Earned Value Management Tutorial

Prepared by:

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Module 2 – Work Breakdown Structure

1

Prepared by: Booz Allen Hamilton

Module 2: Work Breakdown Structure

Welcome to Module 2. The objective of this module is to introduce you to Work

Breakdown Structure (WBS) and other supporting documents.

This module will include defining and illustrating the following topics:

• Work Breakdown Structure

• WBS dictionary

• Organizational Breakdown Structure (OBS)

• Responsibility Assignment Matrix (RAM)

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Module 2 – Work Breakdown Structure

2

Prepared by: Booz Allen Hamilton

What is a Work Breakdown Structure?

Planning a project using earned value management is no different than the

initial planning necessary to implement any given project. There are basic

items that you need to know and understand as a project manager:

– What makes up my entire project (Scope)?

• What is the agreed upon work scope and what is additional work?

– What are my start and completion dates (Schedule)?

– How much is the project going to cost (Cost)?

Over the years, it was determined that project managers needed a tool to help

capture and control their project scope. This led to the development of a

Work Breakdown Structure (WBS).

On the following pages we will define and discuss a WBS

.

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Module 2 – Work Breakdown Structure

3

Prepared by: Booz Allen Hamilton

What is a Work Breakdown Structure?

The Work Breakdown Structure (WBS) is a tool that defines a project and

groups the project’s discrete work elements in a way that helps organize and

define the total work scope of the project. A WBS element may be a product,

data, a service, or any combination. WBS also provides the necessary

framework for detailed cost estimating and control along with providing

guidance for schedule development and control. Additionally the WBS is a

Each descending level of the

WBS represents an increased

level of detailed definition of the

project work. As you can see in

this WBS for developing the

BEST Management Book, the

work is broken down into all the

discrete elements of work, the

total sum of which represents

all the work and products

necessary to produce the book.

dynamic tool and can be revised and updated as

needed by the project manager.

Project

Selec t ion

1.1. 1.1. 1

Project

Organization

1.1. 1.1. 2

Project

Planning

1.1. 1.1. 3

Chapter 1

1.1.1.1

Budget &

Cost

1.1. 1.2. 1

Scheduling

1.1.1. 2.2

Project

Contr ols

1. 1.1. 2.3

Auditing

1. 1.1. 3.1

A dministrative

Closeout

1. 1.1. 3.2

W riting

Text Book

1. 1.1

Editing

Text Book

1.1. 2

Publishing

Text Book

1.1. 3

Project Ma nageme nt

- An Introduction

1.1

BEST Manageme nt

Books

1.

Chapter 2

1.1.1.2

Chapter 3

1.1.1.3

Editing

Chapter 1

1.1.2.1

Editing

Chapter 2

1.1.2.2

Editing

Chapter 3

1.1.2.3

Project

Selec t ion

1.1. 1.1. 1

Project

Organization

1.1. 1.1. 2

Project

Planning

1.1. 1.1. 3

Chapter 1

1.1.1.1

Budget &

Cost

1.1. 1.2. 1

Scheduling

1.1.1. 2.2

Project

Contr ols

1. 1.1. 2.3

Auditing

1. 1.1. 3.1

A dministrative

Closeout

1. 1.1. 3.2

W riting

Text Book

1. 1.1

Editing

Text Book

1.1. 2

Publishing

Text Book

1.1. 3

Project Ma nageme nt

- An Introduction

1.1

BEST Manageme nt

Books

1.

Chapter 2

1.1.1.2

Chapter 3

1.1.1.3

Editing

Chapter 1

1.1.2.1

Editing

Chapter 2

1.1.2.2

Editing

Chapter 3

1.1.2.3

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Module 2 – Work Breakdown Structure

4

Prepared by: Booz Allen Hamilton

Project

Selection

1.1.1.1.1

Project

Orga ni za ti on

1.1.1.1.2

Project

Planning

1.1.1.1.3

Chapter 1

1.1.1.1

Budget &

Cost

1.1.1.2.1

Scheduling

1.1.1.2.2

Project

Controls

1.1.1.2.3

Auditing

1.1.1.3.1

A dministrative

Clos eout

1.1.1.3.2

Writing

Text Book

1.1.1

Edit ing

Text Book

1.1.2

Publishing

Text Book

1.1.3

Project Ma nageme nt

- An Introduction

1.1

BEST Manageme nt

Books

1.

