its use in a project.
# For the all level of the WBS, quality characteristics must be implemented.

In other words a quality WBS must comply with all requirements for its use, no matters is the scope project, program or portfolio.

This first requirement is the most important one, it state that a WBS should be deliverable-oriented, this guaranty a WBS that can be taken under control thanks to a “Milestone Structure”. Moreover, the final scope of the Project is more easily defined. To underpin the importance of this requirement, the PMI includes deliverable orientation as part of definition of a WBS.
A WBS must take into consideration the full scope of the project including all internal, external and interim deliverables. For facilitating this task a WBS has an hierarchal approach with at least two levels, to understand better the connection between the elements a coding scheme of different levels should be provided [[File:Coding_wbs.png‎|200px|thumb|right| Figure 1: WBS with Coding scheme]] '''Figure 1''', each level must include100% of works connection belonging to the lower level 6, Nevertheless is not permitted to included element out of this project scope.
Nouns and adjectives define each level’s component but the use of verbs is not permitted. This ensures the deliverable of the element otherwise could be understood as a task. In case arises the need of clarification a “WBS Dictionary” can be added for defining the outcomes. In addition, since this tool is used for “real-case” applications require to be updated while work are in progress.

If it is true that a quality WBS is constructed in such a way that it satisfies all of its intended needs, then what is it about those needs that differentiate one WBS from another? We are certain that all Work Breakdown Structures are not the same—so what then, separates and makes them unique? This is where the concept of Use-Related Characteristics comes into play.
Use-Related Characteristics include those additional attributes that vary from one project to next, across industries, environments or in the way the WBS is applied within the project. With Use-Related Characteristics, the quality of the WBS depends on how well the specific content and types of WBS elements address the full set of needs of the project or program. Then this implies that the quality of the WBS increase with the number of the listed features that it meets:

* Achieves a sufficient level of decomposition to enable appropriate management and control
* Provides sufficient detail for bounding and communicating the scope of the project in its entirety
* Contains specific types of WBS elements necessary for the project
* Clearly enables the assignment of accountability at the appropriate level, regardless of whether the WBS is for a program or an
individual project

==Representation==
As mentioned before the aim of a WBS is to show at best the purpose of the project, program or portfolio taken into consideration. There is no one exact or mandatory way of representing a WBS. Nevertheless, all of them have in common a tree structure. The most use tree structure is the inverted Tree Structure [[File: Horizontal_WBS.png‎|200px|thumb|right| Figure 2: Inverted tree structure]] '''''Figure 2''''', in this representation the project has the aspect of an organization chart. However there are other two types of representation: the one shown In [[File: Horizontal_WBS.png‎|200px|thumb|left| Figure 3: Horizontal WBS]] '''''Figure 3''''', that has the root on the left side and growth from the right side and the last one called centralized tree structure .[[File:Centralized_tree_structure_WBS.png‎‎|200px|thumb|right| Figure 4: Centralized_tree_structure_WBS]] '''''Figure 4''''' This can help the project development session.

The graphical representation is not the only way of representing a WBS: tabular views are also used. This approach has the advantage to be clearer in case the WBS has many levels. An example is shown in figure [[File: List_wbs.png‎‎|200px|thumb|right| Figure 5: Tabular WBS]] '''''Figure 5'''''. Usually at top level is shown the main deliverable that can change depending what kind of project is analyzed. Lower level provide information to the project managers like schedule development, cost estimating, resource allocation, and risk assessment. The lowest level called Work Packages, is defined by PMI as:” A deliverable or project work component at the lowest level of the Work Breakdown Structure. The work package includes the schedule activities and schedule milestones required to complete the work package deliverable or project work component’.It is a good habit as suggested by NASA of not having more than seven levels. Each element of a WBS is recognizable by a clear, descriptive title and by a numbering scheme

Depending on the level the management might assign responsibility for technical, schedule, and cost performance. A Control Account is usually established to guaranty at best he intersection between of WBS element and organization unit.

==Decomposition procedures==
Overall a WBS is the result of a decomposition process, which goes from the project's aim and terminates to a certain level of details necessary for effective communication at the project's stakeholder. Meaning that there no rule regarding how much in detail the WBS should go, it depends from project to project. This supports the statement that identify WBS as Use-Related Characteristics tool. Nevertheless, is important to find a good balance between communication, complexity and the need for control <ref> Stephen A. Devaux. 1 edition (September 18, 2014). Managing Projects as Investments: Earned Value to Business Value </ref>.

The most common method for decomposing a WBS are the following methods:
*Function
Project’s deliverables are collected by business function for facilitating communication to stakeholders. This WBS is focusing on operations or activities that should be performed.
*Role
Similar to the previous one, this focuses more on responsibility.
*Method
The project derivable is based on methodology or delivery process, this type of WBS is easy to understand and is mainly use for showing the projects outcomes.
*Deliverables (components)
This is most common used.It can be used for every types of projects. The project’s deliverables are collected by business function

==100% Rule==

One of the most important principles for developing a WBS is called 100% rule. This rule is set from Project Management Institute (PMI).

This 100% rule establish that a WBS must Include the 100% of the work defined from the project and includes all the necessary for its realization (Internal, contractor, subcontractor) included the management of the project itself. The 100% rule is one of the most important guideline for developing the decomposition and evaluation of a WBS. The rule is applied at all levels of the hierarchical structure : ‘the next level of decomposition of a WBS element (child level) must represent 100 percent of the work applicable to the next higher (parent) element’’ <ref> Haugan, Gregory T. 2002. Effective Work Breakdown Structures. Vienna, VA Management Concepts</ref> (Haugan p. 17)..
The WBS can not include jobs out of the project’s border, meaning that should not include more of the 100%.

The application of the 100% Rule allows the manager to know that all efforts in each area are captured where they belong and also that nothing unrelated is included in an element. Application of the 100% Rule enables all outcomes to be defined before the schedule planning begins. The work breakdown structure is the initiator in the planning process, as planned outcomes must be defined before methods and schedules can be considered. If outcomes are insufficiently defined, the project cannot succeed. Awareness of the 100% Rule enables and communicates the full understanding of all necessary outcomes. Once the project is underway the 100% Rule assists in assuring that project costs are properly shown in the accounting system. This is true for all projects, whether they are accomplished for another division in a company or a regular paying customer. Application of the 100% Rule enables accurate costing, which is essential to budget similar efforts in the future.

===100% Rule Application===

This example provides a practical use of the 100% rule and the "progressive elaboration" technique. In ! ('''''Picture Under construction''''') , is shown a WBS that has the objective the Building of an house.
At the top level (Level 1) the project manager has assigned 100 points to the whole project, meaning the entire building process of the house. Breaking down to level number 2 we have more than one deliverable. By summing the points of each deliverable the result will be of 100. The points allocated in each element are the result of a project manager’s consideration, meaning that these points are not an estimation of Cost/Time, etc. but represent the overall effort needed to complete the task. Some elements (the once that needs a higher detail of decomposition) have a lower level (Level 3) that represents in this case the lowest level of this WBS. However, if is needed this breaks down process can continue until the project manager is not satisfed regarding the level of details that want to achieve. The procedure just used is called “progressive elaboration”.

As in this example, is totally fine if have different level of decomposition through different elements

It is suggested that the project manager uses a software support, as a spreadsheet, to have an auto-sum operations. This could seem a silly recommendation, but the WBS of a portfolio can have hundred of branches a spreadsheet will be very useful. Another recommended procedure is to discuss together with the project team regarding the numbers of points that belong to each element, this collaborative practice helps to achieve an high resolution of the reality because different people with different skills are involved during this process.

==Specific Type of WBS==
As mentioned previously WBS is a tool introduced during the 60’.However up to present different WBS’s related tools have been developed.

===Value breakdown structure===

This tool is mainly used for assessing a project’s expected value, as WBS has a hierarchical structure. There is one fundamental difference: in this tool the 100% rule is not used, this because the value is not additive as the cost. For instance, a Helicopter manufacturer wants to produce a 10-seat helicopter the budget is 1000000$, and the Expected monetary value is 1700000$. By using an hierarchical approach we should decompose the helicopter in different parts and define for each part all the necessary process until to get these components (cockpit, landing skid, passenger seats, engine, rotor, tail rotor, blade ). Let's image that we have all the components except the engine. The cost resources until this stage could be 900000$, but the actual value of this helicopter without the engine is namely 0 because no one wants a Helicopter without the engine. Meaning that the added Value of the engine is equal or close to the entire value of the projects. On one hand, we do not have any value until the motor is not mounted on the helicopter (VBS approach), on the other hand, we have costs for the resources used until now (WBS approach).

===Goals Breakdown Structure===
As a WBS, the Goals Breakdown Structure (GBS) has a hierarchical tree structure. It can be considered like a WBS specially design for goal’s achievement. In the highest level is positioned the overall goal of the projects, at the lower level are located mid-term goals needed for achieving the top level mission. The GBS elements might include different peculiarities that characterize each goal, for instance, profit, market share, etc. At the third level the products/process needed for achieving the organizational goals are defined.

As written in A Guide to the Project Management Body of Knowledge (PMBOK(R)[1] Guide) it follows rules similar to WBS. For the breakdown decomposition the WBS follows two general rules:

*'''Nothing Extra''' Is not allowed to include an element that does not contribute to the upper-level goals. No layer should contain any extraneous goals.
*'''Nothing Missing''' Each level must define all the goals necessary to ensure that the project achieves the next higher-level goals.

The first rule is needed to make sure that the project is focused in only one objective without losing the resource that does not contribute any organization’s value. The second one ensures that everything that is needed for adding value to the project is take into consideration.
The general scope of a GBS is to analyze all the goals and only the goals needed to achieve the project's higher-level goals.

==Potential Misunderstanding, Disadventage and adventage==

A WBS is not an organizational hierarchy chart. A common error is to develop a WBS in accordance to the organizational hierarchy so is important to decompose the works depending the relations between processes than between “powers” organizational.

A WBS is not a project’s development planning neither a list in chronological order. Is not suggest to plan a project without having developed its WBS, in other words, is like plan the manufacturing process for building an airplane, even before the completion of its project. In this case is even difficult to apply the 100% rules, because the goals are not well defined. Moreover once that a WBS is defined, in case of error is not possible to fix it without starting from the beginning, because all the processes are connected each other.
For this reason build and maintain a WBS is a process that require a strong effort in terms of times and HR , due to that fact that many people should be involved to increase the common sharing knowledge about the projects. Moreover, it should be periodically review to ensure the WBS’s reliability, this has influence on future decision that the PM will take. As said review a WBS has a cost, due to that WBS encourages rigid structure for the project. Thus, it reduces managerial flexibility to initiate and lead changes during the project life cycle. (Salvendy, 2001) <ref> Salvendy, G. 2001, Handbook of Industrial Engineering, 3rd ed, John Wiley & Sons, Inc, Canada</ref>.
However
# The WBS reflects the project objectives, by listing all the activities required to accomplish these objectives, it prevents confusion and doubts as to the aim of the project.
# It creates a common database and dictionary of common notation that serves as a reference point for all involved parties.
# The WBS enables smooth communications among the project team members and between them and customers, suppliers, regulators and etc.
# It serves as an archive that can later facilitate knowledge transfer to other projects or learning by new members of the work force.
# The WBS is an effective tool for resource management.

==References==
<references/>

Work Breakdown Structure (WBS)

2015-09-28T21:58:36Z

S141530: /* 100% Rule */

Work Breakdown Structure (WBS) is a tool used in project management context that separates in different levels of details a deliverable-oriented project in hierarchical order. The primary objective is to support the project manager by giving an overview of different steps, resources and costs involved in the project.
Moreover during the project executions it may include the percentage of steps completed. This ensures better control and guidance in case during the project development occur changes. It is graphically represented by a hierarchical tree, where the job of each components is given by the sum of elements underneath connected (sublevels). These elements may represent a product, data, service or any combination thereof.

==History==

The WBS was initially developed by the U.S. defense, back to the 1950’s and 60’s in cooperation with NASA. Both agencies were adopting the Program Evaluation and Review Technique (PERT) <ref>S1 Cleland, David I. and Roland Gareis, Global Project Management Handbook, McGraw-Hill Professional, 2006</ref> . During 1962, United State Airforce released “Study Of Methods For Evaluation Of The Pert/Cost Management System”. In this document was mentioned WBS as a useful tool for Controlling and Planning large acquisition projects <ref> Eric S. Norman, Shelly A. Brotherton, Robert T. Fried Work Breakdown Structures: The Foundation for Project Management Excellence, Wiley, 2010</ref> . As understandable, most of NASA projects involve many actors (contractors) with totally different tasks. Nevertheless, all of them are parts of the same project and work for the same final purpose. The WBS was used to ‘‘ . . . ensure that the total project is fully planned and that all derivative plans contribute directly to the desired objectives’’ (NASA, 1962)<ref>"Background and Key Concepts COPYRIGHTED MATERIAL." Web. 20 Sep. 2015</ref>. After this first approach NASA decided to keep update this document because believed valid and useful. In 1968, due to its success, the Department of Defense released "Work Breakdown Structures for Defense Materiel Items" (MIL-STD-881), a military standard procedure which is obligatory for all programs under the Department of Defense.
This standard is constantly updated; the latest version refers to 2001 <ref>''[http://www.mcri.com/wp-content/uploads/2014/09/Military-Standard-881C-----Department-of-Defense-Standard-Practice-----Work-Breakdown-Structures-for-Defense-Materiel-Items-MIL-STD-881C-3-Oct-11.pdf Military-Standard-881C]'', 3 October 2011</ref>.
During 1987 Project Management Institute (PMI) started to release a number of documents for a non-military purpose. These documents have been collected in one, as result The Project Management Body of Knowledge (PMBOK) has been released. The first version is from 1987, other versions have been released during 1987, 1996, 2000, 2004, 2009, 2013 <ref>"Guide, A. "Project Management Body of Knowledge (PMBOK® GUIDE & STANDARD)." Project Management Institute. 2001.</ref>. The main concept of subdividing different activities through different levels remains the same of the early years. However, the approach goes from “A task- oriented ‘family tree’ of activities 1987” PMBOKfirst Guide to “A deliverable- oriented hierarchical decomposition of the work to be executed by the project team to accomplish the project objectives and create the required deliverables” (PMBOK Guide — Third).

On one hand, the documents from PMI give an overview of the WBS concept, on the other hand, the document released from the Department of Defense can be considered as a Handbook.

==Work Breakdown Structure main Charactheristics==

WBS could be considered a general tool that can be used in most of projects and program. Due to this reason its features can vary from a WBS to another to best adapt the project manager needs.
However, is important to underline which core characteristics that this tool should have to define a quality WBS.

In this case the term “quality” is properly define from Project Management Institute’s (PMI) that in 2006 released the paper “Practice Standard for Work Breakdown Structures”. In this document the definition of a quality WBS is given from two statements:

# A quality WBS is constructed in such a way that it satisfies all of the requirements for its use in a project.
# For the all level of the WBS, quality characteristics must be implemented.

In other words a quality WBS must comply with all requirements for its use, no matters is the scope project, program or portfolio.

This first requirement is the most important one, it state that a WBS should be deliverable-oriented, this guaranty a WBS that can be taken under control thanks to a “Milestone Structure”. Moreover, the final scope of the Project is more easily defined. To underpin the importance of this requirement, the PMI includes deliverable orientation as part of definition of a WBS.
A WBS must take into consideration the full scope of the project including all internal, external and interim deliverables. For facilitating this task a WBS has an hierarchal approach with at least two levels, to understand better the connection between the elements a coding scheme of different levels should be provided [[File:Coding_wbs.png‎|200px|thumb|right| Figure 1: WBS with Coding scheme]] '''Figure 1''', each level must include100% of works connection belonging to the lower level 6, Nevertheless is not permitted to included element out of this project scope.
Nouns and adjectives define each level’s component but the use of verbs is not permitted. This ensures the deliverable of the element otherwise could be understood as a task. In case arises the need of clarification a “WBS Dictionary” can be added for defining the outcomes. In addition, since this tool is used for “real-case” applications require to be updated while work are in progress.

If it is true that a quality WBS is constructed in such a way that it satisfies all of its intended needs, then what is it about those needs that differentiate one WBS from another? We are certain that all Work Breakdown Structures are not the same—so what then, separates and makes them unique? This is where the concept of Use-Related Characteristics comes into play.
Use-Related Characteristics include those additional attributes that vary from one project to next, across industries, environments or in the way the WBS is applied within the project. With Use-Related Characteristics, the quality of the WBS depends on how well the specific content and types of WBS elements address the full set of needs of the project or program. Then this implies that the quality of the WBS increase with the number of the listed features that it meets:

* Achieves a sufficient level of decomposition to enable appropriate management and control
* Provides sufficient detail for bounding and communicating the scope of the project in its entirety
* Contains specific types of WBS elements necessary for the project
* Clearly enables the assignment of accountability at the appropriate level, regardless of whether the WBS is for a program or an
individual project

==Representation==
As mentioned before the aim of a WBS is to show at best the purpose of the project, program or portfolio taken into consideration. There is no one exact or mandatory way of representing a WBS. Nevertheless, all of them have in common a tree structure. The most use tree structure is the inverted Tree Structure [[File: Horizontal_WBS.png‎|200px|thumb|right| Figure 2: Inverted tree structure]] '''''Figure 2''''', in this representation the project has the aspect of an organization chart. However there are other two types of representation: the one shown In [[File: Horizontal_WBS.png‎|200px|thumb|left| Figure 3: Horizontal WBS]] '''''Figure 3''''', that has the root on the left side and growth from the right side and the last one called centralized tree structure .[[File:Centralized_tree_structure_WBS.png‎‎|200px|thumb|right| Figure 4: Centralized_tree_structure_WBS]] '''''Figure 4''''' This can help the project development session.

The graphical representation is not the only way of representing a WBS: tabular views are also used. This approach has the advantage to be clearer in case the WBS has many levels. An example is shown in figure [[File: List_wbs.png‎‎|200px|thumb|right| Figure 5: Tabular WBS]] '''''Figure 5'''''. Usually at top level is shown the main deliverable that can change depending what kind of project is analyzed. Lower level provide information to the project managers like schedule development, cost estimating, resource allocation, and risk assessment. The lowest level called Work Packages, is defined by PMI as:” A deliverable or project work component at the lowest level of the Work Breakdown Structure. The work package includes the schedule activities and schedule milestones required to complete the work package deliverable or project work component’.It is a good habit as suggested by NASA of not having more than seven levels. Each element of a WBS is recognizable by a clear, descriptive title and by a numbering scheme

Depending on the level the management might assign responsibility for technical, schedule, and cost performance. A Control Account is usually established to guaranty at best he intersection between of WBS element and organization unit.

==Decomposition procedures==
Overall a WBS is the result of a decomposition process, which goes from the project's aim and terminates to a certain level of details necessary for effective communication at the project's stakeholder. Meaning that there no rule regarding how much in detail the WBS should go, it depends from project to project. This supports the statement that identify WBS as Use-Related Characteristics tool. Nevertheless, is important to find a good balance between communication, complexity and the need for control <ref> Stephen A. Devaux. 1 edition (September 18, 2014). Managing Projects as Investments: Earned Value to Business Value </ref>.

The most common method for decomposing a WBS are the following methods:
*Function
Project’s deliverables are collected by business function for facilitating communication to stakeholders. This WBS is focusing on operations or activities that should be performed.
*Role
Similar to the previous one, this focuses more on responsibility.
*Method
The project derivable is based on methodology or delivery process, this type of WBS is easy to understand and is mainly use for showing the projects outcomes.
*Deliverables (components)
This is most common used.It can be used for every types of projects. The project’s deliverables are collected by business function

==100% Rule==

One of the most important principles for developing a WBS is called 100% rule. This rule is set from Project Management Institute (PMI).

This 100% rule establish that a WBS must Include the 100% of the work defined from the project and includes all the necessary for its realization (Internal, contractor, subcontractor) included the management of the project itself. The 100% rule is one of the most important guideline for developing the decomposition and evaluation of a WBS. The rule is applied at all levels of the hierarchical structure : ‘the next level of decomposition of a WBS element (child level) must represent 100 percent of the work applicable to the next higher (parent) element’’ <ref> Haugan, Gregory T. 2002. Effective Work Breakdown Structures. Vienna, VA Management Concepts</ref> (Haugan p. 17)..
The WBS can not include jobs out of the project’s border, meaning that should not include more of the 100%.

The application of the 100% Rule allows the manager to know that all efforts in each area are captured where they belong and also that nothing unrelated is included in an element. Application of the 100% Rule enables all outcomes to be defined before the schedule planning begins. The work breakdown structure is the initiator in the planning process, as planned outcomes must be defined before methods and schedules can be considered. If outcomes are insufficiently defined, the project cannot succeed. Awareness of the 100% Rule enables and communicates the full understanding of all necessary outcomes. Once the project is underway the 100% Rule assists in assuring that project costs are properly shown in the accounting system. This is true for all projects, whether they are accomplished for another division in a company or a regular paying customer. Application of the 100% Rule enables accurate costing, which is essential to budget similar efforts in the future.

===100% Rule Application===

This example provides a practical use of the 100% rule and the "progressive elaboration" technique. In ! ('''''Picture Under construction''''') , is shown a WBS that has the objective the Building of an house.
At the top level (Level 1) the project manager has assigned 100 points to the whole project, meaning the entire building process of the house. Breaking down to level number 2 we have more than one deliverable. By summing the points of each deliverable the result will be of 100. The points allocated in each element are the result of a project manager’s consideration, meaning that these points are not an estimation of Cost/Time, etc. but represent the overall effort needed to complete the task. Some elements (the once that needs a higher detail of decomposition) have a lower level (Level 3) that represents in this case the lowest level of this WBS. However, if is needed this breaks down process can continue until the project manager is not satisfed regarding the level of details that want to achieve. The procedure just used is called “progressive elaboration”.

As in this example, is totally fine if have different level of decomposition through different elements

It is suggested that the project manager uses a software support, as a spreadsheet, to have an auto-sum operations. This could seem a silly recommendation, but the WBS of a portfolio can have hundred of branches a spreadsheet will be very useful. Another recommended procedure is to discuss together with the project team regarding the numbers of points that belong to each element, this collaborative practice helps to achieve an high resolution of the reality because different people with different skills are involved during this process.

==Specific Type of WBS==
As mention previously WBS is a tool introduced during the 60’, up to present different WBS’s related tools have been developed.

===Value breakdown structure===

This tool is mainly used for assessing a project’s expected value, as WBS has a hierarchical structure. There is one fundamental difference, in this tool is not used the 100% rule, this because the value is not additive as the cost. For instance, a Helicopter manufacturer wants to produce a 10-seat helicopter the budget is 1000000$, and the Expected monetary value is 1700000$. By using an hierarchical approaches we should decompose the helicopter in different parts, for each parts all the necessary process until to get these components (cockpit, landing skid, passenger seats, engine, rotor, tail rotor, blade ). Let's image that we have all the components except the engine. The cost resources until this stage could be 900000$, but the actual value of this helicopter without the engine is actual 0 because no one wants a Helicopter without the engine. Meaning that the Value added of the engine is equal or close to the entire value of the projects. On one hand, we do not have any value until the motor is not mounted on the helicopter (VBS approach), on the other hand, we have cost for the resources used until now (WBS approach).

===Goals Breakdown Structure===
As a WBS, the Goals Breakdown Structure (GBS) has a hierarchical tree structure, it can be considered like a WBS specially design for goal’s achievement. In the highest level is positioned the overall goal of the projects, at the lower level are located mid-term goals for needed for achieving the top level mission. The GBS elements might include different peculiarities that characterize each goal, for instance, profit, market share, etc. At the third level are defined the products/process needed for achieving the organizational goals.

As written in A Guide to the Project Management Body of Knowledge (PMBOK(R)[1] Guide) it follows rules similar to WBS. For the breakdown decomposition the WBS follows two general rules:

*'''Nothing Extra''' Is not allowed to include an element that does not contribute to the upper-level goals. No layer should contain any extraneous goals.
*'''Nothing Missing''' Each level must define all the goals necessary to ensure the project achieves the next higher-level goals.

The first rule is needed to make sure that the project is a focus in only one objective without losing the resource that does not contribute any organization’s value. The second one ensure that everything that is needed for adding value to the project that takes into consideration.
The general scope of a GBS is to analyze all the goals and only the goals needed to achieve the project's higher-level goals.

==Potential Misunderstanding, Disadventage and adventage==

A WBS is not an organizational hierarchy chart. A common error is to develop a WBS in accordance to the organizational hierarchy so is important to decompose the works depending the relations between processes than between “powers” organizational.

A WBS is not a project’s development planning neither a list in chronological order. Is not suggest to plan a project without having developed its WBS, in other words, is like plan the manufacturing process for building an airplane, even before the completion of its project. In this case is even difficult to apply the 100% rules, because the goals are not well defined. Moreover once that a WBS is defined, in case of error is not possible to fix it without starting from the beginning, because all the processes are connected each other.
For this reason build and maintain a WBS is a process that require a strong effort in terms of times and HR , due to that fact that many people should be involved to increase the common sharing knowledge about the projects. Moreover, it should be periodically review to ensure the WBS’s reliability, this has influence on future decision that the PM will take. As said review a WBS has a cost, due to that WBS encourages rigid structure for the project. Thus, it reduces managerial flexibility to initiate and lead changes during the project life cycle. (Salvendy, 2001) <ref> Salvendy, G. 2001, Handbook of Industrial Engineering, 3rd ed, John Wiley & Sons, Inc, Canada</ref>.
However
# The WBS reflects the project objectives, by listing all the activities required to accomplish these objectives, it prevents confusion and doubts as to the aim of the project.
# It creates a common database and dictionary of common notation that serves as a reference point for all involved parties.
# The WBS enables smooth communications among the project team members and between them and customers, suppliers, regulators and etc.
# It serves as an archive that can later facilitate knowledge transfer to other projects or learning by new members of the work force.
# The WBS is an effective tool for resource management.

==References==
<references/>

Work Breakdown Structure (WBS)

2015-09-28T21:38:47Z

S141530: /* Decomposition procedures */

Work Breakdown Structure (WBS) is a tool used in project management context that separates in different levels of details a deliverable-oriented project in hierarchical order. The primary objective is to support the project manager by giving an overview of different steps, resources and costs involved in the project.
Moreover during the project executions it may include the percentage of steps completed. This ensures better control and guidance in case during the project development occur changes. It is graphically represented by a hierarchical tree, where the job of each components is given by the sum of elements underneath connected (sublevels). These elements may represent a product, data, service or any combination thereof.

==History==

The WBS was initially developed by the U.S. defense, back to the 1950’s and 60’s in cooperation with NASA. Both agencies were adopting the Program Evaluation and Review Technique (PERT) <ref>S1 Cleland, David I. and Roland Gareis, Global Project Management Handbook, McGraw-Hill Professional, 2006</ref> . During 1962, United State Airforce released “Study Of Methods For Evaluation Of The Pert/Cost Management System”. In this document was mentioned WBS as a useful tool for Controlling and Planning large acquisition projects <ref> Eric S. Norman, Shelly A. Brotherton, Robert T. Fried Work Breakdown Structures: The Foundation for Project Management Excellence, Wiley, 2010</ref> . As understandable, most of NASA projects involve many actors (contractors) with totally different tasks. Nevertheless, all of them are parts of the same project and work for the same final purpose. The WBS was used to ‘‘ . . . ensure that the total project is fully planned and that all derivative plans contribute directly to the desired objectives’’ (NASA, 1962)<ref>"Background and Key Concepts COPYRIGHTED MATERIAL." Web. 20 Sep. 2015</ref>. After this first approach NASA decided to keep update this document because believed valid and useful. In 1968, due to its success, the Department of Defense released "Work Breakdown Structures for Defense Materiel Items" (MIL-STD-881), a military standard procedure which is obligatory for all programs under the Department of Defense.
This standard is constantly updated; the latest version refers to 2001 <ref>''[http://www.mcri.com/wp-content/uploads/2014/09/Military-Standard-881C-----Department-of-Defense-Standard-Practice-----Work-Breakdown-Structures-for-Defense-Materiel-Items-MIL-STD-881C-3-Oct-11.pdf Military-Standard-881C]'', 3 October 2011</ref>.
During 1987 Project Management Institute (PMI) started to release a number of documents for a non-military purpose. These documents have been collected in one, as result The Project Management Body of Knowledge (PMBOK) has been released. The first version is from 1987, other versions have been released during 1987, 1996, 2000, 2004, 2009, 2013 <ref>"Guide, A. "Project Management Body of Knowledge (PMBOK® GUIDE & STANDARD)." Project Management Institute. 2001.</ref>. The main concept of subdividing different activities through different levels remains the same of the early years. However, the approach goes from “A task- oriented ‘family tree’ of activities 1987” PMBOKfirst Guide to “A deliverable- oriented hierarchical decomposition of the work to be executed by the project team to accomplish the project objectives and create the required deliverables” (PMBOK Guide — Third).

On one hand, the documents from PMI give an overview of the WBS concept, on the other hand, the document released from the Department of Defense can be considered as a Handbook.

==Work Breakdown Structure main Charactheristics==

WBS could be considered a general tool that can be used in most of projects and program. Due to this reason its features can vary from a WBS to another to best adapt the project manager needs.
However, is important to underline which core characteristics that this tool should have to define a quality WBS.

In this case the term “quality” is properly define from Project Management Institute’s (PMI) that in 2006 released the paper “Practice Standard for Work Breakdown Structures”. In this document the definition of a quality WBS is given from two statements:

# A quality WBS is constructed in such a way that it satisfies all of the requirements for its use in a project.
# For the all level of the WBS, quality characteristics must be implemented.

In other words a quality WBS must comply with all requirements for its use, no matters is the scope project, program or portfolio.

This first requirement is the most important one, it state that a WBS should be deliverable-oriented, this guaranty a WBS that can be taken under control thanks to a “Milestone Structure”. Moreover, the final scope of the Project is more easily defined. To underpin the importance of this requirement, the PMI includes deliverable orientation as part of definition of a WBS.
A WBS must take into consideration the full scope of the project including all internal, external and interim deliverables. For facilitating this task a WBS has an hierarchal approach with at least two levels, to understand better the connection between the elements a coding scheme of different levels should be provided [[File:Coding_wbs.png‎|200px|thumb|right| Figure 1: WBS with Coding scheme]] '''Figure 1''', each level must include100% of works connection belonging to the lower level 6, Nevertheless is not permitted to included element out of this project scope.
Nouns and adjectives define each level’s component but the use of verbs is not permitted. This ensures the deliverable of the element otherwise could be understood as a task. In case arises the need of clarification a “WBS Dictionary” can be added for defining the outcomes. In addition, since this tool is used for “real-case” applications require to be updated while work are in progress.

If it is true that a quality WBS is constructed in such a way that it satisfies all of its intended needs, then what is it about those needs that differentiate one WBS from another? We are certain that all Work Breakdown Structures are not the same—so what then, separates and makes them unique? This is where the concept of Use-Related Characteristics comes into play.
Use-Related Characteristics include those additional attributes that vary from one project to next, across industries, environments or in the way the WBS is applied within the project. With Use-Related Characteristics, the quality of the WBS depends on how well the specific content and types of WBS elements address the full set of needs of the project or program. Then this implies that the quality of the WBS increase with the number of the listed features that it meets:

* Achieves a sufficient level of decomposition to enable appropriate management and control
* Provides sufficient detail for bounding and communicating the scope of the project in its entirety
* Contains specific types of WBS elements necessary for the project
* Clearly enables the assignment of accountability at the appropriate level, regardless of whether the WBS is for a program or an
individual project

==Representation==
As mentioned before the aim of a WBS is to show at best the purpose of the project, program or portfolio taken into consideration. There is no one exact or mandatory way of representing a WBS. Nevertheless, all of them have in common a tree structure. The most use tree structure is the inverted Tree Structure [[File: Horizontal_WBS.png‎|200px|thumb|right| Figure 2: Inverted tree structure]] '''''Figure 2''''', in this representation the project has the aspect of an organization chart. However there are other two types of representation: the one shown In [[File: Horizontal_WBS.png‎|200px|thumb|left| Figure 3: Horizontal WBS]] '''''Figure 3''''', that has the root on the left side and growth from the right side and the last one called centralized tree structure .[[File:Centralized_tree_structure_WBS.png‎‎|200px|thumb|right| Figure 4: Centralized_tree_structure_WBS]] '''''Figure 4''''' This can help the project development session.

The graphical representation is not the only way of representing a WBS: tabular views are also used. This approach has the advantage to be clearer in case the WBS has many levels. An example is shown in figure [[File: List_wbs.png‎‎|200px|thumb|right| Figure 5: Tabular WBS]] '''''Figure 5'''''. Usually at top level is shown the main deliverable that can change depending what kind of project is analyzed. Lower level provide information to the project managers like schedule development, cost estimating, resource allocation, and risk assessment. The lowest level called Work Packages, is defined by PMI as:” A deliverable or project work component at the lowest level of the Work Breakdown Structure. The work package includes the schedule activities and schedule milestones required to complete the work package deliverable or project work component’.It is a good habit as suggested by NASA of not having more than seven levels. Each element of a WBS is recognizable by a clear, descriptive title and by a numbering scheme

Depending on the level the management might assign responsibility for technical, schedule, and cost performance. A Control Account is usually established to guaranty at best he intersection between of WBS element and organization unit.

==Decomposition procedures==
Overall a WBS is the result of a decomposition process, which goes from the project's aim and terminates to a certain level of details necessary for effective communication at the project's stakeholder. Meaning that there no rule regarding how much in detail the WBS should go, it depends from project to project. This supports the statement that identify WBS as Use-Related Characteristics tool. Nevertheless, is important to find a good balance between communication, complexity and the need for control <ref> Stephen A. Devaux. 1 edition (September 18, 2014). Managing Projects as Investments: Earned Value to Business Value </ref>.

The most common method for decomposing a WBS are the following methods:
*Function
Project’s deliverables are collected by business function for facilitating communication to stakeholders. This WBS is focusing on operations or activities that should be performed.
*Role
Similar to the previous one, this focuses more on responsibility.
*Method
The project derivable is based on methodology or delivery process, this type of WBS is easy to understand and is mainly use for showing the projects outcomes.
*Deliverables (components)
This is most common used.It can be used for every types of projects. The project’s deliverables are collected by business function

==100% Rule==

One of the most important principles for developing a WBS is called 100% rule. This rule is define from Project Management Institute (PMI).

This 100% rule define that a WBS must Include the 100% of the work defined from the project and include all the necessary for its realization (Internal, contractor, subcontractor) included the management of the project itself. The 100% rule is one of the most important guideline for developing the decomposition and evaluation of a WBS. The rule is applied at all levels of the hierarchical structure : ‘the next level of decomposition of a WBS element (child level) must represent 100 percent of the work applicable to the next higher (parent) element’’ <ref> Haugan, Gregory T. 2002. Effective Work Breakdown Structures. Vienna, VA Management Concepts</ref> (Haugan p. 17)..
The WBS can not include jobs out of the project’s border, meaning that should not include more of the 100%.

Applying the 100% Rule allows the manager to know that all efforts in each area are captured where they belong and also that nothing unrelated is included in an element. Application of the 100% Rule enables all outcomes to be defined before schedule planning begins. The work breakdown structure is the initiator in the planning process, as planned outcomes must be defined before methods and schedules can be considered. If outcomes are insufficiently defined, the project cannot succeed. Awareness of the 100% Rule enables and communicates the full understanding of all necessary outcomes. Once the project is underway the 100% Rule assists in assuring that project costs are properly shown in the accounting system. This is true for all projects, whether they are accomplished for another division in a company or a regular paying customer. Application of the 100% Rule enables accurate costing, which is essential to budget similar efforts in the future.

===100% Rule Application===

This example provides a practical use of the 100% rule and the "progressive elaboration" technique. In ! ('''''Picture Under construction''''') , is shown a WBS has the objective the Build of an house.
At the top level (Level 1) the project manager has assign 100 point to the whole project, meaning the entire building process of the house. Breaking down to level number 2 we have more than one deliverable, by summing the point of each four elements we have the result will be 100. The point allocated in each element is the result of a project manager’s consideration, meaning that these points are not an estimation of Cost/Time, etc. but represents the overall effort needed to complete the task. Some elements (the once that needs a higher detail of decomposition) have a lower level (Level 3) that represent in this case the lowest level of this WBS. However, if is needed this breaks down process can continues until the project manager is not satisfy regarding the level of details that want to achieve. The procedure just used is called “progressive elaboration”.

As in this example, is totally fine if have different level of decomposition through different elements

It is suggested that the project manager use a software support, as a spreadsheet, for have an auto.sum operations, this could seems a silly recommendation, but a WBS of a portfolio can have hundred of branches a spreadsheet will be very useful. Another recommended procedure is to discuss together with the project team regarding the numbers of points that belongs to each element, this collaborative practice helps to achieve an high resolution of the reality because different people with different skills are involve during this process.

==Specific Type of WBS==
As mention previously WBS is a tool introduced during the 60’, up to present different WBS’s related tools have been developed.

===Value breakdown structure===

This tool is mainly used for assessing a project’s expected value, as WBS has a hierarchical structure. There is one fundamental difference, in this tool is not used the 100% rule, this because the value is not additive as the cost. For instance, a Helicopter manufacturer wants to produce a 10-seat helicopter the budget is 1000000$, and the Expected monetary value is 1700000$. By using an hierarchical approaches we should decompose the helicopter in different parts, for each parts all the necessary process until to get these components (cockpit, landing skid, passenger seats, engine, rotor, tail rotor, blade ). Let's image that we have all the components except the engine. The cost resources until this stage could be 900000$, but the actual value of this helicopter without the engine is actual 0 because no one wants a Helicopter without the engine. Meaning that the Value added of the engine is equal or close to the entire value of the projects. On one hand, we do not have any value until the motor is not mounted on the helicopter (VBS approach), on the other hand, we have cost for the resources used until now (WBS approach).

===Goals Breakdown Structure===
As a WBS, the Goals Breakdown Structure (GBS) has a hierarchical tree structure, it can be considered like a WBS specially design for goal’s achievement. In the highest level is positioned the overall goal of the projects, at the lower level are located mid-term goals for needed for achieving the top level mission. The GBS elements might include different peculiarities that characterize each goal, for instance, profit, market share, etc. At the third level are defined the products/process needed for achieving the organizational goals.

As written in A Guide to the Project Management Body of Knowledge (PMBOK(R)[1] Guide) it follows rules similar to WBS. For the breakdown decomposition the WBS follows two general rules:

*'''Nothing Extra''' Is not allowed to include an element that does not contribute to the upper-level goals. No layer should contain any extraneous goals.
*'''Nothing Missing''' Each level must define all the goals necessary to ensure the project achieves the next higher-level goals.

The first rule is needed to make sure that the project is a focus in only one objective without losing the resource that does not contribute any organization’s value. The second one ensure that everything that is needed for adding value to the project that takes into consideration.
The general scope of a GBS is to analyze all the goals and only the goals needed to achieve the project's higher-level goals.

==Potential Misunderstanding, Disadventage and adventage==

A WBS is not an organizational hierarchy chart. A common error is to develop a WBS in accordance to the organizational hierarchy so is important to decompose the works depending the relations between processes than between “powers” organizational.

A WBS is not a project’s development planning neither a list in chronological order. Is not suggest to plan a project without having developed its WBS, in other words, is like plan the manufacturing process for building an airplane, even before the completion of its project. In this case is even difficult to apply the 100% rules, because the goals are not well defined. Moreover once that a WBS is defined, in case of error is not possible to fix it without starting from the beginning, because all the processes are connected each other.
For this reason build and maintain a WBS is a process that require a strong effort in terms of times and HR , due to that fact that many people should be involved to increase the common sharing knowledge about the projects. Moreover, it should be periodically review to ensure the WBS’s reliability, this has influence on future decision that the PM will take. As said review a WBS has a cost, due to that WBS encourages rigid structure for the project. Thus, it reduces managerial flexibility to initiate and lead changes during the project life cycle. (Salvendy, 2001) <ref> Salvendy, G. 2001, Handbook of Industrial Engineering, 3rd ed, John Wiley & Sons, Inc, Canada</ref>.
However
# The WBS reflects the project objectives, by listing all the activities required to accomplish these objectives, it prevents confusion and doubts as to the aim of the project.
# It creates a common database and dictionary of common notation that serves as a reference point for all involved parties.
# The WBS enables smooth communications among the project team members and between them and customers, suppliers, regulators and etc.
# It serves as an archive that can later facilitate knowledge transfer to other projects or learning by new members of the work force.
# The WBS is an effective tool for resource management.

