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1C Việt Nam
(28.08.2024)

What is WBS? Benefits and ways to create effective WBS for businesses

WBS helps businesses easily divide work into smaller tasks, creating a clear and detailed structure for the project. To better understand what a WBS is and the benefits as well as how to create an effective WBS, let's learn with 1C Vietnam through the article below.

1. What is WBS?

WBS (Work breakdown structure) is a concept used to describe the process of systematically decomposing and dividing a project into sub-tasks or smaller work packages. The purpose of the WBS is to create convenience and ease in deploying and controlling work. Small jobs must be within the scope and solve the goals of the big job, and can be independent or have a dependent relationship with each other. A large task is considered complete when all sub-tasks have been completed.

WBS is a work breakdown structure
WBS is a work breakdown structure

The WBS is often represented as a hierarchical tree, where each level represents the level of detail of the work. The overall project is at the highest level, then broken down into multiple work packages and finally the most detailed tasks that can be assigned to an individual or team.

WBS is divided into small work packages for easier control
WBS is divided into small work packages for easier control

2. Benefits of WBS

Work Breakdown Structure (WBS) plays an important role in project management. Some key benefits of a WBS include:

  • Create common awareness for the work: Through the WBS, the project's work content is transparent, helping to minimize discrepancies in scope and the person in charge of the work.
  • Build a project schedule: Businesses can build a project schedule by dividing work into smaller parts. This helps businesses have a clear view of the time and resources needed for each task. From there, businesses can plan to allocate work effectively.
  • Minimize project risks: Building a good WBS is an effective way to reduce project risks. By establishing a complete and detailed WBS, potential problems in the project can be detected early. Thanks to the clear structure of the WBS, businesses can quickly assess the impact of these issues on the project progress.

WBS helps businesses manage projects effectively and conveniently
WBS helps businesses manage projects effectively and conveniently

3. WBS example - work breakdown template

After businesses have understood what WBS is and its benefits, below are some illustrative examples of complete work breakdown structure diagrams:

WBS in building construction project

WBS  applies in building construction projects
WBS applied in building construction projects

WBS in market research project

WBS structure in market research project
WBS structure in market research project

WBS in software development projects

WBS in software development projects
WBS in software development projects

Through some examples of WBS structures, the first part of the WBS is often the project goal or the final product to be completed. Immediately following are the levels representing the main work required to carry out the project. Typically, the WBS will include 5 phases: Initiation, planning, implementation, control and project closure.

WBS usually includes 5 main phases
WBS usually includes 5 main stages

In project management, building a WBS means dividing tasks into work packages based on the goals of each phase. Each work package can be considered as a sub-project within the larger project. For example, during the initiation phase of a construction project, some of the tasks that need to be performed include site surveys and creating a project charter.

In project management, WBS divides tasks into work packages based on the goals of each phase
In project management, WBS divides tasks into work packages based on the goals of each phase

Project managers can also further break down each work package into lower-level tasks. For example, a work package to set up an interior system can be divided into many subtasks such as installing plumbing systems, installing electrical systems.

4. Steps to create an effective WBS

WBS offers many benefits in project setup and management. To build an effective WBS, businesses can refer to the following steps:

4.1 Step 1: Determine the job

Before creating the WBS, the initial work is still one large block. Therefore, managers need to decompose and identify small tasks from the beginning. This step is only completed when there is information about the time required for each task in the current work block.

When creating a WBS, businesses need to identify project tasks
When creating a WBS, businesses need to identify project tasks

4.2 Step 2: Set up work order

The next step is to build an implementation plan for each appropriate job. Businesses need to recognize the influence and dependencies between tasks because even a small delay can cause the entire project to be delayed.

Arrange work in a reasonable order to limit risks
Arrange work in a reasonable order to limit risks

4.3 Step 3: Form work structure

Forming the work structure is the final step in the process of building a complete WBS. Businesses will classify jobs at the same level and continue to arrange smaller jobs. This way, members will understand the order and avoid missing any work in the project.