Chapter 2

1.1.1.2

Chapter 3

1.1.1.3

Editing

Chapter 1

1.1.2.1

Edit ing

Chapter 2

1.1.2.2

Edit ing

Chapter 3

1.1.2.3

Project

Selection

1.1.1.1.1

Project

Orga ni za ti on

1.1.1.1.2

Project

Planning

1.1.1.1.3

Chapter 1

1.1.1.1

Budget &

Cost

1.1.1.2.1

Scheduling

1.1.1.2.2

Project

Controls

1.1.1.2.3

Auditing

1.1.1.3.1

A dministrative

Clos eout

1.1.1.3.2

Writing

Text Book

1.1.1

Edit ing

Text Book

1.1.2

Publishing

Text Book

1.1.3

Project Ma nageme nt

- An Introduction

1.1

BEST Manageme nt

Books

1.

Chapter 2

1.1.1.2

Chapter 3

1.1.1.3

Editing

Chapter 1

1.1.2.1

Edit ing

Chapter 2

1.1.2.2

Edit ing

Chapter 3

1.1.2.3

What is a Work Breakdown Structure?

After reviewing the WBS on the previous page, an important point needs to be

reviewed. Although a WBS can be depicted so as to look like an

organizational chart, it

IS NOT

an organizational chart.

Remember the WBS defines a

project and groups the project

elements for managing a

project. An organizational chart

describes the project team that

will accomplish the project.

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Module 2 – Work Breakdown Structure

5

Prepared by: Booz Allen Hamilton

Why is a Work Breakdown Structure needed?

Not all projects have a WBS, and it is true that some of these projects have been

successful. So why is a WBS needed? We have already looked at a few

reasons, but in review, the WBS:

– Provides a framework for organizing and managing the approved project

scope

– Helps ensure you have defined all the work that makes up the project

– Provides a framework for planning and controlling cost and schedule

information

– It’s better to be deliberate about planning than rely on luck!

Additionally, when you work for a company or organization that has many

projects being performed simultaneously, each of the projects is competing for

the limited resources available. The WBS enables you to review project

details and distinguish one project’s needs from others within the company or

organization. Why is distinguishing one project from another important? It

enables you to identify resource requirements and allocate resources more

effectively.

Now let’s look at preparing a WBS.

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Module 2 – Work Breakdown Structure

6

Prepared by: Booz Allen Hamilton

Preparing a WBS

In preparing a WBS there are a number of steps that need to be taken to make

sure the WBS developed will help manage your project. Below and on the

following pages we will discuss these steps.

1. Identify final project products necessary for achieving project success. The

WBS should assist the project manager in developing a clear vision of the

end product. You need to answer the following question:

– What must be delivered to achieve project success?

• You may need to review the project scope documents for guidance.

2. Identify the major deliverables necessary for project success.

– These are items that by themselves do not satisfy the project need but

combined make up a successful project

– Examples: a design completion, generator delivery, or acceptance

test completion

– In the DOE, these could be Critical Decisions (see DOE Order 413.3)

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Module 2 – Work Breakdown Structure

7

Prepared by: Booz Allen Hamilton

Preparing a WBS

3. Incorporate additional levels of detail until management requirements for

managing and controlling the project are met.

– Remember that each project is different, thus each WBS will be

different

– WBS’s from previous projects can be used as templates, but

remember that the management philosophy and the level of details

may be different from project to project

– Understand your controlling and reporting requirements

• Projects have different requirements; make sure you take these

into consideration when developing low level details

4. Review and refine the WBS until the stakeholders agree with the level of

project planning and reporting.

– Remember that no matter how detailed a WBS is, there are planning

and reporting restrictions a WBS creates. On the following pages, we

will look at examples of these restrictions.

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Module 2 – Work Breakdown Structure

8

Prepared by: Booz Allen Hamilton

Preparing a WBS

Let’s use the BEST Management Books’ WBS we looked at earlier. Assume

that the WBS was only planned down to the chapters level (see graph

below, left), but after the first month of work, the stakeholder wants reporting

at the subchapter level (see graph below, right). Without restructuring the

WBS and changing the other supporting systems, like cost tracking and

reporting, it is impossible for the project manager to meet the stakeholder

’

s

request.

