PETR 5392 Petroleum Project Management

Project Planning: The Work Breakdown Structure (WBS)

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Agenda
The Work Breakdown Structure(WBS)
What it is Why it is important Different Ways to Create a WBS The pros and cons of different types of WBS Guidelines and Rules of Thumb

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WBS and the Little 5 +1

Client Requirements

Project Objectives

Work Breakdown WBS

Task Control

Recycle

Project Organization

Project Schedule Project Baseline (Budget)

Risk Management

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The Work Breakdown Structure

A deliverable-oriented, hierarchical decomposition of the work
To be executed by the project team To accomplish the project objectives To create the required deliverables

The WBS (graphically) organizes and defines the total scope of the project
The WBS is the essence of the Project Management Method

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What is a WBS?
It does not need to be in org chart form
It can be in ordered outline form, but
Graphical representations sometimes help people better visualize how things fit together. Graphical representations allow you to more easily transition toScheduling of the project

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The Criteria For Developing a WBS

WBS

1. Easy to Understand - Participative

End Item

2. No need to go to lowest possible level, but have about the same level of effort for each task at the lowest level
Deliverable

3. Each task must have a deliverable 4. Each task must have clear start & end dates 5. Different projects have different WBS

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WBS Types
Components, or parts of the product Chronological, or Sequential Functional disciplines Organizational units Geographical areas Cost accounts Configuration characteristics Deliverables Purpose or functions Subsystems of the product or project Schedule milestones Phases

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General Motors Europe Automotive (Component)

WBS Level

Vehicle Level

Platform WBS

Systems Level

Chassis

Body

Electrical

Power Train

Subsystems Level

Exhaust

Fuel Delivery

Engine Mgmnt

Fuel Storage

Subsystems Level

PCV

Fuel System

ECR

Component Level

IACV

Injector

Press. Reg.

Parts Level

Contact

Nozzle

O-Ring

Pintle

Housing

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WBS Example
HP Compaq - Laptop Display
Design Laptop Display

Power Supply

Define Architecture

Controller

Mechanicals

LCD (Sharp)

Panel

Housing

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Compare/Contrast
Project: Cruise Ship Modification
Chronological
Chronological WBS

Feasibility Study

Scope of Work

Design

Purchasing & Logistics

Dry Dock

Marketing

Trials & Launch

Project Management

Functional WBS

Functional

Marketing & Sales

Marine

Engineering

Hotel

Shipyard

Human Resources

Purchasing & Logistics

Project Management

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Compare/Contrast These WBSs

Chronological

Product Development Project

Typical Project

Study

Concept

Prototype

Qualification

Pilot

Production

Project Management

Functional

Typical Project

Sales

Product Engineering

Purchasing

Quality Control

Job Shop

Manufacturing Department

Project Management

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Why Use a Chronological WBS?

Advantages of the chronological WBS:
It is easy to see the critical path, A small core team (4-6 people) working on sequential events creates a sense of urgency between team members. They become supportive and hold each other mutually accountable.

Communications and team building between upstream and downstream team members is actually better since they all
meet together at team meetings and at stage gates.

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Organizational Functions and Activities

Marketing
Analyze Market Define opportunity Sell solution Close order Maintain customer. Explore further opportunities

Engineering

Concept design

Preparatory work

Project mobilization and Initial design

Detailed design

Test and evaluate

Production release

Production

Support

Requirements

Customer requirement

Design requirements

Product specs.

Product handbooks

Acceptance

Acceptance and test requirements

Customer acceptance

Production

Production estimates

Advice to design

Production planning

Production

Project Management

(Gates)

1A

1B

2A

2B

3A

3B

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Example WBS - Allen Bradley, Rockwell Automation

Chronological
WBS, Product Launch WBS Level 1 Project Management Definition Feasibility Acceptance Program Development Program Launch Sales

Brochures

Margin

Stock Profile

Support

Training

Brochure Production

Advertising

Training

DBT System

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Oil Industry Example-Chevron(1)

WBS
Company Costs Design and Procurement Services Plant Time (If Required) Equipment & Materials Other Costs

Contract

Administration

Project Admin.

