From Figure 3-5, we see that OBS department budgets and WBS project budgets intersect. Eventually, these budgeted items must find their way to the chart of accounts of the business. Let us introduce additional nomenclature to go with the chart of accounts:
■ The WBS itself is often numbered hierarchically for each work element identified. The WBS numbering scheme is sometimes called the "code of accounts." t9]
■ At the lowest level of the WBS where cost is assigned, the WBS element is called a "work package." The project manager assigns responsibility to someone on the project team for the work package.
■ Work packages need not all be at the same level on the WBS. However, to make the WBS uniform in level for data collection and reporting, "pull downs" of "dummy" levels are employed. As an example, let us say that "bicycle" is decomposed down to level 3 with work packages 1.1.1 (stationary parts) and 1.1.2 (moving parts). Let us say that there is also a "wagon" on the WBS, and that "wagon" ends at level 4 with work package 126.96.36.199 (wheels) and 188.8.131.52 (axles). To create uniform metric reporting at the fourth level of the WBS we would create a "level 4 pull down" of "bicycle" with dummy elements 184.108.40.206 (stationary parts) and 220.127.116.11 (moving parts) that have the exact same content as their third-level parents. Similarly, there would be a fourth-level pull down for
"wagon" for element 1.2.2. Our example WBS is illustrated in Figure 3-6.
Fourth-level pull downs for "bicycle" and "wagon"
provide a consistent reporting level for project metrics. Figure 3-6: Bicycle and Wagon.
■ Cost accounts are roll ups of work packages and any in-between levels of the WBS. The project manager assigns responsibility for performance of a cost account to someone on the team, and, by extension, that person is responsible for the work packages that roll into the cost account.
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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.