Project

Selection

1.1.1.1.1

Project

Organization

1.1.1.1.2

Project

Planning

1.1.1.1.3

Chapter 1

1.1.1.1

Budget &

Cost

1.1.1.2.1

Scheduling

1.1.1.2.2

Project

Controls

1.1.1.2.3

Writing

Text Book

1.1.1

Chapter 2

1.1.1.2

Project

Selection

1.1.1.1.1

Project

Organization

1.1.1.1.2

Project

Planning

1.1.1.1.3

Chapter 1

1.1.1.1

Budget &

Cost

1.1.1.2.1

Scheduling

1.1.1.2.2

Project

Controls

1.1.1.2.3

Writing

Text Book

1.1.1

Chapter 2

1.1.1.2

Chapter 1

1.1.1.1

Writing

Text Book

1.1.1

Chapter 2

1.1.1.2

Chapter 1

1.1.1.1

Writing

Text Book

1.1.1

Chapter 2

1.1.1.2

Current Project WBS

Not Planned to this level

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Module 2 – Work Breakdown Structure

9

Prepared by: Booz Allen Hamilton

Preparing a WBS

Now let’s reverse the situation. Assume WBS was planned down to the

subchapter level (see graph below, left), but after the first month of work, the

stakeholder wants reporting at the chapter level (see graph below, right). Is

there any restructuring needed to the WBS? The answer is “No”. Since you

planned the work at a level below what is now the stakeholder’s

requirement, you can “roll-up” and meet the stakeholder’s request.

Do you still see a problem with the project WBS? Let’s take a look.

.

Project

Selection

1.1.1.1.1

Project

Organization

1.1.1.1.2

Project

Planning

1.1.1.1.3

Chapter 1

1.1.1.1

Budget &

Cost

1.1.1.2.1

Scheduling

1.1.1.2.2

Project

Controls

1.1.1.2.3

Writing

Text Book

1.1.1

Chapter 2

1.1.1.2

Project

Selection

1.1.1.1.1

Project

Organization

1.1.1.1.2

Project

Planning

1.1.1.1.3

Chapter 1

1.1.1.1

Budget &

Cost

1.1.1.2.1

Scheduling

1.1.1.2.2

Project

Controls

1.1.1.2.3

Writing

Text Book

1.1.1

Chapter 2

1.1.1.2

Chapter 1

1.1.1.1

Writing

Text Book

1.1.1

Chapter 2

1.1.1.2

Chapter 1

1.1.1.1

Writing

Text Book

1.1.1

Chapter 2

1.1.1.2

Current Project WBS

Project WBS Needed

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Module 2 – Work Breakdown Structure

10

Prepared by: Booz Allen Hamilton

Preparing a WBS

Actually, there is not a problem with the WBS structure, but a problem with the

idea of time and cost. The project manager spent time and resources to

define the WBS down to a level that he determined was appropriate. The

only benefit could be that the project manager wishes to manage the

project at the lower level and will roll-up reporting for the stakeholder.

In review, always get stakeholders to agree with the level of project planning

and reporting.

Project

Selection

1.1.1.1.1

Project

Organization

1.1.1.1.2

Project

Planning

1.1.1.1.3

Chapter 1

1.1.1.1

Budget &

Cost

1.1.1.2.1

Scheduling

1.1.1.2.2

Project

Controls

1.1.1.2.3

Writing

Text Book

1.1.1

Chapter 2

1.1.1.2

Project

Selection

1.1.1.1.1

Project

Organization

1.1.1.1.2

Project

Planning

1.1.1.1.3

Chapter 1

1.1.1.1

Budget &

Cost

1.1.1.2.1

Scheduling

1.1.1.2.2

Project

Controls

1.1.1.2.3

Writing

Text Book

1.1.1

Chapter 2

1.1.1.2

Chapter 1

1.1.1.1

Writing

Text Book

1.1.1

Chapter 2

1.1.1.2

Chapter 1

1.1.1.1

Writing

Text Book

1.1.1

Chapter 2

1.1.1.2

Current Project WBS

Project WBS Needed

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Module 2 – Work Breakdown Structure

11

Prepared by: Booz Allen Hamilton

Preparing a WBS

In developing a WBS, one must realize that there are multiple ways to develop

a WBS for any given project. Some ways might be better than others, but

the two most important items to remember are that the WBS must contain

all approved scope and the Project Manager must develop the WBS to

reflect the way he/she intends to manage the project.

