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Chpt03 defining the project
- 4. Hierarchical Breakdown of the WBS
Figure 3-3
Level
Hierarchical breakdown
1
Project
2
Deliverable
3
4
Subdeliverable
Lowest subdeliverable
Description
Complete project
Major deliverables
Supporting deliverables
Lowest management
responsibility level
Cost account*
Grouping of work packages
for monitoring progress and
responsibility
Work package
5
Identifiable work activities
*This breakdown groups work packages by type of work within a deliverable and allows assignment of
responsibility to an organizational unit. This extra step facilities a system for monitoring project progress
(discussed in Chapter 12).
Irwin/McGraw-Hill
©The McGraw-Hill Companies, 2000
- 5. Work Breakdown Structure
Figure 3-4
Personal computer
prototype
Level
1
2
Vendor,
software,
applications
~
3
Mouse,
keyboard,
voice
~
Floppy
~
Microprocessor
unit
Disk
storage
units
Optical
More
items
Hard
Internal
memory
unit
~
BIOS (basic
input/output
system)
ROM
Lowest manageable
subdeliverables
Irwin/McGraw-Hill
Motor
Circuit
board
Chassis
frame
WP-1M
5
WP-1 CB
WP-2 CB
WP-3 CB
WP-4 CB
WP-5 CB
WP-6 CB
WP-7 CB
WP-1 CF
WP-2 CF
WP-3 CF
RAM
I/O
File
~
4
~
~
~
Utilities
~
Read/write
head
WP-1 RWH
WP-2 RWH
WP-3 RWH
WP-4 RWH
WP-5 RWH
Work packages
©The McGraw-Hill Companies, 2000
- 6. Integration of WBS and OBS
Figure 3-5
Personal computer
prototype
Level
1
More
items
1.0
1.3
1.2
2
Vendor,
software,
applications
1.1
Mouse,
keyboard,
voice
3
Floppy
~
Microprocessor
unit
Disk
storage
units
~ 1.1.1
~
1.4
1.1.2
Optical
1.4.1
1.1.3
Internal
memory
unit
Hard
~
1.4.1.1
4
1.4.2
BIOS (basic
input/output
system)
1.4.1.2
1.4.2.1
1.4.2.2
Lowest manageable
subdeliverables
1.1.3.1
Motor
Production
Test
Purchasing
Software
Irwin/McGraw-Hill
Circuit
board
Cost
account
Cost
account
Cost
account
Design
Manufacturing
Organization
1.1.3.2
Cost
account
Cost
account
RAM
I/O
File
~
5
ROM
~
~
~
1.1.3.3
Chassis
frame
1.4.2.3
Utilities
~
1.1.3.4
Read/write
head
1.1.3.4.1
Cost
account
Cost
account
Cost account
number
Work packages
WP1.1.3.4.2.1
WP1.1.3.4.2.2
WP1.1.3.4.2.3
Budget by
period
Time
©The McGraw-Hill Companies, 2000
- 7. Read/Write Head Design
Figure 3-8
Work package cost estimate
Cost
Direct Costs
Design engineers
Proto engineers
Materials
Equipment rental
Total direct costs
Irwin/McGraw-Hill
Low
Average
High
$ 80
130
25
25
$100
150
25
25
$150
280
25
30
$260
$300
$485
©The McGraw-Hill Companies, 2000
- 8. Three Views of Cost
Figure 3-9
$6,000
5,000
Costs
4,000
3,000
2,000
1,000
Committed
Actual cost
Scheduled budget
Project Duration
Irwin/McGraw-Hill
©The McGraw-Hill Companies, 2000