:AACE CERTIFICATION 2009-2010:

Standardize Work Breakdown Structure (WBS)

There was an initiative in PT Inco project organization to create a standard Work Breakdown Structure (WBS). It was initiated due to the fact that the current work breakdown structure is depending on the project manager style as they using their own standard. Subsequently, the cost estimate as one of the Work Breakdown Structure (WBS) end product is also depending on the project manager style creating inconsistency cost estimate produce by the estimator. It’s also creating difficulties to have comparable by line item for us as the owner to evaluate the bids and others ineffective & inefficiency things during managing the project scope and estimating. For any new project, we do have to create a template of Work Breakdown Structure (WBS) project or rely on template from other similar project and modify those templates to fit with the new project. However, its sometimes lead the laziness of the project team to determine the important things that usually forgotten during Work Breakdown Structure (WBS) development i.e. testing & commissioning, project management & administration, quality assurance review, configuration management, documentation and training & development.

The purpose for standardize the Work Breakdown Structure (WBS) therefore to create the common standard Work Breakdown Structure (WBS) that can be implemented for all projects and we are not necessary to reinvented the wheel anytime we create the Work Breakdown Structure (WBS) for the new project. Besides, project cost estimate will consistently using the similar scope definition so at the end, we will have the historical scope definition and cost estimate to be used for future scope definition and cost estimation. We can also can manage the comparable item to evaluate the bid.

The work for standardize Work Breakdown Structure (WBS) is being progress and in the stage of completion the standard activity definition to determine the standard work element where we using WinEst database and starting from construction type of work. The activity definition is the process to identify and determine the most common construction activity for work discipline, mechanical, civil, electrical and instrumentation. This activity based on the current PT Inco project organization structure where all of disciplines usually produce their own scope definition. This is also supported by the fact the project in PT Inco is not always involving all discipline i.e. instrumentation type of project, usually not involving mechanical work. If I’m looking at Humphreys & associates chapter 2, Definition of Scope and Work Breakdown Structure page 39, I can see that our standardize of Work Breakdown Structure following the a bit of theory product based-oriented but I think close to the phase-oriented. The Work Breakdown Structure (WBS) template produced so far as picture below (1 page only from 8 pages activity, sorry for unclear view).

Picture 1. PT Inco Standard Template Work Breakdown Structure

The level of Work Breakdown Structure (WBS) is determined by the team and it is agreed to have up to work element level at the WinEst database. However, decomposition of the activities stops when the team is comfortable can manage and control the work. Work in progress and still continue to develop other common activities to be included in. The complete standard Work Breakdown Structure (WBS) for PT Inco organization would be presented in the next blog.

Note: I complete my weekly blog early for this week to allow me work on busy week for year end closing

Sorowako, December 21, 2009


Cited:
1 PT Inco Central Engineering Standard Work Breakdown Structure, Author by Muhammad Asril
2 Humphreys & Associates, Chapter 2, Definition of Scope (Work Breakdown Structures) and Work Breakdown Structure Dictionary page 29-40