==References==
<references/>

Work Breakdown Structure (WBS)

2015-09-28T21:26:52Z

S141530: /* Representation */

Work Breakdown Structure (WBS) is a tool used in project management context that separates in different levels of details a deliverable-oriented project in hierarchical order. The primary objective is to support the project manager by giving an overview of different steps, resources and costs involved in the project.
Moreover during the project executions it may include the percentage of steps completed. This ensures better control and guidance in case during the project development occur changes. It is graphically represented by a hierarchical tree, where the job of each components is given by the sum of elements underneath connected (sublevels). These elements may represent a product, data, service or any combination thereof.

==History==

The WBS was initially developed by the U.S. defense, back to the 1950’s and 60’s in cooperation with NASA. Both agencies were adopting the Program Evaluation and Review Technique (PERT) <ref>S1 Cleland, David I. and Roland Gareis, Global Project Management Handbook, McGraw-Hill Professional, 2006</ref> . During 1962, United State Airforce released “Study Of Methods For Evaluation Of The Pert/Cost Management System”. In this document was mentioned WBS as a useful tool for Controlling and Planning large acquisition projects <ref> Eric S. Norman, Shelly A. Brotherton, Robert T. Fried Work Breakdown Structures: The Foundation for Project Management Excellence, Wiley, 2010</ref> . As understandable, most of NASA projects involve many actors (contractors) with totally different tasks. Nevertheless, all of them are parts of the same project and work for the same final purpose. The WBS was used to ‘‘ . . . ensure that the total project is fully planned and that all derivative plans contribute directly to the desired objectives’’ (NASA, 1962)<ref>"Background and Key Concepts COPYRIGHTED MATERIAL." Web. 20 Sep. 2015</ref>. After this first approach NASA decided to keep update this document because believed valid and useful. In 1968, due to its success, the Department of Defense released "Work Breakdown Structures for Defense Materiel Items" (MIL-STD-881), a military standard procedure which is obligatory for all programs under the Department of Defense.
This standard is constantly updated; the latest version refers to 2001 <ref>''[http://www.mcri.com/wp-content/uploads/2014/09/Military-Standard-881C-----Department-of-Defense-Standard-Practice-----Work-Breakdown-Structures-for-Defense-Materiel-Items-MIL-STD-881C-3-Oct-11.pdf Military-Standard-881C]'', 3 October 2011</ref>.
During 1987 Project Management Institute (PMI) started to release a number of documents for a non-military purpose. These documents have been collected in one, as result The Project Management Body of Knowledge (PMBOK) has been released. The first version is from 1987, other versions have been released during 1987, 1996, 2000, 2004, 2009, 2013 <ref>"Guide, A. "Project Management Body of Knowledge (PMBOK® GUIDE & STANDARD)." Project Management Institute. 2001.</ref>. The main concept of subdividing different activities through different levels remains the same of the early years. However, the approach goes from “A task- oriented ‘family tree’ of activities 1987” PMBOKfirst Guide to “A deliverable- oriented hierarchical decomposition of the work to be executed by the project team to accomplish the project objectives and create the required deliverables” (PMBOK Guide — Third).

On one hand, the documents from PMI give an overview of the WBS concept, on the other hand, the document released from the Department of Defense can be considered as a Handbook.

==Work Breakdown Structure main Charactheristics==

WBS could be considered a general tool that can be used in most of projects and program. Due to this reason its features can vary from a WBS to another to best adapt the project manager needs.
However, is important to underline which core characteristics that this tool should have to define a quality WBS.

In this case the term “quality” is properly define from Project Management Institute’s (PMI) that in 2006 released the paper “Practice Standard for Work Breakdown Structures”. In this document the definition of a quality WBS is given from two statements:

# A quality WBS is constructed in such a way that it satisfies all of the requirements for its use in a project.
# For the all level of the WBS, quality characteristics must be implemented.

In other words a quality WBS must comply with all requirements for its use, no matters is the scope project, program or portfolio.

This first requirement is the most important one, it state that a WBS should be deliverable-oriented, this guaranty a WBS that can be taken under control thanks to a “Milestone Structure”. Moreover, the final scope of the Project is more easily defined. To underpin the importance of this requirement, the PMI includes deliverable orientation as part of definition of a WBS.
A WBS must take into consideration the full scope of the project including all internal, external and interim deliverables. For facilitating this task a WBS has an hierarchal approach with at least two levels, to understand better the connection between the elements a coding scheme of different levels should be provided [[File:Coding_wbs.png‎|200px|thumb|right| Figure 1: WBS with Coding scheme]] '''Figure 1''', each level must include100% of works connection belonging to the lower level 6, Nevertheless is not permitted to included element out of this project scope.
Nouns and adjectives define each level’s component but the use of verbs is not permitted. This ensures the deliverable of the element otherwise could be understood as a task. In case arises the need of clarification a “WBS Dictionary” can be added for defining the outcomes. In addition, since this tool is used for “real-case” applications require to be updated while work are in progress.

If it is true that a quality WBS is constructed in such a way that it satisfies all of its intended needs, then what is it about those needs that differentiate one WBS from another? We are certain that all Work Breakdown Structures are not the same—so what then, separates and makes them unique? This is where the concept of Use-Related Characteristics comes into play.
Use-Related Characteristics include those additional attributes that vary from one project to next, across industries, environments or in the way the WBS is applied within the project. With Use-Related Characteristics, the quality of the WBS depends on how well the specific content and types of WBS elements address the full set of needs of the project or program. Then this implies that the quality of the WBS increase with the number of the listed features that it meets:

* Achieves a sufficient level of decomposition to enable appropriate management and control
* Provides sufficient detail for bounding and communicating the scope of the project in its entirety
* Contains specific types of WBS elements necessary for the project
* Clearly enables the assignment of accountability at the appropriate level, regardless of whether the WBS is for a program or an
individual project

==Representation==
As mentioned before the aim of a WBS is to show at best the purpose of the project, program or portfolio taken into consideration. There is no one exact or mandatory way of representing a WBS. Nevertheless, all of them have in common a tree structure. The most use tree structure is the inverted Tree Structure [[File: Horizontal_WBS.png‎|200px|thumb|right| Figure 2: Inverted tree structure]] '''''Figure 2''''', in this representation the project has the aspect of an organization chart. However there are other two types of representation: the one shown In [[File: Horizontal_WBS.png‎|200px|thumb|left| Figure 3: Horizontal WBS]] '''''Figure 3''''', that has the root on the left side and growth from the right side and the last one called centralized tree structure .[[File:Centralized_tree_structure_WBS.png‎‎|200px|thumb|right| Figure 4: Centralized_tree_structure_WBS]] '''''Figure 4''''' This can help the project development session.

The graphical representation is not the only way of representing a WBS: tabular views are also used. This approach has the advantage to be clearer in case the WBS has many levels. An example is shown in figure [[File: List_wbs.png‎‎|200px|thumb|right| Figure 5: Tabular WBS]] '''''Figure 5'''''. Usually at top level is shown the main deliverable that can change depending what kind of project is analyzed. Lower level provide information to the project managers like schedule development, cost estimating, resource allocation, and risk assessment. The lowest level called Work Packages, is defined by PMI as:” A deliverable or project work component at the lowest level of the Work Breakdown Structure. The work package includes the schedule activities and schedule milestones required to complete the work package deliverable or project work component’.It is a good habit as suggested by NASA of not having more than seven levels. Each element of a WBS is recognizable by a clear, descriptive title and by a numbering scheme

Depending on the level the management might assign responsibility for technical, schedule, and cost performance. A Control Account is usually established to guaranty at best he intersection between of WBS element and organization unit.

==Decomposition procedures==
Overall a WBS is the result of a decomposition process, which goes from the project and terminates to a certain level of details necessary for effective communication at the project's stakeholder. Meaning that there is not a rule regarding how much in detail the WBS should go, it depends from project to project. This supports the statement that identify WBS as Use-Related Characteristics tool. Nevertheless, is important find a good balance between communication and complexity the need for control <ref> Stephen A. Devaux. 1 edition (September 18, 2014). Managing Projects as Investments: Earned Value to Business Value </ref>.

The most common method for decomposing a WBS are the following methods:
*Function
Project’s deliverables are collected by business function for facilitating communication to stakeholders. This WBS is focusing on operations or activities that should be performed.
*Role
Similar to the previous one, this is focusing more on responsibility.
*Method
The project derivable is based on methodology or delivery process, this type of WBS is easy to understand and is mainly use for showing the projects outcomes.
*Deliverables (components)
Most common used, can be use for every types of projects
Functional breakdown the project’s deliverables are collected by business function

==100% Rule==

One of the most important principles for developing a WBS is called 100% rule. This rule is define from Project Management Institute (PMI).

This 100% rule define that a WBS must Include the 100% of the work defined from the project and include all the necessary for its realization (Internal, contractor, subcontractor) included the management of the project itself. The 100% rule is one of the most important guideline for developing the decomposition and evaluation of a WBS. The rule is applied at all levels of the hierarchical structure : ‘the next level of decomposition of a WBS element (child level) must represent 100 percent of the work applicable to the next higher (parent) element’’ <ref> Haugan, Gregory T. 2002. Effective Work Breakdown Structures. Vienna, VA Management Concepts</ref> (Haugan p. 17)..
The WBS can not include jobs out of the project’s border, meaning that should not include more of the 100%.

Applying the 100% Rule allows the manager to know that all efforts in each area are captured where they belong and also that nothing unrelated is included in an element. Application of the 100% Rule enables all outcomes to be defined before schedule planning begins. The work breakdown structure is the initiator in the planning process, as planned outcomes must be defined before methods and schedules can be considered. If outcomes are insufficiently defined, the project cannot succeed. Awareness of the 100% Rule enables and communicates the full understanding of all necessary outcomes. Once the project is underway the 100% Rule assists in assuring that project costs are properly shown in the accounting system. This is true for all projects, whether they are accomplished for another division in a company or a regular paying customer. Application of the 100% Rule enables accurate costing, which is essential to budget similar efforts in the future.

===100% Rule Application===

This example provides a practical use of the 100% rule and the "progressive elaboration" technique. In ! ('''''Picture Under construction''''') , is shown a WBS has the objective the Build of an house.
At the top level (Level 1) the project manager has assign 100 point to the whole project, meaning the entire building process of the house. Breaking down to level number 2 we have more than one deliverable, by summing the point of each four elements we have the result will be 100. The point allocated in each element is the result of a project manager’s consideration, meaning that these points are not an estimation of Cost/Time, etc. but represents the overall effort needed to complete the task. Some elements (the once that needs a higher detail of decomposition) have a lower level (Level 3) that represent in this case the lowest level of this WBS. However, if is needed this breaks down process can continues until the project manager is not satisfy regarding the level of details that want to achieve. The procedure just used is called “progressive elaboration”.

As in this example, is totally fine if have different level of decomposition through different elements

It is suggested that the project manager use a software support, as a spreadsheet, for have an auto.sum operations, this could seems a silly recommendation, but a WBS of a portfolio can have hundred of branches a spreadsheet will be very useful. Another recommended procedure is to discuss together with the project team regarding the numbers of points that belongs to each element, this collaborative practice helps to achieve an high resolution of the reality because different people with different skills are involve during this process.

==Specific Type of WBS==
As mention previously WBS is a tool introduced during the 60’, up to present different WBS’s related tools have been developed.

===Value breakdown structure===

This tool is mainly used for assessing a project’s expected value, as WBS has a hierarchical structure. There is one fundamental difference, in this tool is not used the 100% rule, this because the value is not additive as the cost. For instance, a Helicopter manufacturer wants to produce a 10-seat helicopter the budget is 1000000$, and the Expected monetary value is 1700000$. By using an hierarchical approaches we should decompose the helicopter in different parts, for each parts all the necessary process until to get these components (cockpit, landing skid, passenger seats, engine, rotor, tail rotor, blade ). Let's image that we have all the components except the engine. The cost resources until this stage could be 900000$, but the actual value of this helicopter without the engine is actual 0 because no one wants a Helicopter without the engine. Meaning that the Value added of the engine is equal or close to the entire value of the projects. On one hand, we do not have any value until the motor is not mounted on the helicopter (VBS approach), on the other hand, we have cost for the resources used until now (WBS approach).

===Goals Breakdown Structure===
As a WBS, the Goals Breakdown Structure (GBS) has a hierarchical tree structure, it can be considered like a WBS specially design for goal’s achievement. In the highest level is positioned the overall goal of the projects, at the lower level are located mid-term goals for needed for achieving the top level mission. The GBS elements might include different peculiarities that characterize each goal, for instance, profit, market share, etc. At the third level are defined the products/process needed for achieving the organizational goals.

As written in A Guide to the Project Management Body of Knowledge (PMBOK(R)[1] Guide) it follows rules similar to WBS. For the breakdown decomposition the WBS follows two general rules:

*'''Nothing Extra''' Is not allowed to include an element that does not contribute to the upper-level goals. No layer should contain any extraneous goals.
*'''Nothing Missing''' Each level must define all the goals necessary to ensure the project achieves the next higher-level goals.

The first rule is needed to make sure that the project is a focus in only one objective without losing the resource that does not contribute any organization’s value. The second one ensure that everything that is needed for adding value to the project that takes into consideration.
The general scope of a GBS is to analyze all the goals and only the goals needed to achieve the project's higher-level goals.

==Potential Misunderstanding, Disadventage and adventage==

A WBS is not an organizational hierarchy chart. A common error is to develop a WBS in accordance to the organizational hierarchy so is important to decompose the works depending the relations between processes than between “powers” organizational.

A WBS is not a project’s development planning neither a list in chronological order. Is not suggest to plan a project without having developed its WBS, in other words, is like plan the manufacturing process for building an airplane, even before the completion of its project. In this case is even difficult to apply the 100% rules, because the goals are not well defined. Moreover once that a WBS is defined, in case of error is not possible to fix it without starting from the beginning, because all the processes are connected each other.
For this reason build and maintain a WBS is a process that require a strong effort in terms of times and HR , due to that fact that many people should be involved to increase the common sharing knowledge about the projects. Moreover, it should be periodically review to ensure the WBS’s reliability, this has influence on future decision that the PM will take. As said review a WBS has a cost, due to that WBS encourages rigid structure for the project. Thus, it reduces managerial flexibility to initiate and lead changes during the project life cycle. (Salvendy, 2001) <ref> Salvendy, G. 2001, Handbook of Industrial Engineering, 3rd ed, John Wiley & Sons, Inc, Canada</ref>.
However
# The WBS reflects the project objectives, by listing all the activities required to accomplish these objectives, it prevents confusion and doubts as to the aim of the project.
# It creates a common database and dictionary of common notation that serves as a reference point for all involved parties.
# The WBS enables smooth communications among the project team members and between them and customers, suppliers, regulators and etc.
# It serves as an archive that can later facilitate knowledge transfer to other projects or learning by new members of the work force.
# The WBS is an effective tool for resource management.

==References==
<references/>

Work Breakdown Structure (WBS)

2015-09-28T20:41:52Z

S141530: /* Representation */

Work Breakdown Structure (WBS) is a tool used in project management context that separates in different levels of details a deliverable-oriented project in hierarchical order. The primary objective is to support the project manager by giving an overview of different steps, resources and costs involved in the project.
Moreover during the project executions it may include the percentage of steps completed. This ensures better control and guidance in case during the project development occur changes. It is graphically represented by a hierarchical tree, where the job of each components is given by the sum of elements underneath connected (sublevels). These elements may represent a product, data, service or any combination thereof.

==History==

The WBS was initially developed by the U.S. defense, back to the 1950’s and 60’s in cooperation with NASA. Both agencies were adopting the Program Evaluation and Review Technique (PERT) <ref>S1 Cleland, David I. and Roland Gareis, Global Project Management Handbook, McGraw-Hill Professional, 2006</ref> . During 1962, United State Airforce released “Study Of Methods For Evaluation Of The Pert/Cost Management System”. In this document was mentioned WBS as a useful tool for Controlling and Planning large acquisition projects <ref> Eric S. Norman, Shelly A. Brotherton, Robert T. Fried Work Breakdown Structures: The Foundation for Project Management Excellence, Wiley, 2010</ref> . As understandable, most of NASA projects involve many actors (contractors) with totally different tasks. Nevertheless, all of them are parts of the same project and work for the same final purpose. The WBS was used to ‘‘ . . . ensure that the total project is fully planned and that all derivative plans contribute directly to the desired objectives’’ (NASA, 1962)<ref>"Background and Key Concepts COPYRIGHTED MATERIAL." Web. 20 Sep. 2015</ref>. After this first approach NASA decided to keep update this document because believed valid and useful. In 1968, due to its success, the Department of Defense released "Work Breakdown Structures for Defense Materiel Items" (MIL-STD-881), a military standard procedure which is obligatory for all programs under the Department of Defense.
This standard is constantly updated; the latest version refers to 2001 <ref>''[http://www.mcri.com/wp-content/uploads/2014/09/Military-Standard-881C-----Department-of-Defense-Standard-Practice-----Work-Breakdown-Structures-for-Defense-Materiel-Items-MIL-STD-881C-3-Oct-11.pdf Military-Standard-881C]'', 3 October 2011</ref>.
During 1987 Project Management Institute (PMI) started to release a number of documents for a non-military purpose. These documents have been collected in one, as result The Project Management Body of Knowledge (PMBOK) has been released. The first version is from 1987, other versions have been released during 1987, 1996, 2000, 2004, 2009, 2013 <ref>"Guide, A. "Project Management Body of Knowledge (PMBOK® GUIDE & STANDARD)." Project Management Institute. 2001.</ref>. The main concept of subdividing different activities through different levels remains the same of the early years. However, the approach goes from “A task- oriented ‘family tree’ of activities 1987” PMBOKfirst Guide to “A deliverable- oriented hierarchical decomposition of the work to be executed by the project team to accomplish the project objectives and create the required deliverables” (PMBOK Guide — Third).

On one hand, the documents from PMI give an overview of the WBS concept, on the other hand, the document released from the Department of Defense can be considered as a Handbook.

==Work Breakdown Structure main Charactheristics==

WBS could be considered a general tool that can be used in most of projects and program. Due to this reason its features can vary from a WBS to another to best adapt the project manager needs.
However, is important to underline which core characteristics that this tool should have to define a quality WBS.

In this case the term “quality” is properly define from Project Management Institute’s (PMI) that in 2006 released the paper “Practice Standard for Work Breakdown Structures”. In this document the definition of a quality WBS is given from two statements:

# A quality WBS is constructed in such a way that it satisfies all of the requirements for its use in a project.
# For the all level of the WBS, quality characteristics must be implemented.

In other words a quality WBS must comply with all requirements for its use, no matters is the scope project, program or portfolio.

This first requirement is the most important one, it state that a WBS should be deliverable-oriented, this guaranty a WBS that can be taken under control thanks to a “Milestone Structure”. Moreover, the final scope of the Project is more easily defined. To underpin the importance of this requirement, the PMI includes deliverable orientation as part of definition of a WBS.
A WBS must take into consideration the full scope of the project including all internal, external and interim deliverables. For facilitating this task a WBS has an hierarchal approach with at least two levels, to understand better the connection between the elements a coding scheme of different levels should be provided [[File:Coding_wbs.png‎|200px|thumb|right| Figure 1: WBS with Coding scheme]] '''Figure 1''', each level must include100% of works connection belonging to the lower level 6, Nevertheless is not permitted to included element out of this project scope.
Nouns and adjectives define each level’s component but the use of verbs is not permitted. This ensures the deliverable of the element otherwise could be understood as a task. In case arises the need of clarification a “WBS Dictionary” can be added for defining the outcomes. In addition, since this tool is used for “real-case” applications require to be updated while work are in progress.

If it is true that a quality WBS is constructed in such a way that it satisfies all of its intended needs, then what is it about those needs that differentiate one WBS from another? We are certain that all Work Breakdown Structures are not the same—so what then, separates and makes them unique? This is where the concept of Use-Related Characteristics comes into play.
Use-Related Characteristics include those additional attributes that vary from one project to next, across industries, environments or in the way the WBS is applied within the project. With Use-Related Characteristics, the quality of the WBS depends on how well the specific content and types of WBS elements address the full set of needs of the project or program. Then this implies that the quality of the WBS increase with the number of the listed features that it meets:

* Achieves a sufficient level of decomposition to enable appropriate management and control
* Provides sufficient detail for bounding and communicating the scope of the project in its entirety
* Contains specific types of WBS elements necessary for the project
* Clearly enables the assignment of accountability at the appropriate level, regardless of whether the WBS is for a program or an
individual project

==Representation==
As mentioned before the aim of a WBS is to show at best the scope of the project, program or portfolio taken into consideration. There is no one exact or mandatory way of representing a WBS. Nevertheless, all of them have in common a tree structure. The most use tree structure is the one called inverted Tree Structure [[File: Horizontal_WBS.png‎|200px|thumb|right| Figure 2: Inverted tree structure]] '''''Figure 2''''', in this representation the project has the aspect of an organization chart. However there are other two types of representation the one shown In [[File: Horizontal_WBS.png‎|200px|thumb|left| Figure 3: Horizontal WBS]] '''''Figure 3''''', that has the root on the left side and growth from the right side, the last one is called centralized tree structure [[File: Centralized_tree_structure_WBS.png‎‎|200px|thumb|right| Figure 4: Centralized_tree_structure_WBS]] '''''Figure 4''''' this can help the development session.

The graphical representation is not the only way of representing a WBS, tabular views are also used. This approach has the advantage to be clearer in case the WBS has many levels an example is shown in figure [[File: List_wbs.png‎‎|200px|thumb|right| Figure 5: Tabular WBS]] '''''Figure 5'''''. Usually at top level is shown the main deliverable that can change depending what kind of project is analyzed. Lower level provide information to the project managers like, schedule development, cost estimating, resource allocation, and risk assessment. The lowest level also called Work Packages. It is defined by PMI as:” A deliverable or project work component at the lowest level of the Work Breakdown Structure. The work package includes the schedule activities and schedule milestones required to complete the work package deliverable or project work component’.It is a good habit as suggest NASA of not having more than seven levels. Each element of a WBS is recognizable by a clear, descriptive title and by a numbering scheme

Depending on the level the management might assign responsibility for technical, schedule, and cost performance. A Control Account is usually established to guaranty at best he intersection between of WBS element and organization unit.

==Decomposition procedures==
Overall a WBS is the result of a decomposition process, which goes from the project and terminates to a certain level of details necessary for effective communication at the project's stakeholder. Meaning that there is not a rule regarding how much in detail the WBS should go, it depends from project to project. This supports the statement that identify WBS as Use-Related Characteristics tool. Nevertheless, is important find a good balance between communication and complexity the need for control <ref> Stephen A. Devaux. 1 edition (September 18, 2014). Managing Projects as Investments: Earned Value to Business Value </ref>.

The most common method for decomposing a WBS are the following methods:
*Function
Project’s deliverables are collected by business function for facilitating communication to stakeholders. This WBS is focusing on operations or activities that should be performed.
*Role
Similar to the previous one, this is focusing more on responsibility.
*Method
The project derivable is based on methodology or delivery process, this type of WBS is easy to understand and is mainly use for showing the projects outcomes.
*Deliverables (components)
Most common used, can be use for every types of projects
Functional breakdown the project’s deliverables are collected by business function

==100% Rule==

One of the most important principles for developing a WBS is called 100% rule. This rule is define from Project Management Institute (PMI).

This 100% rule define that a WBS must Include the 100% of the work defined from the project and include all the necessary for its realization (Internal, contractor, subcontractor) included the management of the project itself. The 100% rule is one of the most important guideline for developing the decomposition and evaluation of a WBS. The rule is applied at all levels of the hierarchical structure : ‘the next level of decomposition of a WBS element (child level) must represent 100 percent of the work applicable to the next higher (parent) element’’ <ref> Haugan, Gregory T. 2002. Effective Work Breakdown Structures. Vienna, VA Management Concepts</ref> (Haugan p. 17)..
The WBS can not include jobs out of the project’s border, meaning that should not include more of the 100%.

Applying the 100% Rule allows the manager to know that all efforts in each area are captured where they belong and also that nothing unrelated is included in an element. Application of the 100% Rule enables all outcomes to be defined before schedule planning begins. The work breakdown structure is the initiator in the planning process, as planned outcomes must be defined before methods and schedules can be considered. If outcomes are insufficiently defined, the project cannot succeed. Awareness of the 100% Rule enables and communicates the full understanding of all necessary outcomes. Once the project is underway the 100% Rule assists in assuring that project costs are properly shown in the accounting system. This is true for all projects, whether they are accomplished for another division in a company or a regular paying customer. Application of the 100% Rule enables accurate costing, which is essential to budget similar efforts in the future.

===100% Rule Application===

This example provides a practical use of the 100% rule and the "progressive elaboration" technique. In ! ('''''Picture Under construction''''') , is shown a WBS has the objective the Build of an house.
At the top level (Level 1) the project manager has assign 100 point to the whole project, meaning the entire building process of the house. Breaking down to level number 2 we have more than one deliverable, by summing the point of each four elements we have the result will be 100. The point allocated in each element is the result of a project manager’s consideration, meaning that these points are not an estimation of Cost/Time, etc. but represents the overall effort needed to complete the task. Some elements (the once that needs a higher detail of decomposition) have a lower level (Level 3) that represent in this case the lowest level of this WBS. However, if is needed this breaks down process can continues until the project manager is not satisfy regarding the level of details that want to achieve. The procedure just used is called “progressive elaboration”.

As in this example, is totally fine if have different level of decomposition through different elements

It is suggested that the project manager use a software support, as a spreadsheet, for have an auto.sum operations, this could seems a silly recommendation, but a WBS of a portfolio can have hundred of branches a spreadsheet will be very useful. Another recommended procedure is to discuss together with the project team regarding the numbers of points that belongs to each element, this collaborative practice helps to achieve an high resolution of the reality because different people with different skills are involve during this process.

==Specific Type of WBS==
As mention previously WBS is a tool introduced during the 60’, up to present different WBS’s related tools have been developed.

===Value breakdown structure===

This tool is mainly used for assessing a project’s expected value, as WBS has a hierarchical structure. There is one fundamental difference, in this tool is not used the 100% rule, this because the value is not additive as the cost. For instance, a Helicopter manufacturer wants to produce a 10-seat helicopter the budget is 1000000$, and the Expected monetary value is 1700000$. By using an hierarchical approaches we should decompose the helicopter in different parts, for each parts all the necessary process until to get these components (cockpit, landing skid, passenger seats, engine, rotor, tail rotor, blade ). Let's image that we have all the components except the engine. The cost resources until this stage could be 900000$, but the actual value of this helicopter without the engine is actual 0 because no one wants a Helicopter without the engine. Meaning that the Value added of the engine is equal or close to the entire value of the projects. On one hand, we do not have any value until the motor is not mounted on the helicopter (VBS approach), on the other hand, we have cost for the resources used until now (WBS approach).

===Goals Breakdown Structure===
As a WBS, the Goals Breakdown Structure (GBS) has a hierarchical tree structure, it can be considered like a WBS specially design for goal’s achievement. In the highest level is positioned the overall goal of the projects, at the lower level are located mid-term goals for needed for achieving the top level mission. The GBS elements might include different peculiarities that characterize each goal, for instance, profit, market share, etc. At the third level are defined the products/process needed for achieving the organizational goals.

As written in A Guide to the Project Management Body of Knowledge (PMBOK(R)[1] Guide) it follows rules similar to WBS. For the breakdown decomposition the WBS follows two general rules:

*'''Nothing Extra''' Is not allowed to include an element that does not contribute to the upper-level goals. No layer should contain any extraneous goals.
*'''Nothing Missing''' Each level must define all the goals necessary to ensure the project achieves the next higher-level goals.

The first rule is needed to make sure that the project is a focus in only one objective without losing the resource that does not contribute any organization’s value. The second one ensure that everything that is needed for adding value to the project that takes into consideration.
The general scope of a GBS is to analyze all the goals and only the goals needed to achieve the project's higher-level goals.

==Potential Misunderstanding, Disadventage and adventage==

A WBS is not an organizational hierarchy chart. A common error is to develop a WBS in accordance to the organizational hierarchy so is important to decompose the works depending the relations between processes than between “powers” organizational.

A WBS is not a project’s development planning neither a list in chronological order. Is not suggest to plan a project without having developed its WBS, in other words, is like plan the manufacturing process for building an airplane, even before the completion of its project. In this case is even difficult to apply the 100% rules, because the goals are not well defined. Moreover once that a WBS is defined, in case of error is not possible to fix it without starting from the beginning, because all the processes are connected each other.
For this reason build and maintain a WBS is a process that require a strong effort in terms of times and HR , due to that fact that many people should be involved to increase the common sharing knowledge about the projects. Moreover, it should be periodically review to ensure the WBS’s reliability, this has influence on future decision that the PM will take. As said review a WBS has a cost, due to that WBS encourages rigid structure for the project. Thus, it reduces managerial flexibility to initiate and lead changes during the project life cycle. (Salvendy, 2001) <ref> Salvendy, G. 2001, Handbook of Industrial Engineering, 3rd ed, John Wiley & Sons, Inc, Canada</ref>.
However
# The WBS reflects the project objectives, by listing all the activities required to accomplish these objectives, it prevents confusion and doubts as to the aim of the project.
# It creates a common database and dictionary of common notation that serves as a reference point for all involved parties.
# The WBS enables smooth communications among the project team members and between them and customers, suppliers, regulators and etc.
# It serves as an archive that can later facilitate knowledge transfer to other projects or learning by new members of the work force.
# The WBS is an effective tool for resource management.

==References==
<references/>

File:List wbs.png

2015-09-28T20:38:32Z

S141530: S141530 uploaded a new version of "File:List wbs.png": Work breakdown structures : the foundation for project management excellence .Norman, Eric S.;Brotherton, Shelly A.; Fried, Robert T. 2008

Work breakdown structures : the foundation for project management excellence .Norman, Eric S.;Brotherton, Shelly A.; Fried, Robert T. 2008 Chapter 2nd

File:List wbs.png

2015-09-28T20:34:52Z

S141530: Work breakdown structures : the foundation for project management excellence .Norman, Eric S.;Brotherton, Shelly A.; Fried, Robert T. 2008 Chapter 2nd

Work breakdown structures : the foundation for project management excellence .Norman, Eric S.;Brotherton, Shelly A.; Fried, Robert T. 2008 Chapter 2nd

File:Inverted tree structure.png

2015-09-28T20:23:58Z

S141530: Work breakdown structures : the foundation for project management excellence .Norman, Eric S.;Brotherton, Shelly A.; Fried, Robert T. 2008 Chapter 2nd

Work breakdown structures : the foundation for project management excellence .Norman, Eric S.;Brotherton, Shelly A.; Fried, Robert T. 2008 Chapter 2nd

File:Horizontal WBS.png

2015-09-28T20:20:56Z

S141530: Work breakdown structures : the foundation for project management excellence .Norman, Eric S.;Brotherton, Shelly A.; Fried, Robert T. 2008 Chapter 2

Work breakdown structures : the foundation for project management excellence .Norman, Eric S.;Brotherton, Shelly A.; Fried, Robert T. 2008 Chapter 2

File:Centralized tree structure WBS.png

2015-09-28T20:18:53Z

S141530: Work breakdown structures : the foundation for project management excellence .Norman, Eric S.;Brotherton, Shelly A.; Fried, Robert T. 2008 Chapter 2

Work breakdown structures : the foundation for project management excellence .Norman, Eric S.;Brotherton, Shelly A.; Fried, Robert T. 2008 Chapter 2

Work Breakdown Structure (WBS)

2015-09-28T19:47:21Z

S141530: /* Work Breakdown Structure main Charactheristics */

Work Breakdown Structure (WBS) is a tool used in project management context that separates in different levels of details a deliverable-oriented project in hierarchical order. The primary objective is to support the project manager by giving an overview of different steps, resources and costs involved in the project.
Moreover during the project executions it may include the percentage of steps completed. This ensures better control and guidance in case during the project development occur changes. It is graphically represented by a hierarchical tree, where the job of each components is given by the sum of elements underneath connected (sublevels). These elements may represent a product, data, service or any combination thereof.

==History==

The WBS was initially developed by the U.S. defense, back to the 1950’s and 60’s in cooperation with NASA. Both agencies were adopting the Program Evaluation and Review Technique (PERT) <ref>S1 Cleland, David I. and Roland Gareis, Global Project Management Handbook, McGraw-Hill Professional, 2006</ref> . During 1962, United State Airforce released “Study Of Methods For Evaluation Of The Pert/Cost Management System”. In this document was mentioned WBS as a useful tool for Controlling and Planning large acquisition projects <ref> Eric S. Norman, Shelly A. Brotherton, Robert T. Fried Work Breakdown Structures: The Foundation for Project Management Excellence, Wiley, 2010</ref> . As understandable, most of NASA projects involve many actors (contractors) with totally different tasks. Nevertheless, all of them are parts of the same project and work for the same final purpose. The WBS was used to ‘‘ . . . ensure that the total project is fully planned and that all derivative plans contribute directly to the desired objectives’’ (NASA, 1962)<ref>"Background and Key Concepts COPYRIGHTED MATERIAL." Web. 20 Sep. 2015</ref>. After this first approach NASA decided to keep update this document because believed valid and useful. In 1968, due to its success, the Department of Defense released "Work Breakdown Structures for Defense Materiel Items" (MIL-STD-881), a military standard procedure which is obligatory for all programs under the Department of Defense.
This standard is constantly updated; the latest version refers to 2001 <ref>''[http://www.mcri.com/wp-content/uploads/2014/09/Military-Standard-881C-----Department-of-Defense-Standard-Practice-----Work-Breakdown-Structures-for-Defense-Materiel-Items-MIL-STD-881C-3-Oct-11.pdf Military-Standard-881C]'', 3 October 2011</ref>.
During 1987 Project Management Institute (PMI) started to release a number of documents for a non-military purpose. These documents have been collected in one, as result The Project Management Body of Knowledge (PMBOK) has been released. The first version is from 1987, other versions have been released during 1987, 1996, 2000, 2004, 2009, 2013 <ref>"Guide, A. "Project Management Body of Knowledge (PMBOK® GUIDE & STANDARD)." Project Management Institute. 2001.</ref>. The main concept of subdividing different activities through different levels remains the same of the early years. However, the approach goes from “A task- oriented ‘family tree’ of activities 1987” PMBOKfirst Guide to “A deliverable- oriented hierarchical decomposition of the work to be executed by the project team to accomplish the project objectives and create the required deliverables” (PMBOK Guide — Third).

On one hand, the documents from PMI give an overview of the WBS concept, on the other hand, the document released from the Department of Defense can be considered as a Handbook.

==Work Breakdown Structure main Charactheristics==

WBS could be considered a general tool that can be used in most of projects and program. Due to this reason its features can vary from a WBS to another to best adapt the project manager needs.
However, is important to underline which core characteristics that this tool should have to define a quality WBS.

In this case the term “quality” is properly define from Project Management Institute’s (PMI) that in 2006 released the paper “Practice Standard for Work Breakdown Structures”. In this document the definition of a quality WBS is given from two statements:

# A quality WBS is constructed in such a way that it satisfies all of the requirements for its use in a project.
# For the all level of the WBS, quality characteristics must be implemented.

In other words a quality WBS must comply with all requirements for its use, no matters is the scope project, program or portfolio.

This first requirement is the most important one, it state that a WBS should be deliverable-oriented, this guaranty a WBS that can be taken under control thanks to a “Milestone Structure”. Moreover, the final scope of the Project is more easily defined. To underpin the importance of this requirement, the PMI includes deliverable orientation as part of definition of a WBS.
A WBS must take into consideration the full scope of the project including all internal, external and interim deliverables. For facilitating this task a WBS has an hierarchal approach with at least two levels, to understand better the connection between the elements a coding scheme of different levels should be provided [[File:Coding_wbs.png‎|200px|thumb|right| Figure 1: WBS with Coding scheme]] '''Figure 1''', each level must include100% of works connection belonging to the lower level 6, Nevertheless is not permitted to included element out of this project scope.
Nouns and adjectives define each level’s component but the use of verbs is not permitted. This ensures the deliverable of the element otherwise could be understood as a task. In case arises the need of clarification a “WBS Dictionary” can be added for defining the outcomes. In addition, since this tool is used for “real-case” applications require to be updated while work are in progress.

If it is true that a quality WBS is constructed in such a way that it satisfies all of its intended needs, then what is it about those needs that differentiate one WBS from another? We are certain that all Work Breakdown Structures are not the same—so what then, separates and makes them unique? This is where the concept of Use-Related Characteristics comes into play.
Use-Related Characteristics include those additional attributes that vary from one project to next, across industries, environments or in the way the WBS is applied within the project. With Use-Related Characteristics, the quality of the WBS depends on how well the specific content and types of WBS elements address the full set of needs of the project or program. Then this implies that the quality of the WBS increase with the number of the listed features that it meets:

* Achieves a sufficient level of decomposition to enable appropriate management and control
* Provides sufficient detail for bounding and communicating the scope of the project in its entirety
* Contains specific types of WBS elements necessary for the project
* Clearly enables the assignment of accountability at the appropriate level, regardless of whether the WBS is for a program or an
individual project

==Representation==
As mentioned before the aim of a WBS is to show at best the scope of the project, program or portfolio taken into consideration. There is no one exact or mandatory way of representing a WBS. Nevertheless, all of them have in common a tree structure. The most use tree structure is the one called inverted Tree Structure ('''''Picture Under construction''''') , in this representation the project has the aspect of an organization chart. However there are other two types of representation the one shown In ! ('''''Picture Under construction''''') , that has the root on the left side and growth from the right side, the last one is called centralized tree structure Picture this can help the development session.

The graphical representation is not the only way of representing a WBS, tabular views are also used. This approach has the advantage to be clearer in case the WBS has many levels an example is shown in figure ('''''Picture Under construction''''') ,. Usually at top level is shown the main deliverable that can change depending what kind of project is analyzed. Lower level provide information to the project managers like, schedule development, cost estimating, resource allocation, and risk assessment. The lowest level also called Work Packages. It is defined by PMI as:” A deliverable or project work component at the lowest level of the Work Breakdown Structure. The work package includes the schedule activities and schedule milestones required to complete the work package deliverable or project work component’.It is a good habit as suggest NASA of not having more than seven levels. Each element of a WBS is recognizable by a clear, descriptive title and by a numbering scheme

Depending on the level the management might assign responsibility for technical, schedule, and cost performance. A Control Account is usually established to guaranty at best he intersection between of WBS element and organization unit.

==Decomposition procedures==
Overall a WBS is the result of a decomposition process, which goes from the project and terminates to a certain level of details necessary for effective communication at the project's stakeholder. Meaning that there is not a rule regarding how much in detail the WBS should go, it depends from project to project. This supports the statement that identify WBS as Use-Related Characteristics tool. Nevertheless, is important find a good balance between communication and complexity the need for control <ref> Stephen A. Devaux. 1 edition (September 18, 2014). Managing Projects as Investments: Earned Value to Business Value </ref>.

The most common method for decomposing a WBS are the following methods:
*Function
Project’s deliverables are collected by business function for facilitating communication to stakeholders. This WBS is focusing on operations or activities that should be performed.
*Role
Similar to the previous one, this is focusing more on responsibility.
*Method
The project derivable is based on methodology or delivery process, this type of WBS is easy to understand and is mainly use for showing the projects outcomes.
*Deliverables (components)
Most common used, can be use for every types of projects
Functional breakdown the project’s deliverables are collected by business function

==100% Rule==

One of the most important principles for developing a WBS is called 100% rule. This rule is define from Project Management Institute (PMI).

This 100% rule define that a WBS must Include the 100% of the work defined from the project and include all the necessary for its realization (Internal, contractor, subcontractor) included the management of the project itself. The 100% rule is one of the most important guideline for developing the decomposition and evaluation of a WBS. The rule is applied at all levels of the hierarchical structure : ‘the next level of decomposition of a WBS element (child level) must represent 100 percent of the work applicable to the next higher (parent) element’’ <ref> Haugan, Gregory T. 2002. Effective Work Breakdown Structures. Vienna, VA Management Concepts</ref> (Haugan p. 17)..
The WBS can not include jobs out of the project’s border, meaning that should not include more of the 100%.

