What are the three levels of WBS?

What are the three levels of WBS?

2 min. read

Work Breakdown Structure is the foundation of the project as seen in the project management professional certification training. WBS has many benefits that will ease project team’s work during the project life cycle. It helps to better manage, estimate, coordinate and monitor the project. But how is this achieved? WBS Project Management subdivides project deliverables and project work into smaller and manageable components, as parts of the WBS levels.


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What are the three levels of WBS?


As we may see in all online PMP courses, WBS levels are branched in a hierarchical way. Actually, those WBS levels correspond to different terms. In this article, we will see these terms and how they are associated with the different WBS levels respectively.

The first and the top one of the WBS Levels is project title. In the end of the project, overall project scope will be completed, therefore, all project work and deliverables are under the project respectively.

The second one of the WBS Levels is Control Accounts. Control accounts are major parts, systems, phases or deliverables of a project. For instance, for a software project, Database System can be the control account level in the WBS Levels.

The third one of the WBS Levels is Work Packages. Work packages come together to constitute control accounts. For instance, for the database system control account, work packages under this control account can be a software application, servers, data structure etc.

What are the three levels of WBS?

Note that, work packages in a WBS must be small enough to manage, coordinate, execute and monitor. Because this is the main objective of creating the WBS after all. Since work packages are the very small part of a WBS that is deliverable to the customer, these must be explained clearly to the project stakeholders. To explain work packages in detail, Work Breakdown Structure Dictionary is used. Work packages only state nouns and name of the deliverable. But what needs to be delivered must be explained in detail and that is achieved by WBS dictionary.

The last one of the WBS levels is activities. Actually, activities are the tasks that must be assigned to project team members to complete the work package. For instance, sample activities for the servers or software application work package can be:

  • Install database software
  • Configure database software
  • Integrate database server with other network components

Create WBS process is an important part of the Scope Management. WBS can be described as a snapshot of project deliverables which are going to be completed throughout the project. And it illustrates the hierarchy of the project work and deliverables in a project. No project can be completed as a whole, all the work and deliverables should be organized in a hierarchical manner in order to make the management of the project go smoothly. So these WBS levels that we explored are remarkably helpful for the project team and project manager.

What are the three levels of WBS?

A Work Breakdown Structure (WBS) is a tool used to define a project in discrete work elements in a Hierarchical format. It displays and defines the product, or products, to be developed and/or produced. It relates the elements of work to be accomplished to each other and to the end product. In other words, the WBS is an organized method to break down a product into subproducts at lower levels of detail. It’s used for planning, cost estimating, execution and control.

Definition: A Work Breakdown Structure is a hierarchical decomposition of work tasks that need to be performed by project team members to accomplish project goals and objectives and create the required deliverable.

Purpose of the Work Breakdown Structure (WBS)

The purpose of the WBS is to break down projects into manageable pieces, allowing for better planning, cost estimating, execution and control.

Example of a Work Breakdown Structure (WBS)

What are the three levels of WBS?
WBS Example from SMC Systems Engineering Handbook

Why Develop a Work Breakdown Structure (WBS)

The WBS is a means of organizing system development activities based on system and product decompositions. It is a product-oriented family tree composed of hardware, software, services, data, and facilities, which result from systems engineering efforts during the development and production of the system and its components, and which completely defines the program. The WBS is prepared from both the physical and system architectures and identifies all necessary products and services needed for the system. This top-down structure provides a continuity of flow down for all tasks. Enough levels must be provided to properly define work packages for cost and schedule control purposes. [1]

The Benefits of a Work Breakdown Structure (WBS) are:

  • Organizes the project deliverables and tasks
  • Determines the program schedule (Integrated Master Schedule)
  • Enhances communication
  • Details tasks and dependencies
  • Identifies all products and services a system needs
  • Helps determine cost estimates
  • Identify Project Phases

The Two Types of Work Breakdown Structures (WBS)

The Program Manager (PM) is usually responsible for developing an overall program WBS and initiating the development of contract WBSs for each contract in accordance with common DoD practice established in Mil-HDBK 881. The two types of WBS on a program are:

  • Program WBS:A program WBS is established to provide the framework for program and technical planning, cost estimating, resource allocation, performance measurement, and status reporting. The WBS defines the total hardware, software, services, data, and facilities system and relates these elements to each other and to the end product. Program offices develop a program WBS tailoring the guidance provided in MIL-HDBK-881 and MIL-STD-881D. The WBS is also an integral part of the preparation of the Cost Analysis Requirements Description (CARD).
  • Contract WBS: are part of the program WBS and relate to deliverables and tasks on a specific contract.

Initial Work Breakdown Structure (WBS) Development

With the support of systems engineering, the PM develops the first three levels of the program WBS and provides contractors with guidance for lower-level WBS development. As with most standards and handbooks, the use of MIL-HDBK-881 cannot be specified as a contract requirement. Though WBS development is a systems engineering activity, it impacts costing, scheduling, budgeting professionals, and contracting officers. An integrated team representing these Stakeholders is needed to support WBS development. [1]

Work Breakdown Structure (WBS) Guidance (MIL-STD-881)

A WBS provides a consistent and visible framework for defense materiel items and contracts within a program. Mil-Standard 881D offers uniformity in definition and approach consistency for developing all WBS levels. Generating and applying uniform work breakdown structures improves communication in the acquisition process. It also provides direction to industry in extending contract work breakdown structures. [1]

Standard: MIL-STD-881D “DoD Standard Practice WBS for Defense Materiel Items”

Work Breakdown Structure (WBS) Levels

The first three Work Breakdown Structure (WBS) Levels are organized as follows:

  • Level 1: Overall System
  • Level 2: Major Elements (Segment)(Main Project Phases)
  • Level 3: Subordinate Components (Prime Items)(Groups of Tasks)

What are the three levels of WBS?

