Organizational

Breakdown
Structure
Organizational Breakdown
Structure (OBS)
a model that is structured to help identify which
employees will be responsible for specific parts of
a project.
Purpose of

OBS
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Organizational Breakdown
Structure (OBS)
project organization framework for
identification of responsibility, accountability,
management, and approvals of all authorized
work scope.
 Solution
Mercury is the closest planet to the Sun
and the smallest one in the Solar
System. The planet’s name has nothing
to do with the liquid metal
Steps to Effective

OBS
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 Scoping the project
management environment and
key stakeholders

1
Evaluate
Business Case Organizations Involved
Risks Standards to follow
Location Technology
Resources
Project Stakeholder;
Owner Government Bodies
Sponsor Industry Bodies
Consultants Portfolio Managers
Contractors Program Managers
Suppliers Project Managers
 Develop the project execution
strategy

2
Construction Work Areas
Path Of Construction (POC)
Engineering Work Packages (EWP) Plan
Construction Work Packages (CWP) Plan
Procurement Work Packages (PWP) Plan
Installation Work Packages (IWP) Plan
Develop the OBS for the project
covering Engineering,
Procurement, Construction and

3
Installation.
 Project Owner

Project Contractor Subcontractor

Management & Engineering Construction
Procurement

Mechanical
Civil Engineer Electrical Engineer
Engineer
 Identify the project control
requirements

4
Classifying estimate items, budgets and
expenditures for cost control and capitalization
Facilitating estimating and analysis of project
cost data
Summarizing cost data
Assigning responsibility for budgets
Complying with accounting, taxation and
regulatory requirements

Providing a means to link accounting, cost

reporting, cost and schedule control
 Link the OBS to Work
Breakdown Structure (WBS)

5
 Develop the Responsibility
Assignment Matrix (RAM)

6
 Optimize the WBS, OBS and
Control accounts

7
 Types of

OBS
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 work according to functions such as
engineering, procurement, design, quality,
accounts etc.
Functional assigned to multiple projects and at the
Organization same time will remain part of the function.

functional managers command more power

than the project managers.
Client based Organized to handle different types of
Organization clients based on their nature of work
 The project managers build, develop and
Dedicated manage their project teams.

Project / The program managers develop the

program management teams.
Program
Organization In this type of organizations, the project /
program managers have very high degree
of decision-making authority.
 Strong matrix – Project / Program managers
have more authority than the functional
managers
Matrix Weak matrix – Functional managers have
Organization more authority than the project / program
managers
Balanced matrix – Both the project manager
and the functional managers have same
level of authority
Self-organizingThe team organize themselves to get the
work done.
Teams