Applying the 100% Rule allows the manager to know that all efforts in each area are captured where they belong and also that nothing unrelated is included in an element. Application of the 100% Rule enables all outcomes to be defined before schedule planning begins. The work breakdown structure is the initiator in the planning process, as planned outcomes must be defined before methods and schedules can be considered. If outcomes are insufficiently defined, the project cannot succeed. Awareness of the 100% Rule enables and communicates the full understanding of all necessary outcomes. Once the project is underway the 100% Rule assists in assuring that project costs are properly shown in the accounting system. This is true for all projects, whether they are accomplished for another division in a company or a regular paying customer. Application of the 100% Rule enables accurate costing, which is essential to budget similar efforts in the future.

===100% Rule Application===

This example provides a practical use of the 100% rule and the "progressive elaboration" technique. In ! ('''''Picture Under construction''''') , is shown a WBS has the objective the Build of an house.
At the top level (Level 1) the project manager has assign 100 point to the whole project, meaning the entire building process of the house. Breaking down to level number 2 we have more than one deliverable, by summing the point of each four elements we have the result will be 100. The point allocated in each element is the result of a project manager’s consideration, meaning that these points are not an estimation of Cost/Time, etc. but represents the overall effort needed to complete the task. Some elements (the once that needs a higher detail of decomposition) have a lower level (Level 3) that represent in this case the lowest level of this WBS. However, if is needed this breaks down process can continues until the project manager is not satisfy regarding the level of details that want to achieve. The procedure just used is called “progressive elaboration”.

As in this example, is totally fine if have different level of decomposition through different elements

It is suggested that the project manager use a software support, as a spreadsheet, for have an auto.sum operations, this could seems a silly recommendation, but a WBS of a portfolio can have hundred of branches a spreadsheet will be very useful. Another recommended procedure is to discuss together with the project team regarding the numbers of points that belongs to each element, this collaborative practice helps to achieve an high resolution of the reality because different people with different skills are involve during this process.

==Specific Type of WBS==
As mention previously WBS is a tool introduced during the 60’, up to present different WBS’s related tools have been developed.

===Value breakdown structure===

This tool is mainly used for assessing a project’s expected value, as WBS has a hierarchical structure. There is one fundamental difference, in this tool is not used the 100% rule, this because the value is not additive as the cost. For instance, a Helicopter manufacturer wants to produce a 10-seat helicopter the budget is 1000000$, and the Expected monetary value is 1700000$. By using an hierarchical approaches we should decompose the helicopter in different parts, for each parts all the necessary process until to get these components (cockpit, landing skid, passenger seats, engine, rotor, tail rotor, blade ). Let's image that we have all the components except the engine. The cost resources until this stage could be 900000$, but the actual value of this helicopter without the engine is actual 0 because no one wants a Helicopter without the engine. Meaning that the Value added of the engine is equal or close to the entire value of the projects. On one hand, we do not have any value until the motor is not mounted on the helicopter (VBS approach), on the other hand, we have cost for the resources used until now (WBS approach).

===Goals Breakdown Structure===
As a WBS, the Goals Breakdown Structure (GBS) has a hierarchical tree structure, it can be considered like a WBS specially design for goal’s achievement. In the highest level is positioned the overall goal of the projects, at the lower level are located mid-term goals for needed for achieving the top level mission. The GBS elements might include different peculiarities that characterize each goal, for instance, profit, market share, etc. At the third level are defined the products/process needed for achieving the organizational goals.

As written in A Guide to the Project Management Body of Knowledge (PMBOK(R)[1] Guide) it follows rules similar to WBS. For the breakdown decomposition the WBS follows two general rules:

*'''Nothing Extra''' Is not allowed to include an element that does not contribute to the upper-level goals. No layer should contain any extraneous goals.
*'''Nothing Missing''' Each level must define all the goals necessary to ensure the project achieves the next higher-level goals.

The first rule is needed to make sure that the project is a focus in only one objective without losing the resource that does not contribute any organization’s value. The second one ensure that everything that is needed for adding value to the project that takes into consideration.
The general scope of a GBS is to analyze all the goals and only the goals needed to achieve the project's higher-level goals.

==Potential Misunderstanding, Disadventage and adventage==

A WBS is not an organizational hierarchy chart. A common error is to develop a WBS in accordance to the organizational hierarchy so is important to decompose the works depending the relations between processes than between “powers” organizational.

A WBS is not a project’s development planning neither a list in chronological order. Is not suggest to plan a project without having developed its WBS, in other words, is like plan the manufacturing process for building an airplane, even before the completion of its project. In this case is even difficult to apply the 100% rules, because the goals are not well defined. Moreover once that a WBS is defined, in case of error is not possible to fix it without starting from the beginning, because all the processes are connected each other.
For this reason build and maintain a WBS is a process that require a strong effort in terms of times and HR , due to that fact that many people should be involved to increase the common sharing knowledge about the projects. Moreover, it should be periodically review to ensure the WBS’s reliability, this has influence on future decision that the PM will take. As said review a WBS has a cost, due to that WBS encourages rigid structure for the project. Thus, it reduces managerial flexibility to initiate and lead changes during the project life cycle. (Salvendy, 2001) <ref> Salvendy, G. 2001, Handbook of Industrial Engineering, 3rd ed, John Wiley & Sons, Inc, Canada</ref>.
However
# The WBS reflects the project objectives, by listing all the activities required to accomplish these objectives, it prevents confusion and doubts as to the aim of the project.
# It creates a common database and dictionary of common notation that serves as a reference point for all involved parties.
# The WBS enables smooth communications among the project team members and between them and customers, suppliers, regulators and etc.
# It serves as an archive that can later facilitate knowledge transfer to other projects or learning by new members of the work force.
# The WBS is an effective tool for resource management.

==References==
<references/>

Work Breakdown Structure (WBS)

2015-09-28T19:46:55Z

S141530: /* Work Breakdown Structure main Charactheristics */

Work Breakdown Structure (WBS) is a tool used in project management context that separates in different levels of details a deliverable-oriented project in hierarchical order. The primary objective is to support the project manager by giving an overview of different steps, resources and costs involved in the project.
Moreover during the project executions it may include the percentage of steps completed. This ensures better control and guidance in case during the project development occur changes. It is graphically represented by a hierarchical tree, where the job of each components is given by the sum of elements underneath connected (sublevels). These elements may represent a product, data, service or any combination thereof.

==History==

The WBS was initially developed by the U.S. defense, back to the 1950’s and 60’s in cooperation with NASA. Both agencies were adopting the Program Evaluation and Review Technique (PERT) <ref>S1 Cleland, David I. and Roland Gareis, Global Project Management Handbook, McGraw-Hill Professional, 2006</ref> . During 1962, United State Airforce released “Study Of Methods For Evaluation Of The Pert/Cost Management System”. In this document was mentioned WBS as a useful tool for Controlling and Planning large acquisition projects <ref> Eric S. Norman, Shelly A. Brotherton, Robert T. Fried Work Breakdown Structures: The Foundation for Project Management Excellence, Wiley, 2010</ref> . As understandable, most of NASA projects involve many actors (contractors) with totally different tasks. Nevertheless, all of them are parts of the same project and work for the same final purpose. The WBS was used to ‘‘ . . . ensure that the total project is fully planned and that all derivative plans contribute directly to the desired objectives’’ (NASA, 1962)<ref>"Background and Key Concepts COPYRIGHTED MATERIAL." Web. 20 Sep. 2015</ref>. After this first approach NASA decided to keep update this document because believed valid and useful. In 1968, due to its success, the Department of Defense released "Work Breakdown Structures for Defense Materiel Items" (MIL-STD-881), a military standard procedure which is obligatory for all programs under the Department of Defense.
This standard is constantly updated; the latest version refers to 2001 <ref>''[http://www.mcri.com/wp-content/uploads/2014/09/Military-Standard-881C-----Department-of-Defense-Standard-Practice-----Work-Breakdown-Structures-for-Defense-Materiel-Items-MIL-STD-881C-3-Oct-11.pdf Military-Standard-881C]'', 3 October 2011</ref>.
During 1987 Project Management Institute (PMI) started to release a number of documents for a non-military purpose. These documents have been collected in one, as result The Project Management Body of Knowledge (PMBOK) has been released. The first version is from 1987, other versions have been released during 1987, 1996, 2000, 2004, 2009, 2013 <ref>"Guide, A. "Project Management Body of Knowledge (PMBOK® GUIDE & STANDARD)." Project Management Institute. 2001.</ref>. The main concept of subdividing different activities through different levels remains the same of the early years. However, the approach goes from “A task- oriented ‘family tree’ of activities 1987” PMBOKfirst Guide to “A deliverable- oriented hierarchical decomposition of the work to be executed by the project team to accomplish the project objectives and create the required deliverables” (PMBOK Guide — Third).

On one hand, the documents from PMI give an overview of the WBS concept, on the other hand, the document released from the Department of Defense can be considered as a Handbook.

==Work Breakdown Structure main Charactheristics==

WBS could be considered a general tool that can be used in most of projects and program. Due to this reason its features can vary from a WBS to another to best adapt the project manager needs.
However, is important to underline which core characteristics that this tool should have to define a quality WBS.

In this case the term “quality” is properly define from Project Management Institute’s (PMI) that in 2006 released the paper “Practice Standard for Work Breakdown Structures”. In this document the definition of a quality WBS is given from two statements:

# A quality WBS is constructed in such a way that it satisfies all of the requirements for its use in a project.
# For the all level of the WBS, quality characteristics must be implemented.

In other words a quality WBS must comply with all requirements for its use, no matters is the scope project, program or portfolio.

This first requirement is the most important one, it state that a WBS should be deliverable-oriented, this guaranty a WBS that can be taken under control thanks to a “Milestone Structure”. Moreover, the final scope of the Project is more easily defined. To underpin the importance of this requirement, the PMI includes deliverable orientation as part of definition of a WBS.
A WBS must take into consideration the full scope of the project including all internal, external and interim deliverables. For facilitating this task a WBS has an hierarchal approach with at least two levels, to understand better the connection between the elements a coding scheme of different levels should be provided [[File:Coding_wbs.png‎|200px|thumb|left| Figure 1: WBS with Coding scheme]] '''Figure 1''', each level must include100% of works connection belonging to the lower level 6, Nevertheless is not permitted to included element out of this project scope.
Nouns and adjectives define each level’s component but the use of verbs is not permitted. This ensures the deliverable of the element otherwise could be understood as a task. In case arises the need of clarification a “WBS Dictionary” can be added for defining the outcomes. In addition, since this tool is used for “real-case” applications require to be updated while work are in progress.

If it is true that a quality WBS is constructed in such a way that it satisfies all of its intended needs, then what is it about those needs that differentiate one WBS from another? We are certain that all Work Breakdown Structures are not the same—so what then, separates and makes them unique? This is where the concept of Use-Related Characteristics comes into play.
Use-Related Characteristics include those additional attributes that vary from one project to next, across industries, environments or in the way the WBS is applied within the project. With Use-Related Characteristics, the quality of the WBS depends on how well the specific content and types of WBS elements address the full set of needs of the project or program. Then this implies that the quality of the WBS increase with the number of the listed features that it meets:

* Achieves a sufficient level of decomposition to enable appropriate management and control
* Provides sufficient detail for bounding and communicating the scope of the project in its entirety
* Contains specific types of WBS elements necessary for the project
* Clearly enables the assignment of accountability at the appropriate level, regardless of whether the WBS is for a program or an
individual project

==Representation==
As mentioned before the aim of a WBS is to show at best the scope of the project, program or portfolio taken into consideration. There is no one exact or mandatory way of representing a WBS. Nevertheless, all of them have in common a tree structure. The most use tree structure is the one called inverted Tree Structure ('''''Picture Under construction''''') , in this representation the project has the aspect of an organization chart. However there are other two types of representation the one shown In ! ('''''Picture Under construction''''') , that has the root on the left side and growth from the right side, the last one is called centralized tree structure Picture this can help the development session.

The graphical representation is not the only way of representing a WBS, tabular views are also used. This approach has the advantage to be clearer in case the WBS has many levels an example is shown in figure ('''''Picture Under construction''''') ,. Usually at top level is shown the main deliverable that can change depending what kind of project is analyzed. Lower level provide information to the project managers like, schedule development, cost estimating, resource allocation, and risk assessment. The lowest level also called Work Packages. It is defined by PMI as:” A deliverable or project work component at the lowest level of the Work Breakdown Structure. The work package includes the schedule activities and schedule milestones required to complete the work package deliverable or project work component’.It is a good habit as suggest NASA of not having more than seven levels. Each element of a WBS is recognizable by a clear, descriptive title and by a numbering scheme

Depending on the level the management might assign responsibility for technical, schedule, and cost performance. A Control Account is usually established to guaranty at best he intersection between of WBS element and organization unit.

==Decomposition procedures==
Overall a WBS is the result of a decomposition process, which goes from the project and terminates to a certain level of details necessary for effective communication at the project's stakeholder. Meaning that there is not a rule regarding how much in detail the WBS should go, it depends from project to project. This supports the statement that identify WBS as Use-Related Characteristics tool. Nevertheless, is important find a good balance between communication and complexity the need for control <ref> Stephen A. Devaux. 1 edition (September 18, 2014). Managing Projects as Investments: Earned Value to Business Value </ref>.

The most common method for decomposing a WBS are the following methods:
*Function
Project’s deliverables are collected by business function for facilitating communication to stakeholders. This WBS is focusing on operations or activities that should be performed.
*Role
Similar to the previous one, this is focusing more on responsibility.
*Method
The project derivable is based on methodology or delivery process, this type of WBS is easy to understand and is mainly use for showing the projects outcomes.
*Deliverables (components)
Most common used, can be use for every types of projects
Functional breakdown the project’s deliverables are collected by business function

==100% Rule==

One of the most important principles for developing a WBS is called 100% rule. This rule is define from Project Management Institute (PMI).

This 100% rule define that a WBS must Include the 100% of the work defined from the project and include all the necessary for its realization (Internal, contractor, subcontractor) included the management of the project itself. The 100% rule is one of the most important guideline for developing the decomposition and evaluation of a WBS. The rule is applied at all levels of the hierarchical structure : ‘the next level of decomposition of a WBS element (child level) must represent 100 percent of the work applicable to the next higher (parent) element’’ <ref> Haugan, Gregory T. 2002. Effective Work Breakdown Structures. Vienna, VA Management Concepts</ref> (Haugan p. 17)..
The WBS can not include jobs out of the project’s border, meaning that should not include more of the 100%.

Applying the 100% Rule allows the manager to know that all efforts in each area are captured where they belong and also that nothing unrelated is included in an element. Application of the 100% Rule enables all outcomes to be defined before schedule planning begins. The work breakdown structure is the initiator in the planning process, as planned outcomes must be defined before methods and schedules can be considered. If outcomes are insufficiently defined, the project cannot succeed. Awareness of the 100% Rule enables and communicates the full understanding of all necessary outcomes. Once the project is underway the 100% Rule assists in assuring that project costs are properly shown in the accounting system. This is true for all projects, whether they are accomplished for another division in a company or a regular paying customer. Application of the 100% Rule enables accurate costing, which is essential to budget similar efforts in the future.

===100% Rule Application===

This example provides a practical use of the 100% rule and the "progressive elaboration" technique. In ! ('''''Picture Under construction''''') , is shown a WBS has the objective the Build of an house.
At the top level (Level 1) the project manager has assign 100 point to the whole project, meaning the entire building process of the house. Breaking down to level number 2 we have more than one deliverable, by summing the point of each four elements we have the result will be 100. The point allocated in each element is the result of a project manager’s consideration, meaning that these points are not an estimation of Cost/Time, etc. but represents the overall effort needed to complete the task. Some elements (the once that needs a higher detail of decomposition) have a lower level (Level 3) that represent in this case the lowest level of this WBS. However, if is needed this breaks down process can continues until the project manager is not satisfy regarding the level of details that want to achieve. The procedure just used is called “progressive elaboration”.

As in this example, is totally fine if have different level of decomposition through different elements

It is suggested that the project manager use a software support, as a spreadsheet, for have an auto.sum operations, this could seems a silly recommendation, but a WBS of a portfolio can have hundred of branches a spreadsheet will be very useful. Another recommended procedure is to discuss together with the project team regarding the numbers of points that belongs to each element, this collaborative practice helps to achieve an high resolution of the reality because different people with different skills are involve during this process.

==Specific Type of WBS==
As mention previously WBS is a tool introduced during the 60’, up to present different WBS’s related tools have been developed.

===Value breakdown structure===

This tool is mainly used for assessing a project’s expected value, as WBS has a hierarchical structure. There is one fundamental difference, in this tool is not used the 100% rule, this because the value is not additive as the cost. For instance, a Helicopter manufacturer wants to produce a 10-seat helicopter the budget is 1000000$, and the Expected monetary value is 1700000$. By using an hierarchical approaches we should decompose the helicopter in different parts, for each parts all the necessary process until to get these components (cockpit, landing skid, passenger seats, engine, rotor, tail rotor, blade ). Let's image that we have all the components except the engine. The cost resources until this stage could be 900000$, but the actual value of this helicopter without the engine is actual 0 because no one wants a Helicopter without the engine. Meaning that the Value added of the engine is equal or close to the entire value of the projects. On one hand, we do not have any value until the motor is not mounted on the helicopter (VBS approach), on the other hand, we have cost for the resources used until now (WBS approach).

===Goals Breakdown Structure===
As a WBS, the Goals Breakdown Structure (GBS) has a hierarchical tree structure, it can be considered like a WBS specially design for goal’s achievement. In the highest level is positioned the overall goal of the projects, at the lower level are located mid-term goals for needed for achieving the top level mission. The GBS elements might include different peculiarities that characterize each goal, for instance, profit, market share, etc. At the third level are defined the products/process needed for achieving the organizational goals.

As written in A Guide to the Project Management Body of Knowledge (PMBOK(R)[1] Guide) it follows rules similar to WBS. For the breakdown decomposition the WBS follows two general rules:

*'''Nothing Extra''' Is not allowed to include an element that does not contribute to the upper-level goals. No layer should contain any extraneous goals.
*'''Nothing Missing''' Each level must define all the goals necessary to ensure the project achieves the next higher-level goals.

The first rule is needed to make sure that the project is a focus in only one objective without losing the resource that does not contribute any organization’s value. The second one ensure that everything that is needed for adding value to the project that takes into consideration.
The general scope of a GBS is to analyze all the goals and only the goals needed to achieve the project's higher-level goals.

==Potential Misunderstanding, Disadventage and adventage==

A WBS is not an organizational hierarchy chart. A common error is to develop a WBS in accordance to the organizational hierarchy so is important to decompose the works depending the relations between processes than between “powers” organizational.

A WBS is not a project’s development planning neither a list in chronological order. Is not suggest to plan a project without having developed its WBS, in other words, is like plan the manufacturing process for building an airplane, even before the completion of its project. In this case is even difficult to apply the 100% rules, because the goals are not well defined. Moreover once that a WBS is defined, in case of error is not possible to fix it without starting from the beginning, because all the processes are connected each other.
For this reason build and maintain a WBS is a process that require a strong effort in terms of times and HR , due to that fact that many people should be involved to increase the common sharing knowledge about the projects. Moreover, it should be periodically review to ensure the WBS’s reliability, this has influence on future decision that the PM will take. As said review a WBS has a cost, due to that WBS encourages rigid structure for the project. Thus, it reduces managerial flexibility to initiate and lead changes during the project life cycle. (Salvendy, 2001) <ref> Salvendy, G. 2001, Handbook of Industrial Engineering, 3rd ed, John Wiley & Sons, Inc, Canada</ref>.
However
# The WBS reflects the project objectives, by listing all the activities required to accomplish these objectives, it prevents confusion and doubts as to the aim of the project.
# It creates a common database and dictionary of common notation that serves as a reference point for all involved parties.
# The WBS enables smooth communications among the project team members and between them and customers, suppliers, regulators and etc.
# It serves as an archive that can later facilitate knowledge transfer to other projects or learning by new members of the work force.
# The WBS is an effective tool for resource management.

==References==
<references/>

Work Breakdown Structure (WBS)

2015-09-28T19:45:18Z

S141530: /* Work Breakdown Structure main Charactheristics */

Work Breakdown Structure (WBS) is a tool used in project management context that separates in different levels of details a deliverable-oriented project in hierarchical order. The primary objective is to support the project manager by giving an overview of different steps, resources and costs involved in the project.
Moreover during the project executions it may include the percentage of steps completed. This ensures better control and guidance in case during the project development occur changes. It is graphically represented by a hierarchical tree, where the job of each components is given by the sum of elements underneath connected (sublevels). These elements may represent a product, data, service or any combination thereof.

==History==

The WBS was initially developed by the U.S. defense, back to the 1950’s and 60’s in cooperation with NASA. Both agencies were adopting the Program Evaluation and Review Technique (PERT) <ref>S1 Cleland, David I. and Roland Gareis, Global Project Management Handbook, McGraw-Hill Professional, 2006</ref> . During 1962, United State Airforce released “Study Of Methods For Evaluation Of The Pert/Cost Management System”. In this document was mentioned WBS as a useful tool for Controlling and Planning large acquisition projects <ref> Eric S. Norman, Shelly A. Brotherton, Robert T. Fried Work Breakdown Structures: The Foundation for Project Management Excellence, Wiley, 2010</ref> . As understandable, most of NASA projects involve many actors (contractors) with totally different tasks. Nevertheless, all of them are parts of the same project and work for the same final purpose. The WBS was used to ‘‘ . . . ensure that the total project is fully planned and that all derivative plans contribute directly to the desired objectives’’ (NASA, 1962)<ref>"Background and Key Concepts COPYRIGHTED MATERIAL." Web. 20 Sep. 2015</ref>. After this first approach NASA decided to keep update this document because believed valid and useful. In 1968, due to its success, the Department of Defense released "Work Breakdown Structures for Defense Materiel Items" (MIL-STD-881), a military standard procedure which is obligatory for all programs under the Department of Defense.
This standard is constantly updated; the latest version refers to 2001 <ref>''[http://www.mcri.com/wp-content/uploads/2014/09/Military-Standard-881C-----Department-of-Defense-Standard-Practice-----Work-Breakdown-Structures-for-Defense-Materiel-Items-MIL-STD-881C-3-Oct-11.pdf Military-Standard-881C]'', 3 October 2011</ref>.
During 1987 Project Management Institute (PMI) started to release a number of documents for a non-military purpose. These documents have been collected in one, as result The Project Management Body of Knowledge (PMBOK) has been released. The first version is from 1987, other versions have been released during 1987, 1996, 2000, 2004, 2009, 2013 <ref>"Guide, A. "Project Management Body of Knowledge (PMBOK® GUIDE & STANDARD)." Project Management Institute. 2001.</ref>. The main concept of subdividing different activities through different levels remains the same of the early years. However, the approach goes from “A task- oriented ‘family tree’ of activities 1987” PMBOKfirst Guide to “A deliverable- oriented hierarchical decomposition of the work to be executed by the project team to accomplish the project objectives and create the required deliverables” (PMBOK Guide — Third).

On one hand, the documents from PMI give an overview of the WBS concept, on the other hand, the document released from the Department of Defense can be considered as a Handbook.

==Work Breakdown Structure main Charactheristics==

WBS could be considered a general tool that can be used in most of projects and program. Due to this reason its features can vary from a WBS to another to best adapt the project manager needs.
However, is important to underline which core characteristics that this tool should have to define a quality WBS.

In this case the term “quality” is properly define from Project Management Institute’s (PMI) that in 2006 released the paper “Practice Standard for Work Breakdown Structures”. In this document the definition of a quality WBS is given from two statements:

# A quality WBS is constructed in such a way that it satisfies all of the requirements for its use in a project.
# For the all level of the WBS, quality characteristics must be implemented.

In other words a quality WBS must comply with all requirements for its use, no matters is the scope project, program or portfolio.

This first requirement is the most important one, it state that a WBS should be deliverable-oriented, this guaranty a WBS that can be taken under control thanks to a “Milestone Structure”. Moreover, the final scope of the Project is more easily defined. To underpin the importance of this requirement, the PMI includes deliverable orientation as part of definition of a WBS.
A WBS must take into consideration the full scope of the project including all internal, external and interim deliverables. For facilitating this task a WBS has an hierarchal approach with at least two levels, to understand better the connection between the elements a coding scheme of different levels should be provided [[File:Coding_wbs.png‎|200px|thumb|left| WBS with Coding scheme]] , each level must include100% of works connection belonging to the lower level 6, Nevertheless is not permitted to included element out of this project scope.
Nouns and adjectives define each level’s component but the use of verbs is not permitted. This ensures the deliverable of the element otherwise could be understood as a task. In case arises the need of clarification a “WBS Dictionary” can be added for defining the outcomes. In addition, since this tool is used for “real-case” applications require to be updated while work are in progress.

If it is true that a quality WBS is constructed in such a way that it satisfies all of its intended needs, then what is it about those needs that differentiate one WBS from another? We are certain that all Work Breakdown Structures are not the same—so what then, separates and makes them unique? This is where the concept of Use-Related Characteristics comes into play.
Use-Related Characteristics include those additional attributes that vary from one project to next, across industries, environments or in the way the WBS is applied within the project. With Use-Related Characteristics, the quality of the WBS depends on how well the specific content and types of WBS elements address the full set of needs of the project or program. Then this implies that the quality of the WBS increase with the number of the listed features that it meets:

* Achieves a sufficient level of decomposition to enable appropriate management and control
* Provides sufficient detail for bounding and communicating the scope of the project in its entirety
* Contains specific types of WBS elements necessary for the project
* Clearly enables the assignment of accountability at the appropriate level, regardless of whether the WBS is for a program or an
individual project

==Representation==
As mentioned before the aim of a WBS is to show at best the scope of the project, program or portfolio taken into consideration. There is no one exact or mandatory way of representing a WBS. Nevertheless, all of them have in common a tree structure. The most use tree structure is the one called inverted Tree Structure ('''''Picture Under construction''''') , in this representation the project has the aspect of an organization chart. However there are other two types of representation the one shown In ! ('''''Picture Under construction''''') , that has the root on the left side and growth from the right side, the last one is called centralized tree structure Picture this can help the development session.

The graphical representation is not the only way of representing a WBS, tabular views are also used. This approach has the advantage to be clearer in case the WBS has many levels an example is shown in figure ('''''Picture Under construction''''') ,. Usually at top level is shown the main deliverable that can change depending what kind of project is analyzed. Lower level provide information to the project managers like, schedule development, cost estimating, resource allocation, and risk assessment. The lowest level also called Work Packages. It is defined by PMI as:” A deliverable or project work component at the lowest level of the Work Breakdown Structure. The work package includes the schedule activities and schedule milestones required to complete the work package deliverable or project work component’.It is a good habit as suggest NASA of not having more than seven levels. Each element of a WBS is recognizable by a clear, descriptive title and by a numbering scheme

Depending on the level the management might assign responsibility for technical, schedule, and cost performance. A Control Account is usually established to guaranty at best he intersection between of WBS element and organization unit.

==Decomposition procedures==
Overall a WBS is the result of a decomposition process, which goes from the project and terminates to a certain level of details necessary for effective communication at the project's stakeholder. Meaning that there is not a rule regarding how much in detail the WBS should go, it depends from project to project. This supports the statement that identify WBS as Use-Related Characteristics tool. Nevertheless, is important find a good balance between communication and complexity the need for control <ref> Stephen A. Devaux. 1 edition (September 18, 2014). Managing Projects as Investments: Earned Value to Business Value </ref>.

The most common method for decomposing a WBS are the following methods:
*Function
Project’s deliverables are collected by business function for facilitating communication to stakeholders. This WBS is focusing on operations or activities that should be performed.
*Role
Similar to the previous one, this is focusing more on responsibility.
*Method
The project derivable is based on methodology or delivery process, this type of WBS is easy to understand and is mainly use for showing the projects outcomes.
*Deliverables (components)
Most common used, can be use for every types of projects
Functional breakdown the project’s deliverables are collected by business function

==100% Rule==

One of the most important principles for developing a WBS is called 100% rule. This rule is define from Project Management Institute (PMI).

This 100% rule define that a WBS must Include the 100% of the work defined from the project and include all the necessary for its realization (Internal, contractor, subcontractor) included the management of the project itself. The 100% rule is one of the most important guideline for developing the decomposition and evaluation of a WBS. The rule is applied at all levels of the hierarchical structure : ‘the next level of decomposition of a WBS element (child level) must represent 100 percent of the work applicable to the next higher (parent) element’’ <ref> Haugan, Gregory T. 2002. Effective Work Breakdown Structures. Vienna, VA Management Concepts</ref> (Haugan p. 17)..
The WBS can not include jobs out of the project’s border, meaning that should not include more of the 100%.

Applying the 100% Rule allows the manager to know that all efforts in each area are captured where they belong and also that nothing unrelated is included in an element. Application of the 100% Rule enables all outcomes to be defined before schedule planning begins. The work breakdown structure is the initiator in the planning process, as planned outcomes must be defined before methods and schedules can be considered. If outcomes are insufficiently defined, the project cannot succeed. Awareness of the 100% Rule enables and communicates the full understanding of all necessary outcomes. Once the project is underway the 100% Rule assists in assuring that project costs are properly shown in the accounting system. This is true for all projects, whether they are accomplished for another division in a company or a regular paying customer. Application of the 100% Rule enables accurate costing, which is essential to budget similar efforts in the future.

===100% Rule Application===

This example provides a practical use of the 100% rule and the "progressive elaboration" technique. In ! ('''''Picture Under construction''''') , is shown a WBS has the objective the Build of an house.
At the top level (Level 1) the project manager has assign 100 point to the whole project, meaning the entire building process of the house. Breaking down to level number 2 we have more than one deliverable, by summing the point of each four elements we have the result will be 100. The point allocated in each element is the result of a project manager’s consideration, meaning that these points are not an estimation of Cost/Time, etc. but represents the overall effort needed to complete the task. Some elements (the once that needs a higher detail of decomposition) have a lower level (Level 3) that represent in this case the lowest level of this WBS. However, if is needed this breaks down process can continues until the project manager is not satisfy regarding the level of details that want to achieve. The procedure just used is called “progressive elaboration”.

As in this example, is totally fine if have different level of decomposition through different elements

It is suggested that the project manager use a software support, as a spreadsheet, for have an auto.sum operations, this could seems a silly recommendation, but a WBS of a portfolio can have hundred of branches a spreadsheet will be very useful. Another recommended procedure is to discuss together with the project team regarding the numbers of points that belongs to each element, this collaborative practice helps to achieve an high resolution of the reality because different people with different skills are involve during this process.

==Specific Type of WBS==
As mention previously WBS is a tool introduced during the 60’, up to present different WBS’s related tools have been developed.

===Value breakdown structure===

This tool is mainly used for assessing a project’s expected value, as WBS has a hierarchical structure. There is one fundamental difference, in this tool is not used the 100% rule, this because the value is not additive as the cost. For instance, a Helicopter manufacturer wants to produce a 10-seat helicopter the budget is 1000000$, and the Expected monetary value is 1700000$. By using an hierarchical approaches we should decompose the helicopter in different parts, for each parts all the necessary process until to get these components (cockpit, landing skid, passenger seats, engine, rotor, tail rotor, blade ). Let's image that we have all the components except the engine. The cost resources until this stage could be 900000$, but the actual value of this helicopter without the engine is actual 0 because no one wants a Helicopter without the engine. Meaning that the Value added of the engine is equal or close to the entire value of the projects. On one hand, we do not have any value until the motor is not mounted on the helicopter (VBS approach), on the other hand, we have cost for the resources used until now (WBS approach).

===Goals Breakdown Structure===
As a WBS, the Goals Breakdown Structure (GBS) has a hierarchical tree structure, it can be considered like a WBS specially design for goal’s achievement. In the highest level is positioned the overall goal of the projects, at the lower level are located mid-term goals for needed for achieving the top level mission. The GBS elements might include different peculiarities that characterize each goal, for instance, profit, market share, etc. At the third level are defined the products/process needed for achieving the organizational goals.

As written in A Guide to the Project Management Body of Knowledge (PMBOK(R)[1] Guide) it follows rules similar to WBS. For the breakdown decomposition the WBS follows two general rules:

*'''Nothing Extra''' Is not allowed to include an element that does not contribute to the upper-level goals. No layer should contain any extraneous goals.
*'''Nothing Missing''' Each level must define all the goals necessary to ensure the project achieves the next higher-level goals.

The first rule is needed to make sure that the project is a focus in only one objective without losing the resource that does not contribute any organization’s value. The second one ensure that everything that is needed for adding value to the project that takes into consideration.
The general scope of a GBS is to analyze all the goals and only the goals needed to achieve the project's higher-level goals.

==Potential Misunderstanding, Disadventage and adventage==

A WBS is not an organizational hierarchy chart. A common error is to develop a WBS in accordance to the organizational hierarchy so is important to decompose the works depending the relations between processes than between “powers” organizational.

A WBS is not a project’s development planning neither a list in chronological order. Is not suggest to plan a project without having developed its WBS, in other words, is like plan the manufacturing process for building an airplane, even before the completion of its project. In this case is even difficult to apply the 100% rules, because the goals are not well defined. Moreover once that a WBS is defined, in case of error is not possible to fix it without starting from the beginning, because all the processes are connected each other.
For this reason build and maintain a WBS is a process that require a strong effort in terms of times and HR , due to that fact that many people should be involved to increase the common sharing knowledge about the projects. Moreover, it should be periodically review to ensure the WBS’s reliability, this has influence on future decision that the PM will take. As said review a WBS has a cost, due to that WBS encourages rigid structure for the project. Thus, it reduces managerial flexibility to initiate and lead changes during the project life cycle. (Salvendy, 2001) <ref> Salvendy, G. 2001, Handbook of Industrial Engineering, 3rd ed, John Wiley & Sons, Inc, Canada</ref>.
However
# The WBS reflects the project objectives, by listing all the activities required to accomplish these objectives, it prevents confusion and doubts as to the aim of the project.
# It creates a common database and dictionary of common notation that serves as a reference point for all involved parties.
# The WBS enables smooth communications among the project team members and between them and customers, suppliers, regulators and etc.
# It serves as an archive that can later facilitate knowledge transfer to other projects or learning by new members of the work force.
# The WBS is an effective tool for resource management.

==References==
<references/>

File:Coding wbs.png

2015-09-28T19:39:24Z

S141530: Work breakdown structures : the foundation for project management excellence .Norman, Eric S.;Brotherton, Shelly A.; Fried, Robert T. 2008

Work breakdown structures : the foundation for project management excellence .Norman, Eric S.;Brotherton, Shelly A.; Fried, Robert T. 2008

Work Breakdown Structure (WBS)

2015-09-28T19:22:28Z

S141530: /* Work Breakdown Structure main Charactheristics */

Work Breakdown Structure (WBS) is a tool used in project management context that separates in different levels of details a deliverable-oriented project in hierarchical order. The primary objective is to support the project manager by giving an overview of different steps, resources and costs involved in the project.
Moreover during the project executions it may include the percentage of steps completed. This ensures better control and guidance in case during the project development occur changes. It is graphically represented by a hierarchical tree, where the job of each components is given by the sum of elements underneath connected (sublevels). These elements may represent a product, data, service or any combination thereof.

==History==

The WBS was initially developed by the U.S. defense, back to the 1950’s and 60’s in cooperation with NASA. Both agencies were adopting the Program Evaluation and Review Technique (PERT) <ref>S1 Cleland, David I. and Roland Gareis, Global Project Management Handbook, McGraw-Hill Professional, 2006</ref> . During 1962, United State Airforce released “Study Of Methods For Evaluation Of The Pert/Cost Management System”. In this document was mentioned WBS as a useful tool for Controlling and Planning large acquisition projects <ref> Eric S. Norman, Shelly A. Brotherton, Robert T. Fried Work Breakdown Structures: The Foundation for Project Management Excellence, Wiley, 2010</ref> . As understandable, most of NASA projects involve many actors (contractors) with totally different tasks. Nevertheless, all of them are parts of the same project and work for the same final purpose. The WBS was used to ‘‘ . . . ensure that the total project is fully planned and that all derivative plans contribute directly to the desired objectives’’ (NASA, 1962)<ref>"Background and Key Concepts COPYRIGHTED MATERIAL." Web. 20 Sep. 2015</ref>. After this first approach NASA decided to keep update this document because believed valid and useful. In 1968, due to its success, the Department of Defense released "Work Breakdown Structures for Defense Materiel Items" (MIL-STD-881), a military standard procedure which is obligatory for all programs under the Department of Defense.
This standard is constantly updated; the latest version refers to 2001 <ref>''[http://www.mcri.com/wp-content/uploads/2014/09/Military-Standard-881C-----Department-of-Defense-Standard-Practice-----Work-Breakdown-Structures-for-Defense-Materiel-Items-MIL-STD-881C-3-Oct-11.pdf Military-Standard-881C]'', 3 October 2011</ref>.
During 1987 Project Management Institute (PMI) started to release a number of documents for a non-military purpose. These documents have been collected in one, as result The Project Management Body of Knowledge (PMBOK) has been released. The first version is from 1987, other versions have been released during 1987, 1996, 2000, 2004, 2009, 2013 <ref>"Guide, A. "Project Management Body of Knowledge (PMBOK® GUIDE & STANDARD)." Project Management Institute. 2001.</ref>. The main concept of subdividing different activities through different levels remains the same of the early years. However, the approach goes from “A task- oriented ‘family tree’ of activities 1987” PMBOKfirst Guide to “A deliverable- oriented hierarchical decomposition of the work to be executed by the project team to accomplish the project objectives and create the required deliverables” (PMBOK Guide — Third).

On one hand, the documents from PMI give an overview of the WBS concept, on the other hand, the document released from the Department of Defense can be considered as a Handbook.

==Work Breakdown Structure main Charactheristics==

WBS could be considered a general tool that can be used in most of projects and program. Due to this reason its features can vary from a WBS to another to best adapt the project manager needs.
However, is important to underline which core characteristics that this tool should have to define a quality WBS.

In this case the term “quality” is properly define from Project Management Institute’s (PMI) that in 2006 released the paper “Practice Standard for Work Breakdown Structures”. In this document the definition of a quality WBS is given from two statements:

# A quality WBS is constructed in such a way that it satisfies all of the requirements for its use in a project.
# For the all level of the WBS, quality characteristics must be implemented.

In other words a quality WBS must comply with all requirements for its use, no matters is the scope project, program or portfolio.

This first requirement is the most important one, it state that a WBS should be deliverable-oriented, this guaranty a WBS that can be taken under control thanks to a “Milestone Structure”. Moreover, the final scope of the Project is more easily defined. To underpin the importance of this requirement, the PMI includes deliverable orientation as part of definition of a WBS.
A WBS must take into consideration the full scope of the project including all internal, external and interim deliverables. For facilitating this task a WBS has an hierarchal approach with at least two levels, to understand better the connection between the elements a coding scheme of different levels should be provided ('''''Picture Under construction'''''), each level must include100% of works connection belonging to the lower level 6, Nevertheless is not permitted to included element out of this project scope.
Nouns and adjectives define each level’s component but the use of verbs is not permitted. This ensures the deliverable of the element otherwise could be understood as a task. In case arises the need of clarification a “WBS Dictionary” can be added for defining the outcomes. In addition, since this tool is used for “real-case” applications require to be updated while work are in progress.

If it is true that a quality WBS is constructed in such a way that it satisfies all of its intended needs, then what is it about those needs that differentiate one WBS from another? We are certain that all Work Breakdown Structures are not the same—so what then, separates and makes them unique? This is where the concept of Use-Related Characteristics comes into play.
Use-Related Characteristics include those additional attributes that vary from one project to next, across industries, environments or in the way the WBS is applied within the project. With Use-Related Characteristics, the quality of the WBS depends on how well the specific content and types of WBS elements address the full set of needs of the project or program. Then this implies that the quality of the WBS increase with the number of the listed features that it meets:

* Achieves a sufficient level of decomposition to enable appropriate management and control
* Provides sufficient detail for bounding and communicating the scope of the project in its entirety
* Contains specific types of WBS elements necessary for the project
* Clearly enables the assignment of accountability at the appropriate level, regardless of whether the WBS is for a program or an
individual project

==Representation==
As mentioned before the aim of a WBS is to show at best the scope of the project, program or portfolio taken into consideration. There is no one exact or mandatory way of representing a WBS. Nevertheless, all of them have in common a tree structure. The most use tree structure is the one called inverted Tree Structure ('''''Picture Under construction''''') , in this representation the project has the aspect of an organization chart. However there are other two types of representation the one shown In ! ('''''Picture Under construction''''') , that has the root on the left side and growth from the right side, the last one is called centralized tree structure Picture this can help the development session.