Example: WBS Levels

How to Make a Work Breakdown Structure (WBS)

The process of developing a WBS is straightforward but requires preparation and a clear understanding of what is required to be accomplished on a project.

What are the three levels of WBS?

  • Step 1: Gather Main Documentation: You must understand the project goals and objectives. To do this, gather the project charter,  scope, objectives, and any requirements.
  • Step 2: Identify Your Main Team Members: A WBS can’t be built in a vacuum. It takes a team of specialized people to know how to break their sections down into discreet parts.
  • Step 3: Define WBS Level 1: This level is a summary of the deliverable that must be met to satisfy the project scope.
  • Step 4: Create the WBS Levels: This is the step where you break down is WBS component into discreet events. This is the most time-consuming and important step in the process. You need to break down the work until each Element can be accomplished by a single individual or organization.
  • Step 5: Create the WBS Dictionary: The Dictionary describes each work element in the WBS.
  • Step 6: Create the Integrated Master Schedule (IMS) and Integrated Master Plan (IMP): This creates a complete plan of all the work that needs to be accomplished and by when.

How to Utilize a Work Breakdown Structure (WBS)

A Work Breakdown Structure is primarily used as a planning tool to help the Program Manager and project personnel plan, define and organize a project into discreet deliverables. It describes all the work that needs to be accomplished to help avoid any confusion. There are three main components of a WBS that help with defining the program. These are:

  • Control Accounts: Control Account (CA) is a management control point at which budgets (resource plans) and actual costs are accumulated and compared to earned value for management control purposes. Any WBS Elements at which the project plans to monitor and report performance.
  • Planning Packages: These are steps that have been created but are not fully defined yet into work packages.
  • Work Packages: A work package is simply a task/activity or grouping of work and is the point at which work is planned, progress is measured, and earned value is computed. Natural subdivision of a Control Account. This information is described in the WBS Dictionary.

What are the three levels of WBS?

Example: WBS Deliverable Levels

Control Accounts in the Work Breakdown Structure (WBS)

Control Accounts are WBS Elements at which the project plans to monitor and report performance. The Control Accounts can be any Element in the WBS. To assist with the monitoring and reporting, project management information tools are used to collect, analyze and report information at any Element within the WBS.

Work Packages in the Work Breakdown Structure (WBS)

Work Package (WP) is simply a task/activity or grouping of work and is the point at which work is planned, progress is measured, and earned value is computed. It can be translated into different terms in different companies and functions. It can be a design job, a tool design package, a build-to-package, a shop order, a part number, a purchase order, or any other definable task/activity at whatever level of control is normal for program management within the company. They normally represent the lowest level of a WBS.

Work Packages Example

Work packages come in a variety of formats, but the most common format is in the WBS. Below is a WBS, and the work packages are at the bottom level.

What are the three levels of WBS?
Example of Work Packages in a Work Breakdown Structure (WBS) Format

Work Breakdown Structure (WBS) Application Tools

There are a variety of application tools you can use in the development of a WBS. Below are some of the example types that can be used.

  • Nodal Chart: A graphical representation of the deliverables in nodes.
  • Flowchart: The most common WBS application
  • Gantt Chart: You can show task dependencies and show project milestones.
  • Spreadsheet: A WBS can be created in a spreadsheet detailing the different levels and phases in columns and rows.
  • List: A simple list of deliverables. Best used for a simple WBS.

Contractor Work Breakdown Structure (WBS)

The contract WBS is the Government – approved WBS for program reporting purposes and includes all program elements (for example, hardware, software, services, data, or facilities), which are the contractor’s responsibility. It includes the contractor’s discretionary extension to lower levels, in accordance with Government direction and the contract Statement of Work (SOW).

Work Breakdown Structure (WBS) Dictionary

The WBS Dictionary is a document that describes each element work package in a project component of the WBS. These elements can include milestones, deliverables, activities, scope, resources, costs, and quality. The main purpose of the WBS dictionary is to define and communicate the work in more detail to help those working on an element or work package understand what needs to be done.

AcqNotes Tutorials

  • [1] SMC Systems Engineering Handbook
  • MIL-Hand Book-881: Work Breakdown Structure (WBS)
  • MIL-STD-881D “DoD Standard Practice Work Breakdown Structure for Defense Materiel Items” – April 18
  • Old: MIL-STD-881C DoD Standard Practice Work Breakdown Structure for Defense Materiel Items – 3 Oct 11

Updated: 8/8/2022

Rank: G53.7

What are the 3 levels of WBS?

WBS Levels: The WBS levels are what determines the hierarchy of a WBS element. Most work breakdown structures have 3 levels that represent the project's main deliverable, control accounts, project deliverables and work packages.

What are the WBS level names?

The four WBS levels you can implement in your organization are:.
The top level. The top level of a WBS states the project's title and the final deliverable. ... .
Controls account. Next, list the controls account WBS level underneath the top level. ... .
Work packages. ... .
Activities..

How are the levels in a WBS determined?

The size and complexity of a project will determine the number of levels a WBS needs. For some projects, additional levels may be included to represent intermediate objectives.

What is a Level 1 WBS?

At WBS Level 1 it shows 100 units of work as the total scope of a project to design and build a custom bicycle. At WBS Level 2, the 100 units are divided into seven elements. The number of units allocated to each element of work can be based on effort or cost; it is not an estimate of task duration.