Iaccounti J

FIGURE 11-3. The cost account intersection.

• Specifies a budget in terms of dollars, man-hours, or other measurable units

• Limits the work to be performed to relatively short periods of time to minimize the work-in-process effort

Table 11-2 shows a simple work breakdown structure with the associated numbering system following the work breakdown. The first number represents the total program (in this case, it is represented by 01), the second number represents the project, and the third number identifies the task. Therefore, number 01-03-00 represents project 3 of program 01, whereas 01-03-02 represents task 2 of project 3. This type of numbering system is not standard; each company may have its own system, depending on how costs are to be controlled.

The preparation of the work breakdown structure is not easy. The WBS is a communications tool, providing detailed information to different levels of management. If it does not contain enough levels, then the integration of activities may prove difficult. If too many levels exist, then unproductive time will be made to have the same number of levels for all projects, tasks, and so on. Each major work element should be considered by itself. Remember, the WBS establishes the number of required networks for cost control.

For many programs, the work breakdown structure is established by the customer. If the contractor is required to develop a WBS, then certain guidelines must be considered including:

• The complexity and technical requirements of the program (i.e., the statement of work)

• The program cost

• The time span of the program

• The contractor's resource requirements

• The contractor's and customer's internal structure for management control and reporting

• The number of subcontracts

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.

Get My Free Ebook


Post a comment