Work and Cost Breakdown Structure WBSCBS

Top level work breakdown structure (WBS) exhibiting the activities in each phase of the system life is shown in Fig. 11.2. This structure is obtained by first specifying what activities have to be performed to complete the job or the project and then connecting them in a logical manner starting from the endpoint, that is, from what we have to have at the end. We then have to obtain the detail resources required to complete each activity and the corresponding total cost of resources in monetary terms. When we attach the total cost to each activity, we will obtain the cost breakdown structure (CBS) which is the cost counterpart of WBS. When the project starts to perform there, it usually provides some benefit. The complete time line of the costs and benefits will provide the cash flow diagram from which the total lifetime worth of the proj ect can be calculated. The combined work breakdown structure and the cost benefit structure will help identify all the costs and benefits associated with the development, production, and operation of the system. CBS is of the used by the manufacturers to estimate the unit cost or the lifetime cost of the system.

Fig. 11.2

Table 11.1 shows the levels of CBS. It shows the related items associated with each phase of the life in more detail. Each cost is related to an activity. Concurrent engineering allows the performance of the activities in parallel rather than sequentially.

Project Management Made Easy

Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

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