Product Breakdown Structure

A product breakdown structure (PBS) is a hierarchical graphical representation of the project’s products. Firstly, the overall project product is broken down into major deliverables. Then, each deliverable is decomposed further into smaller deliveries. The process is repeated until there is a clear understanding of the project’s deliverables.
Project managers use the Product Breakdown Structure to clarify the project scope. They may then determine the work that may produce these deliverables. Any work that contributes to these deliverables is within the scope of work. Any work that does not contribute to these deliverables is outside the scope of work.

This graphical representation of the project’s products may also help the project management team determine performance baselines. In other words, the PBS may help to establish viable schedules and feasible budgets. Firstly, team members decompose the product into deliverables. They then decompose deliverables into work packages and schedule activities. Work packages and activities enable viable duration estimates. Team members can then establish a viable schedule. At the same time, the team can determine cost estimates with confidence. Cost estimates at the work package levels may be aggregated to deliverable and product levels. As a result, the project management team can make more informed decisions.
Additionally, the PBS also facilitates resource assignment. The team can assign human and physical resources with a clearer understanding of deliverables and work. Moreover, they can help to establish responsibilities.

Product breakdown structure

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Product Breakdown Structure vs Work Breakdown Structure

The Product Breakdowns Structure (PBS) is relatively similar to the Work Breakdown Structure (WBS). However, the PBS decomposes the product into deliverables and sub-deliverables. On the other hand, the WBS decomposes deliverables into work packages.

Product Breakdown Structure Management Practices

Firstly, the project management team should maintain the product breakdown structure throughout the project. The team clarifies the product scope upfront when adopting a plan-driven approach. However, the team refines this product scope as more and better information arises. Moreover, the team may define the product scope iteratively and incrementally. Additionally, changes may occur both inside and outside the project. As a result, the PBS is not static. Therefore, The team should update the PBS to ensure that it is for purpose.
Secondly, the team should maintain the PBS collaboratively. By engaging team members, business representatives, key users, and other relevant stakeholders the project manager ensures that the PBS expresses stakeholders’ expectations. More participants are more likely to uncover errors, inconsistencies, and improvements. Moreover, a collaborative approach will help to generate engagement and buy-in.
Thirdly, the team should use the PBS to communicate with stakeholders. The PBS will undoubtedly create a more transparent scope. In other words, all deliverables and sub-deliverables become visible. Therefore, stakeholders clearly understand what the project will deliver.
Fourthly, the team can use the product breakdown structure to prepare the work breakdown structure. This shot of the project’s work will then serve as the foundation for further planning.
Finally, the product breakdown structure can help to prevent scope creepScope creep occurs when the team ends work outside of the project’s scope. In other words, the PBS prevents the team from completing work that is not required to complete the project’s deliverables. Check this post to learn more about scope creep.

Conclusion

In short, the Product Breakdown Structure represents deliverables and the relationship between these deliverables. Therefore, the project manager and project stakeholders understand the project scope. Consequently, it will be easier to determine the project’s targets and maintain the project within targets.