W03.0_LRuiz_ PM, Procurement, Work Packages, Delivery Systems, all include in the WBS?

I. Problem recognition or Opportunity Statement

Generally the Work Breakdown Structure (WBS) associated Work packages have different requirements depending on which part of the project team requires it, e.g., to control costs we use a WBS classification aligned to the organization of our accounting department, it is possible that the project management needs a structure to have control over the resources involved in the project, Engineering design managers will generally align to the construction stage contracting system to generate their deliverables with this structure, the execution phase and the project control will follow the latter structure, the pre-commissioning, commissioning and handover stage will be organized according to the complete systems to be delivered.

The WBS is a basic tool in Project Management and is a vital aid in an engineering economy study. The WBS serves as a framework for defining all project work elements and their interrelationships collecting and organizing information, developing relevant cost and revenue data, and integrating project management activities

As we have seen, the work packages associated with the WBS change according to the area that needs it and the stage of the Project, so it is necessary to align this as much as possible, so that at a macro level the WBS is defined and can involve the needs of all the stages and different areas of the Project, up to what level is this possible?

II. Identify the Feasibility Alternatives or Solutions

The alternatives identified and evaluated for this article are as follows:

1. Current WBS
2. Work Package Concept
3. Multi-dimensional WBS (3D)

III. Development the Outcomes for each alternative

1. Current WBS

This is the structure we currently manage, which varies according to the department that needs to organize its deliverables, although the project is reported in a single WBS.

FIGURE 01: WBS for the Project

FIGURE 02: WBS for Engineering

FIGURE 03: WBS for Supply Chain Management

FIGURE 04: WBS for Readiness

2. Work package Concept

Defined in the TCM, in general this methodology consist in make a relation between the WBS and OBS can then be integrated via a matrix such that the intersection of each WBS component with an OBS component comprises a work package that can be effectively planned and managed.

Figure 05: Example of the WBS, OBS, and Work Package Concept (by Total Cost Management Framework)

3. Multi-dimensional WBS (3D)

In 2012, Jean-Yves Moine has developed a concept of 3D Work Breakdown Structure (3D WBS) with 3 tree structures that compose the WBS:

• ZBS (Zone Breakdown Structure). Physic-functional areas, functional zones or topographical locations. In EPC (Engineering, Procurement, and Construction) project, ZBS is group of functional system for the design and the commissioning phases. For construction phase, ZBS is geographical area.
• PBS (Product Breakdown Structure). Generally PBS is equipment, material, deliverables, civil works components; and functional systems at the higher levels of the tree.
• ABS (Activity Breakdown Structure). An activity is an action, in process point of view. Activities are deployed on products. It is the processes that build products. For example: studies, design, purchase, construction and installation.

FIGURE 06: WBS’S Structure

FIGURE 7: Three most Commoon Omniclass Tables used in Construction by both Owners and Contractors (by Project Controls / PMO Handbook of the WBest Tested and PROVEN Practices)

IV. Selection of the Acceptable Criteria

We will use one of the non-compensatory models, the Lexicography type will be selected because we need to judge a single attribute that is considered more important than all the others. The final choice could be based solely on the most acceptable value for this attribute. The comparison of alternatives with respect to one attribute reduces the decision problem to a single dimension

Since the lexicography method does not take into account the data collected and we need the importance of each attribute, this is identified in the ranking column, in case there are alternatives with similar values for the selected attribute and to continue the evaluation.

FIGURE 8: Criterias to be evaluated by a non-compensatory model, and lexicography rank for each criteria

V. Analysis and Comparison of the alternatives

FIGURE 9: Summary Information

FIGURE 10: Ordinal Ranking Attributes

FIGURE 11: Application of Lexicography Method of Compensatory Model

VI. Selection of the preferred Alternative

The Multidimensional WBS alternative is the one that best meets criteria 1, according to the previous table, and would be the one that best fits and can provide us with the best information for the project, although this will depend on the complexity of the project.

On the point of using a single WBS structure to meet all needs, while it is appreciated that the information is variable, it can be adjusted to some level with the multidimensional WBS alternative, but it is always going to be better for each stakeholder to see the results of their project in the way they need to see them.

VII. Performance Monitoring and Post-evaluation of results

Subsequent evaluation will consist of using this new approach and method of WBS (by the blog’s author), to identify the advantages and disadvantages in the application. Subsequently, it will also be necessary to investigate and blog new methods such as the one shown below, which relates a larger number of variables, to see its applicability, always depending on the size of the Project.

FIGURE 12: Future of Project Controls WBS (by Project Controls / PMO Handbook of the WBest Tested and PROVEN Practices)

References:

1. William G. Sullivan, Elin M. Wicks, C. Patrick Koelling, (2019). Engineering Economy (Sixteenth Ed.). Chapter 3.0: Cost-Estimation Techniques, 3.2.1. The Breakdown Structure (WBS), Chapter 14: Decision Making Considering Multiattributes, Global Edition.
2. Humphreys, Gary C. (2018). Project Management Using Earned Value (4th edition.). Section 1 Earned Value Project Management – Chapter 2 Definition of Scope, Work Breakdown Structure (WBS) and WBS Dictionary. CA: Humphreys & Associates, Inc.
3. PTMC Team and Dr. Paul D. Giammalvo (2021) Project Controls / PMO Handbook of the WBest Tested and PROVEN Practices, Unit 4: Managing Scope – 4.3 Creating the WBS Structure Process Map, https://build-project-management-competency.com/1-4-1-4-unit-4/
4. H. Lance Stephenson, CCP FAACE, (2015) AACE International.–  Total Cost Management Framework. Second Edition 7.1.2. Process Map for Project Scope and Execution Strategy Development
5. A. Fahmy S. (2013),  W8_AFS_ Managing Small Project: Work Breakdown Structure Selection,  Simatupang Blog. AACE and GPC Certification Prep Course https://simatupangaace2014.wordpress.com/2013/11/07/w8_afs_-managing-small-project-work-breakdown-structure-selection/
6. Rikky D, (2014) W4_RD_WBS Selection, Guradu Blog. AACE and GPC Certification Prep Course https://garudaaace2015.wordpress.com/2015/03/23/w4_rd_wbs-selection/

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