Effectively structuring work helps avoid missing tasks during implementation
Effectively structuring work helps avoid missing tasks during implementation

5. 2 ways to organize work division

Depending on the purpose of dividing work in the project, businesses can choose to organize by delivery capacity or by phase.

5.1. Based on distribution capabilities

This way, businesses can divide work into many main parts. The business is then further divided into smaller delivery points, work packages, and subtasks.

Dividing work according to distribution capacity makes management easier
Dividing work according to distribution capacity makes management easier

5.2. Based on stage

Enterprises will break down the first level into 5 main stages in the project life cycle including initiating, planning, implementing, controlling and closing the project. Each phase is then further divided into work packages similar to a WBS based on deliverables.

Divide work into 5 main phases of the project life cycle
Divide work into 5 main phases of the project life cycle

6. 4 principles when building a WBS

When building a WBS, businesses need to pay attention to the following 4 important principles:

  • 100% Rule: Is the most important work management rule when building a WBS. According to this rule, a WBS will include all work within the project scope and will be divided into control levels, work packages, and tasks. This means that no work is missed and no work that is outside the scope of the project is included.
  • Focus on results: To comply with the 100% rule, businesses need to focus on identifying components in the WBS as results/deliverables instead of just listing how to solve the task. This encourages creativity and allows project members to choose tools and innovate methods to do their work more effectively.
  • Appropriate level of detail: The work breakdown structure needs to be detailed but should not go too deep or take too long. A WBS should ideally have only three to five levels. When dividing tasks, businesses can apply the "2 weeks or 80 hours" principle. This means that only if a task takes more than 2 weeks or 80 hours to complete does it need to be broken down further.
  • No duplication: A unit of work appears in only one location in the WBS. The purpose is to avoid duplication of responsibilities and confusion when calculating costs.
When building a WBS, you need to follow four principles to achieve the best results
When building a WBS, you need to follow four principles to achieve the best results

7. When is the WBS work breakdown structure applied?

The work breakdown structure (WBS) is applied to many different situations including:

  • Plan and manage the scope of the project.
  • Estimate and track cost and schedule issues.
  • Present work reports and show project management aspects such as requirements of the parties, completion time, and business products. This management method is especially suitable for complex projects such as construction, construction, and software development.

When WBS is combined with project management software, decomposing and controlling work becomes much easier. For example, when a task in a project changes time, related and dependent tasks will automatically change as well. The software system will immediately notify the person in charge to easily monitor and perform the work.

The work breakdown structure (WBS) is used for many situations
The work breakdown structure (WBS) is used for many situations

8. Office Software 1C:Document Management makes project management easier

Besides building a WBS, businesses can apply project management software to improve management efficiency. Developed on a modern technology platform, 1C:Document Management Digital Office solution allows businesses to automate project management simpler, faster and more effectively. Software is a powerful tool that helps businesses reduce operating costs, eliminate redundant work in the work process, save time and management human resources, thereby minimizing potential risks and bringing benefits to businesses. success for the project implementation.

The solution has all the features to support effective management of work within the required project framework:

  • Allows detailed, clear project planning including creating or editing tasks in the plan and allocating personnel, assigning deadlines for each task, displaying the work hierarchy in the plan plan.
  • Manage project work items closely including completed tasks, unfinished tasks, overdue tasks, on-time implementation,...
  • Project progress control includes work reminders, extension requests and approvals, project progress analysis based on a visual reporting system, setting up Milestone checkpoints - Important milestones of project.
  • A Gantt chart shows the action plan for a specific project or campaign. From there, managers can monitor, evaluate and make decisions in a timely and accurate manner.
Office software 1C:Document Management supports effective project management
Office software 1C:Document Management supports effective project management

Above, 1C Vietnam has informed businesses about what WBS is , the benefits as well as how to create an effective WBS. Hopefully the above information will help businesses gain more knowledge about WBS and find appropriate management solutions. In addition, for support in implementing project management software, please contact 1C Vietnam today.

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