work package

Today we will discuss the Work Package and its usefulness in project schedule management. 

A Work Package is the smallest component of the Work Breakdown Structure.

You get a Work Package when you break down a deliverable to the point where it cannot be broken down further. A Work Package is a means to control and manage time and cost. 

Work Packages are useful for reporting purposes. 

Let’s take a look at the Work Package in the context of project management.

Work Package

Since the Work Package is derived from the Work Breakdown Structure (WBS), it would be best to understand the WBS first.

A Work Breakdown Structure (WBS) is a deliverable-based (or phase-based) breakdown of a project into smaller components.

To make the work manageable, you break it down into smaller tasks.

WBS can adopt either of these two approaches:

  1. Deliverable-Based Approach: Here, you define activities based on the project deliverable
  2. Phase-Based Approach: Here, you define activities based on the type of work for smooth project execution.

The deliverable-based approach is preferred in project management as it communicates the project’s progress from a client’s point of view.

The Work Breakdown Structure can be used for a variety of purposes. It is the basis of cost and schedule estimates and can be used as a control and monitoring tool in project management.

A WBS consists of:

  • Work Packages
  • Planning Packages
  • Control Accounts

Work Packages: These are the lowest level components of each branch of the Work Breakdown Structure. Work Packages include details about the deliverable’s owner, the durations, milestones, resources, and hazards, among other things.

The WBS Dictionary covers this information.

Planning Packages: A Planning Package is different from a Work Package. After the project management plan is approved, its scope is defined. Planning Packages outline the entire scope. 

When all the details are in place, the Planning Packages convert into Work Packages.

Control Accounts: Control Accounts track and report progress. Project management information tools are used to collect, analyze, and report data from elements inside the Work Breakdown Structure to aid in reporting and monitoring.

Some benefits of WBS include:

  • It specifies the tasks required to complete the project.
  • It allows quick schedule creation.
  • It helps you locate potential risks in your project.
  • It gives an overview of the whole scope.
  • It identifies communication points.
  • It can be used to assign responsibilities.
  • It can display milestones and control points.
  • It ensures all essential deliverables are included.
  • It is a proven strategy for dealing with project planning.
  • It allows for team collaboration and brainstorming.

Now we will move on to the topic at hand.

The Work Package is the smallest unit in a Work Breakdown Structure.

The deconstruction process continues until the deliverables are small enough to be classified as Work Packages. Work Packages should be small and concise enough to aid the project manager in estimating the cost and time of the project. Work Packages can be planned, budgeted, tracked, and controlled.

After you complete all Work Packages, the project is completed.

Here are some key elements of a Work Package.

  • The Work Package Objectives: The Work Package objectives outline the methodologies, activities, and analysis of the Work Package deliverables, outputs, and the project as a whole.
  • A Description of Activities: The project team must complete a series of actions to meet the Work Package goals. These actions should be described thoroughly and organized logically with a focus on transparency. 
  • A Timeline with Checkpoints: All Work Package tasks must be provided in relation to a realistic timeframe, including specific milestones and the Work Package’s start and completion dates.
  • Budget: This is the Work package’s budget. The tasks involved in the Work Package should not exceed the budget.
  • Deadline: This is the deadline for completing the Work Package task. Any delay in completing the Work Package will delay the project.

Example of a Work Package

The below example shows the Work Package. Work Packages are broken down from the main deliverables. 

However, Work Packages are further broken down to activity levels to allow the project manager to develop the project network diagram and then schedule a baseline.

chart shwoing work package

The Advantages of Work Packages

Work Packages give project managers more control over workloads.

Other advantages include:

  • Work Packages allow many teams to work simultaneously on different components of a project. Each team completes their tasks as part of the Work Package.
  • The whole project comes together with easy integration once the teams have completed their distinct Work Packages.
  • The cost estimates are consolidated at the Work Package level, then measured, monitored, and controlled. 
  • You can accurately calculate labor expenses, material costs, equipment costs, travel expenses, costs for contractual services, and other non-personal resources and indirect costs connected with all Work Packages.

Best Practices for Creating Work Packages

While developing Work Packages, keep the following things in mind:

  1. Have estimates. Note that your breakdowns should assist you in estimating project time and cost. Work Packages should be concise for easy cost and time estimation.
  2. The project manager and team should be confident that the amount of detail offered at the Work Package level offers sufficient information to move forward with the next steps.
  3. Assign roles and responsibilities. Work packages ought to be small and concise enough to be allocated to one person or a small group of people that can be held responsible for the outcomes. This is also for reporting and management purposes. 
  4. Even though the 8/80 rule might vary from one project to another, most project managers agree that it can be used to assess a Work Package successfully. According to this rule, no Work Package should be under 8 or more than 80 hours. 
  5. The work Package should not be duplicated anywhere else in the Work Breakdown Structure; it should be unique.

Measuring Work Package Performance with Earned Value Management

Earned Value Management is a widely used performance evaluation metric to assess performance. It combines project cost, scope, and schedule metrics to help the project management team evaluate and track the project’s performance. 

Earned Value Management establishes and monitors three parameters for every Work Package: Planned Value, Earned Value, and Actual Cost

  • Planned Value (PV) is the authorized budget assigned to the work required for an activity or WBS component.
  • Earned Value (EV) is the value of the work performed, expressed in terms of the approved budget assigned to that work for an activity or WBS component.
  • Actual Cost (AC) is the total cost incurred in accomplishing the work performed for an activity or WBS component.

Measuring Work Package Performance–Other Metrics

You can measure the performance of a Work Package using earn value management techniques, also known as a performance measurement metric.

It uses scope, cost, and schedule to provide project status and progress reports.

With these three parameters, you can measure the following performance metrics for the project:

I have written blog posts to cover these performance metrics. You can read about them by clicking each performance metric above.

Common Mistakes to Avoid with Work Packages

A Work Package should be created with utmost care. Here, you can control your costs and break them into activities to develop your project network diagram and schedule baseline.

Be mindful of the following while drafting Work Packages: 

  • Work Packages should not be too small or large. Small Work Packages make controlling difficult, and large Work Packages run the risk of losing focus and affect planning.
  • Each Work Package should have assigned a responsible team member. This ensures the Work Package is completed on time and no component is left unattended.
  • Each Work Package should have a unique identity for correct tracking. Duplicate identities will affect the tracking and monitoring. Work Package IDs should consist of a logical numbering system for better control.

Conclusion

Although the Work Package tasks and activities should flow automatically due to deconstructing the deliverable or project, they are organized around an engineering specialty or a structural division. Each Work Package in the Work Breakdown Structure should be unique. 

Work Packages should focus on the output, deliverable, or product rather than the activities. 

This topic is important from a PMP exam point of view; understand it well.

Fahad Usmani, PMP

I am Mohammad Fahad Usmani, B.E. PMP, PMI-RMP. I have been blogging on project management topics since 2011. To date, thousands of professionals have passed the PMP exam using my resources.