Resource breakdown structure

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Abstract

This article will explain the resource breakdown structure RBS, a tool that can be used in project management. The target audience for this article is students new to courses of project management. Resource breakdown structure is a hierarchical model used to provide information about which resources are needed in a project and necessary data about the resources. Each level down the hierarchy gives more detailed information about the specific resource than the one above. The needed level of details of resources can be different in all projects and the RBS can therefore be adjusted to fit the specific project. It is often the project manager who sets up the model, with input from the rest of the team.

The article will present benefits and disadvantages of using RBS. It will also explain how to set up the model and the different types of the RBS, for example organizational and geographical. Organizational is the most common one and the geographical is used less frequently. The resources in the hierarchy will be divided into several parts, for example types and categories and the article will explain the terms.


Big idea

The resource breakdown structure RBS is a tool that can be used within project management. It is a hierarchical model that shows the resources are needed to complete a specific project. A resource is everything needed to implement a project and having a cost. Examples of resources are licenses, taxes and labour. Money is not defined as a resource for the RBS. [2] The purpose of the tool is to plan, manage and control project work. The resource breakdown structure is related to the more known work breakdown structure WBS. Briefly explained is WBS a model that breaks up necessary project work into smaller and concrete tasks. WBS and RBS can be connected together, where the resources needed for a precise task.

RBS can be divided into two main groups, organizational and geographical, which are ways of building up the model. The organizational is the most common one and implies that the resources are divided across categories regarding organization. In other words, the resources are presented in their category independent of which department their needed at. [3] The benefit of using the organizational model is…. The geographical one is a bit more infrequent. This one is more about administrating resources to keep a physical control over them as it is more concerned about location of the resource. [3]. The benefits of this model is… When the group is decided the model can be set up. The resources are firstly divided into categories. Typical categories in the resource breakdown structure are labour, materials or equipment. There is no limit for categories but should stay somewhere between 3-9 for the first level of the model.

Labor are also referred to as human resources. This includes...

There is only one model per project, so human resources, equipment and so on are all put in the same model. When the resources are divided into categories, they can then get a type. Examples of types could be…

Application

Usually it is the project manager who sets up the model with input from the team. The model does not have a set template, as the needed level of detailing is varying in different projects. A good rule is to continue to fill in information until estimators and schedulers have sufficient information about the resource. [2]

The model can be set up two ways, graphically and schematically. The decision on whether to go for one or the other is purely out of preference. An example, set up with both models, are sketched below. (( Set in sketch of the two models.))

Limitations

There are not many obvious disadvantages about the resource breakdown structure, but there are a few things that should be kept in mind when using the tool. As mentioned in Big Idea (will be mentioned), it is easy to know how to replace a resource when needed because all necessary information is given in the model. The downside of this is that it can prevent new thinking. Instead of exploring other alternatives for the resource one will go directly for the same resource as used previously. Consequences of this could be missing out on cheaper or even more fitted resources.

Related to this there is another factor that should be taken into consideration. The model always needs to be up to date. In this it lies that that costs are always updated, and the most beneficial version of the equipment. An outdated model can be both time consuming and

The last factor, which concerns almost all projects: time. The point of using the RBS is to save time, costs, create overview and so on, so it is important to not use too much time setting up the model. Maybe it is impossible to set up the entire model in the start of the project, so it should be a matter of judgment how much of the model it is beneficial to set up in the start of a project. A predefined model can also be used to save time, but the team should be aware that the model could need some slight changes to have all resources covered.

Annotated bibliography

[1]Project Management Institute. Guide to the Project Management Body of Knowledge. Pennsylvania: Project Management Institute, 2017.

[2] Source will be fixed: https://app.knovel.com/web/view/khtml/show.v/rcid:kpPECM0004/cid:kt00TUCTB2/viewerType:khtml//root_slug:3-resource-breakdown-structure/url_slug:resource-breakdown-structure?kpromoter=federation&b-toc-cid=kpPECM0004&b-toc-root-slug=&b-toc-url-slug=resource-breakdown-structure&b-toc-title=Project%20Estimating%20and%20Cost%20Management&page=5&view=collapsed&zoom=1&q=category

[3] Source will be fixed: https://www.brighthubpm.com/resource-management/32864-what-is-a-resource-breakdown-structure-rbs/

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