Pros and cons of 3 project organizational structures. Organization breakdown structure obs see next page, shows a representative obs. Besides risk breakdown structure, you may consider using the cause and effect diagram as well also known as fishbone diagram. Creating a work breakdown structure is a team effort and is the culmination of multiple inputs and perspectives for the given project. Organization breakdown structure obs professional services. Organizational chart templates editable online and free to. Developing and elaborating effective work breakdown structures. One sure path to success for the project manager is to apply tried. The organizational structure of an organization tells you the character of an organization and the values it believes in. The organizational breakdown structure obs is a global hierarchy that represents the managers responsible for the projects in your enterprise. Work breakdown structure relativistic heavy ion collider.
This hierarchical organizational chart shows the organization structure of a transportation department. The network diagram is a sequential arrangement of the work defined by the wbs and the. Project management handbook for epc plant engineering, procurement and construction. Types of organization types of departmentalization centralization and decentralization organization is a system of cooperative activities of two or more persons. A work breakdown structure is a tool used to define and group a projects discrete work elements or tasks in a way that helps organise and define the total work scope of the project it provides the framework for detailed cost estimating and control along with providing guidance for schedule development and control. It decomposes the work into project sections and further into individual tasks. Work and resource breakdown structures for formalized bottomup estimating article pdf available in cost engineering morgantown 462 january 2004 with 3,567 reads how we measure reads. An organizational structure that works perfectly for all the businessasusual work doesnt always work for projects, and you have to manage within the environment in which you work. This is when making a work breakdown structure or a work breakdown structure template is essential. Organizational structure of a hospital objectivesrationale every hospital, large or small, has an organizational structure that allows for the efficient management of departments.
The work breakdown structure is the tool used to divide the project work content among individ uals and organizations so that ef ciency and effectiveness will be achieved while ensuring the inte gration of work efforts to produce the projectrequired deliverables. The organizational breakdown structure is an intermediate step in. If youre using org charts just to visualize the structure of your organization then youre selling yourself short. Thinking in detail is critical when planning your project, but you also need to consider the big picture. Creating the work breakdown structure by kim colenso, managing principal, artemis management systems the work breakdown structure wbs is the foundation for project planning and control. More than 7000 people from more than 150 countries work for the organization in 150 who offices in countries, territories and areas, six regional offices, at the global service centre in malaysia and at the headquarters in geneva, switzerland. Organization breakdown structure obs a hierarchical relationship of the organization, including subcontractors, responsible for managing a designated scope of work within the work breakdown structure wbs.
Before you start, you have to identify the tasks making up the project and decide who will carry out the work. When you complete the entire projectplanning process with regard to tasks and responsibilities, the obs deals with the organizational. In this type of organization, authority flows from top to bottom. Work breakdown structures a work breakdown structure is a deliverableoriented hierarchical decomposition of the work to be executed by the project team to accomplish the project objectives and create the required deliverables. This structure will be a site for production of many car emissions as well as over 800,000 gallons of storm water runoff per year2.
In this article, we will go through some of the breakdown structure examples. Organizational breakdown structure worcester polytechnic institute. Typical use of breakdown structure as a project management tool includes work breakdown structure wbs, resource breakdown structure, risk breakdown structure and organization breakdown structure obs, or sometimes known as organization chart. Project mangement plan examples project organization examples example 8 4. At the conclusion of this lesson you will be able to recognize the relationship between the work breakdown structure wbs, organization breakdown structure obs and responsibility assignment matrix ram. The wbs breaks down to cams gui which breaks down to prime msn product which. As seen in the pmp training, work breakdown structure of a project shows the hierarchy of the project work and deliverables in a project. This project wbs template is free for you to copy and use on your project. Organizational breakdown structure and responsibility. The relationship between the project organization and the work breakdown structure. Assignment matrix ram shows the intersection of the organizational breakdown structure obs and the work breakdown structure wbs. Work breakdown structure handbook of industrial engineering. Another kind of organization chart is a circular chart. Reporting structure is also important, as is the formation of external alliances to create an analytical ecosystem.
The obs describes the organizational structure and how the organizations relate to each other. Section 3 discusses the relationship between the project organizational structure and the wbs, and section 4 presents types of work breakdown structures along with a discussion. When one employee is responsible for each unit of a wbs, the breakdown is complete. In reality, wbs is a simple and easy visual breakdown of deliverables for product, result, or service. Employees who have worked for more than one year are shown in yellow color boxes, employees. Nasa work breakdown structure wbs handbook page viii preface p.