The graphical representation is not the only way of representing a WBS, tabular views are also used. This approach has the advantage to be clearer in case the WBS has many levels an example is shown in figure ('''''Picture Under construction''''') ,. Usually at top level is shown the main deliverable that can change depending what kind of project is analyzed. Lower level provide information to the project managers like, schedule development, cost estimating, resource allocation, and risk assessment. The lowest level also called Work Packages. It is defined by PMI as:” A deliverable or project work component at the lowest level of the Work Breakdown Structure. The work package includes the schedule activities and schedule milestones required to complete the work package deliverable or project work component’.It is a good habit as suggest NASA of not having more than seven levels. Each element of a WBS is recognizable by a clear, descriptive title and by a numbering scheme

Depending on the level the management might assign responsibility for technical, schedule, and cost performance. A Control Account is usually established to guaranty at best he intersection between of WBS element and organization unit.

==Decomposition procedures==
Overall a WBS is the result of a decomposition process, which goes from the project and terminates to a certain level of details necessary for effective communication at the project's stakeholder. Meaning that there is not a rule regarding how much in detail the WBS should go, it depends from project to project. This supports the statement that identify WBS as Use-Related Characteristics tool. Nevertheless, is important find a good balance between communication and complexity the need for control <ref> Stephen A. Devaux. 1 edition (September 18, 2014). Managing Projects as Investments: Earned Value to Business Value </ref>.

The most common method for decomposing a WBS are the following methods:
*Function
Project’s deliverables are collected by business function for facilitating communication to stakeholders. This WBS is focusing on operations or activities that should be performed.
*Role
Similar to the previous one, this is focusing more on responsibility.
*Method
The project derivable is based on methodology or delivery process, this type of WBS is easy to understand and is mainly use for showing the projects outcomes.
*Deliverables (components)
Most common used, can be use for every types of projects
Functional breakdown the project’s deliverables are collected by business function

==100% Rule==

One of the most important principles for developing a WBS is called 100% rule. This rule is define from Project Management Institute (PMI).

This 100% rule define that a WBS must Include the 100% of the work defined from the project and include all the necessary for its realization (Internal, contractor, subcontractor) included the management of the project itself. The 100% rule is one of the most important guideline for developing the decomposition and evaluation of a WBS. The rule is applied at all levels of the hierarchical structure : ‘the next level of decomposition of a WBS element (child level) must represent 100 percent of the work applicable to the next higher (parent) element’’ <ref> Haugan, Gregory T. 2002. Effective Work Breakdown Structures. Vienna, VA Management Concepts</ref> (Haugan p. 17)..
The WBS can not include jobs out of the project’s border, meaning that should not include more of the 100%.

Applying the 100% Rule allows the manager to know that all efforts in each area are captured where they belong and also that nothing unrelated is included in an element. Application of the 100% Rule enables all outcomes to be defined before schedule planning begins. The work breakdown structure is the initiator in the planning process, as planned outcomes must be defined before methods and schedules can be considered. If outcomes are insufficiently defined, the project cannot succeed. Awareness of the 100% Rule enables and communicates the full understanding of all necessary outcomes. Once the project is underway the 100% Rule assists in assuring that project costs are properly shown in the accounting system. This is true for all projects, whether they are accomplished for another division in a company or a regular paying customer. Application of the 100% Rule enables accurate costing, which is essential to budget similar efforts in the future.

===100% Rule Application===

This example provides a practical use of the 100% rule and the "progressive elaboration" technique. In ! ('''''Picture Under construction''''') , is shown a WBS has the objective the Build of an house.
At the top level (Level 1) the project manager has assign 100 point to the whole project, meaning the entire building process of the house. Breaking down to level number 2 we have more than one deliverable, by summing the point of each four elements we have the result will be 100. The point allocated in each element is the result of a project manager’s consideration, meaning that these points are not an estimation of Cost/Time, etc. but represents the overall effort needed to complete the task. Some elements (the once that needs a higher detail of decomposition) have a lower level (Level 3) that represent in this case the lowest level of this WBS. However, if is needed this breaks down process can continues until the project manager is not satisfy regarding the level of details that want to achieve. The procedure just used is called “progressive elaboration”.

As in this example, is totally fine if have different level of decomposition through different elements

It is suggested that the project manager use a software support, as a spreadsheet, for have an auto.sum operations, this could seems a silly recommendation, but a WBS of a portfolio can have hundred of branches a spreadsheet will be very useful. Another recommended procedure is to discuss together with the project team regarding the numbers of points that belongs to each element, this collaborative practice helps to achieve an high resolution of the reality because different people with different skills are involve during this process.

==Specific Type of WBS==
As mention previously WBS is a tool introduced during the 60’, up to present different WBS’s related tools have been developed.

===Value breakdown structure===

This tool is mainly used for assessing a project’s expected value, as WBS has a hierarchical structure. There is one fundamental difference, in this tool is not used the 100% rule, this because the value is not additive as the cost. For instance, a Helicopter manufacturer wants to produce a 10-seat helicopter the budget is 1000000$, and the Expected monetary value is 1700000$. By using an hierarchical approaches we should decompose the helicopter in different parts, for each parts all the necessary process until to get these components (cockpit, landing skid, passenger seats, engine, rotor, tail rotor, blade ). Let's image that we have all the components except the engine. The cost resources until this stage could be 900000$, but the actual value of this helicopter without the engine is actual 0 because no one wants a Helicopter without the engine. Meaning that the Value added of the engine is equal or close to the entire value of the projects. On one hand, we do not have any value until the motor is not mounted on the helicopter (VBS approach), on the other hand, we have cost for the resources used until now (WBS approach).

===Goals Breakdown Structure===
As a WBS, the Goals Breakdown Structure (GBS) has a hierarchical tree structure, it can be considered like a WBS specially design for goal’s achievement. In the highest level is positioned the overall goal of the projects, at the lower level are located mid-term goals for needed for achieving the top level mission. The GBS elements might include different peculiarities that characterize each goal, for instance, profit, market share, etc. At the third level are defined the products/process needed for achieving the organizational goals.

As written in A Guide to the Project Management Body of Knowledge (PMBOK(R)[1] Guide) it follows rules similar to WBS. For the breakdown decomposition the WBS follows two general rules:

*'''Nothing Extra''' Is not allowed to include an element that does not contribute to the upper-level goals. No layer should contain any extraneous goals.
*'''Nothing Missing''' Each level must define all the goals necessary to ensure the project achieves the next higher-level goals.

The first rule is needed to make sure that the project is a focus in only one objective without losing the resource that does not contribute any organization’s value. The second one ensure that everything that is needed for adding value to the project that takes into consideration.
The general scope of a GBS is to analyze all the goals and only the goals needed to achieve the project's higher-level goals.

==Potential Misunderstanding, Disadventage and adventage==

A WBS is not an organizational hierarchy chart. A common error is to develop a WBS in accordance to the organizational hierarchy so is important to decompose the works depending the relations between processes than between “powers” organizational.

A WBS is not a project’s development planning neither a list in chronological order. Is not suggest to plan a project without having developed its WBS, in other words, is like plan the manufacturing process for building an airplane, even before the completion of its project. In this case is even difficult to apply the 100% rules, because the goals are not well defined. Moreover once that a WBS is defined, in case of error is not possible to fix it without starting from the beginning, because all the processes are connected each other.
For this reason build and maintain a WBS is a process that require a strong effort in terms of times and HR , due to that fact that many people should be involved to increase the common sharing knowledge about the projects. Moreover, it should be periodically review to ensure the WBS’s reliability, this has influence on future decision that the PM will take. As said review a WBS has a cost, due to that WBS encourages rigid structure for the project. Thus, it reduces managerial flexibility to initiate and lead changes during the project life cycle. (Salvendy, 2001) <ref> Salvendy, G. 2001, Handbook of Industrial Engineering, 3rd ed, John Wiley & Sons, Inc, Canada</ref>.
However
# The WBS reflects the project objectives, by listing all the activities required to accomplish these objectives, it prevents confusion and doubts as to the aim of the project.
# It creates a common database and dictionary of common notation that serves as a reference point for all involved parties.
# The WBS enables smooth communications among the project team members and between them and customers, suppliers, regulators and etc.
# It serves as an archive that can later facilitate knowledge transfer to other projects or learning by new members of the work force.
# The WBS is an effective tool for resource management.

==References==
<references/>

Work Breakdown Structure (WBS)

2015-09-28T18:55:55Z

S141530: /* History */

Work Breakdown Structure (WBS) is a tool used in project management context that separates in different levels of details a deliverable-oriented project in hierarchical order. The primary objective is to support the project manager by giving an overview of different steps, resources and costs involved in the project.
Moreover during the project executions it may include the percentage of steps completed. This ensures better control and guidance in case during the project development occur changes. It is graphically represented by a hierarchical tree, where the job of each components is given by the sum of elements underneath connected (sublevels). These elements may represent a product, data, service or any combination thereof.

==History==

The WBS was initially developed by the U.S. defense, back to the 1950’s and 60’s in cooperation with NASA. Both agencies were adopting the Program Evaluation and Review Technique (PERT) <ref>S1 Cleland, David I. and Roland Gareis, Global Project Management Handbook, McGraw-Hill Professional, 2006</ref> . During 1962, United State Airforce released “Study Of Methods For Evaluation Of The Pert/Cost Management System”. In this document was mentioned WBS as a useful tool for Controlling and Planning large acquisition projects <ref> Eric S. Norman, Shelly A. Brotherton, Robert T. Fried Work Breakdown Structures: The Foundation for Project Management Excellence, Wiley, 2010</ref> . As understandable, most of NASA projects involve many actors (contractors) with totally different tasks. Nevertheless, all of them are parts of the same project and work for the same final purpose. The WBS was used to ‘‘ . . . ensure that the total project is fully planned and that all derivative plans contribute directly to the desired objectives’’ (NASA, 1962)<ref>"Background and Key Concepts COPYRIGHTED MATERIAL." Web. 20 Sep. 2015</ref>. After this first approach NASA decided to keep update this document because believed valid and useful. In 1968, due to its success, the Department of Defense released "Work Breakdown Structures for Defense Materiel Items" (MIL-STD-881), a military standard procedure which is obligatory for all programs under the Department of Defense.
This standard is constantly updated; the latest version refers to 2001 <ref>''[http://www.mcri.com/wp-content/uploads/2014/09/Military-Standard-881C-----Department-of-Defense-Standard-Practice-----Work-Breakdown-Structures-for-Defense-Materiel-Items-MIL-STD-881C-3-Oct-11.pdf Military-Standard-881C]'', 3 October 2011</ref>.
During 1987 Project Management Institute (PMI) started to release a number of documents for a non-military purpose. These documents have been collected in one, as result The Project Management Body of Knowledge (PMBOK) has been released. The first version is from 1987, other versions have been released during 1987, 1996, 2000, 2004, 2009, 2013 <ref>"Guide, A. "Project Management Body of Knowledge (PMBOK® GUIDE & STANDARD)." Project Management Institute. 2001.</ref>. The main concept of subdividing different activities through different levels remains the same of the early years. However, the approach goes from “A task- oriented ‘family tree’ of activities 1987” PMBOKfirst Guide to “A deliverable- oriented hierarchical decomposition of the work to be executed by the project team to accomplish the project objectives and create the required deliverables” (PMBOK Guide — Third).

On one hand, the documents from PMI give an overview of the WBS concept, on the other hand, the document released from the Department of Defense can be considered as a Handbook.

==Work Breakdown Structure main Charactheristics==

WBS could be considered a general tool that can be use in most of projects and program, due to this reason a WBS to another may vary to best adapts the project manager needs.
However, is important to underline which core characteristics this tool should have to define a quality WBS.

In this case the terms “quality” is well define from Project Management Institute’s (PMI) that in 2006 released the paper “Practice Standard for Work Breakdown Structures”, in this document the definition of a quality WBS is given from two statement:

# A quality WBS is constructed in such a way that it satisfies all of the requirements for its use in a project.
# At all level of the WBS quality characteristics must be implemented.

In other words a quality WBS must comply with all requirements for its use, no matter is the scope project, program or portfolio.

This first requirement is the most important one, it is that a WBS should be deliverable-oriented, this guaranty a WBS that can be taken under control thanks to a “Milestone Structure”. Moreover, the final scope of the Project is more easily defined. To underpin the importance of this requirement, the PMI include deliverable orientation as part of definition of a WBS .
A WBS must take into consideration the full scope of the project including all internal, external and interim deliverables. For facilitating this task a WBS has an hierarchal approach with at least two levels, to understand better the connection between the elements a coding scheme of differents level should be provided ('''''Picture Under construction''''') , each level must includes 100% of works connection belonging to the lower level 6, Nevertheless is not permitted to included element out of this project scope.
Each level's component is defined by nouns and adjectives but is not permitted the use of verbs, this ensures the deliverable of the element otherwise cold be understood as a task. In case arise the need of clarification can be added a “WBS Dictionary” for defining the outcomes. In addition, since this tool is use for “real-case” application require that can be updated while working are in progress.

If it is true that a quality WBS is constructed in such a way that it satisfies all of its intended needs, then what is it about those needs that differentiate one WBS from another? We are certain that all Work Breakdown Structures are not the same—so what then, separates and makes them unique?
This is where the concept of Use-Related Characteristics comes into play. Use-Related Characteristics include those additional attributes that vary from one project to next, across industries, environments or in the way the WBS is applied within the project. With Use-Related Characteristics, the quality of the WBS depends on how well the specific content and types of WBS elements address the full set of needs of the project or program. This then implies that the more needs that the WBS meets, the higher the resulting quality of the WBS.

* Achieves a sufficient level of decomposition to enable appropriate management and control
* Provides sufficient detail for bounding and communicating the scope of the project in its entirety
* Contains specific types of WBS elements necessary for the project
* Clearly enables the assignment of accountability at the appropriate level, regardless of whether the WBS is for a program or an
individual project

==Representation==
As mentioned before the aim of a WBS is to show at best the scope of the project, program or portfolio taken into consideration. There is no one exact or mandatory way of representing a WBS. Nevertheless, all of them have in common a tree structure. The most use tree structure is the one called inverted Tree Structure ('''''Picture Under construction''''') , in this representation the project has the aspect of an organization chart. However there are other two types of representation the one shown In ! ('''''Picture Under construction''''') , that has the root on the left side and growth from the right side, the last one is called centralized tree structure Picture this can help the development session.

The graphical representation is not the only way of representing a WBS, tabular views are also used. This approach has the advantage to be clearer in case the WBS has many levels an example is shown in figure ('''''Picture Under construction''''') ,. Usually at top level is shown the main deliverable that can change depending what kind of project is analyzed. Lower level provide information to the project managers like, schedule development, cost estimating, resource allocation, and risk assessment. The lowest level also called Work Packages. It is defined by PMI as:” A deliverable or project work component at the lowest level of the Work Breakdown Structure. The work package includes the schedule activities and schedule milestones required to complete the work package deliverable or project work component’.It is a good habit as suggest NASA of not having more than seven levels. Each element of a WBS is recognizable by a clear, descriptive title and by a numbering scheme

Depending on the level the management might assign responsibility for technical, schedule, and cost performance. A Control Account is usually established to guaranty at best he intersection between of WBS element and organization unit.

==Decomposition procedures==
Overall a WBS is the result of a decomposition process, which goes from the project and terminates to a certain level of details necessary for effective communication at the project's stakeholder. Meaning that there is not a rule regarding how much in detail the WBS should go, it depends from project to project. This supports the statement that identify WBS as Use-Related Characteristics tool. Nevertheless, is important find a good balance between communication and complexity the need for control <ref> Stephen A. Devaux. 1 edition (September 18, 2014). Managing Projects as Investments: Earned Value to Business Value </ref>.

The most common method for decomposing a WBS are the following methods:
*Function
Project’s deliverables are collected by business function for facilitating communication to stakeholders. This WBS is focusing on operations or activities that should be performed.
*Role
Similar to the previous one, this is focusing more on responsibility.
*Method
The project derivable is based on methodology or delivery process, this type of WBS is easy to understand and is mainly use for showing the projects outcomes.
*Deliverables (components)
Most common used, can be use for every types of projects
Functional breakdown the project’s deliverables are collected by business function

==100% Rule==

One of the most important principles for developing a WBS is called 100% rule. This rule is define from Project Management Institute (PMI).

This 100% rule define that a WBS must Include the 100% of the work defined from the project and include all the necessary for its realization (Internal, contractor, subcontractor) included the management of the project itself. The 100% rule is one of the most important guideline for developing the decomposition and evaluation of a WBS. The rule is applied at all levels of the hierarchical structure : ‘the next level of decomposition of a WBS element (child level) must represent 100 percent of the work applicable to the next higher (parent) element’’ <ref> Haugan, Gregory T. 2002. Effective Work Breakdown Structures. Vienna, VA Management Concepts</ref> (Haugan p. 17)..
The WBS can not include jobs out of the project’s border, meaning that should not include more of the 100%.

Applying the 100% Rule allows the manager to know that all efforts in each area are captured where they belong and also that nothing unrelated is included in an element. Application of the 100% Rule enables all outcomes to be defined before schedule planning begins. The work breakdown structure is the initiator in the planning process, as planned outcomes must be defined before methods and schedules can be considered. If outcomes are insufficiently defined, the project cannot succeed. Awareness of the 100% Rule enables and communicates the full understanding of all necessary outcomes. Once the project is underway the 100% Rule assists in assuring that project costs are properly shown in the accounting system. This is true for all projects, whether they are accomplished for another division in a company or a regular paying customer. Application of the 100% Rule enables accurate costing, which is essential to budget similar efforts in the future.

===100% Rule Application===

This example provides a practical use of the 100% rule and the "progressive elaboration" technique. In ! ('''''Picture Under construction''''') , is shown a WBS has the objective the Build of an house.
At the top level (Level 1) the project manager has assign 100 point to the whole project, meaning the entire building process of the house. Breaking down to level number 2 we have more than one deliverable, by summing the point of each four elements we have the result will be 100. The point allocated in each element is the result of a project manager’s consideration, meaning that these points are not an estimation of Cost/Time, etc. but represents the overall effort needed to complete the task. Some elements (the once that needs a higher detail of decomposition) have a lower level (Level 3) that represent in this case the lowest level of this WBS. However, if is needed this breaks down process can continues until the project manager is not satisfy regarding the level of details that want to achieve. The procedure just used is called “progressive elaboration”.

As in this example, is totally fine if have different level of decomposition through different elements

It is suggested that the project manager use a software support, as a spreadsheet, for have an auto.sum operations, this could seems a silly recommendation, but a WBS of a portfolio can have hundred of branches a spreadsheet will be very useful. Another recommended procedure is to discuss together with the project team regarding the numbers of points that belongs to each element, this collaborative practice helps to achieve an high resolution of the reality because different people with different skills are involve during this process.

==Specific Type of WBS==
As mention previously WBS is a tool introduced during the 60’, up to present different WBS’s related tools have been developed.

===Value breakdown structure===

This tool is mainly used for assessing a project’s expected value, as WBS has a hierarchical structure. There is one fundamental difference, in this tool is not used the 100% rule, this because the value is not additive as the cost. For instance, a Helicopter manufacturer wants to produce a 10-seat helicopter the budget is 1000000$, and the Expected monetary value is 1700000$. By using an hierarchical approaches we should decompose the helicopter in different parts, for each parts all the necessary process until to get these components (cockpit, landing skid, passenger seats, engine, rotor, tail rotor, blade ). Let's image that we have all the components except the engine. The cost resources until this stage could be 900000$, but the actual value of this helicopter without the engine is actual 0 because no one wants a Helicopter without the engine. Meaning that the Value added of the engine is equal or close to the entire value of the projects. On one hand, we do not have any value until the motor is not mounted on the helicopter (VBS approach), on the other hand, we have cost for the resources used until now (WBS approach).

===Goals Breakdown Structure===
As a WBS, the Goals Breakdown Structure (GBS) has a hierarchical tree structure, it can be considered like a WBS specially design for goal’s achievement. In the highest level is positioned the overall goal of the projects, at the lower level are located mid-term goals for needed for achieving the top level mission. The GBS elements might include different peculiarities that characterize each goal, for instance, profit, market share, etc. At the third level are defined the products/process needed for achieving the organizational goals.

As written in A Guide to the Project Management Body of Knowledge (PMBOK(R)[1] Guide) it follows rules similar to WBS. For the breakdown decomposition the WBS follows two general rules:

*'''Nothing Extra''' Is not allowed to include an element that does not contribute to the upper-level goals. No layer should contain any extraneous goals.
*'''Nothing Missing''' Each level must define all the goals necessary to ensure the project achieves the next higher-level goals.

The first rule is needed to make sure that the project is a focus in only one objective without losing the resource that does not contribute any organization’s value. The second one ensure that everything that is needed for adding value to the project that takes into consideration.
The general scope of a GBS is to analyze all the goals and only the goals needed to achieve the project's higher-level goals.

==Potential Misunderstanding, Disadventage and adventage==

A WBS is not an organizational hierarchy chart. A common error is to develop a WBS in accordance to the organizational hierarchy so is important to decompose the works depending the relations between processes than between “powers” organizational.

A WBS is not a project’s development planning neither a list in chronological order. Is not suggest to plan a project without having developed its WBS, in other words, is like plan the manufacturing process for building an airplane, even before the completion of its project. In this case is even difficult to apply the 100% rules, because the goals are not well defined. Moreover once that a WBS is defined, in case of error is not possible to fix it without starting from the beginning, because all the processes are connected each other.
For this reason build and maintain a WBS is a process that require a strong effort in terms of times and HR , due to that fact that many people should be involved to increase the common sharing knowledge about the projects. Moreover, it should be periodically review to ensure the WBS’s reliability, this has influence on future decision that the PM will take. As said review a WBS has a cost, due to that WBS encourages rigid structure for the project. Thus, it reduces managerial flexibility to initiate and lead changes during the project life cycle. (Salvendy, 2001) <ref> Salvendy, G. 2001, Handbook of Industrial Engineering, 3rd ed, John Wiley & Sons, Inc, Canada</ref>.
However
# The WBS reflects the project objectives, by listing all the activities required to accomplish these objectives, it prevents confusion and doubts as to the aim of the project.
# It creates a common database and dictionary of common notation that serves as a reference point for all involved parties.
# The WBS enables smooth communications among the project team members and between them and customers, suppliers, regulators and etc.
# It serves as an archive that can later facilitate knowledge transfer to other projects or learning by new members of the work force.
# The WBS is an effective tool for resource management.

==References==
<references/>

Work Breakdown Structure (WBS)

2015-09-28T18:46:55Z

S141530:

Work Breakdown Structure (WBS) is a tool used in project management context that separates in different levels of details a deliverable-oriented project in hierarchical order. The primary objective is to support the project manager by giving an overview of different steps, resources and costs involved in the project.
Moreover during the project executions it may include the percentage of steps completed. This ensures better control and guidance in case during the project development occur changes. It is graphically represented by a hierarchical tree, where the job of each components is given by the sum of elements underneath connected (sublevels). These elements may represent a product, data, service or any combination thereof.

==History==

The WBS was initially developed by the U.S. defense, back to the 1950’s and 60’s in cooperation with NASA. Both agencies were adopting the Program Evaluation and Review Technique (PERT) <ref>S1 Cleland, David I. and Roland Gareis, Global Project Management Handbook, McGraw-Hill Professional, 2006</ref> . During 1962, United State Airforce released “STUDY OF METHODS FOR EVALUATION OF THE PERT/COST MANAGEMENT SYSTEM”. In this document was mention WBS as a useful tool for Controlling and Planning large acquisition projects <ref> Eric S. Norman, Shelly A. Brotherton, Robert T. Fried Work Breakdown Structures: The Foundation for Project Management Excellence, Wiley, 2010</ref> . As understandable, most of NASA projects involves many actors (contractors) with totally different tasks. Nevertheless, all of them are parts of the same project and works for the same final purpose. The WBS was used to ‘‘ . . . ensure that the total project is fully planned and that all derivative plans contribute directly to the desired objectives’’ (NASA, 1962)<ref>"Background and Key Concepts COPYRIGHTED MATERIAL." Web. 20 Sep. 2015</ref>. After, this first approach NASA decide to keep update this document because believed valid and useful. In 1968, due to its success, the Department of Defense released "Work Breakdown Structures for Defense Materiel Items" (MIL-STD-881), a military standard procedure which is obligatory for all programs under the Department of Defense. This standard is constantly updated, the latest version refers to 2001 <ref>''[http://www.mcri.com/wp-content/uploads/2014/09/Military-Standard-881C-----Department-of-Defense-Standard-Practice-----Work-Breakdown-Structures-for-Defense-Materiel-Items-MIL-STD-881C-3-Oct-11.pdf Military-Standard-881C]'', 3 October 2011</ref>.
Project Management Institute (PMI) during 1987 started to release a number of documents for a non-military purpose. These documents has been collected in one, as result The Project Management Body of Knowledge (PMBOK) has been release. The first version is from 1987, other versions have been released during 1987, 1996, 2000, 2004, 2009, 2013 <ref>"Guide, A. "Project Management Body of Knowledge (PMBOK® GUIDE & STANDARD)." Project Management Institute. 2001.</ref>. The main concept of subdividing different activities through different levels remain the same of the early years. However, the approach goes from “A task- oriented ‘family tree’ of activities 1987” PMBOKfirst Guide to “A deliverable- oriented hierarchical decomposition of the work to be executed by the project team to accomplish the project objectives and create the required deliverables” (PMBOK Guide — Third).

On one hand, the documents from PMI gives an overview of the WBS concept, on the other hand, the document released from the Department of Defense can be considered as a Handbook.

==Work Breakdown Structure main Charactheristics==

WBS could be considered a general tool that can be use in most of projects and program, due to this reason a WBS to another may vary to best adapts the project manager needs.
However, is important to underline which core characteristics this tool should have to define a quality WBS.

In this case the terms “quality” is well define from Project Management Institute’s (PMI) that in 2006 released the paper “Practice Standard for Work Breakdown Structures”, in this document the definition of a quality WBS is given from two statement:

# A quality WBS is constructed in such a way that it satisfies all of the requirements for its use in a project.
# At all level of the WBS quality characteristics must be implemented.

In other words a quality WBS must comply with all requirements for its use, no matter is the scope project, program or portfolio.

This first requirement is the most important one, it is that a WBS should be deliverable-oriented, this guaranty a WBS that can be taken under control thanks to a “Milestone Structure”. Moreover, the final scope of the Project is more easily defined. To underpin the importance of this requirement, the PMI include deliverable orientation as part of definition of a WBS .
A WBS must take into consideration the full scope of the project including all internal, external and interim deliverables. For facilitating this task a WBS has an hierarchal approach with at least two levels, to understand better the connection between the elements a coding scheme of differents level should be provided ('''''Picture Under construction''''') , each level must includes 100% of works connection belonging to the lower level 6, Nevertheless is not permitted to included element out of this project scope.
Each level's component is defined by nouns and adjectives but is not permitted the use of verbs, this ensures the deliverable of the element otherwise cold be understood as a task. In case arise the need of clarification can be added a “WBS Dictionary” for defining the outcomes. In addition, since this tool is use for “real-case” application require that can be updated while working are in progress.

If it is true that a quality WBS is constructed in such a way that it satisfies all of its intended needs, then what is it about those needs that differentiate one WBS from another? We are certain that all Work Breakdown Structures are not the same—so what then, separates and makes them unique?
This is where the concept of Use-Related Characteristics comes into play. Use-Related Characteristics include those additional attributes that vary from one project to next, across industries, environments or in the way the WBS is applied within the project. With Use-Related Characteristics, the quality of the WBS depends on how well the specific content and types of WBS elements address the full set of needs of the project or program. This then implies that the more needs that the WBS meets, the higher the resulting quality of the WBS.

* Achieves a sufficient level of decomposition to enable appropriate management and control
* Provides sufficient detail for bounding and communicating the scope of the project in its entirety
* Contains specific types of WBS elements necessary for the project
* Clearly enables the assignment of accountability at the appropriate level, regardless of whether the WBS is for a program or an
individual project

==Representation==
As mentioned before the aim of a WBS is to show at best the scope of the project, program or portfolio taken into consideration. There is no one exact or mandatory way of representing a WBS. Nevertheless, all of them have in common a tree structure. The most use tree structure is the one called inverted Tree Structure ('''''Picture Under construction''''') , in this representation the project has the aspect of an organization chart. However there are other two types of representation the one shown In ! ('''''Picture Under construction''''') , that has the root on the left side and growth from the right side, the last one is called centralized tree structure Picture this can help the development session.

The graphical representation is not the only way of representing a WBS, tabular views are also used. This approach has the advantage to be clearer in case the WBS has many levels an example is shown in figure ('''''Picture Under construction''''') ,. Usually at top level is shown the main deliverable that can change depending what kind of project is analyzed. Lower level provide information to the project managers like, schedule development, cost estimating, resource allocation, and risk assessment. The lowest level also called Work Packages. It is defined by PMI as:” A deliverable or project work component at the lowest level of the Work Breakdown Structure. The work package includes the schedule activities and schedule milestones required to complete the work package deliverable or project work component’.It is a good habit as suggest NASA of not having more than seven levels. Each element of a WBS is recognizable by a clear, descriptive title and by a numbering scheme

Depending on the level the management might assign responsibility for technical, schedule, and cost performance. A Control Account is usually established to guaranty at best he intersection between of WBS element and organization unit.

==Decomposition procedures==
Overall a WBS is the result of a decomposition process, which goes from the project and terminates to a certain level of details necessary for effective communication at the project's stakeholder. Meaning that there is not a rule regarding how much in detail the WBS should go, it depends from project to project. This supports the statement that identify WBS as Use-Related Characteristics tool. Nevertheless, is important find a good balance between communication and complexity the need for control <ref> Stephen A. Devaux. 1 edition (September 18, 2014). Managing Projects as Investments: Earned Value to Business Value </ref>.

The most common method for decomposing a WBS are the following methods:
*Function
Project’s deliverables are collected by business function for facilitating communication to stakeholders. This WBS is focusing on operations or activities that should be performed.
*Role
Similar to the previous one, this is focusing more on responsibility.
*Method
The project derivable is based on methodology or delivery process, this type of WBS is easy to understand and is mainly use for showing the projects outcomes.
*Deliverables (components)
Most common used, can be use for every types of projects
Functional breakdown the project’s deliverables are collected by business function

==100% Rule==

One of the most important principles for developing a WBS is called 100% rule. This rule is define from Project Management Institute (PMI).

This 100% rule define that a WBS must Include the 100% of the work defined from the project and include all the necessary for its realization (Internal, contractor, subcontractor) included the management of the project itself. The 100% rule is one of the most important guideline for developing the decomposition and evaluation of a WBS. The rule is applied at all levels of the hierarchical structure : ‘the next level of decomposition of a WBS element (child level) must represent 100 percent of the work applicable to the next higher (parent) element’’ <ref> Haugan, Gregory T. 2002. Effective Work Breakdown Structures. Vienna, VA Management Concepts</ref> (Haugan p. 17)..
The WBS can not include jobs out of the project’s border, meaning that should not include more of the 100%.

Applying the 100% Rule allows the manager to know that all efforts in each area are captured where they belong and also that nothing unrelated is included in an element. Application of the 100% Rule enables all outcomes to be defined before schedule planning begins. The work breakdown structure is the initiator in the planning process, as planned outcomes must be defined before methods and schedules can be considered. If outcomes are insufficiently defined, the project cannot succeed. Awareness of the 100% Rule enables and communicates the full understanding of all necessary outcomes. Once the project is underway the 100% Rule assists in assuring that project costs are properly shown in the accounting system. This is true for all projects, whether they are accomplished for another division in a company or a regular paying customer. Application of the 100% Rule enables accurate costing, which is essential to budget similar efforts in the future.

===100% Rule Application===

This example provides a practical use of the 100% rule and the "progressive elaboration" technique. In ! ('''''Picture Under construction''''') , is shown a WBS has the objective the Build of an house.
At the top level (Level 1) the project manager has assign 100 point to the whole project, meaning the entire building process of the house. Breaking down to level number 2 we have more than one deliverable, by summing the point of each four elements we have the result will be 100. The point allocated in each element is the result of a project manager’s consideration, meaning that these points are not an estimation of Cost/Time, etc. but represents the overall effort needed to complete the task. Some elements (the once that needs a higher detail of decomposition) have a lower level (Level 3) that represent in this case the lowest level of this WBS. However, if is needed this breaks down process can continues until the project manager is not satisfy regarding the level of details that want to achieve. The procedure just used is called “progressive elaboration”.

As in this example, is totally fine if have different level of decomposition through different elements

It is suggested that the project manager use a software support, as a spreadsheet, for have an auto.sum operations, this could seems a silly recommendation, but a WBS of a portfolio can have hundred of branches a spreadsheet will be very useful. Another recommended procedure is to discuss together with the project team regarding the numbers of points that belongs to each element, this collaborative practice helps to achieve an high resolution of the reality because different people with different skills are involve during this process.

==Specific Type of WBS==
As mention previously WBS is a tool introduced during the 60’, up to present different WBS’s related tools have been developed.

===Value breakdown structure===

This tool is mainly used for assessing a project’s expected value, as WBS has a hierarchical structure. There is one fundamental difference, in this tool is not used the 100% rule, this because the value is not additive as the cost. For instance, a Helicopter manufacturer wants to produce a 10-seat helicopter the budget is 1000000$, and the Expected monetary value is 1700000$. By using an hierarchical approaches we should decompose the helicopter in different parts, for each parts all the necessary process until to get these components (cockpit, landing skid, passenger seats, engine, rotor, tail rotor, blade ). Let's image that we have all the components except the engine. The cost resources until this stage could be 900000$, but the actual value of this helicopter without the engine is actual 0 because no one wants a Helicopter without the engine. Meaning that the Value added of the engine is equal or close to the entire value of the projects. On one hand, we do not have any value until the motor is not mounted on the helicopter (VBS approach), on the other hand, we have cost for the resources used until now (WBS approach).

===Goals Breakdown Structure===
As a WBS, the Goals Breakdown Structure (GBS) has a hierarchical tree structure, it can be considered like a WBS specially design for goal’s achievement. In the highest level is positioned the overall goal of the projects, at the lower level are located mid-term goals for needed for achieving the top level mission. The GBS elements might include different peculiarities that characterize each goal, for instance, profit, market share, etc. At the third level are defined the products/process needed for achieving the organizational goals.

As written in A Guide to the Project Management Body of Knowledge (PMBOK(R)[1] Guide) it follows rules similar to WBS. For the breakdown decomposition the WBS follows two general rules:

*'''Nothing Extra''' Is not allowed to include an element that does not contribute to the upper-level goals. No layer should contain any extraneous goals.
*'''Nothing Missing''' Each level must define all the goals necessary to ensure the project achieves the next higher-level goals.

The first rule is needed to make sure that the project is a focus in only one objective without losing the resource that does not contribute any organization’s value. The second one ensure that everything that is needed for adding value to the project that takes into consideration.
The general scope of a GBS is to analyze all the goals and only the goals needed to achieve the project's higher-level goals.

==Potential Misunderstanding, Disadventage and adventage==

A WBS is not an organizational hierarchy chart. A common error is to develop a WBS in accordance to the organizational hierarchy so is important to decompose the works depending the relations between processes than between “powers” organizational.

A WBS is not a project’s development planning neither a list in chronological order. Is not suggest to plan a project without having developed its WBS, in other words, is like plan the manufacturing process for building an airplane, even before the completion of its project. In this case is even difficult to apply the 100% rules, because the goals are not well defined. Moreover once that a WBS is defined, in case of error is not possible to fix it without starting from the beginning, because all the processes are connected each other.
For this reason build and maintain a WBS is a process that require a strong effort in terms of times and HR , due to that fact that many people should be involved to increase the common sharing knowledge about the projects. Moreover, it should be periodically review to ensure the WBS’s reliability, this has influence on future decision that the PM will take. As said review a WBS has a cost, due to that WBS encourages rigid structure for the project. Thus, it reduces managerial flexibility to initiate and lead changes during the project life cycle. (Salvendy, 2001) <ref> Salvendy, G. 2001, Handbook of Industrial Engineering, 3rd ed, John Wiley & Sons, Inc, Canada</ref>.
However
# The WBS reflects the project objectives, by listing all the activities required to accomplish these objectives, it prevents confusion and doubts as to the aim of the project.
# It creates a common database and dictionary of common notation that serves as a reference point for all involved parties.
# The WBS enables smooth communications among the project team members and between them and customers, suppliers, regulators and etc.
# It serves as an archive that can later facilitate knowledge transfer to other projects or learning by new members of the work force.
# The WBS is an effective tool for resource management.

==References==
<references/>

Work Breakdown Structure (WBS)

2015-09-28T18:46:32Z

S141530:

Work Breakdown Structure (WBS) is a tool used in project management context that separates in different levels of details a deliverable-oriented project in hierarchical order. The primary objective is to support the project manager by giving an overview of different steps, resources and costs involved in the project.
Moreover during the project executions it may include the percentage of steps completed. This ensures better control and guidance in case during the project development occur changes. It is graphically represented by a hierarchical tree, where the job of each components is given by the sum of elements underneath connected (sublevels). These elements may represent a product, data, service or any combination thereof.

==History==

The WBS was initially developed by the U.S. defense, back to the 1950’s and 60’s in cooperation with NASA. Both agencies were adopting the Program Evaluation and Review Technique (PERT) <ref>S1 Cleland, David I. and Roland Gareis, Global Project Management Handbook, McGraw-Hill Professional, 2006</ref> . During 1962, United State Airforce released “STUDY OF METHODS FOR EVALUATION OF THE PERT/COST MANAGEMENT SYSTEM”. In this document was mention WBS as a useful tool for Controlling and Planning large acquisition projects <ref> Eric S. Norman, Shelly A. Brotherton, Robert T. Fried Work Breakdown Structures: The Foundation for Project Management Excellence, Wiley, 2010</ref> . As understandable, most of NASA projects involves many actors (contractors) with totally different tasks. Nevertheless, all of them are parts of the same project and works for the same final purpose. The WBS was used to ‘‘ . . . ensure that the total project is fully planned and that all derivative plans contribute directly to the desired objectives’’ (NASA, 1962)<ref>"Background and Key Concepts COPYRIGHTED MATERIAL." Web. 20 Sep. 2015</ref>. After, this first approach NASA decide to keep update this document because believed valid and useful. In 1968, due to its success, the Department of Defense released "Work Breakdown Structures for Defense Materiel Items" (MIL-STD-881), a military standard procedure which is obligatory for all programs under the Department of Defense. This standard is constantly updated, the latest version refers to 2001 <ref>''[http://www.mcri.com/wp-content/uploads/2014/09/Military-Standard-881C-----Department-of-Defense-Standard-Practice-----Work-Breakdown-Structures-for-Defense-Materiel-Items-MIL-STD-881C-3-Oct-11.pdf Military-Standard-881C]'', 3 October 2011</ref>.
Project Management Institute (PMI) during 1987 started to release a number of documents for a non-military purpose. These documents has been collected in one, as result The Project Management Body of Knowledge (PMBOK) has been release. The first version is from 1987, other versions have been released during 1987, 1996, 2000, 2004, 2009, 2013 <ref>"Guide, A. "Project Management Body of Knowledge (PMBOK® GUIDE & STANDARD)." Project Management Institute. 2001.</ref>. The main concept of subdividing different activities through different levels remain the same of the early years. However, the approach goes from “A task- oriented ‘family tree’ of activities 1987” PMBOKfirst Guide to “A deliverable- oriented hierarchical decomposition of the work to be executed by the project team to accomplish the project objectives and create the required deliverables” (PMBOK Guide — Third).

On one hand, the documents from PMI gives an overview of the WBS concept, on the other hand, the document released from the Department of Defense can be considered as a Handbook.

==Work Breakdown Structure main Charactheristics==

WBS could be considered a general tool that can be use in most of projects and program, due to this reason a WBS to another may vary to best adapts the project manager needs.
However, is important to underline which core characteristics this tool should have to define a quality WBS.

In this case the terms “quality” is well define from Project Management Institute’s (PMI) that in 2006 released the paper “Practice Standard for Work Breakdown Structures”, in this document the definition of a quality WBS is given from two statement:

# A quality WBS is constructed in such a way that it satisfies all of the requirements for its use in a project.
# At all level of the WBS quality characteristics must be implemented.

In other words a quality WBS must comply with all requirements for its use, no matter is the scope project, program or portfolio.

