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Outlining a Work Breakdown Structure (WBS)

Objectives

After completing this lesson, you will be able to:

List the structure elements of WBSs
Verify the tasks of WBSs

Work Breakdown Structures (WBS)

James and Linda Discuss the Work Breakdown Structure (WBS)

James is a project planner at Hybrid Machinery. Linda works there as a controller. They are discussing the project structure James has created for the investment project.

Note

This is their conversation:

Work Breakdown Structures (WBS)

The project with the ID I/00## (## stands for the number of the group to which a course participant belongs) is an example of an investment or cost project that can be mapped with a WBS only, that is, without networks or activities.

The structure of project I/0030 is shown.

The following steps are carried out for project I/00##:

Create a suitable WBS using the Project Builder.
Plan basic dates manually for WBS elements using the Project Planning Board.
Plan costs manually for the WBS elements using Easy Cost Planning.
Budget WBS elements.
Enter actual dates during the project execution phase.
Assign various documents for WBS elements using Execution Services to update commitment and actual costs.
Calculate overheads and settle assets under construction in Asset Accounting.

The Project Builder, Project Planning Board, Easy Cost Planning, and Execution Services are tools in the SAP system that are used here to carry out the project steps. In addition to these tools, you can use a range of reports and information systems to evaluate the project data during the various project phases.

A WBS is a model of a project and shows the project activities to be carried out in a hierarchical structure. The various work packages in the project are described as individual Work Breakdown Structure elements (WBS elements). You can divide these WBS elements at various levels until you reach the level of detail you require. Since the WBS is structured hierarchically, the data can be summarized and displayed at the corresponding higher-level WBS elements.

You assign organizational units such as company code, business area, profit center, and plant for each WBS element. Before you create a WBS, you have to create a project definition. The project definition is a framework for all the objects created within a project. The project definition contains data that affects the entire project (for example, start and finish dates, organizational data, and planning parameters). It contains default values that can be passed on to the WBS elements.

The controlling area that you specify when you create a project definition is unique for the entire project. You specify the controlling area just once when you create the project.

Tasks of WBSs

The various tasks of the WBS are shown. They are explained below.

The WBS forms the basis for all subsequent planning tasks in a project. The focus here is on planning, analyzing, describing, controlling, and monitoring costs, basic dates, and the budget. However, costs, dates, and payments are often planned using activities that are assigned to WBS elements. The figure, Tasks of the WBS, shows the various tasks that a WBS can perform during a project.

You can use WBS elements to do the following:

Plan costs and revenues in detail.
Post actual cost and revenues.
Enter a budget.
Assign purchase requisitions and purchase orders.
Plan payments.
Plan dates manually.

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