Construction Supervision

Client Costs

Plant Totals (If Required)

Engineering Services P.M. Staff Support Services Exp./Travel Other

Drafting Services

Contract Services

Bulk Materials

Engineered Materials

Const. Staff Support Services Exp./Travel Facilities Other

Client Staff Support Services Exp./Travel Contracts Other Engineering Disciplines Drafting Disciplines Total by Contract

Bulk Class.

Equipment Class.

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Chevron(2)
(Re-organized to Promote Team Communications)
CWBS
Equipment & Material Administration

Design and Procurement

Construction

Home Office

Field

Design Services

Procurement Services

Direct Labor

Subcontract Fee P.M. Expenses Other Const. Supv. Mobilisation Demobil. Site Facilities Other Engineering Services Drafting Services Subcontract Design Bulk Materials Engineered Materials

Engineering Disciplines

Drafting Disciplines

Design by Subcontract

Buyers Inspection

Bulk Class.

Equipment Class.

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New e-mail system for Bechtel Corporation

MAILworks WBS
Planning Server Preparation
Configure MAILworks Server Configure Dialup Access

Documents

Migrate PROFS Customers

Migrate PCSA Cust. Notify Cust for Training Admin. Mailworks Accounts Train Cust. Change Cust to Mailworks Migrate Novell Cust. Notify Cust for Training Admin. Mailworks Accounts Train Cust. Change Cust to Mailworks Migrate Off-site PROFS Notify Cust for Training Admin. Mailworks Accounts Train Cust. Change Cust to Mailworks Migrate Remaining PROFS Notify Cust for Training Admin. Mailworks Accounts Train Cust. Change Cust to Mailworks

Migrate Other EMail Users

Notify Cust for Training Admin. Mailworks Accounts Train Cust. Change Cust to Mailworks

Develop Migration Plan Class for Local Cust. Class for Off-site Cust. ID HORO E-Mail Cust. Schedule Cust for Training

Training Ref. Material Review of Ref. Material Produce Final Docs.

Outline Format
4.2 Migrate Novell PROFS Customers 4.2.1 Notify Cust. for Training Class 4.2.2 Admin MAILworks accounts 4.2.3 Train Customer 4.2.4 Change Cust. to MAILworks 4.3 Migrate Offsite PROFS Customers 4.3.1 Notify Cust. for Training Class 4.3.2 Admin MAILworks accounts 4.3.3 Train Customer 4.3.4 Change Cust. to MAILworks 4.4 Migrate Remaining PROFS Customers 4.4.1 Notify Cust. for Training Class 4.4.2 Admin MAILworks accounts 4.4.3 Train Customer 4.4.4 Change Cust. to MAILworks 5. Migrate Other E-mail Users 5.1 Notify Cust for Training Class 5.2 Admin MAILworks accounts 5.3 Train Customer 5.4 Change Cust to MAILworks

1. Planning 1.1 Dev. Migration Plan 1.2 Dev. Training Class for Local Cust 1.3 Dev. Training Class for Off-site Cust 1.4 ID & Locate HORO e-mail customers 1.5 Schedule Customers for Training
2. Server Preparation 2.1 Setup & Configure MAILworks Server 2.2 Setup/ Configure/ Test Dialup Access 3. Documentation 3.1 Create Training Reference Material 3.2 Review/ Comment of Ref Material 3.3 Produce Final Documentation 4. Migrate PROFS Customers 4.1 Migrate PCSA PROFS Customers 4.1.1 Notify Cust. for Training Class 4.1.2 Admin MAILworks accounts 4.1.3 Train Customer 4.1.4 Change Cust. to MAILworks

Organization Chart Format

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Developing a WBS-Guidelines
1. The WBS and work description should be easy to understand. 2. No attempt should be made to subdivide work arbitrarily to the lowest possible level. Lowest level of work should not end up having a ridiculous cost in comparison to other efforts. 3. The WBS can act as a list of discrete, measurable, tangible milestones so that everyone will know when the milestones are achieved. 4. Tasks should have clearly defined start and end dates; it should be possible to construct a schedule or a network for a WBS task. 5. No effort should be made to extend the WBS to the same number of levels for all projects.

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WBS Rules of Thumb

The lowest level of task on your WBS on a large capital project, should represent app. 80 hours(i.e. 2 weeks) duration of work.
This can be most easily monitored
Less than 2 weeks is probably micro-managed More than 2 weeks provides a chance for the job to get out of control

Think ahead to why you want to develop a WBS-what is this leading into?
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Various Uses for the WBS

The WBS Helps Execute the Following Activities:
Describing the total effort of the project Issuing work authorizations Budgeting Scheduling Status reporting Tracking technical performance Risk Management

So think ahead, when developing your WBS to other steps in the Project Management Method.

