Project Estimating and Cost Management
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WORK BREAKDOWN STRUCTURE

As defined previously, the WBS is a uniform, consistent, and logical method for dividing the project into small, manageable components for purposes of planning, estimating, and monitoring. A deliverable-oriented WBS facilitates and encourages the feed-forward of information within the project. Ideally, it is uniform and consistent. To achieve uniformity, all parts of the WBS must be developed using the same criteria. The ultimate goal is to achieve a WBS that will highlight a logical organization of products, parts, and modules.

A WBS will provide a roadmap for planning, monitoring, and managing all facets of the project, such as the following:

Definition of work

Cost estimates

Budgeting

Time estimates

Scheduling

Resource allocation

Expenditures

Changes to the project plan

Productivity

Performance.

As the project is conceived, defined, and fully developed, not only summaries for the WBS can be created for one project, but also departmental and divisional summaries can be made for each WBS item. These summaries use the relationship between the RBS and the WBS and are quite useful for resource forecasting, personnel projections, priority definitions, and general management purposes.