#!(FG*T!^&*#*((*!#&()#_)#!*&$!*#)(!*BUSS380
03 AM*&!#%#&&!%%#^#^&^!#&*^&^*#!(FG*T!^&*#*((*!#&()#_)#!*&$!*#)(!*##(*0BUSS380
Page 1 of 1910/16/2026, 5:42:03 AM*&!#%#&&!%%#^#^&^!#&*^&^*#!(FG*T!^&*#*((*!#&()#_)#!*&$!*#)(!*BUSS380
– Lecture 210/16/2026, 5:42:03 AM*&!#%#&&!%%#^#^&^!#&*^&^*#!(FG*T!^&*#*((*!#&()#_)#!*&$!*#)(!*##(*0BUSS380
– Lecture 2.pdf*&!#%#&&!%%#^#^&^!#&*^&^*#!(FG*T!^&*#*((*!#&()#_)#!
– Lecture 210/16/2026, 5:42:03 AM*&!#%#&&!%
– Le
BUSS380 – Lecture 2
Lesson #1
Introduction
By the end of lesson one you will understand the importance of the Work
Breakdown Structure (WBS) and the how the deliverables are broken down. Before
creating your own WBS, you will want to understand the process of putting one
together and what should be included.
Work Breakdown Structure
According to PMBOK (2018), a Work Breakdown Structure is
“A deliverable-oriented hierarchical decomposition of the work to be
executed by the project team to accomplish the project objectives and
create the required deliverables”
The gist of that statement is that the WBS provides everything that needs to
be completed in a project. The actual breakdown or the charted WBS is
taking a deliverable and breaking it down further.
Tex Stack Exchange (2018)
03
#&*^&^*#!(FG*T!^&*#*((*!#&()#_)#!*&$!*#)(!*BUSS380
AM*&!#%#&&!%%#^#^&^!#&*^&^*#!(FG*T!^&*#*((*!#&()#_)#!*&$!*#)(!*##(*0BUSS380
BUSS380 – Lecture 2Page 1 of 1910/16/2026,
– 5:42:03
Lecture AM*&!#%#&&!%%#^#^&^!#&*^&^*#!(FG*T!^&*#*((*!#&()#_)#!*&$!*#)(!*BUSS380
210/16/2026, 5:42:03 AM*&!#%#&&!%%#^#^&^!#&*^&^*#!(FG*T!^&*#*((*!#&()#_)#!*&$!*#)(!*##(*0BUSS38
– Lecture 2.pdf*&!#%#&&!%%#^#^&^!#&*^&^*#!(FG*T!^&*#*((*!#&()#_)#!
– Lecture 210/16/2026,
,#!(FG*T!^&*#*((*!#&()#_)#!*&$!*#)(!*BUSS380
03 AM*&!#%#&&!%%#^#^&^!#&*^&^*#!(FG*T!^&*#*((*!#&()#_)#!*&$!*#)(!*##(*0BUSS380
Page 2 of 1910/16/2026, 5:42:03 AM*&!#%#&&!%%#^#^&^!#&*^&^*#!(FG*T!^&*#*((*!#&()#_)#!*&$!*#)(!*BUSS380
– Lecture 210/16/2026, 5:42:03 AM*&!#%#&&!%%#^#^&^!#&*^&^*#!(FG*T!^&*#*((*!#&()#_)#!*&$!*#)(!*##(*0BUSS380
– Lecture 2.pdf*&!#%#&&!%%#^#^&^!#&*^&^*#!(FG*T!^&*#*((*!#&()#_)#!
– Lecture 210/16/2026, 5:42:03 AM*&!#%#&&!%
– Le
BUSS380 – Lecture 2 2
The WBS has been around since 1957 when the United States Navy created
Program Evaluation and Review Technique or PERT. During this time PERT
did breakdown tasks and list deliverables. Years later NASA adopted what is
now known as the WBS when they lumped the earlier developed PERT and
costs together. The Defense Dept. adopted this technique and required the
military use it to break apart all elements. Furthermore, the Defense Dept.
requires all contractors/vendors conducting business with the Defense Dept.
to submit a proposal including the WBS structure. The proposal is deemed
inadequate if it is not submitted in the appropriate format (including the
WBS.) This is extremely important considering that the contractor/vendor
cam be removed from any further solicitation.
