Page 216 - DMGT521_PROJECT_MANAGEMENT

Unit 12: Work Break Down Structure

 The WBS is a formal project document, and any changes to it require the use of the project Notes
change control process.

 PERT is used in Research type of projects whereas CPM is used in all of non research type
projects.
 The network techniques of PERT and CPM were concurrently developed in 1957.

 In the beginning, CPM was used for planning and scheduling of constructional projects.
 The PERT model was developed for projects characterized by uncertainty and the CPM
model was developed for projects which are relatively risk-free.

 The costs associated with a project can be divided into two components: direct costs and
indirect costs.

12.4 Keywords

Lead Time: Lead time is the time by which a predecessor event must be completed in order to
allow sufficient time for the activities that must elapse before a specific PERT event is reached to
be completed.
Most Likely Time: Most likely time (M) is the best estimate of the time required to accomplish a
task, assuming everything proceeds as normal.
Pessimistic Time: Pessimistic time (P) is the maximum possible time required to accomplish a
task, assuming everything goes wrong (but excluding major catastrophes).
WBS: A Work Breakdown Structure (WBS), in project management and systems engineering, is
a deliverable oriented decomposition of a project into smaller components.
12.5 Review Questions

1. Discuss the need and importance of work break down structure.
2. Explain about project execution plan.
3. What are the factors affecting the optimal Capital Budget?
4. Describe the pitfalls of work break down structure.

Answers: Self Assessment

1. True 2. False
3. True 4. False

12.6 Further Readings

Books Clements/Gido, Effective Project Management, Thomson
Clifford F. Gray and Erik W. Larson, Project Management, Tata McGraw Hill
Dennis Lock, Project Management, Ninth Edition, Gower

K. Nagarajan, Project Management, Third Edition, New Age International

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