What is Work Breakdown Structure (WBS)
You can manage your project budget in WBS. So what is WBS?. It is A work breakdown structure (WBS) is a method known in project management for getting a project done. It looks like a hierarchical tree chart that forms a project and arranges it down into smaller possible parts. With the help of the graphical structure of WBS, project managers can expect the end results based on the various frames.
It makes the finest decisions as to whether or not to acquire suggested changes. The main goal of WBS is to make difficult projects more achievable.
It breaks down your projects into smaller divisions in a hierarchical manner.
Therefore, you can ensure that your project work can be done simultaneously by different team members. Its goal is to increase productivity and simplify project management.
How to Prepare a Project Budget in WBS
This template makes it easy to define and categorize all the funds related to a detailed project. Therefore, the format is in the form of WBS (work breakdown structure).
- This template makes it easy to define and categorize all the costs and funds related to a detailed project.
- Added Fixed Costs columns to calculate the Budgeted amount.
- Multiple columns and rows for fixed costs and funds.
- Allows you to identify material and labor rates for each charge and automatically calculate it in the dollar amount.
- See, whether your project fits into the overall financial structures of your organization or not.
- Historical Information
- Chart of account structure
- Use it for home projects, contract work, small service projects, and large IT project budgets.
The information you need before starting your project budgeting is-
- Project Scheduling:- Used to determine the scheduling and costs of the project.
- Contracts:- For services, products, and equipment.
- Resources:- To check where the resources are assigned for the project their rates and cost.
- Cost Estimate:- of activity like equipment, material, and services or the work update when will your project will complete
- Basis of Estimate:- Records for the estimation of the cost
- Scope:- Let you know about the future funding, contracts, and revenue management.
Using the Work Breakdown Structure Task List
- Task No.: This is a numerical listing of the deliverable, which is further drilled down deeper from task to subtask by decimal points to make sure you know exactly where in the process you are.
- Task Description: This section details what the deliverable is and also goes into the task and the subtasks necessary to complete it.
- Task Owner: Every deliverable, task and subtask needs an owner to make sure the work is getting done, and that person is noted in this column.
- Dependency: You cannot start some tasks until the task before them is complete, which means it’s dependent on that task. This is the space where you can note task dependencies.
- Resources requirement: Identify all the tasks and activities in terms of people, equipment, materials, etc.
- Task Status: This is where you can track the status of a specific task or subtask. The drop-down menu gives you the option of marking the task as unassigned, assigned, in progress, late or complete.
- Cost: Note the financial commitment needed to get the deliverable done.
- Start Date: When did work on the deliverable begin? Mark is here.
- Estimated Completion: The estimated amount of time allotted for the completion of the deliverable should be noted here.
- Finish Date: When the deliverable is done, note the end date here.
- Notes: This column is for any data that doesn’t fit in the previous ones.
Using the WBS Tree Diagram
On the second sheet, there is a tree chart to visualize the work breakdown structure, from the highest level at the top to the lowest level at the bottom, where the bottom is more specific and the top more general. You don’t have to add all the extra data you filled into the previous sheet, just the deliverable, task and how every many subtasks are needed to get the work done.
Why Use a Work Breakdown Structure Template?
- Co-workers to get equipment, and materials when they needed it all dependent on the funds provided as a result of your budget.
- Budgeting is important for your project is because it provides the main things for project money control.
- Help in measuring the project’s actual cost with the approved budget, you can control if the project is progressing according to the plan or not in a corrective way.
- To secure project funds and budgets
- Well-planned project is good for managing funds and costs.
- Project budget is an estimation of companies financial ability to work.
- Need not invest in expensive budgeting software you can use this spreadsheet.