Furthermore, the government accountability office gao cost. Gao cost estimating and assessment guide best practices for developing and managing. Project management, cost estimation, and team organizations 4 ics 125 project planning and scheduling project planning determines a project schedule based upon project constraints delivery, staff, budget project parameters structure, size, functions project milestones and deliverables planning and scheduling must estimate risk. Jun 01, 2005 nasa work breakdown structure wbs handbook page viii preface p. It helps you plan, track and report project costs based on a hierarchical structure of userdefined cost codes. Pdf the role of cost breakdown structure in life cycle cost model. The work breakdown structure wbs is a tool to identify what must be done in order to accomplish project objectives. This guideline is intended to help the project manager organize project materials by providing a simple set of rules for creating and storing project documentation.
Creately diagrams can be exported and added to word, ppt powerpoint, excel, visio or any other document. A description of how this structure was developed using the work breakdown structure. Pdf scope management allows project managers to react when a. It defines and structures the total scope of the project because it starts from the deliverables as stated and then decomposes the work and the smaller sections.
Cost breakdown structure editable work breakdown structure. Context and authority this guidance note base cost estimation is one component of the suite of documents that in aggregate, constitute the department of infrastructure and regional development the. The work breakdown structure wbs has long served as a valuable tool in helping project managers plan deliverables and detail project scope. Its a helpful tool that defines a detailed cost or time estimate and provides guidance for schedule development and control.
You can check out the complete range of project management pdf ebooks free from this website. Relationship of the work breakdown structure wbs with the project. Breakdown structures revisited dedicated to project controls. A work breakdown structure wbs is a visual tool for defining and tracking a project deliverable and all the small components needed to create it. Project management handbook for epc plant engineering, procurement and construction. The methodology outlined in this guide is a compilation of best practices that federal cost estimating organizations and industry use to. The work breakdown structure wbs is the basis for the cost management plan because the costs are totaled or rolled up from the costs for the individual work packages in the wbs. The chapter discusses the purpose of the work breakdown structure wbs and code of account coa cost code. Traditionally, cost estimates are produced by gathering input, developing the cost estimate and its documentation, and generating necessary output. A work breakdown structure for implementing and costing an erp project communications of the ibima volume 6, 2008 94 a work breakdown structure for implementing and costing an erp project aisha momoh, decision engineering centre, cranfield university, bedford, uk,a. Breakdown structure wbs handbook which are all available at. This will obviously be the cost for the component e.
The cbs is used to continuously compare the actual costs with the. Documentation to enable the agency to easily track changes to. Its a hierarchy of tasks that represents the project teams understanding of the composition of work, and of the size, cost, and duration of each component or task. Cost estimation managing people project management, cost estimation, and team organizations 2 ics 125 project management poor managment is the downfall of many software. Work breakdown structures overview finance dynamics. Auidp1 edition 1 contains only factual information. A detailed work task description, costsummary table, work breakdown structure, division of responsibilities and preliminary schedule are included. Construction cost estimate breakdown sheet contains all cost in breakup by itemsstages. But to confront the challenges of working in todays volatile economic environment, project managers are increasingly using. Ac327, working group 5 developed this document as nato guidance for unique. October 2014 state of michigan project estimating guide page i preface the purpose of this guide is to provide guidance and detail on the practice of project estimating for scheduling and budgeting purposes utilizing the work breakdown structure as the basic tool. A plan, broken down by work breakdown structure wbs level 2 group elements, to be used as a guide for designing within the construction budget. Study scope the feasibility study will produce a report, accompanied by an environmental document that complies with the national environmental policy act nepa.
It is the connecting point for work and cost estimates, schedule information, actual work effort cost expenditures, and accountability. A cost breakdown structure cbs is a cost allocation to the lowest level of the work breakdown structure wbs. Take a look at the risk breakdown structure example below, a legend of impact with five items has been setup, representing the five levels of impacts that risks may have on the project with five distinct color code. Research and documentation of local market conditions that will affect the bid cost. Using the headers from the mdl can help establish the projects work breakdown structure wbs thus. For example, pressure vessels can be constructed with different types of body. Documentation of the general cost assumptions incorporated in all of the models section. Work breakdown structure wbs the wbs provides a clear description of the projects deliverables. Cost breakdown structure cbs the cost breakdown structure cbs classifies the costs within project into cost units cost centres and cost elements cost types. Establishing a pricing structure for software products year 20 pages 40 this thesis is a case study that explores how to establish a pricing structure for software products.