Organizations involved in ongoing operations and multiple projects simultaneously develop hybrid structures that mix the functional organizational structure with. Organization breakdown structure obs a hierarchical. The obs usually reflects the management structure of your organization, from toplevel personnel down through the various levels constituting your business. Organizational structure types bureaucratic structures. Therefore, there are lots of benefits of using wbs project management. Feasibility study of leed certification for union station. Appendix b work breakdown structure wbs b2 february 2015 one of the first tasks that must be performed by the cost estimator when developing a new cost estimate is to either obtain or develop the wbs step 2 in nasas 12 step cost estimating process.
Organizational elements do intersect the wbs, see figure 3, but are not the wbs. How to use this obs template click on the blank organizational chart shown in the following page and edit the lettered boxes and levels so that they reflect the needs of your project and its organization. The sample below shows only a part of the churchs structure. The subproject managers also will develop a performancebased integrated schedule. Feasibility study of leed certification for union station parking garage a major qualifying report. The design of a work breakdown structure and types of work breakdown structures. An organizational breakdown structure can be as simple or complex as the project requires to adequately define the organization.
Figure 1 structure of a traditional hierarchical organization. The obs displays organizational relationships and then uses them for assigning work to resources in a project. The methodology for a formalized project management system includes development of a resource breakdown structure and a work breakdown structure before developing an estimate and a schedule for. Below are two examples of an obs for a design project, with one being horizontal and the other vertical. It is easy to dismiss the organizational structure s importance and say that it is only relevant to large companies, but failing to organize a business leads to frustrations down the road. Mel barracliffe, lisa gardner, john hammond, and shawn duncan. All projects using the lbnl earned value management system evms will include an obs in the project execution plan pep. It is the connecting point for work and cost estimates, schedule information, actual work effortcost expenditures, and accountability.
The obs reflects the way the project is functionally organized. Organizational chart templates editable online and free. Check the work breakdown structure against the project approach specified in project charter for any activities that needs to be included in the work breakdown structure. Breakdown structures revisited mosaic project services pty ltd. In addition, the resource breakdown structure rbs describes the projects resource organization and can be used in conjunction with the wbs to define work package assignments. Organization breakdown structure obs is a hierarchical relationship of the organization, including subcontractors, responsible for managing a designated scope of work within the work breakdown structure wbs. Work breakdown structure rev e, june 2003 work breakdown structure a project work breakdown structure wbs is a deliverable or product oriented grouping of project work elements shown in graph ical display to organize and subdivide the total work scope of a project.
Many people have mistaken wbs as a list of tasks, a schedule or an organization chart. Organizational structure is a system that consists of explicit and implicit institutional rules and policies designed to outline how various work roles and responsibilities are delegated. The student will identify the levels of management and describe the activities and concerns of specific departments within each level. Feb 09, 2020 organizational structure is a system that consists of explicit and implicit institutional rules and policies designed to outline how various work roles and responsibilities are delegated. The organizational breakdown structure obs is a project organization framework for identification of responsibility, accountability, management, and approvals of all authorized work scope. A work breakdown structure in every project management and system engineering is an effective tool that is used for defining and group the discrete elements of work in any project so that it can help the organization, build it in some way and boost the work scope of the whole project. With this in mind, we gather input from the activity list, schedule management plan, resource calendars, risk register, activity cost estimates, enterprise environmental factors and organizational process assets.
Applying the work breakdown structure to the project. Jul 03, 2019 organizational chart template for performance and retention planning. A wbs is not a todo list consisting of everything that needs to be done on the project. Therefore, when you do business with an organization or getting into a new job in an organization, it is always a great idea to get to know and understand their organizational structure. Creating a work breakdown structure wbs helps you be both comprehensive and specific when managing a project. This organizational chart shows the growth of an organization.
Pdf work and resource breakdown structures for formalized. Section 2 focuses on the work breakdown structure wbs as a tool that supports division of labor in projects. It helps identify the employees who will be responsible for project work. Construction planning and scheduling is one of the important tool in a construction project. The following discussion will examine the current trends and practice regarding work breakdown structures. The wbs dictionary defines, details, and clarifies the various elements of the wbs. Public distribution of this document is only permitted. It is the functional basis for further planning steps in a project, for example, for process planning, cost planning, scheduling, capacity planning or costing, as well as project control. Other organizations, that have an interest in the project, also are described.
