The establishment of a cost structure aids efficient cost planning, controlling, and the introduction of measures to reduce costs. A wbs is a breakdown of deliverable tasks, where as a cbs is the breakdown of costs. Cost breakdown analysis a study of product costs in kitchen appliances at ikea of sweden by pontus asking stefan gustavsson diploma work no. The work breakdown structure, generally abbreviated wbs, is a key project deliverable that is used to manage a project works and assigning the works to teams. Simple method proposal for cost estimation from work breakdown. Cost breakdown structure cbs the cost breakdown structure cbs classifies the costs within project into cost unitscost centres and cost elementscost types. A cost breakdown structure cbs is not that different from a pbs product breakdown structure or wbs work breakdown structure. One of the most popular methods is classification according to fixed costs and variable costs. Cost structures are typically used to plan a business and to communicate the costs of a strategy or investment. Pdf the role of cost breakdown structure in life cycle.
Besides, users are capable of modifying all the item categories as and when required. This manual supersedes the department of the army cost analysis manual dated may 2001. Work breakdown structure rev e, june 2003 work breakdown structure a project work breakdown structure wbs is a deliverable or product oriented grouping of project work elements shown in graph ical display to organize and subdivide the total work scope of a project. Work breakdown structure relativistic heavy ion collider. It is the connecting point for work and cost estimates, schedule information, actual work effortcost expenditures, and accountability. Project structure, cost, and financing the only present way to transport natural gas across ocean distances is to ship it as a liquid at 260of in specially. Check the work breakdown structure against the project approach specified in project charter for any activities that needs to be included in the work breakdown structure. In drafting this edition, i am grateful for the assistance of my colleagues cosmas kamasho, ian pegg and david perestrelo. Breakdown structures revisited dedicated to project controls. Motivated by the lack of a standard wlc data collection and analysis procedure, the framework of a novel cost breakdown structure cbs suitable for collection, recording and analysis of wholelife data of built assets is proposed. Most nations have their own cbs that is used for national programs. A wbs is not a todo list consisting of everything that needs to be done on the project. The 2016 hotel cost estimating guide is the eighth edition of this comprehensive planning tool. Cost breakdown structure matched back to the wbs this can provide a useful connection between your project finances and the requirements of the finance department addressing all those perennial issues around cost centres and expense authorisationinvoice paymentlevels of authority for spend etc.
The cbs is a breakdown of the costs of the various components of the structure including all works or services done by the subcontractorsyou can edit this template and create your own diagram. This will obviously be the cost for the component e. A life cycle cost is the total cost of owning an asset during its predicted useful life, while a cost breakdown structure illustrates all the costs emerged in each single phase of the assets. Pdf the role of cost breakdown structure in life cycle cost model.
Creately diagrams can be exported and added to word, ppt powerpoint, excel, visio or any other document. Usace civil works work breakdown structure this section provides elements of the civil works work breakdown structure cwwbs. It is used to continuously compare the actual costs with the budget, and integrate to the cost control system. Guidelines for construction cost estimating for dam. They are not always the same because additional items are typicaly added to the cbs. Understanding breakdown structures in project management. Heres a cost breakdown analysis template to help create a document for cost analysis which identifies elements that comprise the total cost of a product or service. Included the cost assessment program evaluation cape sustainment cost reporting structure crs appendix l to provide a description of the transition between the work breakdown structure wbs to the crs during a program.
Cost breakdown structure editable work breakdown structure. Creating the work breakdown structure by kim colenso, managing principal, artemis management systems the work breakdown structure wbs is the foundation for project planning and control. The measures are made via hypothesis testing over the responsibility assignment matrix ram. Figures 1 and 2 provide examples of a wbs for the building of a table. Three principles to use when designing the cost breakdown. Cost structure refers to the various types of expenses a business incurs and is typically composed of fixed and variable costs fixed and variable costs cost is something that can be classified in several ways depending on its nature. Meth ane, theprincipal constituent, is 600 times denser in liquid form than as a gas at room temperature, and this reduction in.
The approved timephased plan for a project, a work breakdown structure component, work package, or schedule activity, plus or minus approved project scope, cost, schedule, and technical changes. A work breakdown structure wbs is a tool used to define and group a projects discrete work elements or tasks in a way that helps organise and define the total work scope of the project it provides the framework for detailed cost estimating and control along with providing guidance for schedule development and control. Appendix f cost engineering united states army corps of. Pdf it cost breakdown structure david rios academia. Once the elements of the wbs have been defined, resource requirements are determined for each element. This typically includes a high level categorization of costs, the proportional size of each category and a designation of fixed or variable cost. The federal share of the project cost is limited to 65 percent of the flood risk management frm features and 50 percent of the recreation features. This is a meddly guide to management it cost thought the undestanding it cost breakdown structure. Simple method proposal for cost estimation from work. Cost structure and distribution in todays contact centers. We demonstrate how an accurate model of the construction work flow, if created at the preconstruction stage, can be used to extract measurable information. Lastly, it presents accepted documentation standards. Keep this in mind when designing the cost breakdown structure.