Nasa work breakdown structure wbs handbook page viii preface p. The establishment of a cost structure aids efficient cost planning, controlling, and the introduction of measures to reduce costs. It describes the what is to be done not the process or schedule. Oracle projects helps you manage projects with complex cost structures by providing you the ability to enable a project for cost breakdown planning. Unfortunately, the business pressures driving projects have often prevented project managers from developing a comprehensive wbs. Work breakdown structurebased cost model for cation. The cbs is a breakdown of the costs of the various components of the structure including all works or services done by the subcontractors.
This cost estimate breakdown sheet is very important for a building construction contractor before they budget and start any project. Have you encountered work breakdown structures and wondered how they can help in your project management efforts. There are many risk management tool you can use in structuring risks. This guideline is intended to help the project manager organize project materials by providing a simple set of rules for creating and storing project documentation, and illustrates the application of these rules to a. Cost breakdown planning overview of cost breakdown planning. Work breakdown structure one way of breaking down the major activity into smaller components. Download construction cost estimating breakdown form sample pdf free. A detailed work task description, cost summary table, work breakdown structure, division of responsibilities and preliminary schedule are included. An example of an estimating rule of thumb would be raising the. Software cost estimates can be created in a number of different fashions. A fixture in classic project management methodology and systems engineering, the work breakdown structure wbs is a method that breaks a project down into a hierarchy of deliverables, tasks, and subtasks. Establishing a pricing structure for software products. Apr 25, 2017 the definitive guide to project cost management with templates for cost estimating and a cost management plan. Pdf application of the work breakdown structure in determining.
Work breakdown structure integration of cost, schedule, and technical information 224. Work breakdown structures overview finance dynamics 365. Work breakdown structure wbs is a tool to identify what must be done in order to accomplish project objectives. Project management, cost estimation, and team organizations. Pdf the role of cost breakdown structure in life cycle cost. The work breakdown structure wbs is a hierarchical decomposition of the work to be completed in order to achieve the project deliverables.
A work breakdown structure for implementing and costing an. Besides cost buffers linked with the group of tasks assigned to summary tasks, a definition of the cost buffer for the entire project pcb has been proposed, i. Download construction cost estimating breakdown form. Availability and version control the cost estimation guidance is subject to periodic update, and hence is not available from the department as a printed bound document. It is defined as an enumeration of all work activities in hierarchic refinement of detail which organizes work to be done into short manageable tasks with quantifiable inputs, outputs. Systems development life cycle sdlc methodology information technology services july 7, 2009 version 1 authors.
Project documentation naming conventions and repository guideline. Cbs cost breakdown structure the project definition. The example below is the wbs for a top management seminar in 2007. Appendix 2 is provided to assist with documenting excel spreadsheets. All about work breakdown structures wbs smartsheet. The objective is to provide a guideline to establish a pricing structure for viope solutions oy. Is a deliverable breakdown structure is a hierarchical decomposition of the work the deliverables are decomposed to a level where a. The need for retention of these capabilities was revalidated by the primary federal clients i. Can be used on the development of your work breakdown structure. This is a working draft document for discussion purposes only. Its mission is to provide and support safe, reliable, and costeffective transportation options to improve livable communities and. These cost or pricing data are submitted for use in connection with and in response to describe buyers rfq and reflects the suppliers best estimate as of this date in accordance with the general instructions to supplier on the reverse side hereof.
