Resource Breakdown Structure
There are three main types of resources to consider when developing our Resource Breakdown Structure:
• People
• Materials
• Equipment
At the end of the day, in the early 21st Century: projects are delivered by
PEOPLE using
EQUIPMENT to work, form or assemble
MATERIALS into the tangible (measurable) deliverable's defined by a project’s scope.
It’s
worth noting that not all resource types above are needed for all
projects. An IT project, for example, may need to deliver a software
solution. Hence the delivery of that project will mainly involve people
developing software by using equipment (computers), hardly any material
resources will be required.
In project management, the resource breakdown structure (RBS) is a hierarchical list of resources related by function and resource type that is used to facilitate planning and controlling of project work.[1] The Resource Breakdown Structure includes, at a minimum, the personnel resources needed for successful completion of a project, and preferably contains all resources on which project funds will be spent, including personnel, tools, machinery, materials, equipment and fees and licenses. Money is not considered a resource in the RBS; only those resources that will cost money are included.[2]
Assignable resources, such as personnel, are typically defined from a functional point of view: "who" is doing the work is identified based on their role within the project, rather than their department or role within the parent companies. In some cases, a geographic division may be preferred. Each descending (lower) level represents an increasingly detailed description of the resource until small enough to be used in conjunction with the work breakdown structure (WBS) to allow the work to be planned, monitored and controlled.
Link to the Project Budget Cost.
Having
developed your Resource Breakdown Structure reflecting the level of the
project you are managing, your next step will be to assign cost rates
for the lowest level resources of each branch in your RBS, that is, how
much will each unit of resource cost the project?
CAUTION!
These values can be taken from a variety of sources, but be conscious
of their differing levels of accuracy depending where you obtained the
data from. Sources could be:
• previous similar projects
• published industry norms
• previous quotations for similar items
• budget quotations sought for this project
If in doubt, consult someone with experience in this area.
Contact us
if you are unsure of how to make use of your existing information without introducing budget risks to your project.
It should now be quite clear that as the
project definition
work proceeds and the work packages associated with the
Work Breakdown Structure
get quantities of
RESOURCE
allocated to them, it is straightforward to calculate the estimated cost
of a work package, and subsequently build up the overall estimated cost
for the project as a whole.
WBS (the deliverables) + RBS (the resources) = total project direct cost
Conclusion
So now you’ll appreciate what a Resource Breakdown Structure is and how an RBS, at the
project definition
stage, is a great way for structuring your
project planning
around the development of your human resourcing strategy and your outsourcing and procurement strategy.
Developing
a Resource Breakdown Structure forces you to consider the skills needed
to deliver the work packages identified by the WBS, whether they are
available within the existing team or not – but they will be needed!
This then drives the outsourcing and procurement strategy for the
project, an important element of the overall project management
execution plan.
Producing a Resource Breakdown Structure further
forces you to consider how best to procure your materials and materials
related services, which is also part of formulating your procurement
strategy and overall project management execution plan.
And a little bit later on…
By
being able to assign the resource requirements to relevant activities
within the project scheduling system, you are able to resource schedule
the timeline and understand how to make most efficient use of resources
in delivering the project.
Using associated resource costs, you
will also be able to understand the cost profile of work packages and
the project overall, which drives the commitment and cash flow
requirements for the project – important for
controlling the project!
