Quick Answer: What Is WBS Budget?

What is WBS and OBS?

Work Breakdown Structure (WBS) captures all elements of projects in an organized fashion.

OBS (also known as Organizational Breakdown Structure) is used to define the responsibilities for project management, cost reporting, billing, budgeting and project control..

What is WBS estimation technique?

WBS is a key project deliverable that organizes the team’s work into manageable sections. … The Project Management Body of Knowledge (PMBOK) defines WBS as a “deliverable oriented hierarchical decomposition of the work to be executed by the project team.”

What makes a good WBS?

A good work breakdown structure (WBS) includes only deliverables and activities. The best approach in WBS is placing deliverables as summary activities and breaking down these summary activities into detailed activities based on the work required to meet such deliverables.

What is WBS diagram?

Work Breakdown Structure Diagram The Work Breakdown Structure (WBS) is developed to establish a common understanding of project scope. It is a hierarchical description of the work that must be done to complete the deliverables of a project.

What should be included in a WBS?

The most helpful WBS plans contain these components:Identification of which organization, department, or individual is responsible for each specific work piece.The scheduled start and end dates.Required resources.Estimated cost of the project.Charge numbers.Contract details, requirements, and milestones.More items…

What does a WBS dictionary look like?

A document that provides detailed information about deliverables, activity and scheduling of each component in the Work Breakdown Structure (WBS). The WBS Dictionary describes each component of the WBS with milestones, deliverables, activities, scope, and sometimes dates, resources, costs, quality.

What is the meaning of WBS?

work-breakdown structureA work-breakdown structure (WBS) in project management and systems engineering, is a deliverable-oriented breakdown of a project into smaller components. A work breakdown structure is a key project deliverable that organizes the team’s work into manageable sections.

What is WBS example?

The WBS is a hierarchical reflection of all the work in the project in terms of deliverables. … Above is an example of a WBS for this new toy. Each level of the WBS is a level of detail created by decomposition. Decomposition is the process of breaking down the work into smaller, more manageable components.

What are the different types of WBS?

So the two types of WBS are,Deliverables Oriented. You may come across several other names for this like – Entity Oriented, Noun Oriented or Product Oriented WBS. … Phase Oriented. The other names for this that you might come across are – Activity or Task Oriented, Verb Oriented or Process Oriented WBS.

What is cost structure?

Cost structure refers to the various types of expenses a business incurs and is typically composed of fixed and variable costs. … Even within a company, cost structure may vary between product lines, divisions, or business units, due to the distinct types of activities they perform.

Which is correct breakdown or breakdown?

The difference is that, written as one word, breakdown is a noun, referring to the result of the action, while the two-word version, break down, is a phrasal verb that denotes the action leading to the result.

What is a cost breakdown structure?

A Cost Breakdown Structure (CBS) is a breakdown or hierarchical representation of the various costs in a project. The Cost Breakdown Structure represents the costs of the components in the Work Breakdown Structure (WBS).

How do you use WBS to create a cost estimate?

How to use a work breakdown structure to estimate projectsStep 1: List high-level deliverables. If you’ve got a project scope, getting started on your work breakdown structure should be easy. … Step 2: Think about tasks. … Step 3: Get granular. … Step 4: Format and estimate.

What is a WBS used for?

A work breakdown structure (WBS) is a tool that can be used for projects, programs, and even initiatives to understand the work that has to be done to successfully produce a deliverable(s). The benefits of creating a WBS include: it defines and organizes the work required.

What are the three levels of WBS?

It shows all the work that needs to be accomplished. The WBS contains 100% of all the work in the project. At the top level is the project ultimate goal, the second level contains the project objectives, the third level has the project outputs and the fourth level with activities.