Earned Value Management System
The Defense Dept. developed a schedule and cost control management
system by developing and implementing earned value management system.
The Defense Dept. needed a strategy to measure large projects in terms of
dollars using a precise technique. According to Humphrey’s (2019) there are
specific objectives of an EVMS; these objectives include:
Relate time phased budgets to specific contract tasks and/or
statements of work.
Provide the basis to capture work progress assessments against the
baseline plan.
Relate technical, schedule, and cost performance.
Provide valid, timely, and auditable data/information for
proactive project management analysis and action.
Supply managers with a practical level of summarization for
effective decision making.
Let’s look a bit deeper into EVM. Earned Value Analysis can be performed by
a project manager to measure the amount of work that is performed on a
project beyond the basic review of cost and schedule reports. EVA provides a
method that permits the project to be measured by progress achieved. The
project manager is then able, using the progress measured, to forecast a
project’s total cost and date of completion, based on trend analysis or
application of the project’s “burn rate”. This method relies on a key measure
known as the project’s earned value (Reichel, 2006). According to Reichel
(2006) earned Value Management Systems allow the project manager to
answer three questions:
1. Where have we been?
2. Where are we now?
03
#&*^&^*#!(FG*T!^&*#*((*!#&()#_)#!*&$!*#)(!*BUSS380
AM*&!#%#&&!%%#^#^&^!#&*^&^*#!(FG*T!^&*#*((*!#&()#_)#!*&$!*#)(!*##(*0BUSS380
BUSS380 – Lecture 2Page 2 of 1910/16/2026,
– 5:42:03
Lecture AM*&!#%#&&!%%#^#^&^!#&*^&^*#!(FG*T!^&*#*((*!#&()#_)#!*&$!*#)(!*BUSS380
210/16/2026, 5:42:03 AM*&!#%#&&!%%#^#^&^!#&*^&^*#!(FG*T!^&*#*((*!#&()#_)#!*&$!*#)(!*##(*0BUSS38
– Lecture 2.pdf*&!#%#&&!%%#^#^&^!#&*^&^*#!(FG*T!^&*#*((*!#&()#_)#!
– Lecture 210/16/2026,
,#!(FG*T!^&*#*((*!#&()#_)#!*&$!*#)(!*BUSS380
03 AM*&!#%#&&!%%#^#^&^!#&*^&^*#!(FG*T!^&*#*((*!#&()#_)#!*&$!*#)(!*##(*0BUSS380
Page 3 of 1910/16/2026, 5:42:03 AM*&!#%#&&!%%#^#^&^!#&*^&^*#!(FG*T!^&*#*((*!#&()#_)#!*&$!*#)(!*BUSS380
– Lecture 210/16/2026, 5:42:03 AM*&!#%#&&!%%#^#^&^!#&*^&^*#!(FG*T!^&*#*((*!#&()#_)#!*&$!*#)(!*##(*0BUSS380
– Lecture 2.pdf*&!#%#&&!%%#^#^&^!#&*^&^*#!(FG*T!^&*#*((*!#&()#_)#!
– Lecture 210/16/2026, 5:42:03 AM*&!#%#&&!%
– Le
BUSS380 – Lecture 2 3
100% Rule
The 100% rule states that each level of the WBS must equal to 100%. The
top, or the first level, of the WBS will list each deliverable that must be
completed in order for the project to be completed. After the first level
deliverable is stated on the WBS, each is broken apart further, still equaling
100% for each level below. Take a look at the following example:
03
#&*^&^*#!(FG*T!^&*#*((*!#&()#_)#!*&$!*#)(!*BUSS380
AM*&!#%#&&!%%#^#^&^!#&*^&^*#!(FG*T!^&*#*((*!#&()#_)#!*&$!*#)(!*##(*0BUSS380
BUSS380 – Lecture 2Page 3 of 1910/16/2026,
– 5:42:03
Lecture AM*&!#%#&&!%%#^#^&^!#&*^&^*#!(FG*T!^&*#*((*!#&()#_)#!*&$!*#)(!*BUSS380
210/16/2026, 5:42:03 AM*&!#%#&&!%%#^#^&^!#&*^&^*#!(FG*T!^&*#*((*!#&()#_)#!*&$!*#)(!*##(*0BUSS38
– Lecture 2.pdf*&!#%#&&!%%#^#^&^!#&*^&^*#!(FG*T!^&*#*((*!#&()#_)#!