Other items to consider when developing a WBS are:

• Reporting requirements

• Size of project

• Resource executing the work (contractors vs. in-house)

• Complexity of the project

On the following two pages are examples of alternative WBS structures for

the BEST Management Books project.

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Module 2 – Work Breakdown Structure

12

Prepared by: Booz Allen Hamilton

Preparing a WBS

This WBS structure is designed to control scope

by chapters, unlike the original WBS which

was developed to control scope by writing

and editing.

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Module 2 – Work Breakdown Structure

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Prepared by: Booz Allen Hamilton

Preparing a WBS

This WBS structure is taking into consideration

that the writing and editing will be executed

by a contractor. It still requires the contractor

to control scope by writing and editing by

chapter.

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Module 2 – Work Breakdown Structure

14

Prepared by: Booz Allen Hamilton

Building a WBS

Armed with the basics of the WBS, it is time to examine them in more detail and

to begin to understand how to build one. To do this, let’s look at building a

WBS for the construction of a single family home. First, take a moment to

familiarize yourself with some background information about the construction

company, which appears on the next page.

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Module 2 – Work Breakdown Structure

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Prepared by: Booz Allen Hamilton

WBS: Structure

The ACME Housing Corporation, which you own, has been contracted to build

its first house. You want to be able to manage your projects effectively and

efficiently, so you charge your project managers to develop an appropriate

WBS. You decide to manage the project by the individual tasks necessary to

complete the house.

You hope that this is the first of many houses that ACME will build, so you start

the WBS with ACME in the highest position, or Level 1. Accordingly, Level 1

is given a WBS code of 1. You assign the WBS code of 1 to the highest level

because all future projects (houses) will be summarized at Level 1

.

Level 1

㼀㼀㼀㼀

NOTE: For ease of explanation, our

example will assume the following:

• Design is complete

• All permits issued

• All Material ordered

• Inspection happens

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Module 2 – Work Breakdown Structure

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Prepared by: Booz Allen Hamilton

WBS: Structure

With Level 1 established, you can begin to complete the WBS. But what should

the next level be?

The logical next level for ACME is the project level. Level 2 is the level for each

individual project, or house, that ACME undertakes. As the chart shows

below, Level 2 is identified at the project level: House.

Appropriately, the code for Level 2 corresponds to Level 1. In this case, the

code is 1.1.

Level 1

㼀㼀㼀㼀

Level 2

㼀㼀㼀㼀

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Module 2 – Work Breakdown Structure

17

Prepared by: Booz Allen Hamilton

WBS: Structure

Now the WBS for the housing project is complete, right? Actually, no, the WBS

is not complete. At this point you determine that you want to divide the work

into the major elements needed to build a house. You choose to divide Level

3 into six elements: concrete, framing, plumbing, electrical, interior and

roofing. You realize that these are both major deliverables and milestones for

managing the project. They also enable you to get to your goal of managing

the project by task.

Notice the WBS codes at level 3. Each is unique to the project and starts with

the WBS code from the level above (1㼀1.1㼀1.1.1). Now lets look and see

if another level is needed.

Level 1

㼀㼀㼀㼀

Level 2

㼀㼀㼀㼀

Level 3

㼀㼀㼀㼀

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Module 2 – Work Breakdown Structure

18

Prepared by: Booz Allen Hamilton

WBS: Structure

The ACME WBS is taking shape, but it does not quite define the project at a

level that shows needed tasks for completion. To do this, one more level

needs to be included.

Level 4 of the WBS will enable us to manage

the project as desired. All of our contractors

fit into specific elements at level 4, and so

do all specific departments. As with the

previous Levels, note the WBS codes that

have been assigned to the tasks and their

relationship to the previous Level

.

Level 4

㼀㼀㼀㼀

Level 3

㼀㼀㼀㼀

㼀㼀㼀㼀

Level 1

㼀㼀㼀㼀

Level 2

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Module 2 – Work Breakdown Structure

19

Prepared by: Booz Allen Hamilton

WBS: Structure

What do you think? Is the WBS complete? Does it enable the manager to

manage at the task level?

After a review to make sure that only approved scope is included, our WBS is

complete. It does include the necessary components to manage the project

by task.

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Module 2 – Work Breakdown Structure

20

Prepared by: Booz Allen Hamilton

Work Breakdown Structure (WBS) Tree

The graphical structure of the WBS is an easy

way to identify the project components and

relationships of those components;

however, the WBS can be displayed in

another format as well: the Tree format.

