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In this blog, I’m going to talk about what a work breakdown structure (WBS) is, how we should use it, how we shouldn’t use it, and what bearing it has on your project planning. We’ll cover some key definitions, and I know you’re going to love this content.

What Is WBS in Project Management?

A work breakdown structure (WBS) can be used for program management, project management, and multiple industries. Specifically, in construction, WBS is primarily used in work planning within a Critical Path Method (CPM) schedule. The WBS breaks the project into smaller, more manageable pieces of work—what I call “bite-sized” pieces—so you don’t have to manage too much at once. Typically, the hierarchy follows this order: phases, deliverables, work packages, tasks, subtasks, resource alignment, and milestones.

A Warning About Using WBS in Construction Project Planning

When you use a WBS that structures time by deliverable, you end up with a two-dimensional schedule. In this format, the location, description, and relationships between activities are merely words in the activity description. This approach is problematic.

In construction, all scheduling or production planning should be based on time by location. With time on the top and location on the left, activities or work packages fit inside to create a 4D schedule. Here, you see time, space (XYZ), and movement in the schedule. This is how it should be.

Unfortunately, the time-by-deliverable approach has severely hurt the construction industry. Why? Because you miss critical elements like trade flow, handoffs, relationships, problems, speed, efficiencies, bottlenecks, and optimization. Without the ability to zone it properly, you can’t make the project faster without damaging trade partners.

Using a two-dimensional schedule is like performing critical surgery with just a two-dimensional view. You need a three-dimensional view, and the timing has to be right.

How a Time-by-Deliverable WBS Has Hurt the Construction Industry

Let’s break down what this detrimental WBS would look like in practice. For instance, in a construction phase, the deliverable-focused breakdown might start with site preparation, followed by excavation, utilities, foundations, footings, slab placement, superstructure, framing, and roofing. You’re essentially looking at the project from a generic, deliverable standpoint.

When you get to the roofing phase, you’d see a CPM schedule with a list of activities in waterfall logic tied together for the entire batched area—this is not how it should be done.

How to Create a Location Breakdown Structure for a Project

What we need instead is a location breakdown structure (LBS), where the left column contains categories like foundations or superstructure, broken down by location (Zone 1, 2, 3, etc.). This location-based structure allows you to build the production plan within time and see flow, speeds, optimization, bottlenecks, and potential problems at a glance.

In a time-by-deliverable WBS, you only see a limited number of aspects of your production plan. With a location-based WBS, you unlock visibility into lean principles like one-piece flow, identifying bottlenecks, trade flow between zones, and whether zones are leveled.

Advantages of Using a Location-Based WBS vs. Time-by-Deliverable WBS

Let me give you an example to clarify. On a project with a time-by-deliverable WBS, the schedule was one of the best CPM schedules I had ever seen. Yet, we couldn’t see critical aspects like trade flow. The trades started stacking, activities were misaligned with the supply chain, and bottlenecks were hidden.

When we transformed this project to a time-by-location WBS, we color-coded the trades and suddenly saw beautiful flow. We simulated the plan, identified bottlenecks, aligned the supply chain, and gave the slowest trades additional resources. The project finished a week early, 30% of the team was promoted, and the contractor was awarded the next project without competition.

On the other hand, another project down the road, with similar conditions but without this transformation, finished 4.5 months late, lost $2.3 million, half the team quit, and they won’t work with that owner again.

The Bottom Line: Why WBS Must Be Location-Based

Whether you’re using CPM scheduling or Takt planning (which is preferable), ditch the time-by-deliverable WBS. Switch to a location-based work breakdown structure. If you’re in construction, it will always need to be by location.

If you need more information on this approach, check out our resources: we offer books, courses on Takt production systems, one-on-one coaching, and consulting. We’ll help you transform your project into one that uses a location-based WBS to create a real production plan—not just a wish list schedule.

If you want to learn more we have:

-Takt Virtual Training: (Click here)
-Check out our Youtube channel for more info: (Click here) 
-Listen to the Elevate Construction podcast: (Click here) 
-Check out our training programs and certifications: (Click here)
-The Takt Book: (Click here)

Discover Jason’s Expertise:

Meet Jason Schroeder, the driving force behind Elevate Construction IST. As the company’s owner and principal consultant, he’s dedicated to taking construction to new heights. With a wealth of industry experience, he’s crafted the Field Engineer Boot Camp and Superintendent Boot Camp – intensive training programs engineered to cultivate top-tier leaders capable of steering their teams towards success. Jason’s vision? To expand his training initiatives across the nation, empowering construction firms to soar to unprecedented levels of excellence.

 

 

On we go