At each submission, prepare a breakdown of the estimated cost in the same format, and a. Analyze and estimate workshop costs person time, project lapse time. An example of a form of archiving quickly came up in the roadmap section for example where one team immediately created a finished projects node to hold all old project documentation. Work breakdown structure wbs in project management. Project documentation naming conventions and repository. Auidp1 edition 1 nato guidance on unique identification uid of items is a nonclassified nato publication. Project management project management, cost estimation, and. Table b1 explains the gao cost estimating process steps that should be followed if accurate and credible cost estimates are to be developed. Pdf the role of cost breakdown structure in life cycle. Use createlys easy online diagram editor to edit this diagram, collaborate. It is the connecting point for work and cost estimates, schedule information, actual work effortcost expenditures, and accountability.
A work breakdown structure wbs is a tool used to define and group a projects discrete work elements or tasks in a way that helps organise and define the total work scope of the project it provides the framework for detailed cost estimating and control along with providing guidance for schedule development and control. A work breakdown structure is an essential first step in project planning. Work breakdown structure wbs in project management teamgantt. We took time to design this list example, but your work breakdown structure can just as easily be scribbled down on your favorite notepad or whiteboard. This facilitates the cost management process by aligning the cost codes with the work breakdown structure, which makes it easier. Cost estimating is to develop an approximation of the costs of the. Cost breakdown structure cbs the cost breakdown structure cbs classifies the costs within project into cost unitscost centres and cost elementscost types. If the owner is the contractor, the owner is responsible for submitting the cost estimate and providing documentation, including subcontractor bids, to document the cost estimate.
The applicable issue of the documents cited herein, including their. Pdf integration of cost and work breakdown structures in the. Creating the work breakdown structure by kim colenso, managing principal, artemis management systems the work breakdown structure wbs is the foundation for project planning and control. A plan, broken down by work breakdown structure wbs level 2 group elements, to be. Changes to these are not subject to the ratification procedures.
An example of the analogy cost estimating method 104. Example of threelevel wbs number code used in andritz oy. Using wbs, project objectives can be decomposed into many smaller tasks required to achieve the objectives. Heres how you might use a work breakdown structure to estimate your time for an upcoming move. A work breakdown structure wbs is a description of the work that will be done for a project. Project management project management, cost estimation. Cost estimation guidance guidance note 2 base cost estimation version 1. Requirements workshop work breakdown structure reference introduction to part ii in. Resource breakdown structure rbs is a project management tool that provides a hierarchical decomposition of resources, either structured by resource category, types or by itbusiness function that has resource needs. Use pdf export for high quality prints and svg export for large sharp images.
Elements of cost estimate documentation 170 other considerations 173 survey of step 10 173. Information placed at the top of a group of deliverables for identification. Annual cost uncertainty example displays cost risk statistics over. Exhibit 23 shows an example of an output spreadsheet. For example, if there are two cscis for the program numbered as 1. What is different is that the breakdown structure now includes a cost component. The cbs is used to continuously compare the actual costs with the budget, and integrate to the cost control system. An example of the analogy cost estimating method 104 table 10. Documentation of the general cost assumptions incorporated in all of the models. In order of increasing rigor and sophistication, the following six.
A work breakdown structure is a project management tool. The definitive guide to project cost management with templates for cost estimating and a cost management plan. All in all we are pretty satisfied with the result and have noticed that adoption of the new structure is easy. The purpose of the project documentation naming conventions and repository guideline is to establish project documentation naming standards and structure for project repositories. The downside of manual estimating via a detailed work breakdown structure of perhaps 50 activities, or 250 or so tasks, is that it is very time consuming to create the estimate initially, and it is even more difficult to make modifications when the requirements change or the scope. Appendix a provides the references used for this guide. Applying work breakdown structure to project lifecycle. This project wbs template is free for you to copy and use on your project.
Public distribution of this document is only permitted. This paper highlights the basic process of developing a life cycle cost model and the role of cost breakdown structure for water distribution pipeline networks. Mel barracliffe, lisa gardner, john hammond, and shawn duncan. Is a deliverable breakdown structure is a hierarchical decomposition of the work the deliverables are decomposed to. Simple method proposal for cost estimation from work breakdown. A cost breakdown structure cbs is not that different from a pbs product breakdown structure or wbs work breakdown structure.
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