WBS is a map of a project that is developed in the definition phase once the scope and deliverables have been identified and defined. It is a hierarchical breakdown of the tasks that need to be accomplished in order to bring the project to its completion. Without work breakdown structure it is difficult to control the project's progress and make sure that all the important assignments are being covered by the appropriate person/team/department of an organization.
WBS is essentially breaking down the project into smaller, more manageable chunks that can be done simultaneously by different teams. Each item in WBS needs cost and time estimate making it a basic unit for planning, controlling and scheduling the project. Each element in the WBS defines work - what needs to be done, identifies time to complete a work package - how long it will take, Identifies the cost and resources needed to complete a work package and finally it identifies a single person responsible for each work unit.
WBS is constructed in a way that the major deliverables are identified first after which the subdeliverables needed to accomplish the important deliverables are defined, and so on up until the smallest subdeliverable which is a feasible task that can be
done by one person responsible for it. Those smaller subdeliverables are then divided into work packages grouped by type and are called cost accounts creating a system for monitoring progress, cost and performance.
This hierarchical structure of WBS enables evaluation of cost, time, and performance at all levels in the organization over the course of project's life. The WBS also provides management with information appropriate to each level. This important information flow and responsibility awareness help minimize the risk and identify potential issues in a timely manner where they can be mitigated and dealt with before incurring huge unforeseen costs, delays or cancelation in the worst case scenario.
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