– Lecture 210/16/2026,
03 AM*&!#%#&&!%%#^#^&^!#&*^&^*#!(FG*T!^&*#*((*!#&()#_)#!*&$!*#)(!*##(*0BUSS380
Page 1 of 1910/16/2026, 5:42:03 AM*&!#%#&&!%%#^#^&^!#&*^&^*#!(FG*T!^&*#*((*!#&()#_)#!*&$!*#)(!*BUSS380
– Lecture 210/16/2026, 5:42:03 AM*&!#%#&&!%%#^#^&^!#&*^&^*#!(FG*T!^&*#*((*!#&()#_)#!*&$!*#)(!*##(*0BUSS380
– Lecture 2.pdf*&!#%#&&!%%#^#^&^!#&*^&^*#!(FG*T!^&*#*((*!#&()#_)#!
– Lecture 210/16/2026, 5:42:03 AM*&!#%#&&!%
– Le
BUSS380 – Lecture 2
Lesson #1
Introduction
By the end of lesson one you will understand the importance of the Work
Breakdown Structure (WBS) and the how the deliverables are broken down. Before
creating your own WBS, you will want to understand the process of putting one
together and what should be included.
Work Breakdown Structure
According to PMBOK (2018), a Work Breakdown Structure is
“A deliverable-oriented hierarchical decomposition of the work to be
executed by the project team to accomplish the project objectives and
create the required deliverables”
The gist of that statement is that the WBS provides everything that needs to
be completed in a project. The actual breakdown or the charted WBS is
taking a deliverable and breaking it down further.
Tex Stack Exchange (2018)
03
#&*^&^*#!(FG*T!^&*#*((*!#&()#_)#!*&$!*#)(!*BUSS380
AM*&!#%#&&!%%#^#^&^!#&*^&^*#!(FG*T!^&*#*((*!#&()#_)#!*&$!*#)(!*##(*0BUSS380
BUSS380 – Lecture 2Page 1 of 1910/16/2026,
– 5:42:03
Lecture AM*&!#%#&&!%%#^#^&^!#&*^&^*#!(FG*T!^&*#*((*!#&()#_)#!*&$!*#)(!*BUSS380
210/16/2026, 5:42:03 AM*&!#%#&&!%%#^#^&^!#&*^&^*#!(FG*T!^&*#*((*!#&()#_)#!*&$!*#)(!*##(*0BUSS38
– Lecture 2.pdf*&!#%#&&!%%#^#^&^!#&*^&^*#!(FG*T!^&*#*((*!#&()#_)#!
– Lecture 210/16/2026,
,#!(FG*T!^&*#*((*!#&()#_)#!*&$!*#)(!*BUSS380
03 AM*&!#%#&&!%%#^#^&^!#&*^&^*#!(FG*T!^&*#*((*!#&()#_)#!*&$!*#)(!*##(*0BUSS380
Page 2 of 1910/16/2026, 5:42:03 AM*&!#%#&&!%%#^#^&^!#&*^&^*#!(FG*T!^&*#*((*!#&()#_)#!*&$!*#)(!*BUSS380
– Lecture 210/16/2026, 5:42:03 AM*&!#%#&&!%%#^#^&^!#&*^&^*#!(FG*T!^&*#*((*!#&()#_)#!*&$!*#)(!*##(*0BUSS380
– Lecture 2.pdf*&!#%#&&!%%#^#^&^!#&*^&^*#!(FG*T!^&*#*((*!#&()#_)#!
– Lecture 210/16/2026, 5:42:03 AM*&!#%#&&!%
– Le
BUSS380 – Lecture 2 2
The WBS has been around since 1957 when the United States Navy created
Program Evaluation and Review Technique or PERT. During this time PERT
did breakdown tasks and list deliverables. Years later NASA adopted what is
now known as the WBS when they lumped the earlier developed PERT and
costs together. The Defense Dept. adopted this technique and required the
military use it to break apart all elements. Furthermore, the Defense Dept.
requires all contractors/vendors conducting business with the Defense Dept.
to submit a proposal including the WBS structure. The proposal is deemed
inadequate if it is not submitted in the appropriate format (including the
WBS.) This is extremely important considering that the contractor/vendor
cam be removed from any further solicitation.
Earned Value Management System
The Defense Dept. developed a schedule and cost control management
system by developing and implementing earned value management system.