What is different is that the breakdown structure now includes a cost component. Fiscal years 2007 20 all appropriations cost breakdown structure 12 fiscal year 201 3 all appropriations cost breakdown structure 18 operation and maintenance subsidiary report fiscal years 2007 20 all appropriations cost breakdown structure 24. It is the connecting point for work and cost estimates, schedule information, actual work effort cost expenditures, and accountability. Cost breakdown structure cbs represents a breakdown of the costs of the various components of the work breakdown structure wbs including all works or services done by the subcontractors. Our goal in this analysis is to drive out clear, consistent cost breakdown numbers, as well as cost per contact numbers that represent best practices and show the impact of key changes. A cost breakdown sheet is used for various type of contractor related business and helps in organizing and cost out all the required items in order to determine the estimated time, cost, materials and the profit as well. Cost breakdown structure cbs lists every item classified and its expenditure for the project in order to get a more detailed estimate of cost or expenditure.
Doc mp pengertian work breakdown structure pristowo. The ship is divided into 10 main groups from 0 to 9, but often only main group 18 are used refer table 3. Cost breakdown structure cbs the cost breakdown structure cbs classifies the costs within project into cost units cost centres and cost elements cost types. This did requires the reporting of all contract costs to a level of detail comparable to that presented in the standard cost breakdown structure cbs in format 1. Chalmers, material and manufacturing technology, masters thesis 2011.
In the same way, each national cbs refers to definitions that can be different from one country to another. A work breakdown structure is a tool used to define and group a projects discrete work elements or tasks in a way that helps organise and define the total work scope of the project it provides the framework for detailed cost estimating and control along with providing guidance for schedule development and control. In summary building an effective cost breakdown structure can have a major impact on the way the project costs will be controlled and therefore the ultimate success or failure of the project to come in on budget. Chapter of project management tools and techniques 7. This creates better estimates with more effective collaboration with project management. Pdf the role of cost breakdown structure in life cycle cost. Pdf this paper highlights the basic process of developing a life cycle cost model and the role of cost breakdown structure for water. Work breakdown structure and the cost breakdown structure.
Work breakdown structure wbs, cost breakdown structure cbs cost estimation. Wbs digunakan untuk melakukan breakdown atau memecahkan tiap proses pekerjaan menjadi lebih. Apm web briefing use of product breakdown structures and. A work breakdown structure wbs provides a consistent and visible. A cost structure is a high level model of the costs of an industry, organization, business model or business unit. To achieve cost efficiencies, the use of nsn facilitates elimination of duplicate. A hightech business may have much more robust technology infrastructure and. Doc mp pengertian work breakdown structure pristowo putra. Cost breakdown meaning in the cambridge english dictionary. Work breakdown structures a work breakdown structure is a deliverableoriented hierarchical decomposition of the work to be executed by the project team to accomplish the project objectives and create the required deliverables.
Work breakdown structure wbs template free visio excel. The first aim of this study was to develop a generic cost breakdown structure gcbs, common to all nations, and an. Motivated by the lack of a standard wlc data collection and analysis procedure, the framework of a novel cost breakdown structure cbs suitable for collection, recording and analysis of whole. For example, the cbs item for additional unforseen costs will not show in your wbs. Department of defense dod estimate of cost of war report. The cost breakdown structure cbs classifies the costs within project into cost. In this template you can manage each tasks, costs, individual assignments at various levels of breaks. Meth ane, theprincipal constituent, is 600 times denser in liquid form than as a gas at room temperature, and this reduction in volume permits.
Cost structure and life cycle costs for military systems. Pdf to undertake a wholelife costing wlc exercise, it is necessary to breakdown a built asset into its constituent elements whose costs can. Breakdown structures revisited mosaic project services pty ltd. Cost estimating and cost management tools continue to be developed and will be. Generally speaking, there are three typical ways in structuring works with a work breakdown structure wbs. We propose a method for project cost construction using a spreadsheet to create an earlystage budget allocation. This document provides a trail about what is known about. Examples of how wbs or cbs can aid budgeting planning staff hours for each task or activity assigned x staff hourly rates per hour. Pengertian work breakdown structure wbs dari beberapa sumber wbs adalah suatu metode pengorganisaian proyek menjadi struktur pelaporan hierarakis.
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