MGMT627 GDB idea solution spring May 2011

[Vuhelper]

he Work Breakdown Structure (WBS) is the basis for scheduling techniques such as the Arrow Diagramming Method and the Precedence Diagramming Method. At low levels of the Work Breakdown Structure (WBS), the interdependencies between activities can become so complex that meaningful networks cannot be constructed. To cater to the above-mentioned problems, one solution is to create "hammock" activities, which encompass several activities where exact cost identification cannot or may not be accurately determined. Some projects identify a "hammock" activity called management support (or project office), which includes overall project management, data items, management reserve, and possibly procurement. The advantage of this type of hammock activity is that the charge numbers are under the direct control of the project manager. In addition to this, there is a common misconception that the typical dimensions of a work package are approximately 80 hours and less than two weeks to a month. Although this may be true on small projects, this would necessitate millions of work packages on large jobs and this may be impractical, even if line managers could control work packages of this size. Cost analysis down to the fifth level is advantageous, from a cost control point of view. However, it should be noted that the cost required to prepare cost analysis data to each lower level might increase exponentially, especially if the customer requires data to be presented in a specified format that is not part of the company's standard operating procedures. The level-5 work packages are normally for in-house control only. Some companies bill customers separately for each level of cost reporting below level 3.