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KeystoneXL: Overview of the Pipeline

Approximately 1,711 miles of new 36-inchdiameter pipeline, 327 miles of pipeline in Canada 1,384 miles in the U.S. Crude transport capacity of app. 700,000 bpd. Estimated to cost $7 billion. Completion scheduled for 2015

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Overview of Steele City Segment

A total of 851 miles of new pipeline will be constructed for the Steele City Segment. Keystone proposes to construct one tank farm on an approximate 50-acre site at Steele City, Nebraska, and 18 new pump stations, each situated on a 5-acre site. New electrical transmission power lines with voltage of between 69 kV to 240 kV would be constructed and operated by local power providers to service pump stations and a tank farm along the proposed Project route.

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Icono-Graphic: The Pipeline Construction Process for a 1 Mile Spread

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One Possible WBS

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WBS Workshop-In Groups (15 Minutes) Develop a draft WBS for your Major Project, either:
Chronological Functional

Diagram the Draft WBS(org chart or outline form) Explain the project and WBS to the class.

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The Project Organization

Client Requirements Project Objectives

Work Breakdown WBS

Recycle

Project Organization

Accountability

Project Schedule Project Baseline (Budget)

Risk Management

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Developing the Project Organization Chart

WBS Level
Product Development Project

Procurement

Construction of Equipment

Testing

Collection of Samples

Project Management

START HERE

10

11 12

13

14

15

16 17 18

Proj. Mgr. S.Randall

CLIENT

Consultant

Procure. T. Johns Task 1 J. Audibert Task 2 C. Depasse Task 3 Merguerian Task 4 M. Irish

Construct C. Townsend Task 5 B. Gibson Task 6 G. Oh Task 7 Johanovich Task 8 J. Coldren

Test S. Randall Task 9 Roytberg Task 10 R. Gibson Task 11 Suet Fong Task 12 M. Ozbilen

Samples K. Gifford Task 13 J. DeBrosse Task 14 H. Joksch

ADD NAMES 1:1

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Project Organization Example Allen Bradley (One-to-One Relationship to the Work Breakdown)
Project Manager (PM) WBS Level 1 Definition (MM) Feasibility (PM) Acceptance (CD) Program Development (PM) Program Launch (PM) Sales (PM)

Brochures 2 (CM)

Margin (PM)

Stock Profile (MD)

Support (MM)

Training (TD)

PM MM TD CM MD CD

Product Manager Marketing Manager Training Department Communications Marketing Manufacturing Division Country Director

Brochure Production (CM)

Advertising
(MM)

Training TD)

DBT System (MD)

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But do you really want a SPOR*?

* Single Point of Responsibility

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Linear Responsibility Chart

Project office
l General Management Responsibility Action Responsibility Must Be Consulted Must Be Notified Must Approve

Division Manager

Project Manager

Dept. Manager

Team Member

RAW MATERIAL PROCUREMENT Prepare Bill of Material Contact Suppliers Visit Suppliers Prepare Purchase Order Authorize Expenditure Place Purchase Order l l l l l l

Providing Adequate Project Governance

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The RACI Chart

Define Deliverables Sponsor Operations TM Project Manager Planner Technical Leader R A C I I Develop Plan A I R C C Develop Design Design Specs Development Acceptance I A R I C I I A I R A I R I C Deliver to Customer R A C C C

R A C I

= = = =

Responsible Accountable Consulted Informed

Page 65

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The RASCI
Term R Responsible Definition Who is responsible for actually doing it? The Doer

A Accountable S Support
C Consulted I Informed (Kept)

Who has authority to approve or disapprove it? Who makes sure that its getting done. Who will help the person responsible?
Who has needed input about the task? Keep in the loop Who needs to be kept informed about the task? Keep in the picture

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Group Homework-Due Wed.

Each Group Finish the WBS for their project Develop a Project Organization Chart for Your Project Justify
why you chose you organization chart type(Chronological or Functional) list the pros/cons of this format for your project.

Turn in the WBS for your project on Wednesday.

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