This first requirement is the most important one, it is that a WBS should be deliverable-oriented, this guaranty a WBS that can be taken under control thanks to a “Milestone Structure”. Moreover, the final scope of the Project is more easily defined. To underpin the importance of this requirement, the PMI include deliverable orientation as part of definition of a WBS .
A WBS must take into consideration the full scope of the project including all internal, external and interim deliverables. For facilitating this task a WBS has an hierarchal approach with at least two levels, to understand better the connection between the elements a coding scheme of differents level should be provided ('''''Picture Under construction''''') , each level must includes 100% of works connection belonging to the lower level 6, Nevertheless is not permitted to included element out of this project scope.
Each level's component is defined by nouns and adjectives but is not permitted the use of verbs, this ensures the deliverable of the element otherwise cold be understood as a task. In case arise the need of clarification can be added a “WBS Dictionary” for defining the outcomes. In addition, since this tool is use for “real-case” application require that can be updated while working are in progress.

If it is true that a quality WBS is constructed in such a way that it satisfies all of its intended needs, then what is it about those needs that differentiate one WBS from another? We are certain that all Work Breakdown Structures are not the same—so what then, separates and makes them unique?
This is where the concept of Use-Related Characteristics comes into play. Use-Related Characteristics include those additional attributes that vary from one project to next, across industries, environments or in the way the WBS is applied within the project. With Use-Related Characteristics, the quality of the WBS depends on how well the specific content and types of WBS elements address the full set of needs of the project or program. This then implies that the more needs that the WBS meets, the higher the resulting quality of the WBS.

* Achieves a sufficient level of decomposition to enable appropriate management and control
* Provides sufficient detail for bounding and communicating the scope of the project in its entirety
* Contains specific types of WBS elements necessary for the project
* Clearly enables the assignment of accountability at the appropriate level, regardless of whether the WBS is for a program or an
individual project

==Representation==
As mentioned before the aim of a WBS is to show at best the scope of the project, program or portfolio taken into consideration. There is no one exact or mandatory way of representing a WBS. Nevertheless, all of them have in common a tree structure. The most use tree structure is the one called inverted Tree Structure ('''''Picture Under construction''''') , in this representation the project has the aspect of an organization chart. However there are other two types of representation the one shown In ! ('''''Picture Under construction''''') , that has the root on the left side and growth from the right side, the last one is called centralized tree structure Picture this can help the development session.

The graphical representation is not the only way of representing a WBS, tabular views are also used. This approach has the advantage to be clearer in case the WBS has many levels an example is shown in figure ('''''Picture Under construction''''') ,. Usually at top level is shown the main deliverable that can change depending what kind of project is analyzed. Lower level provide information to the project managers like, schedule development, cost estimating, resource allocation, and risk assessment. The lowest level also called Work Packages. It is defined by PMI as:” A deliverable or project work component at the lowest level of the Work Breakdown Structure. The work package includes the schedule activities and schedule milestones required to complete the work package deliverable or project work component’.It is a good habit as suggest NASA of not having more than seven levels. Each element of a WBS is recognizable by a clear, descriptive title and by a numbering scheme

Depending on the level the management might assign responsibility for technical, schedule, and cost performance. A Control Account is usually established to guaranty at best he intersection between of WBS element and organization unit.

==Decomposition procedures==
Overall a WBS is the result of a decomposition process, which goes from the project and terminates to a certain level of details necessary for effective communication at the project's stakeholder. Meaning that there is not a rule regarding how much in detail the WBS should go, it depends from project to project. This supports the statement that identify WBS as Use-Related Characteristics tool. Nevertheless, is important find a good balance between communication and complexity the need for control <ref> Stephen A. Devaux. 1 edition (September 18, 2014). Managing Projects as Investments: Earned Value to Business Value </ref>.

The most common method for decomposing a WBS are the following methods:
*Function
Project’s deliverables are collected by business function for facilitating communication to stakeholders. This WBS is focusing on operations or activities that should be performed.
*Role
Similar to the previous one, this is focusing more on responsibility.
*Method
The project derivable is based on methodology or delivery process, this type of WBS is easy to understand and is mainly use for showing the projects outcomes.
*Deliverables (components)
Most common used, can be use for every types of projects
Functional breakdown the project’s deliverables are collected by business function

==100% Rule==

One of the most important principles for developing a WBS is called 100% rule. This rule is define from Project Management Institute (PMI).

This 100% rule define that a WBS must Include the 100% of the work defined from the project and include all the necessary for its realization (Internal, contractor, subcontractor) included the management of the project itself. The 100% rule is one of the most important guideline for developing the decomposition and evaluation of a WBS. The rule is applied at all levels of the hierarchical structure : ‘the next level of decomposition of a WBS element (child level) must represent 100 percent of the work applicable to the next higher (parent) element’’ <ref> Haugan, Gregory T. 2002. Effective Work Breakdown Structures. Vienna, VA Management Concepts</ref> (Haugan p. 17)..
The WBS can not include jobs out of the project’s border, meaning that should not include more of the 100%.

Applying the 100% Rule allows the manager to know that all efforts in each area are captured where they belong and also that nothing unrelated is included in an element. Application of the 100% Rule enables all outcomes to be defined before schedule planning begins. The work breakdown structure is the initiator in the planning process, as planned outcomes must be defined before methods and schedules can be considered. If outcomes are insufficiently defined, the project cannot succeed. Awareness of the 100% Rule enables and communicates the full understanding of all necessary outcomes. Once the project is underway the 100% Rule assists in assuring that project costs are properly shown in the accounting system. This is true for all projects, whether they are accomplished for another division in a company or a regular paying customer. Application of the 100% Rule enables accurate costing, which is essential to budget similar efforts in the future.

===100% Rule Application===

This example provides a practical use of the 100% rule and the "progressive elaboration" technique. In ! ('''''Picture Under construction''''') , is shown a WBS has the objective the Build of an house.
At the top level (Level 1) the project manager has assign 100 point to the whole project, meaning the entire building process of the house. Breaking down to level number 2 we have more than one deliverable, by summing the point of each four elements we have the result will be 100. The point allocated in each element is the result of a project manager’s consideration, meaning that these points are not an estimation of Cost/Time, etc. but represents the overall effort needed to complete the task. Some elements (the once that needs a higher detail of decomposition) have a lower level (Level 3) that represent in this case the lowest level of this WBS. However, if is needed this breaks down process can continues until the project manager is not satisfy regarding the level of details that want to achieve. The procedure just used is called “progressive elaboration”.

As in this example, is totally fine if have different level of decomposition through different elements

It is suggested that the project manager use a software support, as a spreadsheet, for have an auto.sum operations, this could seems a silly recommendation, but a WBS of a portfolio can have hundred of branches a spreadsheet will be very useful. Another recommended procedure is to discuss together with the project team regarding the numbers of points that belongs to each element, this collaborative practice helps to achieve an high resolution of the reality because different people with different skills are involve during this process.

==Specific Type of WBS==
As mention previously WBS is a tool introduced during the 60’, up to present different WBS’s related tools have been developed.

===Value breakdown structure===

This tool is mainly used for assessing a project’s expected value, as WBS has a hierarchical structure. There is one fundamental difference, in this tool is not used the 100% rule, this because the value is not additive as the cost. For instance, a Helicopter manufacturer wants to produce a 10-seat helicopter the budget is 1000000$, and the Expected monetary value is 1700000$. By using an hierarchical approaches we should decompose the helicopter in different parts, for each parts all the necessary process until to get these components (cockpit, landing skid, passenger seats, engine, rotor, tail rotor, blade ). Let's image that we have all the components except the engine. The cost resources until this stage could be 900000$, but the actual value of this helicopter without the engine is actual 0 because no one wants a Helicopter without the engine. Meaning that the Value added of the engine is equal or close to the entire value of the projects. On one hand, we do not have any value until the motor is not mounted on the helicopter (VBS approach), on the other hand, we have cost for the resources used until now (WBS approach).

===Goals Breakdown Structure===
As a WBS, the Goals Breakdown Structure (GBS) has a hierarchical tree structure, it can be considered like a WBS specially design for goal’s achievement. In the highest level is positioned the overall goal of the projects, at the lower level are located mid-term goals for needed for achieving the top level mission. The GBS elements might include different peculiarities that characterize each goal, for instance, profit, market share, etc. At the third level are defined the products/process needed for achieving the organizational goals.

As written in A Guide to the Project Management Body of Knowledge (PMBOK(R)[1] Guide) it follows rules similar to WBS. For the breakdown decomposition the WBS follows two general rules:

*'''Nothing Extra''' Is not allowed to include an element that does not contribute to the upper-level goals. No layer should contain any extraneous goals.
*'''Nothing Missing''' Each level must define all the goals necessary to ensure the project achieves the next higher-level goals.

The first rule is needed to make sure that the project is a focus in only one objective without losing the resource that does not contribute any organization’s value. The second one ensure that everything that is needed for adding value to the project that takes into consideration.
The general scope of a GBS is to analyze all the goals and only the goals needed to achieve the project's higher-level goals.

==Potential Misunderstanding, Disadventage and adventage==

A WBS is not an organizational hierarchy chart. A common error is to develop a WBS in accordance to the organizational hierarchy so is important to decompose the works depending the relations between processes than between “powers” organizational.

A WBS is not a project’s development planning neither a list in chronological order. Is not suggest to plan a project without having developed its WBS, in other words, is like plan the manufacturing process for building an airplane, even before the completion of its project. In this case is even difficult to apply the 100% rules, because the goals are not well defined. Moreover once that a WBS is defined, in case of error is not possible to fix it without starting from the beginning, because all the processes are connected each other.
For this reason build and maintain a WBS is a process that require a strong effort in terms of times and HR , due to that fact that many people should be involved to increase the common sharing knowledge about the projects. Moreover, it should be periodically review to ensure the WBS’s reliability, this has influence on future decision that the PM will take. As said review a WBS has a cost, due to that WBS encourages rigid structure for the project. Thus, it reduces managerial flexibility to initiate and lead changes during the project life cycle. (Salvendy, 2001) <ref> Salvendy, G. 2001, Handbook of Industrial Engineering, 3rd ed, John Wiley & Sons, Inc, Canada</ref>.
However
# The WBS reflects the project objectives, by listing all the activities required to accomplish these objectives, it prevents confusion and doubts as to the aim of the project.
# It creates a common database and dictionary of common notation that serves as a reference point for all involved parties.
# The WBS enables smooth communications among the project team members and between them and customers, suppliers, regulators and etc.
# It serves as an archive that can later facilitate knowledge transfer to other projects or learning by new members of the work force.
# The WBS is an effective tool for resource management.

==References==
<references/>

Work Breakdown Structure (WBS)

2015-09-25T13:52:52Z

S141530: /* History */

Work Breakdown Structure (WBS) is a tool used in project management context that divide in different levels of details a deliverable-oriented project in hierarchical order. The primary objective is to support the project manager by giving an overview of different steps, resources and costs involved in the project. Moreover during the project executions may include the percentage of steps completed this ensure better control and guidance in case during the project development may occur any changes.
It is graphically represented by a hierarchical tree, where the job of each element is given by the sum of elements underneath connected (sublevels). These elements may represent a product, data, service or any combination thereof.

==History==

The WBS was initially developed by the U.S. defense, back to the 1950’s and 60’s in cooperation with NASA. Both agencies were adopting the Program Evaluation and Review Technique (PERT) <ref>S1 Cleland, David I. and Roland Gareis, Global Project Management Handbook, McGraw-Hill Professional, 2006</ref> . During 1962, United State Airforce released “STUDY OF METHODS FOR EVALUATION OF THE PERT/COST MANAGEMENT SYSTEM”. In this document was mention WBS as a useful tool for Controlling and Planning large acquisition projects <ref> Eric S. Norman, Shelly A. Brotherton, Robert T. Fried Work Breakdown Structures: The Foundation for Project Management Excellence, Wiley, 2010</ref> . As understandable, most of NASA projects involves many actors (contractors) with totally different tasks. Nevertheless, all of them are parts of the same project and works for the same final purpose. The WBS was used to ‘‘ . . . ensure that the total project is fully planned and that all derivative plans contribute directly to the desired objectives’’ (NASA, 1962)<ref>"Background and Key Concepts COPYRIGHTED MATERIAL." Web. 20 Sep. 2015</ref>. After, this first approach NASA decide to keep update this document because believed valid and useful. In 1968, due to its success, the Department of Defense released "Work Breakdown Structures for Defense Materiel Items" (MIL-STD-881), a military standard procedure which is obligatory for all programs under the Department of Defense. This standard is constantly updated, the latest version refers to 2001 <ref>''[http://www.mcri.com/wp-content/uploads/2014/09/Military-Standard-881C-----Department-of-Defense-Standard-Practice-----Work-Breakdown-Structures-for-Defense-Materiel-Items-MIL-STD-881C-3-Oct-11.pdf Military-Standard-881C]'', 3 October 2011</ref>.
Project Management Institute (PMI) during 1987 started to release a number of documents for a non-military purpose. These documents has been collected in one, as result The Project Management Body of Knowledge (PMBOK) has been release. The first version is from 1987, other versions have been released during 1987, 1996, 2000, 2004, 2009, 2013 <ref>"Guide, A. "Project Management Body of Knowledge (PMBOK® GUIDE & STANDARD)." Project Management Institute. 2001.</ref>. The main concept of subdividing different activities through different levels remain the same of the early years. However, the approach goes from “A task- oriented ‘family tree’ of activities 1987” PMBOKfirst Guide to “A deliverable- oriented hierarchical decomposition of the work to be executed by the project team to accomplish the project objectives and create the required deliverables” (PMBOK Guide — Third).

On one hand, the documents from PMI gives an overview of the WBS concept, on the other hand, the document released from the Department of Defense can be considered as a Handbook.

==Work Breakdown Structure main Charactheristics==

WBS could be considered a general tool that can be use in most of projects and program, due to this reason a WBS to another may vary to best adapts the project manager needs.
However, is important to underline which core characteristics this tool should have to define a quality WBS.

In this case the terms “quality” is well define from Project Management Institute’s (PMI) that in 2006 released the paper “Practice Standard for Work Breakdown Structures”, in this document the definition of a quality WBS is given from two statement:

# A quality WBS is constructed in such a way that it satisfies all of the requirements for its use in a project.
# At all level of the WBS quality characteristics must be implemented.

In other words a quality WBS must comply with all requirements for its use, no matter is the scope project, program or portfolio.

This first requirement is the most important one, it is that a WBS should be deliverable-oriented, this guaranty a WBS that can be taken under control thanks to a “Milestone Structure”. Moreover, the final scope of the Project is more easily defined. To underpin the importance of this requirement, the PMI include deliverable orientation as part of definition of a WBS .
A WBS must take into consideration the full scope of the project including all internal, external and interim deliverables. For facilitating this task a WBS has an hierarchal approach with at least two levels, to understand better the connection between the elements a coding scheme of differents level should be provided ('''''Picture Under construction''''') , each level must includes 100% of works connection belonging to the lower level 6, Nevertheless is not permitted to included element out of this project scope.
Each level's component is defined by nouns and adjectives but is not permitted the use of verbs, this ensures the deliverable of the element otherwise cold be understood as a task. In case arise the need of clarification can be added a “WBS Dictionary” for defining the outcomes. In addition, since this tool is use for “real-case” application require that can be updated while working are in progress.

If it is true that a quality WBS is constructed in such a way that it satisfies all of its intended needs, then what is it about those needs that differentiate one WBS from another? We are certain that all Work Breakdown Structures are not the same—so what then, separates and makes them unique?
This is where the concept of Use-Related Characteristics comes into play. Use-Related Characteristics include those additional attributes that vary from one project to next, across industries, environments or in the way the WBS is applied within the project. With Use-Related Characteristics, the quality of the WBS depends on how well the specific content and types of WBS elements address the full set of needs of the project or program. This then implies that the more needs that the WBS meets, the higher the resulting quality of the WBS.

* Achieves a sufficient level of decomposition to enable appropriate management and control
* Provides sufficient detail for bounding and communicating the scope of the project in its entirety
* Contains specific types of WBS elements necessary for the project
* Clearly enables the assignment of accountability at the appropriate level, regardless of whether the WBS is for a program or an
individual project

==Representation==
As mentioned before the aim of a WBS is to show at best the scope of the project, program or portfolio taken into consideration. There is no one exact or mandatory way of representing a WBS. Nevertheless, all of them have in common a tree structure. The most use tree structure is the one called inverted Tree Structure ('''''Picture Under construction''''') , in this representation the project has the aspect of an organization chart. However there are other two types of representation the one shown In ! ('''''Picture Under construction''''') , that has the root on the left side and growth from the right side, the last one is called centralized tree structure Picture this can help the development session.

The graphical representation is not the only way of representing a WBS, tabular views are also used. This approach has the advantage to be clearer in case the WBS has many levels an example is shown in figure ('''''Picture Under construction''''') ,. Usually at top level is shown the main deliverable that can change depending what kind of project is analyzed. Lower level provide information to the project managers like, schedule development, cost estimating, resource allocation, and risk assessment. The lowest level also called Work Packages. It is defined by PMI as:” A deliverable or project work component at the lowest level of the Work Breakdown Structure. The work package includes the schedule activities and schedule milestones required to complete the work package deliverable or project work component’.It is a good habit as suggest NASA of not having more than seven levels. Each element of a WBS is recognizable by a clear, descriptive title and by a numbering scheme

Depending on the level the management might assign responsibility for technical, schedule, and cost performance. A Control Account is usually established to guaranty at best he intersection between of WBS element and organization unit.

==Decomposition procedures==
Overall a WBS is the result of a decomposition process, which goes from the project and terminates to a certain level of details necessary for effective communication at the project's stakeholder. Meaning that there is not a rule regarding how much in detail the WBS should go, it depends from project to project. This supports the statement that identify WBS as Use-Related Characteristics tool. Nevertheless, is important find a good balance between communication and complexity the need for control <ref> Stephen A. Devaux. 1 edition (September 18, 2014). Managing Projects as Investments: Earned Value to Business Value </ref>.

The most common method for decomposing a WBS are the following methods:
*Function
Project’s deliverables are collected by business function for facilitating communication to stakeholders. This WBS is focusing on operations or activities that should be performed.
*Role
Similar to the previous one, this is focusing more on responsibility.
*Method
The project derivable is based on methodology or delivery process, this type of WBS is easy to understand and is mainly use for showing the projects outcomes.
*Deliverables (components)
Most common used, can be use for every types of projects
Functional breakdown the project’s deliverables are collected by business function

==100% Rule==

One of the most important principles for developing a WBS is called 100% rule. This rule is define from Project Management Institute (PMI).

This 100% rule define that a WBS must Include the 100% of the work defined from the project and include all the necessary for its realization (Internal, contractor, subcontractor) included the management of the project itself. The 100% rule is one of the most important guideline for developing the decomposition and evaluation of a WBS. The rule is applied at all levels of the hierarchical structure : ‘the next level of decomposition of a WBS element (child level) must represent 100 percent of the work applicable to the next higher (parent) element’’ <ref> Haugan, Gregory T. 2002. Effective Work Breakdown Structures. Vienna, VA Management Concepts</ref> (Haugan p. 17)..
The WBS can not include jobs out of the project’s border, meaning that should not include more of the 100%.

Applying the 100% Rule allows the manager to know that all efforts in each area are captured where they belong and also that nothing unrelated is included in an element. Application of the 100% Rule enables all outcomes to be defined before schedule planning begins. The work breakdown structure is the initiator in the planning process, as planned outcomes must be defined before methods and schedules can be considered. If outcomes are insufficiently defined, the project cannot succeed. Awareness of the 100% Rule enables and communicates the full understanding of all necessary outcomes. Once the project is underway the 100% Rule assists in assuring that project costs are properly shown in the accounting system. This is true for all projects, whether they are accomplished for another division in a company or a regular paying customer. Application of the 100% Rule enables accurate costing, which is essential to budget similar efforts in the future.

===100% Rule Application===

This example provides a practical use of the 100% rule and the "progressive elaboration" technique. In ! ('''''Picture Under construction''''') , is shown a WBS has the objective the Build of an house.
At the top level (Level 1) the project manager has assign 100 point to the whole project, meaning the entire building process of the house. Breaking down to level number 2 we have more than one deliverable, by summing the point of each four elements we have the result will be 100. The point allocated in each element is the result of a project manager’s consideration, meaning that these points are not an estimation of Cost/Time, etc. but represents the overall effort needed to complete the task. Some elements (the once that needs a higher detail of decomposition) have a lower level (Level 3) that represent in this case the lowest level of this WBS. However, if is needed this breaks down process can continues until the project manager is not satisfy regarding the level of details that want to achieve. The procedure just used is called “progressive elaboration”.

As in this example, is totally fine if have different level of decomposition through different elements

It is suggested that the project manager use a software support, as a spreadsheet, for have an auto.sum operations, this could seems a silly recommendation, but a WBS of a portfolio can have hundred of branches a spreadsheet will be very useful. Another recommended procedure is to discuss together with the project team regarding the numbers of points that belongs to each element, this collaborative practice helps to achieve an high resolution of the reality because different people with different skills are involve during this process.

==Specific Type of WBS==
As mention previously WBS is a tool introduced during the 60’, up to present different WBS’s related tools have been developed.

===Value breakdown structure===

This tool is mainly used for assessing a project’s expected value, as WBS has a hierarchical structure. There is one fundamental difference, in this tool is not used the 100% rule, this because the value is not additive as the cost. For instance, a Helicopter manufacturer wants to produce a 10-seat helicopter the budget is 1000000$, and the Expected monetary value is 1700000$. By using an hierarchical approaches we should decompose the helicopter in different parts, for each parts all the necessary process until to get these components (cockpit, landing skid, passenger seats, engine, rotor, tail rotor, blade ). Let's image that we have all the components except the engine. The cost resources until this stage could be 900000$, but the actual value of this helicopter without the engine is actual 0 because no one wants a Helicopter without the engine. Meaning that the Value added of the engine is equal or close to the entire value of the projects. On one hand, we do not have any value until the motor is not mounted on the helicopter (VBS approach), on the other hand, we have cost for the resources used until now (WBS approach).

===Goals Breakdown Structure===
As a WBS, the Goals Breakdown Structure (GBS) has a hierarchical tree structure, it can be considered like a WBS specially design for goal’s achievement. In the highest level is positioned the overall goal of the projects, at the lower level are located mid-term goals for needed for achieving the top level mission. The GBS elements might include different peculiarities that characterize each goal, for instance, profit, market share, etc. At the third level are defined the products/process needed for achieving the organizational goals.

As written in A Guide to the Project Management Body of Knowledge (PMBOK(R)[1] Guide) it follows rules similar to WBS. For the breakdown decomposition the WBS follows two general rules:

*'''Nothing Extra''' Is not allowed to include an element that does not contribute to the upper-level goals. No layer should contain any extraneous goals.
*'''Nothing Missing''' Each level must define all the goals necessary to ensure the project achieves the next higher-level goals.

The first rule is needed to make sure that the project is a focus in only one objective without losing the resource that does not contribute any organization’s value. The second one ensure that everything that is needed for adding value to the project that takes into consideration.
The general scope of a GBS is to analyze all the goals and only the goals needed to achieve the project's higher-level goals.

==Potential Misunderstanding, Disadventage and adventage==

A WBS is not an organizational hierarchy chart. A common error is to develop a WBS in accordance to the organizational hierarchy so is important to decompose the works depending the relations between processes than between “powers” organizational.

A WBS is not a project’s development planning neither a list in chronological order. Is not suggest to plan a project without having developed its WBS, in other words, is like plan the manufacturing process for building an airplane, even before the completion of its project. In this case is even difficult to apply the 100% rules, because the goals are not well defined. Moreover once that a WBS is defined, in case of error is not possible to fix it without starting from the beginning, because all the processes are connected each other.
For this reason build and maintain a WBS is a process that require a strong effort in terms of times and HR , due to that fact that many people should be involved to increase the common sharing knowledge about the projects. Moreover, it should be periodically review to ensure the WBS’s reliability, this has influence on future decision that the PM will take. As said review a WBS has a cost, due to that WBS encourages rigid structure for the project. Thus, it reduces managerial flexibility to initiate and lead changes during the project life cycle. (Salvendy, 2001) <ref> Salvendy, G. 2001, Handbook of Industrial Engineering, 3rd ed, John Wiley & Sons, Inc, Canada</ref>.
However
# The WBS reflects the project objectives, by listing all the activities required to accomplish these objectives, it prevents confusion and doubts as to the aim of the project.
# It creates a common database and dictionary of common notation that serves as a reference point for all involved parties.
# The WBS enables smooth communications among the project team members and between them and customers, suppliers, regulators and etc.
# It serves as an archive that can later facilitate knowledge transfer to other projects or learning by new members of the work force.
# The WBS is an effective tool for resource management.

==References==
<references/>

Work Breakdown Structure (WBS)

2015-09-25T13:50:21Z

S141530: /* History */

Work Breakdown Structure (WBS) is a tool used in project management context that divide in different levels of details a deliverable-oriented project in hierarchical order. The primary objective is to support the project manager by giving an overview of different steps, resources and costs involved in the project. Moreover during the project executions may include the percentage of steps completed this ensure better control and guidance in case during the project development may occur any changes.
It is graphically represented by a hierarchical tree, where the job of each element is given by the sum of elements underneath connected (sublevels). These elements may represent a product, data, service or any combination thereof.

==History==

The WBS was initially developed by the U.S. defense, back to the 1950’s and 60’s in cooperation with NASA. Both agencies were adopting the Program Evaluation and Review Technique (PERT) <ref>S1 Cleland, David I. and Roland Gareis, Global Project Management Handbook, McGraw-Hill Professional, 2006</ref> . During 1962, United State Airforce released “STUDY OF METHODS FOR EVALUATION OF THE PERT/COST MANAGEMENT SYSTEM” in this document was mention WBS as a useful tool for Controlling and Planning large acquisition projects <ref> Eric S. Norman, Shelly A. Brotherton, Robert T. Fried Work Breakdown Structures: The Foundation for Project Management Excellence, Wiley, 2010</ref> . As understandable, most of NASA projects involves many actors (contractors) with totally different tasks. Nevertheless, all of them are parts of the same project and works for the same final purpose. The WBS was used to ‘‘ . . . ensure that the total project is fully planned and that all derivative plans contribute directly to the desired objectives’’ (NASA, 1962)<ref>"Background and Key Concepts COPYRIGHTED MATERIAL." Web. 20 Sep. 2015</ref>. After, this first approach NASA decide to keep update this document because believed valid and useful. In 1968, due to its success, the Department of Defense released "Work Breakdown Structures for Defense Materiel Items" (MIL-STD-881), a military standard procedure which is obligatory for all programs under the Department of Defense. This standard is constantly updated, the latest version refers to 2001 <ref>''[http://www.mcri.com/wp-content/uploads/2014/09/Military-Standard-881C-----Department-of-Defense-Standard-Practice-----Work-Breakdown-Structures-for-Defense-Materiel-Items-MIL-STD-881C-3-Oct-11.pdf Military-Standard-881C]'', 3 October 2011</ref>.
Project Management Institute (PMI) during 1987 started to release a number of documents for a non-military purpose. These documents has been collected in one, as result The Project Management Body of Knowledge (PMBOK) has been release. The first version is from 1987, other versions have been released during 1987, 1996, 2000, 2004, 2009, 2013 <ref>"Guide, A. "Project Management Body of Knowledge (PMBOK® GUIDE & STANDARD)." Project Management Institute. 2001.</ref>. The main concept of subdividing different activities through different levels remain the same of the early years. However, the approach goes from “A task- oriented ‘family tree’ of activities 1987” PMBOKfirst Guide to “A deliverable- oriented hierarchical decomposition of the work to be executed by the project team to accomplish the project objectives and create the required deliverables” (PMBOK Guide — Third).

On one hand, the documents from PMI gives an overview of the WBS concept, on the other hand, the document released from the Department of Defense can be considered as a Handbook.

==Work Breakdown Structure main Charactheristics==

WBS could be considered a general tool that can be use in most of projects and program, due to this reason a WBS to another may vary to best adapts the project manager needs.
However, is important to underline which core characteristics this tool should have to define a quality WBS.

In this case the terms “quality” is well define from Project Management Institute’s (PMI) that in 2006 released the paper “Practice Standard for Work Breakdown Structures”, in this document the definition of a quality WBS is given from two statement:

# A quality WBS is constructed in such a way that it satisfies all of the requirements for its use in a project.
# At all level of the WBS quality characteristics must be implemented.

In other words a quality WBS must comply with all requirements for its use, no matter is the scope project, program or portfolio.

This first requirement is the most important one, it is that a WBS should be deliverable-oriented, this guaranty a WBS that can be taken under control thanks to a “Milestone Structure”. Moreover, the final scope of the Project is more easily defined. To underpin the importance of this requirement, the PMI include deliverable orientation as part of definition of a WBS .
A WBS must take into consideration the full scope of the project including all internal, external and interim deliverables. For facilitating this task a WBS has an hierarchal approach with at least two levels, to understand better the connection between the elements a coding scheme of differents level should be provided ('''''Picture Under construction''''') , each level must includes 100% of works connection belonging to the lower level 6, Nevertheless is not permitted to included element out of this project scope.
Each level's component is defined by nouns and adjectives but is not permitted the use of verbs, this ensures the deliverable of the element otherwise cold be understood as a task. In case arise the need of clarification can be added a “WBS Dictionary” for defining the outcomes. In addition, since this tool is use for “real-case” application require that can be updated while working are in progress.

If it is true that a quality WBS is constructed in such a way that it satisfies all of its intended needs, then what is it about those needs that differentiate one WBS from another? We are certain that all Work Breakdown Structures are not the same—so what then, separates and makes them unique?
This is where the concept of Use-Related Characteristics comes into play. Use-Related Characteristics include those additional attributes that vary from one project to next, across industries, environments or in the way the WBS is applied within the project. With Use-Related Characteristics, the quality of the WBS depends on how well the specific content and types of WBS elements address the full set of needs of the project or program. This then implies that the more needs that the WBS meets, the higher the resulting quality of the WBS.

* Achieves a sufficient level of decomposition to enable appropriate management and control
* Provides sufficient detail for bounding and communicating the scope of the project in its entirety
* Contains specific types of WBS elements necessary for the project
* Clearly enables the assignment of accountability at the appropriate level, regardless of whether the WBS is for a program or an
individual project

==Representation==
As mentioned before the aim of a WBS is to show at best the scope of the project, program or portfolio taken into consideration. There is no one exact or mandatory way of representing a WBS. Nevertheless, all of them have in common a tree structure. The most use tree structure is the one called inverted Tree Structure ('''''Picture Under construction''''') , in this representation the project has the aspect of an organization chart. However there are other two types of representation the one shown In ! ('''''Picture Under construction''''') , that has the root on the left side and growth from the right side, the last one is called centralized tree structure Picture this can help the development session.

The graphical representation is not the only way of representing a WBS, tabular views are also used. This approach has the advantage to be clearer in case the WBS has many levels an example is shown in figure ('''''Picture Under construction''''') ,. Usually at top level is shown the main deliverable that can change depending what kind of project is analyzed. Lower level provide information to the project managers like, schedule development, cost estimating, resource allocation, and risk assessment. The lowest level also called Work Packages. It is defined by PMI as:” A deliverable or project work component at the lowest level of the Work Breakdown Structure. The work package includes the schedule activities and schedule milestones required to complete the work package deliverable or project work component’.It is a good habit as suggest NASA of not having more than seven levels. Each element of a WBS is recognizable by a clear, descriptive title and by a numbering scheme

Depending on the level the management might assign responsibility for technical, schedule, and cost performance. A Control Account is usually established to guaranty at best he intersection between of WBS element and organization unit.

==Decomposition procedures==
Overall a WBS is the result of a decomposition process, which goes from the project and terminates to a certain level of details necessary for effective communication at the project's stakeholder. Meaning that there is not a rule regarding how much in detail the WBS should go, it depends from project to project. This supports the statement that identify WBS as Use-Related Characteristics tool. Nevertheless, is important find a good balance between communication and complexity the need for control <ref> Stephen A. Devaux. 1 edition (September 18, 2014). Managing Projects as Investments: Earned Value to Business Value </ref>.

The most common method for decomposing a WBS are the following methods:
*Function
Project’s deliverables are collected by business function for facilitating communication to stakeholders. This WBS is focusing on operations or activities that should be performed.
*Role
Similar to the previous one, this is focusing more on responsibility.
*Method
The project derivable is based on methodology or delivery process, this type of WBS is easy to understand and is mainly use for showing the projects outcomes.
*Deliverables (components)
Most common used, can be use for every types of projects
Functional breakdown the project’s deliverables are collected by business function

==100% Rule==

One of the most important principles for developing a WBS is called 100% rule. This rule is define from Project Management Institute (PMI).

This 100% rule define that a WBS must Include the 100% of the work defined from the project and include all the necessary for its realization (Internal, contractor, subcontractor) included the management of the project itself. The 100% rule is one of the most important guideline for developing the decomposition and evaluation of a WBS. The rule is applied at all levels of the hierarchical structure : ‘the next level of decomposition of a WBS element (child level) must represent 100 percent of the work applicable to the next higher (parent) element’’ <ref> Haugan, Gregory T. 2002. Effective Work Breakdown Structures. Vienna, VA Management Concepts</ref> (Haugan p. 17)..
The WBS can not include jobs out of the project’s border, meaning that should not include more of the 100%.

Applying the 100% Rule allows the manager to know that all efforts in each area are captured where they belong and also that nothing unrelated is included in an element. Application of the 100% Rule enables all outcomes to be defined before schedule planning begins. The work breakdown structure is the initiator in the planning process, as planned outcomes must be defined before methods and schedules can be considered. If outcomes are insufficiently defined, the project cannot succeed. Awareness of the 100% Rule enables and communicates the full understanding of all necessary outcomes. Once the project is underway the 100% Rule assists in assuring that project costs are properly shown in the accounting system. This is true for all projects, whether they are accomplished for another division in a company or a regular paying customer. Application of the 100% Rule enables accurate costing, which is essential to budget similar efforts in the future.

===100% Rule Application===

This example provides a practical use of the 100% rule and the "progressive elaboration" technique. In ! ('''''Picture Under construction''''') , is shown a WBS has the objective the Build of an house.
At the top level (Level 1) the project manager has assign 100 point to the whole project, meaning the entire building process of the house. Breaking down to level number 2 we have more than one deliverable, by summing the point of each four elements we have the result will be 100. The point allocated in each element is the result of a project manager’s consideration, meaning that these points are not an estimation of Cost/Time, etc. but represents the overall effort needed to complete the task. Some elements (the once that needs a higher detail of decomposition) have a lower level (Level 3) that represent in this case the lowest level of this WBS. However, if is needed this breaks down process can continues until the project manager is not satisfy regarding the level of details that want to achieve. The procedure just used is called “progressive elaboration”.

As in this example, is totally fine if have different level of decomposition through different elements

It is suggested that the project manager use a software support, as a spreadsheet, for have an auto.sum operations, this could seems a silly recommendation, but a WBS of a portfolio can have hundred of branches a spreadsheet will be very useful. Another recommended procedure is to discuss together with the project team regarding the numbers of points that belongs to each element, this collaborative practice helps to achieve an high resolution of the reality because different people with different skills are involve during this process.

==Specific Type of WBS==
As mention previously WBS is a tool introduced during the 60’, up to present different WBS’s related tools have been developed.

===Value breakdown structure===

This tool is mainly used for assessing a project’s expected value, as WBS has a hierarchical structure. There is one fundamental difference, in this tool is not used the 100% rule, this because the value is not additive as the cost. For instance, a Helicopter manufacturer wants to produce a 10-seat helicopter the budget is 1000000$, and the Expected monetary value is 1700000$. By using an hierarchical approaches we should decompose the helicopter in different parts, for each parts all the necessary process until to get these components (cockpit, landing skid, passenger seats, engine, rotor, tail rotor, blade ). Let's image that we have all the components except the engine. The cost resources until this stage could be 900000$, but the actual value of this helicopter without the engine is actual 0 because no one wants a Helicopter without the engine. Meaning that the Value added of the engine is equal or close to the entire value of the projects. On one hand, we do not have any value until the motor is not mounted on the helicopter (VBS approach), on the other hand, we have cost for the resources used until now (WBS approach).

===Goals Breakdown Structure===
As a WBS, the Goals Breakdown Structure (GBS) has a hierarchical tree structure, it can be considered like a WBS specially design for goal’s achievement. In the highest level is positioned the overall goal of the projects, at the lower level are located mid-term goals for needed for achieving the top level mission. The GBS elements might include different peculiarities that characterize each goal, for instance, profit, market share, etc. At the third level are defined the products/process needed for achieving the organizational goals.

As written in A Guide to the Project Management Body of Knowledge (PMBOK(R)[1] Guide) it follows rules similar to WBS. For the breakdown decomposition the WBS follows two general rules:

*'''Nothing Extra''' Is not allowed to include an element that does not contribute to the upper-level goals. No layer should contain any extraneous goals.
*'''Nothing Missing''' Each level must define all the goals necessary to ensure the project achieves the next higher-level goals.

The first rule is needed to make sure that the project is a focus in only one objective without losing the resource that does not contribute any organization’s value. The second one ensure that everything that is needed for adding value to the project that takes into consideration.
The general scope of a GBS is to analyze all the goals and only the goals needed to achieve the project's higher-level goals.

==Potential Misunderstanding, Disadventage and adventage==

A WBS is not an organizational hierarchy chart. A common error is to develop a WBS in accordance to the organizational hierarchy so is important to decompose the works depending the relations between processes than between “powers” organizational.

A WBS is not a project’s development planning neither a list in chronological order. Is not suggest to plan a project without having developed its WBS, in other words, is like plan the manufacturing process for building an airplane, even before the completion of its project. In this case is even difficult to apply the 100% rules, because the goals are not well defined. Moreover once that a WBS is defined, in case of error is not possible to fix it without starting from the beginning, because all the processes are connected each other.
For this reason build and maintain a WBS is a process that require a strong effort in terms of times and HR , due to that fact that many people should be involved to increase the common sharing knowledge about the projects. Moreover, it should be periodically review to ensure the WBS’s reliability, this has influence on future decision that the PM will take. As said review a WBS has a cost, due to that WBS encourages rigid structure for the project. Thus, it reduces managerial flexibility to initiate and lead changes during the project life cycle. (Salvendy, 2001) <ref> Salvendy, G. 2001, Handbook of Industrial Engineering, 3rd ed, John Wiley & Sons, Inc, Canada</ref>.
However
# The WBS reflects the project objectives, by listing all the activities required to accomplish these objectives, it prevents confusion and doubts as to the aim of the project.
# It creates a common database and dictionary of common notation that serves as a reference point for all involved parties.
# The WBS enables smooth communications among the project team members and between them and customers, suppliers, regulators and etc.
# It serves as an archive that can later facilitate knowledge transfer to other projects or learning by new members of the work force.
# The WBS is an effective tool for resource management.

==References==
<references/>

Talk:Stakeholder Analysis and Matrices

2015-09-22T20:03:48Z

S141530:

Mette: Hello, I like your idea. It seems like you have a clear agenda of what you want to write about. Maybe you could have a discussion between the use of stakeholder analysis and stakeholder matrix.

Reviewer 2: s142581

* The article was interesting and easy to read. It is very much related for the course and relevant for practitioners.
* In general, it follows a logical flow and has a good structure.
* You have used a good vocabulary and short and concise sentences.
* I like what you have written so far in the ''Background'' section. In my opinion, if you take care of this section, you can improve the overall quality of the article.
* I would suggest you clarify the ''Discussion'' section, or reconsider if it should be placed after both ''Stakeholder analysis'' and ''Stakeholder matrix''.
* At the moment, I find the article short, although I can see you will add more text.
* I think you should talk with the teacher whether or not you should personalize the process ''(your stakeholders, make a list)''. You could miss the objective and factual value of the text.
* The ''Skateholder analysis matrix'' figure seems a bit simple. However, the figure 2 is easy and fast to understand and well explained in the text.
* I recommend you make a section for limitations of the process, so you approach even more to the method structure.
* Finally, I think you should place the number of the references 3 and 4 at the end of sentences.