Both formats are acceptable. The graphical

format is at times easier to understand, but

can take up considerable space in a report.

The tree is not as easy to understand but is

more easily incorporated into a report

format.

Note the WBS codes and the structure of the

Levels in the Tree format mirror the

graphical format. The content has not

changed; only the way the content is

presented has changed.

1.1.1.1 Pour Foundation

1.1.1.3 Pour Stairway

1.1.2 Framing

1.1.2.1 Frame Exterior Walls

1.1.2.2 Frame Interior Walls

1.1.2.3 Install Roofing Trusses

1.1.3 Plumbing

1.1.3.1 Install Water Lines

1.1.3.2 Install Gas Lines

1.1.3.3 Install B/K Fixtures

1.1.4 Electrical

1.1.4.1 Install Wiring

1.1.4.2 Install Outlets/Switches

1.1.5.1 Install Drywall

1.1.5.2 Install Carpets

1.1.6.1 Install Felt

1.1.6.2 Install Shingles

1.1.6.3 Install Vents

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Module 2 – Work Breakdown Structure

21

Prepared by: Booz Allen Hamilton

WBS and Earned Value

Now that you understand the WBS and how to assemble one, let’s examine

how it relates to earned value.

In Module 1, we discussed that in implementing earned value, a project

manager must have control of the project’s “triple constraint” (scope,

schedule and cost). Unlike traditional management, which tracks two

components (budget and expenditures), earned value considers three and

provides a more robust understanding of a project’s overall progress and

health.

The WBS is the most important item in defining and controlling the project

scope. How does it control the scope? If the WBS is not developed correctly

and does not capture all the project scope and only the project scope, then

the “earned value” system built using the WBS will be inaccurate. The project

manager will lose control of the project before it even begins.

Now that you have your WBS, let’s take a look on the next page at the other

item needed to properly organize your project.

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Module 2 – Work Breakdown Structure

22

Prepared by: Booz Allen Hamilton

WBS Dictionary

Once the WBS is complete

,

the WBS dictionary needs to be the next item

developed. The WBS dictionary is a narrative documentation of the effort

needed to accomplish all work defined in the WBS. The WBS dictionary is

developed for the lowest level element in the WBS only.

To better understand how a WBS and a WBS dictionary work, let

’

s compare it

to a book and the book’s table of contents:

– The WBS is the table of contents for the project. It captures the

contents in an organized fashion (chapters, subchapter).

– The WBS dictionary is the book itself. It tells the story. In our case the

story is what work will be accomplished and what outputs will be

produced in each of the WBS elements. The total of these descriptions

is how a house will be built and what is needed to build the house.

The WBS dictionary will often lead to the development of the statements of

work (SOW) for the project. SOWs will be discussed in later modules.

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Module 2 – Work Breakdown Structure

23

Prepared by: Booz Allen Hamilton

Organization Breakdown Structure (OBS

)

Now that our WBS is developed, the appropriate resources and responsibilities

need to be assigned. The first step in doing this is developing the

Organizational Breakdown Structure (OBS) for the project. The OBS

indicates the organizational relationships and is used as the framework for

assigning work responsibilities. Below is an example of the OBS for the

ACME house building project. The OBS is structured by Responsible

Department and then by Performing Department at the lowest level. This

Performing Department level is where the responsibility and resource needed

to accomplish the project will be assigned.

With the relationships

and responsibilities

defined, the second

and final step is to

merge the WBS and

OBS. Take a look on

the next page.

CONCRETE

PERF DEPT 6010

M. Manning

MASONRY

PERF DEPT 6020

T. Greams

TEST

PERF DEPT 6030

K. Neumann

CIVIL

RESP DEPT

R. Kelly

CARPENTRY

PERF DEPT 5010

R. Sites

ROOFING

PERF DEPT 5020

Y. Taylor

DRYWALL

PERF DEPT 5030

D. Smith

STRUCTURAL

RESP DEPT

P. Tate

PERF DEPT 4010

S. Johnson

HOOKUP/TIE-IN

PERF DEPT 4020

P. Ottis

ELECTICAL

RESP DEPT

J. Sims

WATER/SEWER

PERF DEPT 3010

K. Wells

GAS

PERF DEPT 3020

R. Oriely

PLUMBING

RESP DEPT

R. Lee

PROJECT OFFICE

RESP DEPT

B. Smithers

WIRING

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Module 2 – Work Breakdown Structure