The work breakdown structure wbs is a model of the project that organizes project tasks into a hierarchy. A team structure attempts to link the formal and informal group relations that influence a. Every construction project involve with a lot of activities which. The obs usually reflects the management structure of your organization, from toplevel personnel down through the. Organizational breakdown structure obs template click the pdf icon below download this template. Team structure team structures differ from hierarchical structures in several ways. Obs also known as organizational breakdown structure is used to define the responsibilities for project management, cost reporting, billing, budgeting and. The organizational breakdown structure should be established at the onset of the activity to help in the purposes of organization. If you fail to identify a major part of your projects work, you wont have the chance to detail it. Jun 01, 2005 nasa work breakdown structure wbs handbook page viii preface p. Work breakdown structure based cost models for drinking water treatment technologies. This term is defined in the 3rd and the 4th edition of the pmbok.
Organizational breakdown structure, or sometimes known as organization chart, is a widely used project management tool for representing project organization. Project mangement plan examples project organization examples. A wbs is the cornerstone of effective project planning, execution, controlling, monitoring, and reporting. Organization and structure of your church page 3 of 3 a31 services, community groups use the church building and members contribute to our churchs wider mission ocwm. One effective technique is to organize a brainstorming session with the various departments that will be involved with the project. Generally speaking, there are three typical ways in structuring works with a work breakdown structure wbs. A project obs is a depiction of the project organization. An organizational breakdown structure is an intermediate level of a different chart that many of you are already familiar with. Finally, its also important to remember that, no matter the model, the analytical organization structure will change over time, and, therefore, its necessary to. Using creately, you can also use graphicsimages to illustrate your very own org. Systems development life cycle sdlc methodology information technology services july 7, 2009 version 1 authors.
It indicates the reporting relationships within a project. Wbsbased cost models for drinking water treatment technologies united states. Work breakdown structurebased cost models for drinking. The project management term organizational breakdown structure also referred to by the 3 letter acronym obs refers specifically to a tool that can be utilized by the project management team and or project management team leader in a hierarchal manner for the purposes of conducting and creating a thorough and clearly delineated depiction of the project organization for the purposes of. An organizational chart is the graphic used to visually depict the organizational structure that conveys how communication and authority happen within companies. The importance of the wbs experienced project managers know there are many things that can go wrong in projects. Organization is the process of dividing up of the activities. Wbs, or work breakdown structure, is a management tool for analyzing a complex project. Project mangement plan examples project organization examples example 8. Project management relies on a formal structure that reflects the approach being adopted for managing the different facets of the project.
Jan 21, 2016 the organizational breakdown structure obs is a global hierarchy that represents the managers responsible for the projects in your enterprise. While the boxes have been color coded for illustration, graphics are included for further emphasis. Each project has its unique characteristics and the design of an organizational structure should consider the organizational environment, the project characteristics in which it will operate, and the level of authority the project manager is given. When we create a resource breakdown structure, we estimate the resources required for each activity. This recommended practice is intended to provide guidelines i. The organizational breakdown structure is an intermediate step in this process. A work breakdown structure wbs is a deliverableoriented hierarchical decomposition of the work to be executed by the project team to accomplish the project objectives and create the required deliverables. The lesson will introduce and define the term organizational breakdown structure obs and will provide a thorough example of obs, which will help to explain how it is used in project management. A work breakdown structure, commonly abbreviated wbs, is a key project deliverable that is utilized to organize a project teams work and responsibilities into compact sections that are more manageable. The wbs is critical because it is the primary source for development of a cbs.
The obs breaks down to engineering which breaks down to design which breaks down to interface design. What is an organizational breakdown structure obs successful project management requires detailed planning and an organized structure. Section 1 deals with different organizational structures. Wbs and organizational breakdown structure o bs the wbs elements at various levels can be related to the contractors organizational breakdown structure o bs, which defines the different responsibility levels and their appropriate reporting needs as shown in figure 1. Project teams can use lowtechnology tools like a white board, note cards, or. An organizational breakdown structure is a document that your business can use in conjunction with its workflow schedule and resource breakdown to organize. Sample translation from function to project deliverables. Organizational breakdown structure free download as pdf file. Subproject analyst, develop the work breakdown structure wbs and the abc estimate for the subproject. Understanding breakdown structures in project management. Getting some experience in each of these structures is a good idea so you can experience them firsthand.
Organizational chart template for transportation department. Its creation process is the 4th process of scope management, coming after create scope management plan process. A work breakdown structure wbs is a deliverableoriented grouping of project. The facility stabilization project organization, within fdh, is responsible.
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