Reviewer 3: S102935
# '''Pros'''
## Highly relevant topic
## Very good, clear and engaging agenda/introduction.
## Good explanation of both Stakeholder analysis and stakeholder matrix.
## The figures give a good overview of the theory and methods
# '''Missing formalities'''
## Remember to add table numberings on your final article
## The annotated bibliography seem like an important part of the article, so remember to do so when finishing the article.
# '''Suggestions'''
## Try to link your subject to other relevant articles.
## The discussion between the stakeholder analysis and stakeholder matrix is well placed, but keep in mind to focus on the red thread between the chapters, when you fill in the missing information.
# '''Additional comments'''
## Looking forward to review your finished article

'''Reviewer 1, s141530''':

*Background Section:
I really like how you have shown the academic background, probably could be even more interesting if you can write a basic practical example. It could be for example a stakeholder analysis regarding a house-building project.
*Figure 1:
This figure is positioned in a way that the reader does not understand the link between picture and Article section. It will be clearer if you mention this picture to the text.

*Stakeholder Analysis:
In my opinion Stakeholder Analysis is a broad topic, due to this consideration, I would suggest dividing this section into other subsections.

*Discussion
It will be interesting to analyze the limitations of a Stakeholder Analysis in real case application. E.g, hidden stakeholders.

*EXTRA
If you would like to provide a practical case. I suggest to present this example in 3 different points of view:

For instance regarding an house-building project.

** Project’s Stakeholders(house)

**Program’s Stakeholders (Renewal of the district)
**Portfolio’s Stakeholders (State investment)

This will provide a link to topics discussed in class during the previous lessons.

Talk:Lean Tools in Project Management

2015-09-22T20:02:52Z

S141530:

Mette: I like the idea and the topic you have chosen. Lean contains many tools, so you could maybe consider if you should focus on only one tool in case of not getting your hands too full. Your article may end up a bit generic, and not as interesting as it could be because it is too broad. So think about tool for risk management and then pick one you can really go into details with.

Reviewer 2: Alise

* Nicely structured. It is clean and has a good overview.
* There are some sentences that can be written better. F. Ex. “but during the past years have lean been established….” Which would be better when written like this “but during the past years lean has been established… “
* You should not write that something is impossible. If it is a process for something to be done, it does not encourage anyone when they read the word “impossible”. (Seek perfection)
* When writing about “From Lean to Lean Project Management”, the first sentence does not make much sense. What are you writing a brief summary about? Also, a summary would be more than four bullet points. It would explain something, either what you will write about or what you have written about.
* The definition of project management should be all the way at the top. People need to know what they are reading about. Also, make it clear what the definition actually is, and where it ends. Maybe start the next sentence as a new paragraph.
* “The 8 different relates to production” – 8 what?
* I don’t think you should use questions in the article.
* What is an A3 tool? A description of this would be good if it is a lean tool.
* Some pictures of the different tools would be nice.
* What is a leader imagination? (The Gemba Walk)
* Some of the examples you have used are a little too specific.
* See difference; effect vs. affect.
* You are not close to the 3000 word count yet, but keep working!
* Remember references!
* The article needs some more work, and be aware of grammar and structure of sentences. Try not to use very long sentences as it makes it difficult to read.

Wiki feedbacks from s142823

* Words missing to complete a sentence in the abstract : “The crucial for a p…”
* Good structure
* Very good brief introduction to Lean, clear and easy to understand
* Add a link when you quote the “8 wastes”
* About the A3 tool, it may be good to add a link to one of the article from Fall 2014
* Some grammatical mistakes, for example “methodology” instead of “mythology”
* Don’t forget to fill the missing parts
* Apparently there is still somework to do on it, good luck, you started it well
* Very interesting topic, it seems well documented

'''Reviewer 3, s141530''':

*At the first sight what is missing are the references, for a technical article like this one is important to provide the appropriate references. This allowed the reader to have a prove of what you are stating. Moreover, references give the chance to students to read more about of the topic which he/she is interested on.
*From my perspective the link between Lean to Lean Project Management it is not so clear. Instead of Writing “..The definition of project management: Project management is the application of processes, methods, knowledge, skills and experience to achieve the project objectives. The 8 different relates mainly to the production, not specific, there are some similar kind of waste in project management.” I suggest to take inspiration from the five main principles of Lean Project Management here is a valuable reference that talks about that“Ronald Mascitelli, (2002) ‘Building a Project-Driven Enterprise: How to Slash Waste and Boost Profits Though Lean Project Management Institute'.”
*Lean Tools in Project Management section:
In this section each tool Is well developed. However, do the fact that this part is the core of the article I suggest to provide more information regarding limitations and Field of application and example in Project Management. During the explanation of Kaizen tool, please add information about “kaizen event” because same reader may do not know this term.
* I suggest also to add pictures for each tool.
*Moreover “…The 8 different relates..” I can not understand to what is related with.
*Unfortunately in this draft are missing many article sections (Example of Value Stream Mapping, Six Sigma, Figures Discussion Reference) that my peer review is not able to analyze.
*However the main structure is clear, I am looking forward to read you final article ;)

Talk:Metra Potential Method

2015-09-22T19:49:04Z

S141530:

Anna: Nice choice of method, you seem to have understood the requirements to both topic and structure, so I don't have any further comments.

Reviewer 1: Alise

* The layout of this article is very nice, and I like that it has pictures to help explain.
* When MPM is mentioned, why write Potential Metra Methods, and not Metra Potential Methods, as stated in the heading?
* Writing the two last sentences about Bernard Roy seems kind of messy when it’s at the bottom of the subject, when you mention him in the beginning without giving him much attention.
* I don’t think you should use “… “after any sentence. (See Overview)
* I found the description in “List of task” not very easy to follow. Maybe structure this in another way?
* Why isn’t the method for calculating the duration of tasks not specified? Doesn’t it include in the implementation of the MPM?
* I had some problems understanding how to calculate “earliest start”
* You have some sentences that could be written better. For example: “It results that bigger is the number of critical tasks with respect to the total number of tasks, lower is the elasticity of the project.” You should write: “The result of this will be that the bigger the numbers of critical tasks with respect to the total number of tasks, the lower the elasticity of the project.” (this is just one)
* Try not to use very long sentences as it makes it more difficult to follow.
* Remember references!
* I like how you have compared the MPM method to both the Gantt and the PERT method.

Reviewer 3: s142581
* The article was very interesting and easy to read. It is very much related to the course and relevant for practitioners.
* In general, it follows a logical flow and it is very well explained. In my opinion, this is especially difficult to achieve when explaining these kind of processes, and you did a good job in this matter.
* In addition, it has a good paragraph structure, and the advantages and limitations sections were a wise choice. Maybe I would present the ''Overview'' section as the first one, or maybe you could change the title to ''Concept''.
* Another positive aspect is that you lean on one example when explaining the process.
* It was also a good idea to state a terminology list.
* I would suggest introducing Bernard Roy (the year he was born and why he is recognized) at the beginning of the first paragraph, and not as a second paragraph, when you have already introduced the MPM. I think it would help the flow of the text.
* You mention that the method can be considered to be half-way between Gantt Graph and PERT representation. In my opinion, this can be confusing if the lector has not previous knowledge of these methods. I would recommend that you mention the source, as it seems a subjective comment.
* In terms of grammar, the text is well written. I just found some words that I think you could supplant. For example, it the sentence “taking into account the anteriority constraints linking these several tasks”, I would replace ''anteriority'' for ''previous''. Other word that you could modify is ''dependency'' in the sentence “taking into account the dependency relationships between multiple tasks”, where you could write ''dependent'' instead.
* In the expression “realizing a table”, I suggest you write “making/doing a table”.
* You make use of the apostrophe when you write ''don’t''. I would suggest to write ''do not''.
* In addition, you could rephrase the sentence “this method only takes into account the schedule aspects, deadlines, delays, etc.” for “this method only takes into account aspects such as scheduling, deadlines or delays”, to avoid writing etc.
* I think you made a mistake when mentioning the three convention rules, since there are four bullet points.
* Regarding the figures, I would recommend that you type "''':'''" after Figure X instead of "''','''"
* In the first figures, you could increase the size, not because it is hard to read, but because it would achieve more importance when reading the text. In addition, I suggest you improve the alignment of the tables, for a better visualization of the process, and numerate them so you can mention them in the text.
* I would also suggest to rephrase the last sentence of the ''Implementation'' section to “It results that the bigger the number of critical tasks is with respect to the total number of tasks, the lower is the elasticity of the project”.
* Finally, even if you mention that you will add a bibliography, I would recommend to integrate the sources in the text with numbers.

'''Reviewer 2, s141530''':

*Very Nice structure, easy to follow the topic’s red-thread.
*From my perspective you should clarify a bit this sentence “….whose summits represent tasks and the connections represent anteriority constraints.” (3rd line) it was not entirely clear for me.
*In the History chapter you could mention a bit about the Graph Theory background so you can connect it with your Metra Potential Method.
*Good idea include “Terminology sections” and “Graphic representation” . However from my perspective could be useful to have few lines of introduction especially during the “Graphic representation” otherwise the reader is a bit lost.
*Enumerate the tables regarding the list of tasks and link them to the text.
*MPM explanation very well explains.
*Well written “Advantages” and “Limitations” section especially because you compare it with another method. However, you should remember to mention MPM absolute constraints and advantages.
*Sometimes the sentences are too long, try to short them.
*Remember to mentions sources especially regarding the comparison between Pert and Gantt, so the reader can get information also regarding those methods.

Talk:Stakeholder Analysis and Matrices

2015-09-22T19:42:41Z

S141530:

Mette: Hello, I like your idea. It seems like you have a clear agenda of what you want to write about. Maybe you could have a discussion between the use of stakeholder analysis and stakeholder matrix.

Reviewer 3: S102935
# '''Pros'''
## Highly relevant topic
## Very good, clear and engaging agenda/introduction.
## Good explanation of both Stakeholder analysis and stakeholder matrix.
## The figures give a good overview of the theory and methods
# '''Missing formalities'''
## Remember to add table numberings on your final article
## The annotated bibliography seem like an important part of the article, so remember to do so when finishing the article.
# '''Suggestions'''
## Try to link your subject to other relevant articles.
## The discussion between the stakeholder analysis and stakeholder matrix is well placed, but keep in mind to focus on the red thread between the chapters, when you fill in the missing information.
# '''Additional comments'''
## Looking forward to review your finished article

'''Reviewer 2, s141530''':

*Background Section:
I really like how you have shown the academic background, probably could be even more interesting if you can write a basic practical example. It could be for example a stakeholder analysis regarding a house-building project.
*Figure 1:
This figure is positioned in a way that the reader does not understand the link between picture and Article section. It will be clearer if you mention this picture to the text.

*Stakeholder Analysis:
In my opinion Stakeholder Analysis is a broad topic, due to this consideration, I would suggest dividing this section into other subsections.

*Discussion
It will be interesting to analyze the limitations of a Stakeholder Analysis in real case application. E.g, hidden stakeholders.

*EXTRA
If you would like to provide a practical case. I suggest to present this example in 3 different points of view:

For instance regarding an house-building project.

** Project’s Stakeholders(house)

**Program’s Stakeholders (Renewal of the district)
**Portfolio’s Stakeholders (State investment)

This will provide a link to topics discussed in class during the previous lessons.

Talk:Stakeholder Analysis and Matrices

2015-09-22T19:41:55Z

S141530:

Mette: Hello, I like your idea. It seems like you have a clear agenda of what you want to write about. Maybe you could have a discussion between the use of stakeholder analysis and stakeholder matrix.

Reviewer 3: S102935
# '''Pros'''
## Highly relevant topic
## Very good, clear and engaging agenda/introduction.
## Good explanation of both Stakeholder analysis and stakeholder matrix.
## The figures give a good overview of the theory and methods
# '''Missing formalities'''
## Remember to add table numberings on your final article
## The annotated bibliography seem like an important part of the article, so remember to do so when finishing the article.
# '''Suggestions'''
## Try to link your subject to other relevant articles.
## The discussion between the stakeholder analysis and stakeholder matrix is well placed, but keep in mind to focus on the red thread between the chapters, when you fill in the missing information.
# '''Additional comments'''
## Looking forward to review your finished article

'''Reviewer 2, s141530''':

*Background Section:
I really like how you have shown the academic background, probably could be even more interesting if you can write a basic practical example. It could be for example a stakeholder analysis regarding a house-building project.
*Figure 1:
This figure is positioned in a way that the reader does not understand the link between picture and Article section. It will be clearer if you mention this picture to the text.

*Stakeholder Analysis:
In my opinion Stakeholder Analysis is a broad topic, due to this consideration, I would suggest dividing this section into other subsections.

*Discussion
It will be interesting to analyze the limitations of a Stakeholder Analysis in real case application. E.g, hidden stakeholders.

*EXTRA
If you would like to provide a practical case. I suggest to present this example in 3 different points of view:

For instance regarding an house-building project.

** Project’s Stakeholders(house)

**Program’s Stakeholders (Renewal of the district)
**Portfolio’s Stakeholders (State investment)

This will provide a link to some topics discussed in class during the previous lessons.

Work Breakdown Structure (WBS)

2015-09-21T22:29:24Z

S141530: /* Goals Breakdown Structure */

Work Breakdown Structure (WBS) is a tool used in project management context that divide in different levels of details a deliverable-oriented project in hierarchical order. The primary objective is to support the project manager by giving an overview of different steps, resources and costs involved in the project. Moreover during the project executions may include the percentage of steps completed this ensure better control and guidance in case during the project development may occur any changes.
It is graphically represented by a hierarchical tree, where the job of each element is given by the sum of elements underneath connected (sublevels). These elements may represent a product, data, service or any combination thereof.

==History==

The WBS was initially developed by the U.S. defense, back to the 1950’s and 60’s, in cooperation with NASA they were adopting the Program Evaluation and Review Technique (PERT) <ref>S1 Cleland, David I. and Roland Gareis, Global Project Management Handbook, McGraw-Hill Professional, 2006</ref> . During 1962, United State Airforce released “STUDY OF METHODS FOR EVALUATION OF THE PERT/COST MANAGEMENT SYSTEM” in this document was mention WBS as a useful tool for Controlling and planning large acquisition projects <ref> Eric S. Norman, Shelly A. Brotherton, Robert T. Fried Work Breakdown Structures: The Foundation for Project Management Excellence, Wiley, 2010</ref> . As understandable, most of NASA projects involves many actors (contractors) with totally different tasks. However, all of them are parts of the same project and works for the same final scope. The WBS was used to ‘‘ . . . ensure that the total project is fully planned and that all derivative plans contribute directly to the desired objectives’’ (NASA, 1962)<ref>"Background and Key Concepts COPYRIGHTED MATERIAL." Web. 20 Sep. 2015</ref>. After, this first approach NASA decide to keep update this document because believed valid and useful. In 1968, due to its success, the Department of Defense released "Work Breakdown Structures for Defense Materiel Items" (MIL-STD-881), a military standard procedure which is obligatory for all programs under the Department of Defense. This standard is constantly updated, the latest version refers to 2001 <ref>''[http://www.mcri.com/wp-content/uploads/2014/09/Military-Standard-881C-----Department-of-Defense-Standard-Practice-----Work-Breakdown-Structures-for-Defense-Materiel-Items-MIL-STD-881C-3-Oct-11.pdf Military-Standard-881C]'', 3 October 2011</ref>.
Project Management Institute (PMI) during 1987 started to enlarge these collections of documents for non-military purpose as result The Project Management Body of Knowledge (PMBOK) has been release. The first version is from 1987, and other versions have been released during 1987, 1996, 2000, 2004, 2009, 2013 <ref>"Guide, A. "Project Management Body of Knowledge (PMBOK® GUIDE & STANDARD)." Project Management Institute. 2001.</ref>. The main concept of subdividing different activities through different levels remain the same of the early years. However, the approach goes from “A task- oriented ‘family tree’ of activities 1987” PMBOKfirst Guide to “A deliverable- oriented hierarchical decomposition of the work to be executed by the project team to accomplish the project objectives and create the required deliverables” (PMBOK Guide — Third).

On one hand, the documents from PMI gives an overview of the WBS concept, on the other hand, the document released from the Department of Defense can be considered as a Handbook.

==Work Breakdown Structure main Charactheristics==

WBS could be considered a general tool that can be use in most of projects and program, due to this reason a WBS to another may vary to best adapts the project manager needs.
However, is important to underline which core characteristics this tool should have to define a quality WBS.

In this case the terms “quality” is well define from Project Management Institute’s (PMI) that in 2006 released the paper “Practice Standard for Work Breakdown Structures”, in this document the definition of a quality WBS is given from two statement:

# A quality WBS is constructed in such a way that it satisfies all of the requirements for its use in a project.
# At all level of the WBS quality characteristics must be implemented.

In other words a quality WBS must comply with all requirements for its use, no matter is the scope project, program or portfolio.

This first requirement is the most important one, it is that a WBS should be deliverable-oriented, this guaranty a WBS that can be taken under control thanks to a “Milestone Structure”. Moreover, the final scope of the Project is more easily defined. To underpin the importance of this requirement, the PMI include deliverable orientation as part of definition of a WBS .
A WBS must take into consideration the full scope of the project including all internal, external and interim deliverables. For facilitating this task a WBS has an hierarchal approach with at least two levels, to understand better the connection between the elements a coding scheme of differents level should be provided ('''''Picture Under construction''''') , each level must includes 100% of works connection belonging to the lower level 6, Nevertheless is not permitted to included element out of this project scope.
Each level's component is defined by nouns and adjectives but is not permitted the use of verbs, this ensures the deliverable of the element otherwise cold be understood as a task. In case arise the need of clarification can be added a “WBS Dictionary” for defining the outcomes. In addition, since this tool is use for “real-case” application require that can be updated while working are in progress.

If it is true that a quality WBS is constructed in such a way that it satisfies all of its intended needs, then what is it about those needs that differentiate one WBS from another? We are certain that all Work Breakdown Structures are not the same—so what then, separates and makes them unique?
This is where the concept of Use-Related Characteristics comes into play. Use-Related Characteristics include those additional attributes that vary from one project to next, across industries, environments or in the way the WBS is applied within the project. With Use-Related Characteristics, the quality of the WBS depends on how well the specific content and types of WBS elements address the full set of needs of the project or program. This then implies that the more needs that the WBS meets, the higher the resulting quality of the WBS.

* Achieves a sufficient level of decomposition to enable appropriate management and control
* Provides sufficient detail for bounding and communicating the scope of the project in its entirety
* Contains specific types of WBS elements necessary for the project
* Clearly enables the assignment of accountability at the appropriate level, regardless of whether the WBS is for a program or an
individual project

==Representation==
As mentioned before the aim of a WBS is to show at best the scope of the project, program or portfolio taken into consideration. There is no one exact or mandatory way of representing a WBS. Nevertheless, all of them have in common a tree structure. The most use tree structure is the one called inverted Tree Structure ('''''Picture Under construction''''') , in this representation the project has the aspect of an organization chart. However there are other two types of representation the one shown In ! ('''''Picture Under construction''''') , that has the root on the left side and growth from the right side, the last one is called centralized tree structure Picture this can help the development session.

The graphical representation is not the only way of representing a WBS, tabular views are also used. This approach has the advantage to be clearer in case the WBS has many levels an example is shown in figure ('''''Picture Under construction''''') ,. Usually at top level is shown the main deliverable that can change depending what kind of project is analyzed. Lower level provide information to the project managers like, schedule development, cost estimating, resource allocation, and risk assessment. The lowest level also called Work Packages. It is defined by PMI as:” A deliverable or project work component at the lowest level of the Work Breakdown Structure. The work package includes the schedule activities and schedule milestones required to complete the work package deliverable or project work component’.It is a good habit as suggest NASA of not having more than seven levels. Each element of a WBS is recognizable by a clear, descriptive title and by a numbering scheme

Depending on the level the management might assign responsibility for technical, schedule, and cost performance. A Control Account is usually established to guaranty at best he intersection between of WBS element and organization unit.

==Decomposition procedures==
Overall a WBS is the result of a decomposition process, which goes from the project and terminates to a certain level of details necessary for effective communication at the project's stakeholder. Meaning that there is not a rule regarding how much in detail the WBS should go, it depends from project to project. This supports the statement that identify WBS as Use-Related Characteristics tool. Nevertheless, is important find a good balance between communication and complexity the need for control <ref> Stephen A. Devaux. 1 edition (September 18, 2014). Managing Projects as Investments: Earned Value to Business Value </ref>.

The most common method for decomposing a WBS are the following methods:
*Function
Project’s deliverables are collected by business function for facilitating communication to stakeholders. This WBS is focusing on operations or activities that should be performed.
*Role
Similar to the previous one, this is focusing more on responsibility.
*Method
The project derivable is based on methodology or delivery process, this type of WBS is easy to understand and is mainly use for showing the projects outcomes.
*Deliverables (components)
Most common used, can be use for every types of projects
Functional breakdown the project’s deliverables are collected by business function

==100% Rule==

One of the most important principles for developing a WBS is called 100% rule. This rule is define from Project Management Institute (PMI).

This 100% rule define that a WBS must Include the 100% of the work defined from the project and include all the necessary for its realization (Internal, contractor, subcontractor) included the management of the project itself. The 100% rule is one of the most important guideline for developing the decomposition and evaluation of a WBS. The rule is applied at all levels of the hierarchical structure : ‘the next level of decomposition of a WBS element (child level) must represent 100 percent of the work applicable to the next higher (parent) element’’ <ref> Haugan, Gregory T. 2002. Effective Work Breakdown Structures. Vienna, VA Management Concepts</ref> (Haugan p. 17)..
The WBS can not include jobs out of the project’s border, meaning that should not include more of the 100%.

Applying the 100% Rule allows the manager to know that all efforts in each area are captured where they belong and also that nothing unrelated is included in an element. Application of the 100% Rule enables all outcomes to be defined before schedule planning begins. The work breakdown structure is the initiator in the planning process, as planned outcomes must be defined before methods and schedules can be considered. If outcomes are insufficiently defined, the project cannot succeed. Awareness of the 100% Rule enables and communicates the full understanding of all necessary outcomes. Once the project is underway the 100% Rule assists in assuring that project costs are properly shown in the accounting system. This is true for all projects, whether they are accomplished for another division in a company or a regular paying customer. Application of the 100% Rule enables accurate costing, which is essential to budget similar efforts in the future.

===100% Rule Application===

This example provides a practical use of the 100% rule and the "progressive elaboration" technique. In ! ('''''Picture Under construction''''') , is shown a WBS has the objective the Build of an house.
At the top level (Level 1) the project manager has assign 100 point to the whole project, meaning the entire building process of the house. Breaking down to level number 2 we have more than one deliverable, by summing the point of each four elements we have the result will be 100. The point allocated in each element is the result of a project manager’s consideration, meaning that these points are not an estimation of Cost/Time, etc. but represents the overall effort needed to complete the task. Some elements (the once that needs a higher detail of decomposition) have a lower level (Level 3) that represent in this case the lowest level of this WBS. However, if is needed this breaks down process can continues until the project manager is not satisfy regarding the level of details that want to achieve. The procedure just used is called “progressive elaboration”.

As in this example, is totally fine if have different level of decomposition through different elements

It is suggested that the project manager use a software support, as a spreadsheet, for have an auto.sum operations, this could seems a silly recommendation, but a WBS of a portfolio can have hundred of branches a spreadsheet will be very useful. Another recommended procedure is to discuss together with the project team regarding the numbers of points that belongs to each element, this collaborative practice helps to achieve an high resolution of the reality because different people with different skills are involve during this process.

==Specific Type of WBS==
As mention previously WBS is a tool introduced during the 60’, up to present different WBS’s related tools have been developed.

===Value breakdown structure===

This tool is mainly used for assessing a project’s expected value, as WBS has a hierarchical structure. There is one fundamental difference, in this tool is not used the 100% rule, this because the value is not additive as the cost. For instance, a Helicopter manufacturer wants to produce a 10-seat helicopter the budget is 1000000$, and the Expected monetary value is 1700000$. By using an hierarchical approaches we should decompose the helicopter in different parts, for each parts all the necessary process until to get these components (cockpit, landing skid, passenger seats, engine, rotor, tail rotor, blade ). Let's image that we have all the components except the engine. The cost resources until this stage could be 900000$, but the actual value of this helicopter without the engine is actual 0 because no one wants a Helicopter without the engine. Meaning that the Value added of the engine is equal or close to the entire value of the projects. On one hand, we do not have any value until the motor is not mounted on the helicopter (VBS approach), on the other hand, we have cost for the resources used until now (WBS approach).

===Goals Breakdown Structure===
As a WBS, the Goals Breakdown Structure (GBS) has a hierarchical tree structure, it can be considered like a WBS specially design for goal’s achievement. In the highest level is positioned the overall goal of the projects, at the lower level are located mid-term goals for needed for achieving the top level mission. The GBS elements might include different peculiarities that characterize each goal, for instance, profit, market share, etc. At the third level are defined the products/process needed for achieving the organizational goals.

As written in A Guide to the Project Management Body of Knowledge (PMBOK(R)[1] Guide) it follows rules similar to WBS. For the breakdown decomposition the WBS follows two general rules:

*'''Nothing Extra''' Is not allowed to include an element that does not contribute to the upper-level goals. No layer should contain any extraneous goals.
*'''Nothing Missing''' Each level must define all the goals necessary to ensure the project achieves the next higher-level goals.

The first rule is needed to make sure that the project is a focus in only one objective without losing the resource that does not contribute any organization’s value. The second one ensure that everything that is needed for adding value to the project that takes into consideration.
The general scope of a GBS is to analyze all the goals and only the goals needed to achieve the project's higher-level goals.

==Potential Misunderstanding, Disadventage and adventage==

A WBS is not an organizational hierarchy chart. A common error is to develop a WBS in accordance to the organizational hierarchy so is important to decompose the works depending the relations between processes than between “powers” organizational.

A WBS is not a project’s development planning neither a list in chronological order. Is not suggest to plan a project without having developed its WBS, in other words, is like plan the manufacturing process for building an airplane, even before the completion of its project. In this case is even difficult to apply the 100% rules, because the goals are not well defined. Moreover once that a WBS is defined, in case of error is not possible to fix it without starting from the beginning, because all the processes are connected each other.
For this reason build and maintain a WBS is a process that require a strong effort in terms of times and HR , due to that fact that many people should be involved to increase the common sharing knowledge about the projects. Moreover, it should be periodically review to ensure the WBS’s reliability, this has influence on future decision that the PM will take. As said review a WBS has a cost, due to that WBS encourages rigid structure for the project. Thus, it reduces managerial flexibility to initiate and lead changes during the project life cycle. (Salvendy, 2001) <ref> Salvendy, G. 2001, Handbook of Industrial Engineering, 3rd ed, John Wiley & Sons, Inc, Canada</ref>.
However
# The WBS reflects the project objectives, by listing all the activities required to accomplish these objectives, it prevents confusion and doubts as to the aim of the project.
# It creates a common database and dictionary of common notation that serves as a reference point for all involved parties.
# The WBS enables smooth communications among the project team members and between them and customers, suppliers, regulators and etc.
# It serves as an archive that can later facilitate knowledge transfer to other projects or learning by new members of the work force.
# The WBS is an effective tool for resource management.

==References==
<references/>

Work Breakdown Structure (WBS)

2015-09-21T22:28:22Z

S141530: /* 100% Rule */

Work Breakdown Structure (WBS) is a tool used in project management context that divide in different levels of details a deliverable-oriented project in hierarchical order. The primary objective is to support the project manager by giving an overview of different steps, resources and costs involved in the project. Moreover during the project executions may include the percentage of steps completed this ensure better control and guidance in case during the project development may occur any changes.
It is graphically represented by a hierarchical tree, where the job of each element is given by the sum of elements underneath connected (sublevels). These elements may represent a product, data, service or any combination thereof.

==History==

The WBS was initially developed by the U.S. defense, back to the 1950’s and 60’s, in cooperation with NASA they were adopting the Program Evaluation and Review Technique (PERT) <ref>S1 Cleland, David I. and Roland Gareis, Global Project Management Handbook, McGraw-Hill Professional, 2006</ref> . During 1962, United State Airforce released “STUDY OF METHODS FOR EVALUATION OF THE PERT/COST MANAGEMENT SYSTEM” in this document was mention WBS as a useful tool for Controlling and planning large acquisition projects <ref> Eric S. Norman, Shelly A. Brotherton, Robert T. Fried Work Breakdown Structures: The Foundation for Project Management Excellence, Wiley, 2010</ref> . As understandable, most of NASA projects involves many actors (contractors) with totally different tasks. However, all of them are parts of the same project and works for the same final scope. The WBS was used to ‘‘ . . . ensure that the total project is fully planned and that all derivative plans contribute directly to the desired objectives’’ (NASA, 1962)<ref>"Background and Key Concepts COPYRIGHTED MATERIAL." Web. 20 Sep. 2015</ref>. After, this first approach NASA decide to keep update this document because believed valid and useful. In 1968, due to its success, the Department of Defense released "Work Breakdown Structures for Defense Materiel Items" (MIL-STD-881), a military standard procedure which is obligatory for all programs under the Department of Defense. This standard is constantly updated, the latest version refers to 2001 <ref>''[http://www.mcri.com/wp-content/uploads/2014/09/Military-Standard-881C-----Department-of-Defense-Standard-Practice-----Work-Breakdown-Structures-for-Defense-Materiel-Items-MIL-STD-881C-3-Oct-11.pdf Military-Standard-881C]'', 3 October 2011</ref>.
Project Management Institute (PMI) during 1987 started to enlarge these collections of documents for non-military purpose as result The Project Management Body of Knowledge (PMBOK) has been release. The first version is from 1987, and other versions have been released during 1987, 1996, 2000, 2004, 2009, 2013 <ref>"Guide, A. "Project Management Body of Knowledge (PMBOK® GUIDE & STANDARD)." Project Management Institute. 2001.</ref>. The main concept of subdividing different activities through different levels remain the same of the early years. However, the approach goes from “A task- oriented ‘family tree’ of activities 1987” PMBOKfirst Guide to “A deliverable- oriented hierarchical decomposition of the work to be executed by the project team to accomplish the project objectives and create the required deliverables” (PMBOK Guide — Third).

On one hand, the documents from PMI gives an overview of the WBS concept, on the other hand, the document released from the Department of Defense can be considered as a Handbook.

==Work Breakdown Structure main Charactheristics==

WBS could be considered a general tool that can be use in most of projects and program, due to this reason a WBS to another may vary to best adapts the project manager needs.
However, is important to underline which core characteristics this tool should have to define a quality WBS.

In this case the terms “quality” is well define from Project Management Institute’s (PMI) that in 2006 released the paper “Practice Standard for Work Breakdown Structures”, in this document the definition of a quality WBS is given from two statement:

# A quality WBS is constructed in such a way that it satisfies all of the requirements for its use in a project.
# At all level of the WBS quality characteristics must be implemented.

In other words a quality WBS must comply with all requirements for its use, no matter is the scope project, program or portfolio.

This first requirement is the most important one, it is that a WBS should be deliverable-oriented, this guaranty a WBS that can be taken under control thanks to a “Milestone Structure”. Moreover, the final scope of the Project is more easily defined. To underpin the importance of this requirement, the PMI include deliverable orientation as part of definition of a WBS .
A WBS must take into consideration the full scope of the project including all internal, external and interim deliverables. For facilitating this task a WBS has an hierarchal approach with at least two levels, to understand better the connection between the elements a coding scheme of differents level should be provided ('''''Picture Under construction''''') , each level must includes 100% of works connection belonging to the lower level 6, Nevertheless is not permitted to included element out of this project scope.
Each level's component is defined by nouns and adjectives but is not permitted the use of verbs, this ensures the deliverable of the element otherwise cold be understood as a task. In case arise the need of clarification can be added a “WBS Dictionary” for defining the outcomes. In addition, since this tool is use for “real-case” application require that can be updated while working are in progress.

If it is true that a quality WBS is constructed in such a way that it satisfies all of its intended needs, then what is it about those needs that differentiate one WBS from another? We are certain that all Work Breakdown Structures are not the same—so what then, separates and makes them unique?
This is where the concept of Use-Related Characteristics comes into play. Use-Related Characteristics include those additional attributes that vary from one project to next, across industries, environments or in the way the WBS is applied within the project. With Use-Related Characteristics, the quality of the WBS depends on how well the specific content and types of WBS elements address the full set of needs of the project or program. This then implies that the more needs that the WBS meets, the higher the resulting quality of the WBS.

* Achieves a sufficient level of decomposition to enable appropriate management and control
* Provides sufficient detail for bounding and communicating the scope of the project in its entirety
* Contains specific types of WBS elements necessary for the project
* Clearly enables the assignment of accountability at the appropriate level, regardless of whether the WBS is for a program or an
individual project

==Representation==
As mentioned before the aim of a WBS is to show at best the scope of the project, program or portfolio taken into consideration. There is no one exact or mandatory way of representing a WBS. Nevertheless, all of them have in common a tree structure. The most use tree structure is the one called inverted Tree Structure ('''''Picture Under construction''''') , in this representation the project has the aspect of an organization chart. However there are other two types of representation the one shown In ! ('''''Picture Under construction''''') , that has the root on the left side and growth from the right side, the last one is called centralized tree structure Picture this can help the development session.

The graphical representation is not the only way of representing a WBS, tabular views are also used. This approach has the advantage to be clearer in case the WBS has many levels an example is shown in figure ('''''Picture Under construction''''') ,. Usually at top level is shown the main deliverable that can change depending what kind of project is analyzed. Lower level provide information to the project managers like, schedule development, cost estimating, resource allocation, and risk assessment. The lowest level also called Work Packages. It is defined by PMI as:” A deliverable or project work component at the lowest level of the Work Breakdown Structure. The work package includes the schedule activities and schedule milestones required to complete the work package deliverable or project work component’.It is a good habit as suggest NASA of not having more than seven levels. Each element of a WBS is recognizable by a clear, descriptive title and by a numbering scheme

Depending on the level the management might assign responsibility for technical, schedule, and cost performance. A Control Account is usually established to guaranty at best he intersection between of WBS element and organization unit.

==Decomposition procedures==
Overall a WBS is the result of a decomposition process, which goes from the project and terminates to a certain level of details necessary for effective communication at the project's stakeholder. Meaning that there is not a rule regarding how much in detail the WBS should go, it depends from project to project. This supports the statement that identify WBS as Use-Related Characteristics tool. Nevertheless, is important find a good balance between communication and complexity the need for control <ref> Stephen A. Devaux. 1 edition (September 18, 2014). Managing Projects as Investments: Earned Value to Business Value </ref>.

The most common method for decomposing a WBS are the following methods:
*Function
Project’s deliverables are collected by business function for facilitating communication to stakeholders. This WBS is focusing on operations or activities that should be performed.
*Role
Similar to the previous one, this is focusing more on responsibility.
*Method
The project derivable is based on methodology or delivery process, this type of WBS is easy to understand and is mainly use for showing the projects outcomes.
*Deliverables (components)
Most common used, can be use for every types of projects
Functional breakdown the project’s deliverables are collected by business function

==100% Rule==

One of the most important principles for developing a WBS is called 100% rule. This rule is define from Project Management Institute (PMI).

This 100% rule define that a WBS must Include the 100% of the work defined from the project and include all the necessary for its realization (Internal, contractor, subcontractor) included the management of the project itself. The 100% rule is one of the most important guideline for developing the decomposition and evaluation of a WBS. The rule is applied at all levels of the hierarchical structure : ‘the next level of decomposition of a WBS element (child level) must represent 100 percent of the work applicable to the next higher (parent) element’’ <ref> Haugan, Gregory T. 2002. Effective Work Breakdown Structures. Vienna, VA Management Concepts</ref> (Haugan p. 17)..
The WBS can not include jobs out of the project’s border, meaning that should not include more of the 100%.

Applying the 100% Rule allows the manager to know that all efforts in each area are captured where they belong and also that nothing unrelated is included in an element. Application of the 100% Rule enables all outcomes to be defined before schedule planning begins. The work breakdown structure is the initiator in the planning process, as planned outcomes must be defined before methods and schedules can be considered. If outcomes are insufficiently defined, the project cannot succeed. Awareness of the 100% Rule enables and communicates the full understanding of all necessary outcomes. Once the project is underway the 100% Rule assists in assuring that project costs are properly shown in the accounting system. This is true for all projects, whether they are accomplished for another division in a company or a regular paying customer. Application of the 100% Rule enables accurate costing, which is essential to budget similar efforts in the future.

===100% Rule Application===

This example provides a practical use of the 100% rule and the "progressive elaboration" technique. In ! ('''''Picture Under construction''''') , is shown a WBS has the objective the Build of an house.
At the top level (Level 1) the project manager has assign 100 point to the whole project, meaning the entire building process of the house. Breaking down to level number 2 we have more than one deliverable, by summing the point of each four elements we have the result will be 100. The point allocated in each element is the result of a project manager’s consideration, meaning that these points are not an estimation of Cost/Time, etc. but represents the overall effort needed to complete the task. Some elements (the once that needs a higher detail of decomposition) have a lower level (Level 3) that represent in this case the lowest level of this WBS. However, if is needed this breaks down process can continues until the project manager is not satisfy regarding the level of details that want to achieve. The procedure just used is called “progressive elaboration”.

As in this example, is totally fine if have different level of decomposition through different elements

It is suggested that the project manager use a software support, as a spreadsheet, for have an auto.sum operations, this could seems a silly recommendation, but a WBS of a portfolio can have hundred of branches a spreadsheet will be very useful. Another recommended procedure is to discuss together with the project team regarding the numbers of points that belongs to each element, this collaborative practice helps to achieve an high resolution of the reality because different people with different skills are involve during this process.

==Specific Type of WBS==
As mention previously WBS is a tool introduced during the 60’, up to present different WBS’s related tools have been developed.

===Value breakdown structure===

This tool is mainly used for assessing a project’s expected value, as WBS has a hierarchical structure. There is one fundamental difference, in this tool is not used the 100% rule, this because the value is not additive as the cost. For instance, a Helicopter manufacturer wants to produce a 10-seat helicopter the budget is 1000000$, and the Expected monetary value is 1700000$. By using an hierarchical approaches we should decompose the helicopter in different parts, for each parts all the necessary process until to get these components (cockpit, landing skid, passenger seats, engine, rotor, tail rotor, blade ). Let's image that we have all the components except the engine. The cost resources until this stage could be 900000$, but the actual value of this helicopter without the engine is actual 0 because no one wants a Helicopter without the engine. Meaning that the Value added of the engine is equal or close to the entire value of the projects. On one hand, we do not have any value until the motor is not mounted on the helicopter (VBS approach), on the other hand, we have cost for the resources used until now (WBS approach).

===Goals Breakdown Structure===
As a WBS, the Goals Breakdown Structure (GBS) has a hierarchical tree structure, it can be considered like a WBS specially design for goal’s achievement. In the highest level is positioned the overall goal of the projects, at the lower level are located mid-term goals for needed for achieving the top level mission. The GBS elements might include different peculiarities that characterize each goal, for instance, profit, market share, etc. At the third level are defined the products/process needed for achieving the organizational goals.

As written in A Guide to the Project Management Body of Knowledge (PMBOK(R)[1] Guide) it follows rules similar to WBS. For the breakdown decomposition the WBS follows two general rules:

*'''Nothing Extra''' Is not allowed to include an element that does not contribute to the upper-level goals. No layer should contain any extraneous goals.
*'''Nothing Missing''' Each level must define all the goals necessary to ensure the project achieves the next higher-level goals.

The first rule is needed to make sure that the project is a focus in only one objective without losing resource that does not contribute any organization’s value. The second one ensure that everything that is needed for adding value to the project that takes into consideration.
The general scope of a GBS is to analyze all the goals and only the goals needed to achieve the project's higher-level goals.

==Potential Misunderstanding, Disadventage and adventage==

A WBS is not an organizational hierarchy chart. A common error is to develop a WBS in accordance to the organizational hierarchy so is important to decompose the works depending the relations between processes than between “powers” organizational.

A WBS is not a project’s development planning neither a list in chronological order. Is not suggest to plan a project without having developed its WBS, in other words, is like plan the manufacturing process for building an airplane, even before the completion of its project. In this case is even difficult to apply the 100% rules, because the goals are not well defined. Moreover once that a WBS is defined, in case of error is not possible to fix it without starting from the beginning, because all the processes are connected each other.
For this reason build and maintain a WBS is a process that require a strong effort in terms of times and HR , due to that fact that many people should be involved to increase the common sharing knowledge about the projects. Moreover, it should be periodically review to ensure the WBS’s reliability, this has influence on future decision that the PM will take. As said review a WBS has a cost, due to that WBS encourages rigid structure for the project. Thus, it reduces managerial flexibility to initiate and lead changes during the project life cycle. (Salvendy, 2001) <ref> Salvendy, G. 2001, Handbook of Industrial Engineering, 3rd ed, John Wiley & Sons, Inc, Canada</ref>.
However
# The WBS reflects the project objectives, by listing all the activities required to accomplish these objectives, it prevents confusion and doubts as to the aim of the project.
# It creates a common database and dictionary of common notation that serves as a reference point for all involved parties.
# The WBS enables smooth communications among the project team members and between them and customers, suppliers, regulators and etc.
# It serves as an archive that can later facilitate knowledge transfer to other projects or learning by new members of the work force.
# The WBS is an effective tool for resource management.