The Defense Dept. needed a strategy to measure large projects in terms of
dollars using a precise technique. According to Humphrey’s (2019) there are
specific objectives of an EVMS; these objectives include:
Relate time phased budgets to specific contract tasks and/or
statements of work.
Provide the basis to capture work progress assessments against the
baseline plan.
Relate technical, schedule, and cost performance.
Provide valid, timely, and auditable data/information for
proactive project management analysis and action.
Supply managers with a practical level of summarization for
effective decision making.
Let’s look a bit deeper into EVM. Earned Value Analysis can be performed by
a project manager to measure the amount of work that is performed on a
project beyond the basic review of cost and schedule reports. EVA provides a
method that permits the project to be measured by progress achieved. The
project manager is then able, using the progress measured, to forecast a
project’s total cost and date of completion, based on trend analysis or
application of the project’s “burn rate”. This method relies on a key measure
known as the project’s earned value (Reichel, 2006). According to Reichel
(2006) earned Value Management Systems allow the project manager to
answer three questions:
1. Where have we been?
2. Where are we now?
03
#&*^&^*#!(FG*T!^&*#*((*!#&()#_)#!*&$!*#)(!*BUSS380
AM*&!#%#&&!%%#^#^&^!#&*^&^*#!(FG*T!^&*#*((*!#&()#_)#!*&$!*#)(!*##(*0BUSS380
BUSS380 – Lecture 2Page 2 of 1910/16/2026,
– 5:42:03
Lecture AM*&!#%#&&!%%#^#^&^!#&*^&^*#!(FG*T!^&*#*((*!#&()#_)#!*&$!*#)(!*BUSS380
210/16/2026, 5:42:03 AM*&!#%#&&!%%#^#^&^!#&*^&^*#!(FG*T!^&*#*((*!#&()#_)#!*&$!*#)(!*##(*0BUSS38
– Lecture 2.pdf*&!#%#&&!%%#^#^&^!#&*^&^*#!(FG*T!^&*#*((*!#&()#_)#!
– Lecture 210/16/2026,
,#!(FG*T!^&*#*((*!#&()#_)#!*&$!*#)(!*BUSS380
03 AM*&!#%#&&!%%#^#^&^!#&*^&^*#!(FG*T!^&*#*((*!#&()#_)#!*&$!*#)(!*##(*0BUSS380
Page 3 of 1910/16/2026, 5:42:03 AM*&!#%#&&!%%#^#^&^!#&*^&^*#!(FG*T!^&*#*((*!#&()#_)#!*&$!*#)(!*BUSS380
– Lecture 210/16/2026, 5:42:03 AM*&!#%#&&!%%#^#^&^!#&*^&^*#!(FG*T!^&*#*((*!#&()#_)#!*&$!*#)(!*##(*0BUSS380
– Lecture 2.pdf*&!#%#&&!%%#^#^&^!#&*^&^*#!(FG*T!^&*#*((*!#&()#_)#!
– Lecture 210/16/2026, 5:42:03 AM*&!#%#&&!%
– Le
BUSS380 – Lecture 2 3
100% Rule
The 100% rule states that each level of the WBS must equal to 100%. The
top, or the first level, of the WBS will list each deliverable that must be
completed in order for the project to be completed. After the first level
deliverable is stated on the WBS, each is broken apart further, still equaling
100% for each level below. Take a look at the following example:
03
#&*^&^*#!(FG*T!^&*#*((*!#&()#_)#!*&$!*#)(!*BUSS380
AM*&!#%#&&!%%#^#^&^!#&*^&^*#!(FG*T!^&*#*((*!#&()#_)#!*&$!*#)(!*##(*0BUSS380
BUSS380 – Lecture 2Page 3 of 1910/16/2026,
– 5:42:03
Lecture AM*&!#%#&&!%%#^#^&^!#&*^&^*#!(FG*T!^&*#*((*!#&()#_)#!*&$!*#)(!*BUSS380
210/16/2026, 5:42:03 AM*&!#%#&&!%%#^#^&^!#&*^&^*#!(FG*T!^&*#*((*!#&()#_)#!*&$!*#)(!*##(*0BUSS38
– Lecture 2.pdf*&!#%#&&!%%#^#^&^!#&*^&^*#!(FG*T!^&*#*((*!#&()#_)#!
– Lecture 210/16/2026,