24

Prepared by: Booz Allen Hamilton

Responsibility Assignment Matrix (RAM)

Merging the WBS and OBS, the project manager creates a Responsibility

Assignment Matrix (RAM). The RAM displays the lowest level of both the

WBS and the OBS. The integration identifies specific responsibility for

Assignment Matrix

Assignment Matrix

CONCRET E

PERF DEPT 6010

M. Manning

MASONRY

PERF DEPT 6020

T. Greams

TES T

PERF DEPT 6030

K. Neumann

CIVI

L

RESP DEPT

R. Kelly

CARPENTRY

PERF DEPT 5010

R. Sites

ROOFING

PERF DEPT 5020

Y. Taylor

DRYW

ALL

PERF DEPT 5030

D. Smith

STRUCTURAL

RESP DEPT

P. Tate

PERF DEPT 4010

S. Johnson

HOO

KUP/T

I

E-I

N

PERF DEPT 4020

P. Ottis

EL

ECT

ICAL

RESP DEPT

J. Sims

WATER/S EW ER

PERF DEPT 3010

K. Wells

GAS

PERF DEPT 3020

R. Oriely

PLUMBING

RESP DEPT

R. Lee

PROJ ECT OFFICE

RESP DEPT

B. Smithers

WIRING

CONCRET E

PERF DEPT 6010

M. Manning

MASONRY

PERF DEPT 6020

T. Greams

TES T

PERF DEPT 6030

K. Neumann

CIVI

L

RESP DEPT

R. Kelly

CARPENTRY

PERF DEPT 5010

R. Sites

ROOFING

PERF DEPT 5020

Y. Taylor

DRYW

ALL

PERF DEPT 5030

D. Smith

STRUCTURAL

RESP DEPT

P. Tate

PERF DEPT 4010

S. Johnson

HOO

KUP/T

I

E-I

N

PERF DEPT 4020

P. Ottis

EL

ECT

ICAL

RESP DEPT

J. Sims

WATER/S EW ER

PERF DEPT 3010

K. Wells

GAS

PERF DEPT 3020

R. Oriely

PLUMBING

RESP DEPT

R. Lee

PROJ ECT OFFICE

RESP DEPT

B. Smithers

WIRING

specific project tasks. It is at this

point that the project manager

develops control accounts or work

package. Control accounts and

work packages will be discussed

in Module 4. Lets look at what the

RAM may look like on the ACME

house construction project on the

next page.

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Module 2 – Work Breakdown Structure

25

Prepared by: Booz Allen Hamilton

Responsibility Assignment Matrix (RAM)

Below is part of the RAM for the ACME housing project.

– The lowest level of the WBS appears across the top

– The lowest level of the OBS appears on the vertical axis

An “X” appears at the intersection of the WBS task and OBS personnel. The “X”

defines the specific performing department (from the OBS) assigned to

complete a task (from the WBS).

Performing Dept.

Manager

Pour

F oundat ion

1.1.1.1

Install Patio

1.1.1. 2

Pour

Stairway

1. 1.1.3

Frame

Exterior

Walls

1.1.2.1

Frame

Interior

Walls

1.1. 2.2

Install

Roofing

Trusse

1.1.2.3

In s tall

Water

Lines

1.1.3. 1

Install Gas

Lines

1. 1.3.2

Install B/K

Fixt ures

1.1.3.3

CONCRETE

DEPT 6010

Manning

X

X

X

MASONRY

DEPT 6020

Greams

X

TEST

DEPT 6030

Neumann

X

X

X

CARPENTRY

DEPT 5010

Sites

X

X

X

ROOFI NG

DEPT 5020

Taylor

X

DRYWALL

DEPT 5030

Smith

X

WIRING

DEPT 4010

Johnson

HOOKUP/TIE-IN

DEPT 4020

Ottis

WATER/SEWER

DEPT 3010

Wells

X

X

GAS

DEPT 3020

Oriely

X

X

1.1.3

PLU MBI NG

CONCRETE

1.1. 1

FRA MIN G

1.1.2

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Module 2 – Work Breakdown Structure

26

Prepared by: Booz Allen Hamilton

Responsibility Assignment Matrix (RAM)

To better understand the RAM, consider the ACME housing project.