==References==
<references/>

Work Breakdown Structure (WBS)

2015-09-21T22:24:32Z

S141530: /* Representation */

Work Breakdown Structure (WBS) is a tool used in project management context that divide in different levels of details a deliverable-oriented project in hierarchical order. The primary objective is to support the project manager by giving an overview of different steps, resources and costs involved in the project. Moreover during the project executions may include the percentage of steps completed this ensure better control and guidance in case during the project development may occur any changes.
It is graphically represented by a hierarchical tree, where the job of each element is given by the sum of elements underneath connected (sublevels). These elements may represent a product, data, service or any combination thereof.

==History==

The WBS was initially developed by the U.S. defense, back to the 1950’s and 60’s, in cooperation with NASA they were adopting the Program Evaluation and Review Technique (PERT) <ref>S1 Cleland, David I. and Roland Gareis, Global Project Management Handbook, McGraw-Hill Professional, 2006</ref> . During 1962, United State Airforce released “STUDY OF METHODS FOR EVALUATION OF THE PERT/COST MANAGEMENT SYSTEM” in this document was mention WBS as a useful tool for Controlling and planning large acquisition projects <ref> Eric S. Norman, Shelly A. Brotherton, Robert T. Fried Work Breakdown Structures: The Foundation for Project Management Excellence, Wiley, 2010</ref> . As understandable, most of NASA projects involves many actors (contractors) with totally different tasks. However, all of them are parts of the same project and works for the same final scope. The WBS was used to ‘‘ . . . ensure that the total project is fully planned and that all derivative plans contribute directly to the desired objectives’’ (NASA, 1962)<ref>"Background and Key Concepts COPYRIGHTED MATERIAL." Web. 20 Sep. 2015</ref>. After, this first approach NASA decide to keep update this document because believed valid and useful. In 1968, due to its success, the Department of Defense released "Work Breakdown Structures for Defense Materiel Items" (MIL-STD-881), a military standard procedure which is obligatory for all programs under the Department of Defense. This standard is constantly updated, the latest version refers to 2001 <ref>''[http://www.mcri.com/wp-content/uploads/2014/09/Military-Standard-881C-----Department-of-Defense-Standard-Practice-----Work-Breakdown-Structures-for-Defense-Materiel-Items-MIL-STD-881C-3-Oct-11.pdf Military-Standard-881C]'', 3 October 2011</ref>.
Project Management Institute (PMI) during 1987 started to enlarge these collections of documents for non-military purpose as result The Project Management Body of Knowledge (PMBOK) has been release. The first version is from 1987, and other versions have been released during 1987, 1996, 2000, 2004, 2009, 2013 <ref>"Guide, A. "Project Management Body of Knowledge (PMBOK® GUIDE & STANDARD)." Project Management Institute. 2001.</ref>. The main concept of subdividing different activities through different levels remain the same of the early years. However, the approach goes from “A task- oriented ‘family tree’ of activities 1987” PMBOKfirst Guide to “A deliverable- oriented hierarchical decomposition of the work to be executed by the project team to accomplish the project objectives and create the required deliverables” (PMBOK Guide — Third).

On one hand, the documents from PMI gives an overview of the WBS concept, on the other hand, the document released from the Department of Defense can be considered as a Handbook.

==Work Breakdown Structure main Charactheristics==

WBS could be considered a general tool that can be use in most of projects and program, due to this reason a WBS to another may vary to best adapts the project manager needs.
However, is important to underline which core characteristics this tool should have to define a quality WBS.

In this case the terms “quality” is well define from Project Management Institute’s (PMI) that in 2006 released the paper “Practice Standard for Work Breakdown Structures”, in this document the definition of a quality WBS is given from two statement:

# A quality WBS is constructed in such a way that it satisfies all of the requirements for its use in a project.
# At all level of the WBS quality characteristics must be implemented.

In other words a quality WBS must comply with all requirements for its use, no matter is the scope project, program or portfolio.

This first requirement is the most important one, it is that a WBS should be deliverable-oriented, this guaranty a WBS that can be taken under control thanks to a “Milestone Structure”. Moreover, the final scope of the Project is more easily defined. To underpin the importance of this requirement, the PMI include deliverable orientation as part of definition of a WBS .
A WBS must take into consideration the full scope of the project including all internal, external and interim deliverables. For facilitating this task a WBS has an hierarchal approach with at least two levels, to understand better the connection between the elements a coding scheme of differents level should be provided ('''''Picture Under construction''''') , each level must includes 100% of works connection belonging to the lower level 6, Nevertheless is not permitted to included element out of this project scope.
Each level's component is defined by nouns and adjectives but is not permitted the use of verbs, this ensures the deliverable of the element otherwise cold be understood as a task. In case arise the need of clarification can be added a “WBS Dictionary” for defining the outcomes. In addition, since this tool is use for “real-case” application require that can be updated while working are in progress.

If it is true that a quality WBS is constructed in such a way that it satisfies all of its intended needs, then what is it about those needs that differentiate one WBS from another? We are certain that all Work Breakdown Structures are not the same—so what then, separates and makes them unique?
This is where the concept of Use-Related Characteristics comes into play. Use-Related Characteristics include those additional attributes that vary from one project to next, across industries, environments or in the way the WBS is applied within the project. With Use-Related Characteristics, the quality of the WBS depends on how well the specific content and types of WBS elements address the full set of needs of the project or program. This then implies that the more needs that the WBS meets, the higher the resulting quality of the WBS.

* Achieves a sufficient level of decomposition to enable appropriate management and control
* Provides sufficient detail for bounding and communicating the scope of the project in its entirety
* Contains specific types of WBS elements necessary for the project
* Clearly enables the assignment of accountability at the appropriate level, regardless of whether the WBS is for a program or an
individual project

==Representation==
As mentioned before the aim of a WBS is to show at best the scope of the project, program or portfolio taken into consideration. There is no one exact or mandatory way of representing a WBS. Nevertheless, all of them have in common a tree structure. The most use tree structure is the one called inverted Tree Structure ('''''Picture Under construction''''') , in this representation the project has the aspect of an organization chart. However there are other two types of representation the one shown In ! ('''''Picture Under construction''''') , that has the root on the left side and growth from the right side, the last one is called centralized tree structure Picture this can help the development session.

The graphical representation is not the only way of representing a WBS, tabular views are also used. This approach has the advantage to be clearer in case the WBS has many levels an example is shown in figure ('''''Picture Under construction''''') ,. Usually at top level is shown the main deliverable that can change depending what kind of project is analyzed. Lower level provide information to the project managers like, schedule development, cost estimating, resource allocation, and risk assessment. The lowest level also called Work Packages. It is defined by PMI as:” A deliverable or project work component at the lowest level of the Work Breakdown Structure. The work package includes the schedule activities and schedule milestones required to complete the work package deliverable or project work component’.It is a good habit as suggest NASA of not having more than seven levels. Each element of a WBS is recognizable by a clear, descriptive title and by a numbering scheme

Depending on the level the management might assign responsibility for technical, schedule, and cost performance. A Control Account is usually established to guaranty at best he intersection between of WBS element and organization unit.

==Decomposition procedures==
Overall a WBS is the result of a decomposition process, which goes from the project and terminates to a certain level of details necessary for effective communication at the project's stakeholder. Meaning that there is not a rule regarding how much in detail the WBS should go, it depends from project to project. This supports the statement that identify WBS as Use-Related Characteristics tool. Nevertheless, is important find a good balance between communication and complexity the need for control <ref> Stephen A. Devaux. 1 edition (September 18, 2014). Managing Projects as Investments: Earned Value to Business Value </ref>.

The most common method for decomposing a WBS are the following methods:
*Function
Project’s deliverables are collected by business function for facilitating communication to stakeholders. This WBS is focusing on operations or activities that should be performed.
*Role
Similar to the previous one, this is focusing more on responsibility.
*Method
The project derivable is based on methodology or delivery process, this type of WBS is easy to understand and is mainly use for showing the projects outcomes.
*Deliverables (components)
Most common used, can be use for every types of projects
Functional breakdown the project’s deliverables are collected by business function

==100% Rule==

One of the most important principles for developing a WBS is called 100% rule. This rule is define from Project Management Institute (PMI).

This 100% rule define that a WBS must Include the 100% of the work defined from the project and include all the necessary for its realization (Internal, contractor, subcontractor) included the management of the project itself. The 100% rule is one of the most important guideline for developing the decomposition and evaluation of a WBS. The rule is applied at all levels of the hierarchical structure : ‘the next level of decomposition of a WBS element (child level) must represent 100 percent of the work applicable to the next higher (parent) element’’ <ref> Haugan, Gregory T. 2002. Effective Work Breakdown Structures. Vienna, VA Management Concepts</ref> (Haugan p. 17)..
The WBS can not include jobs out of the project’s border, meaning that should not include more of the 100%.

Applying the 100% Rule allows the manager to know that all efforts in each area are captured where they belong and also that nothing unrelated is included in an element. Application of the 100% Rule enables all outcomes to be defined before schedule planning begins. The work breakdown structure is the initiator in the planning process, as planned outcomes must be defined before methods and schedules can be considered. If outcomes are insufficiently defined, the project cannot succeed. Awareness of the 100% Rule enables and communicates the full understanding of all necessary outcomes. Once the project is underway the 100% Rule assists in assuring that project costs are properly shown in the accounting system. This is true for all projects, whether they are accomplished for another division in a company or a regular paying customer. Application of the 100% Rule enables accurate costing, which is essential to budget similar efforts in the future.

===100% Rule Application===

This example provides a practical use of the 100% rule and the "progressive elaboration" technique. In !!!!figure!!!!! is shown a WBS has the objective the Build of an house.
At the top level (Level 1) the project manager has assign 100 point to the whole project, meaning the entire building process of the house. Breaking down to level number 2 we have more than one deliverable, by summing the point of each four elements we have the result will be 100. The point allocated in each element is the result of a project manager’s consideration, meaning that these points are not an estimation of Cost/Time, etc. but represents the overall effort needed to complete the task. Some elements (the once that needs a higher detail of decomposition) have a lower level (Level 3) that represent in this case the lowest level of this WBS. However, if is needed this breaks down process can continus until the project manager is not satisfy regarding the level of details that want to achieve. The procedure just used is calle“progressive elaboration”.

As in this example, is totally fine if have different level of decomposition through different elements

It is suggest that the project manager use a software support, as a spreadsheet, for have an auto.sum operations, this could seems a silly recommendation, but a WBS of a portfolio can have hundred of branches a spreadsheet will be very usfull. Another recommended procedure is to discuss together with the project team regarding the amount of points that belongs to each element, this collaborative practice helps to achieve an high resolution of the reality because different people with different skills are involve during this process.

==Specific Type of WBS==
As mention previously WBS is a tool introduced during the 60’, up to present different WBS’s related tools have been developed.

===Value breakdown structure===

This tool is mainly used for assessing a project’s expected value, as WBS has a hierarchical structure. There is one fundamental difference, in this tool is not used the 100% rule, this because the value is not additive as the cost. For instance, a Helicopter manufacturer wants to produce a 10-seat helicopter the budget is 1000000$, and the Expected monetary value is 1700000$. By using an hierarchical approaches we should decompose the helicopter in different parts, for each parts all the necessary process until to get these components (cockpit, landing skid, passenger seats, engine, rotor, tail rotor, blade ). Let's image that we have all the components except the engine. The cost resources until this stage could be 900000$, but the actual value of this helicopter without the engine is actual 0 because no one wants a Helicopter without the engine. Meaning that the Value added of the engine is equal or close to the entire value of the projects. On one hand, we do not have any value until the motor is not mounted on the helicopter (VBS approach), on the other hand, we have cost for the resources used until now (WBS approach).

===Goals Breakdown Structure===
As a WBS, the Goals Breakdown Structure (GBS) has a hierarchical tree structure, it can be considered like a WBS specially design for goal’s achievement. In the highest level is positioned the overall goal of the projects, at the lower level are located mid-term goals for needed for achieving the top level mission. The GBS elements might include different peculiarities that characterize each goal, for instance, profit, market share, etc. At the third level are defined the products/process needed for achieving the organizational goals.

As written in A Guide to the Project Management Body of Knowledge (PMBOK(R)[1] Guide) it follows rules similar to WBS. For the breakdown decomposition the WBS follows two general rules:

*'''Nothing Extra''' Is not allowed to include an element that does not contribute to the upper-level goals. No layer should contain any extraneous goals.
*'''Nothing Missing''' Each level must define all the goals necessary to ensure the project achieves the next higher-level goals.

The first rule is needed to make sure that the project is a focus in only one objective without losing resource that does not contribute any organization’s value. The second one ensure that everything that is needed for adding value to the project that takes into consideration.
The general scope of a GBS is to analyze all the goals and only the goals needed to achieve the project's higher-level goals.

==Potential Misunderstanding, Disadventage and adventage==

A WBS is not an organizational hierarchy chart. A common error is to develop a WBS in accordance to the organizational hierarchy so is important to decompose the works depending the relations between processes than between “powers” organizational.

A WBS is not a project’s development planning neither a list in chronological order. Is not suggest to plan a project without having developed its WBS, in other words, is like plan the manufacturing process for building an airplane, even before the completion of its project. In this case is even difficult to apply the 100% rules, because the goals are not well defined. Moreover once that a WBS is defined, in case of error is not possible to fix it without starting from the beginning, because all the processes are connected each other.
For this reason build and maintain a WBS is a process that require a strong effort in terms of times and HR , due to that fact that many people should be involved to increase the common sharing knowledge about the projects. Moreover, it should be periodically review to ensure the WBS’s reliability, this has influence on future decision that the PM will take. As said review a WBS has a cost, due to that WBS encourages rigid structure for the project. Thus, it reduces managerial flexibility to initiate and lead changes during the project life cycle. (Salvendy, 2001) <ref> Salvendy, G. 2001, Handbook of Industrial Engineering, 3rd ed, John Wiley & Sons, Inc, Canada</ref>.
However
# The WBS reflects the project objectives, by listing all the activities required to accomplish these objectives, it prevents confusion and doubts as to the aim of the project.
# It creates a common database and dictionary of common notation that serves as a reference point for all involved parties.
# The WBS enables smooth communications among the project team members and between them and customers, suppliers, regulators and etc.
# It serves as an archive that can later facilitate knowledge transfer to other projects or learning by new members of the work force.
# The WBS is an effective tool for resource management.

==References==
<references/>

Work Breakdown Structure (WBS)

2015-09-21T21:25:14Z

S141530: /* Work Breakdown Structure main Charactheristics */

Work Breakdown Structure (WBS) is a tool used in project management context that divide in different levels of details a deliverable-oriented project in hierarchical order. The primary objective is to support the project manager by giving an overview of different steps, resources and costs involved in the project. Moreover during the project executions may include the percentage of steps completed this ensure better control and guidance in case during the project development may occur any changes.
It is graphically represented by a hierarchical tree, where the job of each element is given by the sum of elements underneath connected (sublevels). These elements may represent a product, data, service or any combination thereof.

==History==

The WBS was initially developed by the U.S. defense, back to the 1950’s and 60’s, in cooperation with NASA they were adopting the Program Evaluation and Review Technique (PERT) <ref>S1 Cleland, David I. and Roland Gareis, Global Project Management Handbook, McGraw-Hill Professional, 2006</ref> . During 1962, United State Airforce released “STUDY OF METHODS FOR EVALUATION OF THE PERT/COST MANAGEMENT SYSTEM” in this document was mention WBS as a useful tool for Controlling and planning large acquisition projects <ref> Eric S. Norman, Shelly A. Brotherton, Robert T. Fried Work Breakdown Structures: The Foundation for Project Management Excellence, Wiley, 2010</ref> . As understandable, most of NASA projects involves many actors (contractors) with totally different tasks. However, all of them are parts of the same project and works for the same final scope. The WBS was used to ‘‘ . . . ensure that the total project is fully planned and that all derivative plans contribute directly to the desired objectives’’ (NASA, 1962)<ref>"Background and Key Concepts COPYRIGHTED MATERIAL." Web. 20 Sep. 2015</ref>. After, this first approach NASA decide to keep update this document because believed valid and useful. In 1968, due to its success, the Department of Defense released "Work Breakdown Structures for Defense Materiel Items" (MIL-STD-881), a military standard procedure which is obligatory for all programs under the Department of Defense. This standard is constantly updated, the latest version refers to 2001 <ref>''[http://www.mcri.com/wp-content/uploads/2014/09/Military-Standard-881C-----Department-of-Defense-Standard-Practice-----Work-Breakdown-Structures-for-Defense-Materiel-Items-MIL-STD-881C-3-Oct-11.pdf Military-Standard-881C]'', 3 October 2011</ref>.
Project Management Institute (PMI) during 1987 started to enlarge these collections of documents for non-military purpose as result The Project Management Body of Knowledge (PMBOK) has been release. The first version is from 1987, and other versions have been released during 1987, 1996, 2000, 2004, 2009, 2013 <ref>"Guide, A. "Project Management Body of Knowledge (PMBOK® GUIDE & STANDARD)." Project Management Institute. 2001.</ref>. The main concept of subdividing different activities through different levels remain the same of the early years. However, the approach goes from “A task- oriented ‘family tree’ of activities 1987” PMBOKfirst Guide to “A deliverable- oriented hierarchical decomposition of the work to be executed by the project team to accomplish the project objectives and create the required deliverables” (PMBOK Guide — Third).

On one hand, the documents from PMI gives an overview of the WBS concept, on the other hand, the document released from the Department of Defense can be considered as a Handbook.

==Work Breakdown Structure main Charactheristics==

WBS could be considered a general tool that can be use in most of projects and program, due to this reason a WBS to another may vary to best adapts the project manager needs.
However, is important to underline which core characteristics this tool should have to define a quality WBS.

In this case the terms “quality” is well define from Project Management Institute’s (PMI) that in 2006 released the paper “Practice Standard for Work Breakdown Structures”, in this document the definition of a quality WBS is given from two statement:

# A quality WBS is constructed in such a way that it satisfies all of the requirements for its use in a project.
# At all level of the WBS quality characteristics must be implemented.

In other words a quality WBS must comply with all requirements for its use, no matter is the scope project, program or portfolio.

This first requirement is the most important one, it is that a WBS should be deliverable-oriented, this guaranty a WBS that can be taken under control thanks to a “Milestone Structure”. Moreover, the final scope of the Project is more easily defined. To underpin the importance of this requirement, the PMI include deliverable orientation as part of definition of a WBS .
A WBS must take into consideration the full scope of the project including all internal, external and interim deliverables. For facilitating this task a WBS has an hierarchal approach with at least two levels, to understand better the connection between the elements a coding scheme of differents level should be provided ('''''Picture Under construction''''') , each level must includes 100% of works connection belonging to the lower level 6, Nevertheless is not permitted to included element out of this project scope.
Each level's component is defined by nouns and adjectives but is not permitted the use of verbs, this ensures the deliverable of the element otherwise cold be understood as a task. In case arise the need of clarification can be added a “WBS Dictionary” for defining the outcomes. In addition, since this tool is use for “real-case” application require that can be updated while working are in progress.

If it is true that a quality WBS is constructed in such a way that it satisfies all of its intended needs, then what is it about those needs that differentiate one WBS from another? We are certain that all Work Breakdown Structures are not the same—so what then, separates and makes them unique?
This is where the concept of Use-Related Characteristics comes into play. Use-Related Characteristics include those additional attributes that vary from one project to next, across industries, environments or in the way the WBS is applied within the project. With Use-Related Characteristics, the quality of the WBS depends on how well the specific content and types of WBS elements address the full set of needs of the project or program. This then implies that the more needs that the WBS meets, the higher the resulting quality of the WBS.

* Achieves a sufficient level of decomposition to enable appropriate management and control
* Provides sufficient detail for bounding and communicating the scope of the project in its entirety
* Contains specific types of WBS elements necessary for the project
* Clearly enables the assignment of accountability at the appropriate level, regardless of whether the WBS is for a program or an
individual project

==Representation==
As mentioned before the aim of a WBS is to show at best the scope of the project, program or portfolio taken into consideration. There is no one exact or mandatory way of representing a WBS. Nevertheless, all of them have in common a tree structure. The most use tree structure is the one called inverted Tree Structure Picture 2, in this representation the project has the aspect of an organization chart. However there are other two types of representation the one shown In !!!!picture!!! that has the root on the left side and growth from the right side, the last one is called centralized tree structure Picture this can help the development session.

The graphical representation is not the only way of representing a WBS, tabular views are also used. This approach has the advantage to be clearer in case the WBS has many levels an example is shown in figure !!!Picture!!!. Usually at top level is shown the main deliverable that can change depending what kind of project is analyzed. Lower level provide information to the project managers like, schedule development, cost estimating, resource allocation, and risk assessment. The lowest level also called Work Packages. It is defined by PMI as:” A deliverable or project work component at the lowest level of the Work Breakdown Structure. The work package includes the schedule activities and schedule milestones required to complete the work package deliverable or project work component’.It is a good habit as suggest NASA of not having more than seven levels. Each element of a WBS is recognizable by a clear, descriptive title and by a numbering scheme

Depending on the level the management might assign responsibility for technical, schedule, and cost performance. A Control Account is usually established to guaranty at best he intersection between of WBS element and organization unit.

==Decomposition procedures==
Overall a WBS is the result of a decomposition process, which goes from the project and terminates to a certain level of details necessary for effective communication at the project's stakeholder. Meaning that there is not a rule regarding how much in detail the WBS should go, it depends from project to project. This supports the statement that identify WBS as Use-Related Characteristics tool. Nevertheless, is important find a good balance between communication and complexity the need for control <ref> Stephen A. Devaux. 1 edition (September 18, 2014). Managing Projects as Investments: Earned Value to Business Value </ref>.

The most common method for decomposing a WBS are the following methods:
*Function
Project’s deliverables are collected by business function for facilitating communication to stakeholders. This WBS is focusing on operations or activities that should be performed.
*Role
Similar to the previous one, this is focusing more on responsibility.
*Method
The project derivable is based on methodology or delivery process, this type of WBS is easy to understand and is mainly use for showing the projects outcomes.
*Deliverables (components)
Most common used, can be use for every types of projects
Functional breakdown the project’s deliverables are collected by business function

==100% Rule==

One of the most important principles for developing a WBS is called 100% rule. This rule is define from Project Management Institute (PMI).

This 100% rule define that a WBS must Include the 100% of the work defined from the project and include all the necessary for its realization (Internal, contractor, subcontractor) included the management of the project itself. The 100% rule is one of the most important guideline for developing the decomposition and evaluation of a WBS. The rule is applied at all levels of the hierarchical structure : ‘the next level of decomposition of a WBS element (child level) must represent 100 percent of the work applicable to the next higher (parent) element’’ <ref> Haugan, Gregory T. 2002. Effective Work Breakdown Structures. Vienna, VA Management Concepts</ref> (Haugan p. 17)..
The WBS can not include jobs out of the project’s border, meaning that should not include more of the 100%.

Applying the 100% Rule allows the manager to know that all efforts in each area are captured where they belong and also that nothing unrelated is included in an element. Application of the 100% Rule enables all outcomes to be defined before schedule planning begins. The work breakdown structure is the initiator in the planning process, as planned outcomes must be defined before methods and schedules can be considered. If outcomes are insufficiently defined, the project cannot succeed. Awareness of the 100% Rule enables and communicates the full understanding of all necessary outcomes. Once the project is underway the 100% Rule assists in assuring that project costs are properly shown in the accounting system. This is true for all projects, whether they are accomplished for another division in a company or a regular paying customer. Application of the 100% Rule enables accurate costing, which is essential to budget similar efforts in the future.

===100% Rule Application===

This example provides a practical use of the 100% rule and the "progressive elaboration" technique. In !!!!figure!!!!! is shown a WBS has the objective the Build of an house.
At the top level (Level 1) the project manager has assign 100 point to the whole project, meaning the entire building process of the house. Breaking down to level number 2 we have more than one deliverable, by summing the point of each four elements we have the result will be 100. The point allocated in each element is the result of a project manager’s consideration, meaning that these points are not an estimation of Cost/Time, etc. but represents the overall effort needed to complete the task. Some elements (the once that needs a higher detail of decomposition) have a lower level (Level 3) that represent in this case the lowest level of this WBS. However, if is needed this breaks down process can continus until the project manager is not satisfy regarding the level of details that want to achieve. The procedure just used is calle“progressive elaboration”.

As in this example, is totally fine if have different level of decomposition through different elements

It is suggest that the project manager use a software support, as a spreadsheet, for have an auto.sum operations, this could seems a silly recommendation, but a WBS of a portfolio can have hundred of branches a spreadsheet will be very usfull. Another recommended procedure is to discuss together with the project team regarding the amount of points that belongs to each element, this collaborative practice helps to achieve an high resolution of the reality because different people with different skills are involve during this process.

==Specific Type of WBS==
As mention previously WBS is a tool introduced during the 60’, up to present different WBS’s related tools have been developed.

===Value breakdown structure===

This tool is mainly used for assessing a project’s expected value, as WBS has a hierarchical structure. There is one fundamental difference, in this tool is not used the 100% rule, this because the value is not additive as the cost. For instance, a Helicopter manufacturer wants to produce a 10-seat helicopter the budget is 1000000$, and the Expected monetary value is 1700000$. By using an hierarchical approaches we should decompose the helicopter in different parts, for each parts all the necessary process until to get these components (cockpit, landing skid, passenger seats, engine, rotor, tail rotor, blade ). Let's image that we have all the components except the engine. The cost resources until this stage could be 900000$, but the actual value of this helicopter without the engine is actual 0 because no one wants a Helicopter without the engine. Meaning that the Value added of the engine is equal or close to the entire value of the projects. On one hand, we do not have any value until the motor is not mounted on the helicopter (VBS approach), on the other hand, we have cost for the resources used until now (WBS approach).

===Goals Breakdown Structure===
As a WBS, the Goals Breakdown Structure (GBS) has a hierarchical tree structure, it can be considered like a WBS specially design for goal’s achievement. In the highest level is positioned the overall goal of the projects, at the lower level are located mid-term goals for needed for achieving the top level mission. The GBS elements might include different peculiarities that characterize each goal, for instance, profit, market share, etc. At the third level are defined the products/process needed for achieving the organizational goals.

As written in A Guide to the Project Management Body of Knowledge (PMBOK(R)[1] Guide) it follows rules similar to WBS. For the breakdown decomposition the WBS follows two general rules:

*'''Nothing Extra''' Is not allowed to include an element that does not contribute to the upper-level goals. No layer should contain any extraneous goals.
*'''Nothing Missing''' Each level must define all the goals necessary to ensure the project achieves the next higher-level goals.

The first rule is needed to make sure that the project is a focus in only one objective without losing resource that does not contribute any organization’s value. The second one ensure that everything that is needed for adding value to the project that takes into consideration.
The general scope of a GBS is to analyze all the goals and only the goals needed to achieve the project's higher-level goals.

==Potential Misunderstanding, Disadventage and adventage==

A WBS is not an organizational hierarchy chart. A common error is to develop a WBS in accordance to the organizational hierarchy so is important to decompose the works depending the relations between processes than between “powers” organizational.

A WBS is not a project’s development planning neither a list in chronological order. Is not suggest to plan a project without having developed its WBS, in other words, is like plan the manufacturing process for building an airplane, even before the completion of its project. In this case is even difficult to apply the 100% rules, because the goals are not well defined. Moreover once that a WBS is defined, in case of error is not possible to fix it without starting from the beginning, because all the processes are connected each other.
For this reason build and maintain a WBS is a process that require a strong effort in terms of times and HR , due to that fact that many people should be involved to increase the common sharing knowledge about the projects. Moreover, it should be periodically review to ensure the WBS’s reliability, this has influence on future decision that the PM will take. As said review a WBS has a cost, due to that WBS encourages rigid structure for the project. Thus, it reduces managerial flexibility to initiate and lead changes during the project life cycle. (Salvendy, 2001) <ref> Salvendy, G. 2001, Handbook of Industrial Engineering, 3rd ed, John Wiley & Sons, Inc, Canada</ref>.
However
# The WBS reflects the project objectives, by listing all the activities required to accomplish these objectives, it prevents confusion and doubts as to the aim of the project.
# It creates a common database and dictionary of common notation that serves as a reference point for all involved parties.
# The WBS enables smooth communications among the project team members and between them and customers, suppliers, regulators and etc.
# It serves as an archive that can later facilitate knowledge transfer to other projects or learning by new members of the work force.
# The WBS is an effective tool for resource management.

==References==
<references/>

Work Breakdown Structure (WBS)

2015-09-21T20:46:01Z

S141530: /* History */

Work Breakdown Structure (WBS) is a tool used in project management context that divide in different levels of details a deliverable-oriented project in hierarchical order. The primary objective is to support the project manager by giving an overview of different steps, resources and costs involved in the project. Moreover during the project executions may include the percentage of steps completed this ensure better control and guidance in case during the project development may occur any changes.
It is graphically represented by a hierarchical tree, where the job of each element is given by the sum of elements underneath connected (sublevels). These elements may represent a product, data, service or any combination thereof.

==History==

The WBS was initially developed by the U.S. defense, back to the 1950’s and 60’s, in cooperation with NASA they were adopting the Program Evaluation and Review Technique (PERT) <ref>S1 Cleland, David I. and Roland Gareis, Global Project Management Handbook, McGraw-Hill Professional, 2006</ref> . During 1962, United State Airforce released “STUDY OF METHODS FOR EVALUATION OF THE PERT/COST MANAGEMENT SYSTEM” in this document was mention WBS as a useful tool for Controlling and planning large acquisition projects <ref> Eric S. Norman, Shelly A. Brotherton, Robert T. Fried Work Breakdown Structures: The Foundation for Project Management Excellence, Wiley, 2010</ref> . As understandable, most of NASA projects involves many actors (contractors) with totally different tasks. However, all of them are parts of the same project and works for the same final scope. The WBS was used to ‘‘ . . . ensure that the total project is fully planned and that all derivative plans contribute directly to the desired objectives’’ (NASA, 1962)<ref>"Background and Key Concepts COPYRIGHTED MATERIAL." Web. 20 Sep. 2015</ref>. After, this first approach NASA decide to keep update this document because believed valid and useful. In 1968, due to its success, the Department of Defense released "Work Breakdown Structures for Defense Materiel Items" (MIL-STD-881), a military standard procedure which is obligatory for all programs under the Department of Defense. This standard is constantly updated, the latest version refers to 2001 <ref>''[http://www.mcri.com/wp-content/uploads/2014/09/Military-Standard-881C-----Department-of-Defense-Standard-Practice-----Work-Breakdown-Structures-for-Defense-Materiel-Items-MIL-STD-881C-3-Oct-11.pdf Military-Standard-881C]'', 3 October 2011</ref>.
Project Management Institute (PMI) during 1987 started to enlarge these collections of documents for non-military purpose as result The Project Management Body of Knowledge (PMBOK) has been release. The first version is from 1987, and other versions have been released during 1987, 1996, 2000, 2004, 2009, 2013 <ref>"Guide, A. "Project Management Body of Knowledge (PMBOK® GUIDE & STANDARD)." Project Management Institute. 2001.</ref>. The main concept of subdividing different activities through different levels remain the same of the early years. However, the approach goes from “A task- oriented ‘family tree’ of activities 1987” PMBOKfirst Guide to “A deliverable- oriented hierarchical decomposition of the work to be executed by the project team to accomplish the project objectives and create the required deliverables” (PMBOK Guide — Third).

On one hand, the documents from PMI gives an overview of the WBS concept, on the other hand, the document released from the Department of Defense can be considered as a Handbook.

==Work Breakdown Structure main Charactheristics==

WBS could be consider a general toll that can be use in most of projects and program, due to this reason a WBS to another may vary to best adapts the project manager needs.
However, is important to underline which core cartelistic this tool should have to define a quality WBS.

In this case the terms “quality” is well define from Project Management Institute’s (PMI) that in 2006 released the paper “Practice Standard for Work Breakdown Structures”, in this document the definition of a quality WBS is given from two statement:

# A quality WBS is constructed in such a way that it satisfies all of the requirements for its use in a project
# At all level of the WBS quality characteristics must be apply

In other words a quality WBS must comply with all requirements for its use, no matter is the scope project ,program or portfolio.

This first requirement is the most important one, it is that a WBS should be deliverable-oriented, this guaranty a WBS that can be taken under control thanks to a “Milestone Structure”. Moreover, the final scope of the Project is more easily defined. To underpin the importance of this requirement, the PMI include deliverable orientation as part of definition of a WBS .
A WBS must take into consideration the full scope of the project including all internal, external and interim deliverables. For facilitating this task a WBS has an hierarchal approach with at least two levels,to understand better the connection between the elements a coding scheme of differents level should be provided( immagine) , each level must includes 100% of works connection belonging to the lower level 6, Nevertheless is not permitted to included element out of this project scope.
Each level's component is defined by nouns and adjectives but is not permitted the use of verbs, this ensures the deliverable of the element otherwise cold be understood as a task. In case arise the need of clarification can be add a “WBS Dictionary” for defining the outcomes. In addition, since this tool is use for “real-case” application require that can be updated while working are in progress.

If it is true that a quality WBS is constructed in such a way that it satisfies all of its intended needs, then what is it about those needs that differentiate one WBS from another? We are certain that all Work Breakdown Structures are not the same—so what then, separates and makes them unique?
This is where the concept of Use-Related Characteristics comes into play. Use-Related Characteristics include those additional attributes that vary from one project to next, across industries, environments or in the way the WBS is applied within the project. With Use-Related Characteristics, the quality of the WBS depends on how well the specific content and types of WBS elements address the full set of needs of the project or program. This then implies that the more needs that the WBS meets, the higher the resulting quality of the WBS.P7

* Achieves a sufficient level of decomposition to enable appropriate management and control
* Provides sufficient detail for bounding and communicating the scope of the project in its entirety
* Contains specific types of WBS elements necessary for the project
* Clearly enables the assignment of accountability at the appropriate level, regardless of whether the WBS is for a program or an
individual project

==Representation==
As mentioned before the aim of a WBS is to show at best the scope of the project, program or portfolio taken into consideration. There is no one exact or mandatory way of representing a WBS. Nevertheless, all of them have in common a tree structure. The most use tree structure is the one called inverted Tree Structure Picture 2, in this representation the project has the aspect of an organization chart. However there are other two types of representation the one shown In !!!!picture!!! that has the root on the left side and growth from the right side, the last one is called centralized tree structure Picture this can help the development session.

The graphical representation is not the only way of representing a WBS, tabular views are also used. This approach has the advantage to be clearer in case the WBS has many levels an example is shown in figure !!!Picture!!!. Usually at top level is shown the main deliverable that can change depending what kind of project is analyzed. Lower level provide information to the project managers like, schedule development, cost estimating, resource allocation, and risk assessment. The lowest level also called Work Packages. It is defined by PMI as:” A deliverable or project work component at the lowest level of the Work Breakdown Structure. The work package includes the schedule activities and schedule milestones required to complete the work package deliverable or project work component’.It is a good habit as suggest NASA of not having more than seven levels. Each element of a WBS is recognizable by a clear, descriptive title and by a numbering scheme

Depending on the level the management might assign responsibility for technical, schedule, and cost performance. A Control Account is usually established to guaranty at best he intersection between of WBS element and organization unit.

==Decomposition procedures==
Overall a WBS is the result of a decomposition process, which goes from the project and terminates to a certain level of details necessary for effective communication at the project's stakeholder. Meaning that there is not a rule regarding how much in detail the WBS should go, it depends from project to project. This supports the statement that identify WBS as Use-Related Characteristics tool. Nevertheless, is important find a good balance between communication and complexity the need for control <ref> Stephen A. Devaux. 1 edition (September 18, 2014). Managing Projects as Investments: Earned Value to Business Value </ref>.

The most common method for decomposing a WBS are the following methods:
*Function
Project’s deliverables are collected by business function for facilitating communication to stakeholders. This WBS is focusing on operations or activities that should be performed.
*Role
Similar to the previous one, this is focusing more on responsibility.
*Method
The project derivable is based on methodology or delivery process, this type of WBS is easy to understand and is mainly use for showing the projects outcomes.
*Deliverables (components)
Most common used, can be use for every types of projects
Functional breakdown the project’s deliverables are collected by business function

==100% Rule==

One of the most important principles for developing a WBS is called 100% rule. This rule is define from Project Management Institute (PMI).

This 100% rule define that a WBS must Include the 100% of the work defined from the project and include all the necessary for its realization (Internal, contractor, subcontractor) included the management of the project itself. The 100% rule is one of the most important guideline for developing the decomposition and evaluation of a WBS. The rule is applied at all levels of the hierarchical structure : ‘the next level of decomposition of a WBS element (child level) must represent 100 percent of the work applicable to the next higher (parent) element’’ <ref> Haugan, Gregory T. 2002. Effective Work Breakdown Structures. Vienna, VA Management Concepts</ref> (Haugan p. 17)..
The WBS can not include jobs out of the project’s border, meaning that should not include more of the 100%.

Applying the 100% Rule allows the manager to know that all efforts in each area are captured where they belong and also that nothing unrelated is included in an element. Application of the 100% Rule enables all outcomes to be defined before schedule planning begins. The work breakdown structure is the initiator in the planning process, as planned outcomes must be defined before methods and schedules can be considered. If outcomes are insufficiently defined, the project cannot succeed. Awareness of the 100% Rule enables and communicates the full understanding of all necessary outcomes. Once the project is underway the 100% Rule assists in assuring that project costs are properly shown in the accounting system. This is true for all projects, whether they are accomplished for another division in a company or a regular paying customer. Application of the 100% Rule enables accurate costing, which is essential to budget similar efforts in the future.

===100% Rule Application===

This example provides a practical use of the 100% rule and the "progressive elaboration" technique. In !!!!figure!!!!! is shown a WBS has the objective the Build of an house.
At the top level (Level 1) the project manager has assign 100 point to the whole project, meaning the entire building process of the house. Breaking down to level number 2 we have more than one deliverable, by summing the point of each four elements we have the result will be 100. The point allocated in each element is the result of a project manager’s consideration, meaning that these points are not an estimation of Cost/Time, etc. but represents the overall effort needed to complete the task. Some elements (the once that needs a higher detail of decomposition) have a lower level (Level 3) that represent in this case the lowest level of this WBS. However, if is needed this breaks down process can continus until the project manager is not satisfy regarding the level of details that want to achieve. The procedure just used is calle“progressive elaboration”.

As in this example, is totally fine if have different level of decomposition through different elements

It is suggest that the project manager use a software support, as a spreadsheet, for have an auto.sum operations, this could seems a silly recommendation, but a WBS of a portfolio can have hundred of branches a spreadsheet will be very usfull. Another recommended procedure is to discuss together with the project team regarding the amount of points that belongs to each element, this collaborative practice helps to achieve an high resolution of the reality because different people with different skills are involve during this process.

==Specific Type of WBS==
As mention previously WBS is a tool introduced during the 60’, up to present different WBS’s related tools have been developed.

===Value breakdown structure===

This tool is mainly used for assessing a project’s expected value, as WBS has a hierarchical structure. There is one fundamental difference, in this tool is not used the 100% rule, this because the value is not additive as the cost. For instance, a Helicopter manufacturer wants to produce a 10-seat helicopter the budget is 1000000$, and the Expected monetary value is 1700000$. By using an hierarchical approaches we should decompose the helicopter in different parts, for each parts all the necessary process until to get these components (cockpit, landing skid, passenger seats, engine, rotor, tail rotor, blade ). Let's image that we have all the components except the engine. The cost resources until this stage could be 900000$, but the actual value of this helicopter without the engine is actual 0 because no one wants a Helicopter without the engine. Meaning that the Value added of the engine is equal or close to the entire value of the projects. On one hand, we do not have any value until the motor is not mounted on the helicopter (VBS approach), on the other hand, we have cost for the resources used until now (WBS approach).

