THE WBS IN THE GOVERNMENT SECTOR VERSUS THE WBS IN THE PRIVATE SECTOR
In most respects, there is no difference in the use of the WBS on government and non-government projects, especially in large private-sector enterprises. The principles are the same, whether the projects are performed in-house or are outsourced. The use of contractor or subcontractor labor to complement or supplement existing labor requires the same skills and tools as are required when performing the work in-house, because the project manager must manage day-to-day work performance to achieve project objectives within the time, resource, and performance constraints.
The use of the WBS is essential when major government projects must be approved by the Office of Management and Budget (OMB), or when the projects are to be contracted out and the government project manager must develop the work statement, specifications, schedule, budget, and so on, and also participate in the acquisitions process. In addition, with the OMB requirement for use of the earned value management systems (EVMS), it is essential that an effective WBS be developed as a basic framework for an EVMS. The government or large enterprise project manager frequently has two roles: The first is to plan and manage the work of the basic organization, and the second is to specify and manage the work of contractors or other organizations. Both roles require an effective WBS. We will see in Chapter 9 how the California Department of Transportation (Caltrans) follows good business practices in its use of the WBS for planning and management of department work activities.
This introductory chapter has three principal purposes: The first is to present project management definitions and terms repeatedly used in this book; the second is to provide the basic rationale for using a WBS—it is the same concept as an outline of a paper or report; and the third purpose is to show briefly where a WBS fits in the process of managing a project.
The WBS is not a new concept; it has been around for years. This book, however, presents new uses for the WBS concept. The originators of the WBS are basically the same people who developed all the project management concepts in use today and who learned what worked and what didn’t by trial and error. In the late 1960s the author established the WBS as a requirement for bidders and winners of the contract for the airframe and engines of the U.S. Supersonic Transport Program.
The next chapter describes in detail the fundamentals of developing a WBS, which can be applied to any project, whether the deliverable is a product, service, or result.