Work Breakdown Structure (WBS)

See Also:
Percentage Completion (POC) Method
Completed Contract Method
Capital Expenditures
Construction Accounting

Work Breakdown Structure (WBS) Definition

The Work Breakdown Structure is a technique or method of breaking out different components or pieces of a project. The work breakdown structure chart starts at the highest level of the project and then breaks down the different components.

Work Breakdown Structure (WBS) Explained

Allowed within the Work Breakdown Structure method, a project manager evaluates what is needed to be done initially to make it to the next level of a project. In a way, this allows the manager to start out at the basic level and move up to the more advanced stages. It also allows the project manager to prioritize the different components of the project. Project accountants also like the WBS template because it allows them to calculate the percentage complete if the project is being performed for revenue. Sometimes, you can use the Work Breakdown Structure method for something simple like job hiring for a position. Although, the main benefit from the WBS is that it breaks a large project down into manageable components.

Work Breakdown Structure (WBS) Example

For example, Tim is managing the construction of an airplane to be sold in the next year. First, Tim evaluates all the tasks he needs to perform. Then he writes them down. Check out the following list for the Work Breakdown structure:

  • Level 1 – Construction of Airplane
  • Level 2 – Construction of Fuselage, Wings, and Engines
  • (Fuselage) Level 3 – Construction of metal frame, purchase of seats, purchase of carpet, construction of cabinentry, and construction of cockpit
  • (Wings) Level 3 – Purchase of metal and construction of frame
  • (Engines) Level 3 – Purchase and installment of engines from company specializing in airplane engines

You can further break down all of the components in Level 3 into a Level 4, and then even further if required. The key to the Work Breakdown Structure is to make the project simplified and as manageable as possible.

work breakdown structure (wbs)

, , ,

3 Responses to Work Breakdown Structure (WBS)

  1. jobs south africa January 13, 2016 at 8:24 pm #

    Hi there! This blog post couldn’t be written much better!
    Looking at this post reminds me of my previous roommate!

    He continually kept preaching about this. I will forward this information to him.
    Pretty sure he will have a great read. Thank you for sharing!

  2. film bioskop February 19, 2016 at 1:14 am #

    Tremendous issues here. I’m very happy to look your post.
    Thank you so much and I’m looking forward to contact you.
    Will you please drop me a e-mail?

  3. convocatoria oposiciones prisiones 2014 March 26, 2016 at 5:16 am #

    I’m more than happy to uncover this page. I need to to thank you for ones time due to this wonderful
    read!! I definitely appreciated every bit of it and i
    also have you saved to fav to check out new things on your website.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.