===Goals Breakdown Structure===
As a WBS, the Goals Breakdown Structure (GBS) has a hierarchical tree structure, it can be considered like a WBS specially design for goal’s achievement. In the highest level is positioned the overall goal of the projects, at the lower level are located mid-term goals for needed for achieving the top level mission. The GBS elements might include different peculiarities that characterize each goal, for instance, profit, market share, etc. At the third level are defined the products/process needed for achieving the organizational goals.

As written in A Guide to the Project Management Body of Knowledge (PMBOK(R)[1] Guide) it follows rules similar to WBS. For the breakdown decomposition the WBS follows two general rules:

*'''Nothing Extra''' Is not allowed to include an element that does not contribute to the upper-level goals. No layer should contain any extraneous goals.
*'''Nothing Missing''' Each level must define all the goals necessary to ensure the project achieves the next higher-level goals.

The first rule is needed to make sure that the project is a focus in only one objective without losing resource that does not contribute any organization’s value. The second one ensure that everything that is needed for adding value to the project that takes into consideration.
The general scope of a GBS is to analyze all the goals and only the goals needed to achieve the project's higher-level goals.

==Potential Misunderstanding, Disadventage and adventage==

A WBS is not an organizational hierarchy chart. A common error is to develop a WBS in accordance to the organizational hierarchy so is important to decompose the works depending the relations between processes than between “powers” organizational.

A WBS is not a project’s development planning neither a list in chronological order. Is not suggest to plan a project without having developed its WBS, in other words, is like plan the manufacturing process for building an airplane, even before the completion of its project. In this case is even difficult to apply the 100% rules, because the goals are not well defined. Moreover once that a WBS is defined, in case of error is not possible to fix it without starting from the beginning, because all the processes are connected each other.
For this reason build and maintain a WBS is a process that require a strong effort in terms of times and HR , due to that fact that many people should be involved to increase the common sharing knowledge about the projects. Moreover, it should be periodically review to ensure the WBS’s reliability, this has influence on future decision that the PM will take. As said review a WBS has a cost, due to that WBS encourages rigid structure for the project. Thus, it reduces managerial flexibility to initiate and lead changes during the project life cycle. (Salvendy, 2001) <ref> Salvendy, G. 2001, Handbook of Industrial Engineering, 3rd ed, John Wiley & Sons, Inc, Canada</ref>.
However
# The WBS reflects the project objectives, by listing all the activities required to accomplish these objectives, it prevents confusion and doubts as to the aim of the project.
# It creates a common database and dictionary of common notation that serves as a reference point for all involved parties.
# The WBS enables smooth communications among the project team members and between them and customers, suppliers, regulators and etc.
# It serves as an archive that can later facilitate knowledge transfer to other projects or learning by new members of the work force.
# The WBS is an effective tool for resource management.

==References==
<references/>

Work Breakdown Structure (WBS)

2015-09-21T09:52:33Z

S141530:

Work Breakdown Structure (WBS) is a tool used in project management context that divide in different levels of details a deliverable-oriented project in hierarchical order. The primary objective is to support the project manager by giving an overview of different steps, resources and costs involved in the project. Moreover during the project executions may include the percentage of steps completed this ensure better control and guidance in case during the project development may occur any changes.
It is graphically represented by a hierarchical tree, where the job of each element is given by the sum of elements underneath connected (sublevels). These elements may represent a product, data, service or any combination thereof.

==History==

The WBS was initially developed by the U.S. defense, back to the 1950’s and 60’s, in cooperation with NASA they were adopting the Program Evaluation and Review Technique (PERT) <ref>S1 Cleland, David I. and Roland Gareis, Global Project Management Handbook, McGraw-Hill Professional, 2006</ref> . During 1962, United State Airforce released “STUDY OF METHODS FOR EVALUATION OF THE PERT/COST MANAGEMENT SYSTEM” in this document was mention WBS as a useful tool for Controlling and planning large acquisition projects <ref> Eric S. Norman, Shelly A. Brotherton, Robert T. Fried Work Breakdown Structures: The Foundation for Project Management Excellence, Wiley, 2010</ref> . As understandable, most of NASA projects involves many actors (contractors) with totally different tasks. However, all of them are parts of the same project and works for the same final scope. The WBS was used to ‘‘ . . . ensure that the total project is fully planned and that all derivative plans contribute directly to the desired objectives’’ (NASA, 1962)<ref>"Background and Key Concepts COPYRIGHTED MATERIAL." Web. 20 Sep. 2015</ref>. After, this first approach NASA decide to keep update this document because believed valid and useful. In 1968, due to its success, the Department of Defense released "Work Breakdown Structures for Defense Materiel Items" (MIL-STD-881), a military standard procedure which is obligatory for all programs under the Department of Defense. This standard is constantly updated, the latest version refers tp 2001 <ref>''[http://www.mcri.com/wp-content/uploads/2014/09/Military-Standard-881C-----Department-of-Defense-Standard-Practice-----Work-Breakdown-Structures-for-Defense-Materiel-Items-MIL-STD-881C-3-Oct-11.pdf Military-Standard-881C]'', 3 October 2011</ref>.
Project Management Institute (PMI) during 1987 started to enlarge these collections of documents for non-military purpose as result The Project Management Body of Knowledge (PMBOK) has been release. The first version is from 1987, and other versions have been released during (987, 1996, 2000, 2004, 2009, 2013 <ref>"Guide, A. "Project Management Body of Knowledge (PMBOK® GUIDE & STANDARD)." Project Management Institute. 2001.</ref>. The main concept of subdividing different activities through different levels remain the same of the early years. However, the approach goes from “A task- oriented ‘family tree’ of activities 1987” PMBOKfirst Guide to “A deliverable- oriented hierarchical decomposition of the work to be executed by the project team to accomplish the project objectives and create the required deliverables” (PMBOK Guide — Third).

On one hand, the documents from PMI gives an overview of the WBS concept, on the other hand, the document released from the Department of Defense can be considered as a Handbook.

==Work Breakdown Structure main Charactheristics==

WBS could be consider a general toll that can be use in most of projects and program, due to this reason a WBS to another may vary to best adapts the project manager needs.
However, is important to underline which core cartelistic this tool should have to define a quality WBS.

In this case the terms “quality” is well define from Project Management Institute’s (PMI) that in 2006 released the paper “Practice Standard for Work Breakdown Structures”, in this document the definition of a quality WBS is given from two statement:

# A quality WBS is constructed in such a way that it satisfies all of the requirements for its use in a project
# At all level of the WBS quality characteristics must be apply

In other words a quality WBS must comply with all requirements for its use, no matter is the scope project ,program or portfolio.

This first requirement is the most important one, it is that a WBS should be deliverable-oriented, this guaranty a WBS that can be taken under control thanks to a “Milestone Structure”. Moreover, the final scope of the Project is more easily defined. To underpin the importance of this requirement, the PMI include deliverable orientation as part of definition of a WBS .
A WBS must take into consideration the full scope of the project including all internal, external and interim deliverables. For facilitating this task a WBS has an hierarchal approach with at least two levels,to understand better the connection between the elements a coding scheme of differents level should be provided( immagine) , each level must includes 100% of works connection belonging to the lower level 6, Nevertheless is not permitted to included element out of this project scope.
Each level's component is defined by nouns and adjectives but is not permitted the use of verbs, this ensures the deliverable of the element otherwise cold be understood as a task. In case arise the need of clarification can be add a “WBS Dictionary” for defining the outcomes. In addition, since this tool is use for “real-case” application require that can be updated while working are in progress.

If it is true that a quality WBS is constructed in such a way that it satisfies all of its intended needs, then what is it about those needs that differentiate one WBS from another? We are certain that all Work Breakdown Structures are not the same—so what then, separates and makes them unique?
This is where the concept of Use-Related Characteristics comes into play. Use-Related Characteristics include those additional attributes that vary from one project to next, across industries, environments or in the way the WBS is applied within the project. With Use-Related Characteristics, the quality of the WBS depends on how well the specific content and types of WBS elements address the full set of needs of the project or program. This then implies that the more needs that the WBS meets, the higher the resulting quality of the WBS.P7

* Achieves a sufficient level of decomposition to enable appropriate management and control
* Provides sufficient detail for bounding and communicating the scope of the project in its entirety
* Contains specific types of WBS elements necessary for the project
* Clearly enables the assignment of accountability at the appropriate level, regardless of whether the WBS is for a program or an
individual project

==Representation==
As mentioned before the aim of a WBS is to show at best the scope of the project, program or portfolio taken into consideration. There is no one exact or mandatory way of representing a WBS. Nevertheless, all of them have in common a tree structure. The most use tree structure is the one called inverted Tree Structure Picture 2, in this representation the project has the aspect of an organization chart. However there are other two types of representation the one shown In !!!!picture!!! that has the root on the left side and growth from the right side, the last one is called centralized tree structure Picture this can help the development session.

The graphical representation is not the only way of representing a WBS, tabular views are also used. This approach has the advantage to be clearer in case the WBS has many levels an example is shown in figure !!!Picture!!!. Usually at top level is shown the main deliverable that can change depending what kind of project is analyzed. Lower level provide information to the project managers like, schedule development, cost estimating, resource allocation, and risk assessment. The lowest level also called Work Packages. It is defined by PMI as:” A deliverable or project work component at the lowest level of the Work Breakdown Structure. The work package includes the schedule activities and schedule milestones required to complete the work package deliverable or project work component’.It is a good habit as suggest NASA of not having more than seven levels. Each element of a WBS is recognizable by a clear, descriptive title and by a numbering scheme

Depending on the level the management might assign responsibility for technical, schedule, and cost performance. A Control Account is usually established to guaranty at best he intersection between of WBS element and organization unit.

==Decomposition procedures==
Overall a WBS is the result of a decomposition process, which goes from the project and terminates to a certain level of details necessary for effective communication at the project's stakeholder. Meaning that there is not a rule regarding how much in detail the WBS should go, it depends from project to project. This supports the statement that identify WBS as Use-Related Characteristics tool. Nevertheless, is important find a good balance between communication and complexity the need for control <ref> Stephen A. Devaux. 1 edition (September 18, 2014). Managing Projects as Investments: Earned Value to Business Value </ref>.

The most common method for decomposing a WBS are the following methods:
*Function
Project’s deliverables are collected by business function for facilitating communication to stakeholders. This WBS is focusing on operations or activities that should be performed.
*Role
Similar to the previous one, this is focusing more on responsibility.
*Method
The project derivable is based on methodology or delivery process, this type of WBS is easy to understand and is mainly use for showing the projects outcomes.
*Deliverables (components)
Most common used, can be use for every types of projects
Functional breakdown the project’s deliverables are collected by business function

==100% Rule==

One of the most important principles for developing a WBS is called 100% rule. This rule is define from Project Management Institute (PMI).

This 100% rule define that a WBS must Include the 100% of the work defined from the project and include all the necessary for its realization (Internal, contractor, subcontractor) included the management of the project itself. The 100% rule is one of the most important guideline for developing the decomposition and evaluation of a WBS. The rule is applied at all levels of the hierarchical structure : ‘the next level of decomposition of a WBS element (child level) must represent 100 percent of the work applicable to the next higher (parent) element’’ <ref> Haugan, Gregory T. 2002. Effective Work Breakdown Structures. Vienna, VA Management Concepts</ref> (Haugan p. 17)..
The WBS can not include jobs out of the project’s border, meaning that should not include more of the 100%.

Applying the 100% Rule allows the manager to know that all efforts in each area are captured where they belong and also that nothing unrelated is included in an element. Application of the 100% Rule enables all outcomes to be defined before schedule planning begins. The work breakdown structure is the initiator in the planning process, as planned outcomes must be defined before methods and schedules can be considered. If outcomes are insufficiently defined, the project cannot succeed. Awareness of the 100% Rule enables and communicates the full understanding of all necessary outcomes. Once the project is underway the 100% Rule assists in assuring that project costs are properly shown in the accounting system. This is true for all projects, whether they are accomplished for another division in a company or a regular paying customer. Application of the 100% Rule enables accurate costing, which is essential to budget similar efforts in the future.

===100% Rule Application===

This example provides a practical use of the 100% rule and the "progressive elaboration" technique. In !!!!figure!!!!! is shown a WBS has the objective the Build of an house.
At the top level (Level 1) the project manager has assign 100 point to the whole project, meaning the entire building process of the house. Breaking down to level number 2 we have more than one deliverable, by summing the point of each four elements we have the result will be 100. The point allocated in each element is the result of a project manager’s consideration, meaning that these points are not an estimation of Cost/Time, etc. but represents the overall effort needed to complete the task. Some elements (the once that needs a higher detail of decomposition) have a lower level (Level 3) that represent in this case the lowest level of this WBS. However, if is needed this breaks down process can continus until the project manager is not satisfy regarding the level of details that want to achieve. The procedure just used is calle“progressive elaboration”.

As in this example, is totally fine if have different level of decomposition through different elements

It is suggest that the project manager use a software support, as a spreadsheet, for have an auto.sum operations, this could seems a silly recommendation, but a WBS of a portfolio can have hundred of branches a spreadsheet will be very usfull. Another recommended procedure is to discuss together with the project team regarding the amount of points that belongs to each element, this collaborative practice helps to achieve an high resolution of the reality because different people with different skills are involve during this process.

==Specific Type of WBS==
As mention previously WBS is a tool introduced during the 60’, up to present different WBS’s related tools have been developed.

===Value breakdown structure===

This tool is mainly used for assessing a project’s expected value, as WBS has a hierarchical structure. There is one fundamental difference, in this tool is not used the 100% rule, this because the value is not additive as the cost. For instance, a Helicopter manufacturer wants to produce a 10-seat helicopter the budget is 1000000$, and the Expected monetary value is 1700000$. By using an hierarchical approaches we should decompose the helicopter in different parts, for each parts all the necessary process until to get these components (cockpit, landing skid, passenger seats, engine, rotor, tail rotor, blade ). Let's image that we have all the components except the engine. The cost resources until this stage could be 900000$, but the actual value of this helicopter without the engine is actual 0 because no one wants a Helicopter without the engine. Meaning that the Value added of the engine is equal or close to the entire value of the projects. On one hand, we do not have any value until the motor is not mounted on the helicopter (VBS approach), on the other hand, we have cost for the resources used until now (WBS approach).

===Goals Breakdown Structure===
As a WBS, the Goals Breakdown Structure (GBS) has a hierarchical tree structure, it can be considered like a WBS specially design for goal’s achievement. In the highest level is positioned the overall goal of the projects, at the lower level are located mid-term goals for needed for achieving the top level mission. The GBS elements might include different peculiarities that characterize each goal, for instance, profit, market share, etc. At the third level are defined the products/process needed for achieving the organizational goals.

As written in A Guide to the Project Management Body of Knowledge (PMBOK(R)[1] Guide) it follows rules similar to WBS. For the breakdown decomposition the WBS follows two general rules:

*'''Nothing Extra''' Is not allowed to include an element that does not contribute to the upper-level goals. No layer should contain any extraneous goals.
*'''Nothing Missing''' Each level must define all the goals necessary to ensure the project achieves the next higher-level goals.

The first rule is needed to make sure that the project is a focus in only one objective without losing resource that does not contribute any organization’s value. The second one ensure that everything that is needed for adding value to the project that takes into consideration.
The general scope of a GBS is to analyze all the goals and only the goals needed to achieve the project's higher-level goals.

==Potential Misunderstanding, Disadventage and adventage==

A WBS is not an organizational hierarchy chart. A common error is to develop a WBS in accordance to the organizational hierarchy so is important to decompose the works depending the relations between processes than between “powers” organizational.

A WBS is not a project’s development planning neither a list in chronological order. Is not suggest to plan a project without having developed its WBS, in other words, is like plan the manufacturing process for building an airplane, even before the completion of its project. In this case is even difficult to apply the 100% rules, because the goals are not well defined. Moreover once that a WBS is defined, in case of error is not possible to fix it without starting from the beginning, because all the processes are connected each other.
For this reason build and maintain a WBS is a process that require a strong effort in terms of times and HR , due to that fact that many people should be involved to increase the common sharing knowledge about the projects. Moreover, it should be periodically review to ensure the WBS’s reliability, this has influence on future decision that the PM will take. As said review a WBS has a cost, due to that WBS encourages rigid structure for the project. Thus, it reduces managerial flexibility to initiate and lead changes during the project life cycle. (Salvendy, 2001) <ref> Salvendy, G. 2001, Handbook of Industrial Engineering, 3rd ed, John Wiley & Sons, Inc, Canada</ref>.
However
# The WBS reflects the project objectives, by listing all the activities required to accomplish these objectives, it prevents confusion and doubts as to the aim of the project.
# It creates a common database and dictionary of common notation that serves as a reference point for all involved parties.
# The WBS enables smooth communications among the project team members and between them and customers, suppliers, regulators and etc.
# It serves as an archive that can later facilitate knowledge transfer to other projects or learning by new members of the work force.
# The WBS is an effective tool for resource management.

==References==
<references/>

Work Breakdown Structure (WBS)

2015-09-21T09:03:33Z

S141530: /* Potential Misunderstanding, Disadventage and adventage */

Work Breakdown Structure (WBS) is a tool used in project management context that divide in different levels of details a deliverable-oriented project in hierarchical order. The primary objective is to support the project manager by giving an overview of different steps, resources and costs involved in the project. Moreover during the project executions may include the percentage of steps completed this ensure better control and guidance in case during the project development may occur any changes.
It is graphically represented by a hierarchical tree, where the job of each element is given by the sum of elements underneath connected (sublevels). These elements may represent a product, data, service or any combination thereof.

==History==

The WBS was initially developed by the U.S. defense, back to the 1950’s and 60’s, in cooperation with NASA they were adopting the Program Evaluation and Review Technique (PERT) <ref>S1 Cleland, David I. and Roland Gareis, Global Project Management Handbook, McGraw-Hill Professional, 2006</ref> . During 1962, United State Airforce released “STUDY OF METHODS FOR EVALUATION OF THE PERT/COST MANAGEMENT SYSTEM” in this document was mention WBS as a useful tool for Controlling and planning large acquisition projects <ref> Eric S. Norman, Shelly A. Brotherton, Robert T. Fried Work Breakdown Structures: The Foundation for Project Management Excellence, Wiley, 2010</ref> . As understandable, most of NASA projects involves many actors (contractors) with totally different tasks. However, all of them are parts of the same project and works for the same final scope. The WBS was used to ‘‘ . . . ensure that the total project is fully planned and that all derivative plans contribute directly to the desired objectives’’ (NASA, 1962)<ref>"Background and Key Concepts COPYRIGHTED MATERIAL." Web. 20 Sep. 2015</ref>. After, this first approach NASA decide to keep update this document because believed valid and useful. In 1968, due to its success, the Department of Defense released "Work Breakdown Structures for Defense Materiel Items" (MIL-STD-881), a military standard procedure which is obligatory for all programs under the Department of Defense. This standard is constantly updated, the latest version refers tp 2001 <ref>''[http://www.mcri.com/wp-content/uploads/2014/09/Military-Standard-881C-----Department-of-Defense-Standard-Practice-----Work-Breakdown-Structures-for-Defense-Materiel-Items-MIL-STD-881C-3-Oct-11.pdf Military-Standard-881C]'', 3 October 2011</ref>.
Project Management Institute (PMI) during 1987 started to enlarge these collections of documents for non-military purpose as result The Project Management Body of Knowledge (PMBOK) has been release. The first version is from 1987, and other versions have been released during (987, 1996, 2000, 2004, 2009, 2013 <ref>"Guide, A. "Project Management Body of Knowledge (PMBOK® GUIDE & STANDARD)." Project Management Institute. 2001.</ref>. The main concept of subdividing different activities through different levels remain the same of the early years. However, the approach goes from “A task- oriented ‘family tree’ of activities 1987” PMBOKfirst Guide to “A deliverable- oriented hierarchical decomposition of the work to be executed by the project team to accomplish the project objectives and create the required deliverables” (PMBOK Guide — Third).

On one hand, the documents from PMI gives an overview of the WBS concept, on the other hand, the document released from the Department of Defense can be considered as a Handbook.

==Representation==
As mentioned before the aim of a WBS is to show at best the scope of the project, program or portfolio taken into consideration. There is no one exact or mandatory way of representing a WBS. Nevertheless, all of them have in common a tree structure. The most use tree structure is the one called inverted Tree Structure Picture 2, in this representation the project has the aspect of an organization chart. However there are other two types of representation the one shown In !!!!picture!!! that has the root on the left side and growth from the right side, the last one is called centralized tree structure Picture this can help the development session.

The graphical representation is not the only way of representing a WBS, tabular views are also used. This approach has the advantage to be clearer in case the WBS has many levels an example is shown in figure !!!Picture!!!. Usually at top level is shown the main deliverable that can change depending what kind of project is analyzed. Lower level provide information to the project managers like, schedule development, cost estimating, resource allocation, and risk assessment. The lowest level also called Work Packages. It is defined by PMI as:” A deliverable or project work component at the lowest level of the Work Breakdown Structure. The work package includes the schedule activities and schedule milestones required to complete the work package deliverable or project work component’.It is a good habit as suggest NASA of not having more than seven levels. Each element of a WBS is recognizable by a clear, descriptive title and by a numbering scheme

Depending on the level the management might assign responsibility for technical, schedule, and cost performance. A Control Account is usually established to guaranty at best he intersection between of WBS element and organization unit.

==Decomposition procedures==
Overall a WBS is the result of a decomposition process, which goes from the project and terminates to a certain level of details necessary for effective communication at the project's stakeholder. Meaning that there is not a rule regarding how much in detail the WBS should go, it depends from project to project. This supports the statement that identify WBS as Use-Related Characteristics tool. Nevertheless, is important find a good balance between communication and complexity the need for control <ref> Stephen A. Devaux. 1 edition (September 18, 2014). Managing Projects as Investments: Earned Value to Business Value </ref>.

The most common method for decomposing a WBS are the following methods:
*Function
Project’s deliverables are collected by business function for facilitating communication to stakeholders. This WBS is focusing on operations or activities that should be performed.
*Role
Similar to the previous one, this is focusing more on responsibility.
*Method
The project derivable is based on methodology or delivery process, this type of WBS is easy to understand and is mainly use for showing the projects outcomes.
*Deliverables (components)
Most common used, can be use for every types of projects
Functional breakdown the project’s deliverables are collected by business function

==100% Rule==

One of the most important principles for developing a WBS is called 100% rule. This rule is define from Project Management Institute (PMI).

This 100% rule define that a WBS must Include the 100% of the work defined from the project and include all the necessary for its realization (Internal, contractor, subcontractor) included the management of the project itself. The 100% rule is one of the most important guideline for developing the decomposition and evaluation of a WBS. The rule is applied at all levels of the hierarchical structure : ‘the next level of decomposition of a WBS element (child level) must represent 100 percent of the work applicable to the next higher (parent) element’’ <ref> Haugan, Gregory T. 2002. Effective Work Breakdown Structures. Vienna, VA Management Concepts</ref> (Haugan p. 17)..
The WBS can not include jobs out of the project’s border, meaning that should not include more of the 100%.

Applying the 100% Rule allows the manager to know that all efforts in each area are captured where they belong and also that nothing unrelated is included in an element. Application of the 100% Rule enables all outcomes to be defined before schedule planning begins. The work breakdown structure is the initiator in the planning process, as planned outcomes must be defined before methods and schedules can be considered. If outcomes are insufficiently defined, the project cannot succeed. Awareness of the 100% Rule enables and communicates the full understanding of all necessary outcomes. Once the project is underway the 100% Rule assists in assuring that project costs are properly shown in the accounting system. This is true for all projects, whether they are accomplished for another division in a company or a regular paying customer. Application of the 100% Rule enables accurate costing, which is essential to budget similar efforts in the future.

===100% Rule Application===

This example provides a practical use of the 100% rule and the "progressive elaboration" technique. In !!!!figure!!!!! is shown a WBS has the objective the Build of an house.
At the top level (Level 1) the project manager has assign 100 point to the whole project, meaning the entire building process of the house. Breaking down to level number 2 we have more than one deliverable, by summing the point of each four elements we have the result will be 100. The point allocated in each element is the result of a project manager’s consideration, meaning that these points are not an estimation of Cost/Time, etc. but represents the overall effort needed to complete the task. Some elements (the once that needs a higher detail of decomposition) have a lower level (Level 3) that represent in this case the lowest level of this WBS. However, if is needed this breaks down process can continus until the project manager is not satisfy regarding the level of details that want to achieve. The procedure just used is calle“progressive elaboration”.

As in this example, is totally fine if have different level of decomposition through different elements

It is suggest that the project manager use a software support, as a spreadsheet, for have an auto.sum operations, this could seems a silly recommendation, but a WBS of a portfolio can have hundred of branches a spreadsheet will be very usfull. Another recommended procedure is to discuss together with the project team regarding the amount of points that belongs to each element, this collaborative practice helps to achieve an high resolution of the reality because different people with different skills are involve during this process.

==Specific Type of WBS==
As mention previously WBS is a tool introduced during the 60’, up to present different WBS’s related tools have been developed.

===Value breakdown structure===

This tool is mainly used for assessing a project’s expected value, as WBS has a hierarchical structure. There is one fundamental difference, in this tool is not used the 100% rule, this because the value is not additive as the cost. For instance, a Helicopter manufacturer wants to produce a 10-seat helicopter the budget is 1000000$, and the Expected monetary value is 1700000$. By using an hierarchical approaches we should decompose the helicopter in different parts, for each parts all the necessary process until to get these components (cockpit, landing skid, passenger seats, engine, rotor, tail rotor, blade ). Let's image that we have all the components except the engine. The cost resources until this stage could be 900000$, but the actual value of this helicopter without the engine is actual 0 because no one wants a Helicopter without the engine. Meaning that the Value added of the engine is equal or close to the entire value of the projects. On one hand, we do not have any value until the motor is not mounted on the helicopter (VBS approach), on the other hand, we have cost for the resources used until now (WBS approach).

===Goals Breakdown Structure===
As a WBS, the Goals Breakdown Structure (GBS) has a hierarchical tree structure, it can be considered like a WBS specially design for goal’s achievement. In the highest level is positioned the overall goal of the projects, at the lower level are located mid-term goals for needed for achieving the top level mission. The GBS elements might include different peculiarities that characterize each goal, for instance, profit, market share, etc. At the third level are defined the products/process needed for achieving the organizational goals.

As written in A Guide to the Project Management Body of Knowledge (PMBOK(R)[1] Guide) it follows rules similar to WBS. For the breakdown decomposition the WBS follows two general rules:

*'''Nothing Extra''' Is not allowed to include an element that does not contribute to the upper-level goals. No layer should contain any extraneous goals.
*'''Nothing Missing''' Each level must define all the goals necessary to ensure the project achieves the next higher-level goals.

The first rule is needed to make sure that the project is a focus in only one objective without losing resource that does not contribute any organization’s value. The second one ensure that everything that is needed for adding value to the project that takes into consideration.
The general scope of a GBS is to analyze all the goals and only the goals needed to achieve the project's higher-level goals.

==Potential Misunderstanding, Disadventage and adventage==

A WBS is not an organizational hierarchy chart. A common error is to develop a WBS in accordance to the organizational hierarchy so is important to decompose the works depending the relations between processes than between “powers” organizational.

A WBS is not a project’s development planning neither a list in chronological order. Is not suggest to plan a project without having developed its WBS, in other words, is like plan the manufacturing process for building an airplane, even before the completion of its project. In this case is even difficult to apply the 100% rules, because the goals are not well defined. Moreover once that a WBS is defined, in case of error is not possible to fix it without starting from the beginning, because all the processes are connected each other.
For this reason build and maintain a WBS is a process that require a strong effort in terms of times and HR , due to that fact that many people should be involved to increase the common sharing knowledge about the projects. Moreover, it should be periodically review to ensure the WBS’s reliability, this has influence on future decision that the PM will take. As said review a WBS has a cost, due to that WBS encourages rigid structure for the project. Thus, it reduces managerial flexibility to initiate and lead changes during the project life cycle. (Salvendy, 2001) <ref> Salvendy, G. 2001, Handbook of Industrial Engineering, 3rd ed, John Wiley & Sons, Inc, Canada</ref>.
However
# The WBS reflects the project objectives, by listing all the activities required to accomplish these objectives, it prevents confusion and doubts as to the aim of the project.
# It creates a common database and dictionary of common notation that serves as a reference point for all involved parties.
# The WBS enables smooth communications among the project team members and between them and customers, suppliers, regulators and etc.
# It serves as an archive that can later facilitate knowledge transfer to other projects or learning by new members of the work force.
# The WBS is an effective tool for resource management.

==References==
<references/>

Work Breakdown Structure (WBS)

2015-09-21T08:58:24Z

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Work Breakdown Structure (WBS) is a tool used in project management context that divide in different levels of details a deliverable-oriented project in hierarchical order. The primary objective is to support the project manager by giving an overview of different steps, resources and costs involved in the project. Moreover during the project executions may include the percentage of steps completed this ensure better control and guidance in case during the project development may occur any changes.
It is graphically represented by a hierarchical tree, where the job of each element is given by the sum of elements underneath connected (sublevels). These elements may represent a product, data, service or any combination thereof.

==History==

The WBS was initially developed by the U.S. defense, back to the 1950’s and 60’s, in cooperation with NASA they were adopting the Program Evaluation and Review Technique (PERT) <ref>S1 Cleland, David I. and Roland Gareis, Global Project Management Handbook, McGraw-Hill Professional, 2006</ref> . During 1962, United State Airforce released “STUDY OF METHODS FOR EVALUATION OF THE PERT/COST MANAGEMENT SYSTEM” in this document was mention WBS as a useful tool for Controlling and planning large acquisition projects <ref> Eric S. Norman, Shelly A. Brotherton, Robert T. Fried Work Breakdown Structures: The Foundation for Project Management Excellence, Wiley, 2010</ref> . As understandable, most of NASA projects involves many actors (contractors) with totally different tasks. However, all of them are parts of the same project and works for the same final scope. The WBS was used to ‘‘ . . . ensure that the total project is fully planned and that all derivative plans contribute directly to the desired objectives’’ (NASA, 1962)<ref>"Background and Key Concepts COPYRIGHTED MATERIAL." Web. 20 Sep. 2015</ref>. After, this first approach NASA decide to keep update this document because believed valid and useful. In 1968, due to its success, the Department of Defense released "Work Breakdown Structures for Defense Materiel Items" (MIL-STD-881), a military standard procedure which is obligatory for all programs under the Department of Defense. This standard is constantly updated, the latest version refers tp 2001 <ref>''[http://www.mcri.com/wp-content/uploads/2014/09/Military-Standard-881C-----Department-of-Defense-Standard-Practice-----Work-Breakdown-Structures-for-Defense-Materiel-Items-MIL-STD-881C-3-Oct-11.pdf Military-Standard-881C]'', 3 October 2011</ref>.
Project Management Institute (PMI) during 1987 started to enlarge these collections of documents for non-military purpose as result The Project Management Body of Knowledge (PMBOK) has been release. The first version is from 1987, and other versions have been released during (987, 1996, 2000, 2004, 2009, 2013 <ref>"Guide, A. "Project Management Body of Knowledge (PMBOK® GUIDE & STANDARD)." Project Management Institute. 2001.</ref>. The main concept of subdividing different activities through different levels remain the same of the early years. However, the approach goes from “A task- oriented ‘family tree’ of activities 1987” PMBOKfirst Guide to “A deliverable- oriented hierarchical decomposition of the work to be executed by the project team to accomplish the project objectives and create the required deliverables” (PMBOK Guide — Third).

On one hand, the documents from PMI gives an overview of the WBS concept, on the other hand, the document released from the Department of Defense can be considered as a Handbook.

==Representation==
As mentioned before the aim of a WBS is to show at best the scope of the project, program or portfolio taken into consideration. There is no one exact or mandatory way of representing a WBS. Nevertheless, all of them have in common a tree structure. The most use tree structure is the one called inverted Tree Structure Picture 2, in this representation the project has the aspect of an organization chart. However there are other two types of representation the one shown In !!!!picture!!! that has the root on the left side and growth from the right side, the last one is called centralized tree structure Picture this can help the development session.

The graphical representation is not the only way of representing a WBS, tabular views are also used. This approach has the advantage to be clearer in case the WBS has many levels an example is shown in figure !!!Picture!!!. Usually at top level is shown the main deliverable that can change depending what kind of project is analyzed. Lower level provide information to the project managers like, schedule development, cost estimating, resource allocation, and risk assessment. The lowest level also called Work Packages. It is defined by PMI as:” A deliverable or project work component at the lowest level of the Work Breakdown Structure. The work package includes the schedule activities and schedule milestones required to complete the work package deliverable or project work component’.It is a good habit as suggest NASA of not having more than seven levels. Each element of a WBS is recognizable by a clear, descriptive title and by a numbering scheme

Depending on the level the management might assign responsibility for technical, schedule, and cost performance. A Control Account is usually established to guaranty at best he intersection between of WBS element and organization unit.

==Decomposition procedures==
Overall a WBS is the result of a decomposition process, which goes from the project and terminates to a certain level of details necessary for effective communication at the project's stakeholder. Meaning that there is not a rule regarding how much in detail the WBS should go, it depends from project to project. This supports the statement that identify WBS as Use-Related Characteristics tool. Nevertheless, is important find a good balance between communication and complexity the need for control <ref> Stephen A. Devaux. 1 edition (September 18, 2014). Managing Projects as Investments: Earned Value to Business Value </ref>.

The most common method for decomposing a WBS are the following methods:
*Function
Project’s deliverables are collected by business function for facilitating communication to stakeholders. This WBS is focusing on operations or activities that should be performed.
*Role
Similar to the previous one, this is focusing more on responsibility.
*Method
The project derivable is based on methodology or delivery process, this type of WBS is easy to understand and is mainly use for showing the projects outcomes.
*Deliverables (components)
Most common used, can be use for every types of projects
Functional breakdown the project’s deliverables are collected by business function

==100% Rule==

One of the most important principles for developing a WBS is called 100% rule. This rule is define from Project Management Institute (PMI).

This 100% rule define that a WBS must Include the 100% of the work defined from the project and include all the necessary for its realization (Internal, contractor, subcontractor) included the management of the project itself. The 100% rule is one of the most important guideline for developing the decomposition and evaluation of a WBS. The rule is applied at all levels of the hierarchical structure : ‘the next level of decomposition of a WBS element (child level) must represent 100 percent of the work applicable to the next higher (parent) element’’ <ref> Haugan, Gregory T. 2002. Effective Work Breakdown Structures. Vienna, VA Management Concepts</ref> (Haugan p. 17)..
The WBS can not include jobs out of the project’s border, meaning that should not include more of the 100%.

Applying the 100% Rule allows the manager to know that all efforts in each area are captured where they belong and also that nothing unrelated is included in an element. Application of the 100% Rule enables all outcomes to be defined before schedule planning begins. The work breakdown structure is the initiator in the planning process, as planned outcomes must be defined before methods and schedules can be considered. If outcomes are insufficiently defined, the project cannot succeed. Awareness of the 100% Rule enables and communicates the full understanding of all necessary outcomes. Once the project is underway the 100% Rule assists in assuring that project costs are properly shown in the accounting system. This is true for all projects, whether they are accomplished for another division in a company or a regular paying customer. Application of the 100% Rule enables accurate costing, which is essential to budget similar efforts in the future.

===100% Rule Application===

This example provides a practical use of the 100% rule and the "progressive elaboration" technique. In !!!!figure!!!!! is shown a WBS has the objective the Build of an house.
At the top level (Level 1) the project manager has assign 100 point to the whole project, meaning the entire building process of the house. Breaking down to level number 2 we have more than one deliverable, by summing the point of each four elements we have the result will be 100. The point allocated in each element is the result of a project manager’s consideration, meaning that these points are not an estimation of Cost/Time, etc. but represents the overall effort needed to complete the task. Some elements (the once that needs a higher detail of decomposition) have a lower level (Level 3) that represent in this case the lowest level of this WBS. However, if is needed this breaks down process can continus until the project manager is not satisfy regarding the level of details that want to achieve. The procedure just used is calle“progressive elaboration”.

As in this example, is totally fine if have different level of decomposition through different elements

It is suggest that the project manager use a software support, as a spreadsheet, for have an auto.sum operations, this could seems a silly recommendation, but a WBS of a portfolio can have hundred of branches a spreadsheet will be very usfull. Another recommended procedure is to discuss together with the project team regarding the amount of points that belongs to each element, this collaborative practice helps to achieve an high resolution of the reality because different people with different skills are involve during this process.

==Specific Type of WBS==
As mention previously WBS is a tool introduced during the 60’, up to present different WBS’s related tools have been developed.

===Value breakdown structure===

This tool is mainly used for assessing a project’s expected value, as WBS has a hierarchical structure. There is one fundamental difference, in this tool is not used the 100% rule, this because the value is not additive as the cost. For instance, a Helicopter manufacturer wants to produce a 10-seat helicopter the budget is 1000000$, and the Expected monetary value is 1700000$. By using an hierarchical approaches we should decompose the helicopter in different parts, for each parts all the necessary process until to get these components (cockpit, landing skid, passenger seats, engine, rotor, tail rotor, blade ). Let's image that we have all the components except the engine. The cost resources until this stage could be 900000$, but the actual value of this helicopter without the engine is actual 0 because no one wants a Helicopter without the engine. Meaning that the Value added of the engine is equal or close to the entire value of the projects. On one hand, we do not have any value until the motor is not mounted on the helicopter (VBS approach), on the other hand, we have cost for the resources used until now (WBS approach).

===Goals Breakdown Structure===
As a WBS, the Goals Breakdown Structure (GBS) has a hierarchical tree structure, it can be considered like a WBS specially design for goal’s achievement. In the highest level is positioned the overall goal of the projects, at the lower level are located mid-term goals for needed for achieving the top level mission. The GBS elements might include different peculiarities that characterize each goal, for instance, profit, market share, etc. At the third level are defined the products/process needed for achieving the organizational goals.

As written in A Guide to the Project Management Body of Knowledge (PMBOK(R)[1] Guide) it follows rules similar to WBS. For the breakdown decomposition the WBS follows two general rules:

*'''Nothing Extra''' Is not allowed to include an element that does not contribute to the upper-level goals. No layer should contain any extraneous goals.
*'''Nothing Missing''' Each level must define all the goals necessary to ensure the project achieves the next higher-level goals.

The first rule is needed to make sure that the project is a focus in only one objective without losing resource that does not contribute any organization’s value. The second one ensure that everything that is needed for adding value to the project that takes into consideration.
The general scope of a GBS is to analyze all the goals and only the goals needed to achieve the project's higher-level goals.

==Potential Misunderstanding, Disadventage and adventage==

A WBS is not an organizational hierarchy chart. A common error is to develop a WBS in accordance to the organizational hierarchy so is important to decompose the works depending the relations between processes than between “powers” organizational.

A WBS is not a project’s development planning neither a list in chronological order. Is not suggest to plan a project without having developed its WBS, in other words, is like plan the manufacturing process for building an airplane, even before the completion of its project. In this case is even difficult to apply the 100% rules, because the goals are not well defined. Moreover once that a WBS is defined, in case of error is not possible to fix it without starting from the beginning, because all the processes are connected each other.
For this reason build and maintain a WBS is a process that require a strong effort in terms of times and HR , due to that fact that many people should be involved to increase the common sharing knowledge about the projects. Moreover, it should be periodically review to ensure the WBS’s reliability, this has influence on future decision that the PM will take. As said review a WBS has a cost, due to that WBS encourages rigid structure for the project. Thus, it reduces managerial flexibility to initiate and lead changes during the project life cycle. (Salvendy, 2001) <ref> Salvendy, G. 2001, Handbook of Industrial Engineering, 3rd ed, John Wiley & Sons, Inc, Canada</ref>.
However
1.The WBS reflects the project objectives, by listing all the activities required to accomplish these objectives, it prevents confusion and doubts as to the aim of the project.
2. It creates a common database and dictionary of common notation that serves as a reference point for all involved parties.
3. The WBS enables smooth communications among the project team members and between them and customers, suppliers, regulators and etc.
4. It serves as an archive that can later facilitate knowledge transfer to other projects or learning by new members of the work force.
5. The WBS is an effective tool for resource management.

==References==
<references/>

Work Breakdown Structure (WBS)

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Work Breakdown Structure (WBS)

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S141530: /* Goals Breakdown Structure */

Work Breakdown Structure (WBS)

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Work Breakdown Structure (WBS)

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Work Breakdown Structure (WBS)

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Work Breakdown Structure (WBS)

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Work Breakdown Structure (WBS)

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