The OBS specifies Mr. Sites and the carpentry department as responsible for

framing the exterior walls. Therefore, in the RAM, an X appears at the cross-

section between the task, framing the exterior walls, and the responsible party,

Mr. Sites. Additionally, Mr. Sites is also responsible for framing the interior

walls and installing the roofing trusses

.

Performing Dept.

Manager

Pour

F oundat ion

1.1.1.1

Install Patio

1.1.1. 2

Pour

Stairway

1. 1.1.3

Frame

Exterior

Walls

1.1.2.1

Frame

Interior

Walls

1.1. 2.2

Install

Roofing

Trusse

1.1.2.3

In s tall

Water

Lines

1.1.3. 1

Install Gas

Lines

1. 1.3.2

Install B/K

Fixt ures

1.1.3.3

CONCRETE

DEPT 6010

Manning

X

X

X

MASONRY

DEPT 6020

Greams

X

TEST

DEPT 6030

Neumann

X

X

X

CARPENTRY

DEPT 5010

Sites

X

X

X

ROOFI NG

DEPT 5020

Taylor

X

DRYWALL

DEPT 5030

Smith

X

WIRING

DEPT 4010

Johnson

HOOKUP/TIE-IN

DEPT 4020

Ottis

WATER/SEWER

DEPT 3010

Wells

X

X

GAS

DEPT 3020

Oriely

X

X

1.1.3

PLU MBI NG

CONCRETE

1.1. 1

FRA MIN G

1.1.2

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Module 2 – Work Breakdown Structure

27

Prepared by: Booz Allen Hamilton

Responsibility Assignment Matrix (RAM)

Alternatively, hours and dollars may be used in the RAM rather than an “X”.

Using our ACME House example, the “X” was replaced with the hours

needed to complete the task. Now we see that Mr. Sites has 300 hours to

frame the exterior walls, 250 hours to frame the interior walls and 175 hours

to install the roofing trusses.

Performing Dept.

Manager

Pour

Foundation

1.1.1.1

Install Patio

1.1.1.2

Pour

Stairway

1.1.1.3

Frame

Exterior

Walls

1.1.2.1

Frame

Interior

Walls

1.1.2.2

Install

Roofing

Trusse

1.1.2.3

Install

Water

Lines

1.1.3.1

Install Gas

Lines

1.1.3.2

Install B/K

Fixtures

1.1.3.3

CONCRETE

DEPT 6010

Manning

200

125

85

MASONRY

DEPT 6020

Greams

50

TEST

DEPT 6030

Neumann

20

10

5

CARPENTRY

DEPT 5010

Sites

300

250

175

ROOFING

DEPT 5020

Taylor

100

DRYWALL

DEPT 5030

Smith

275

WIRING

DEPT 4010

Johnson

HOOKUP/TIE-IN

DEPT 4020

Ottis

WATER/SEWER

DEPT 3010

Wells

100

15

GAS

DEPT 3020

Oriely

125

25

1.1.3

PLUMBING

CONCRETE

1.1.1

FRAMIN G

1.1.2

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Module 2 – Work Breakdown Structure

28

Prepared by: Booz Allen Hamilton

Review of Module 2

Take some time to review the major items of this module:

• The Work Breakdown Structure (WBS) is a tool that defines a project and

groups the projects elements in a way that helps organize and define the

total work scope of the project

• In preparing a WBS there are a number of steps that need to be taken

including:

– identifying the final project product

– identifying the major deliverables

– incorporating the appropriate levels of detail

– obtaining stakeholder agreement

• WBS Dictionary is a narrative description of the lowest level for each WBS

element

• Organizational Breakdown Structure (OBS) indicates the organizational

relationships and is used as the framework for assigning work

responsibilities

• Responsibility Assignment Matrix (RAM) merges the WBS and OBS to

identify the specific responsibility for specific project tasks

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Module 2 – Work Breakdown Structure

29

Prepared by: Booz Allen Hamilton

Summary of Module 2

At this point we have examined the WBS, OBS and RAM. These items are the

start for laying the groundwork for developing an earned value management

system (EVMS). In the next module you will examine these item in more

detail by looking at the development of the project schedule.

If you have a firm grasp of the concepts covered in this module, feel free to

progress to the next module. Otherwise, review this module to ensure you

have a solid understanding of the basics for developing a WBS, OBS and

RAM

This concludes Module 2.