The benefits of resource breakdown structure are crucial for the project’s success. So, in this article, we’ll discuss the 07 benefits of the resource breakdown structure.
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What Is the Resource Breakdown Structure?
Resources are a crucial aspect of every successful project. Therefore, as a project manager, you’re responsible for allocating project resources accurately, and you should ensure your team members always have what they need to complete the task at hand. So, you can use a tool like a resource breakdown structure (RBS) to do that more effectively and efficiently.
A resource breakdown structure provides a great way to list, organize, and visualize all the project resources needed to complete each task in a project plan or WBS (work breakdown structure). On the other hand, you can ensure your project team is prepared for the challenge ahead. Before beginning the project, the RBS helps project managers plan, organize, and manage resources when work is underway. Furthermore, the RBS will help track resource utilization.
Furthermore, the resource breakdown structure shows the relationship between the project activities and the resources that perform it. Moreover, it can be organized by resource types, such as people, time, tangible and intangible assets, or by resource categories, such as role, skill, department, or vendor. So, this tool helps project managers identify and classify the resources they need, estimate their costs and availability, and assign them to specific tasks in the project.
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So, let’s explore the benefits of resource breakdown structure that every project manager should know.
07 Benefits of Resource Breakdown Structure
To Plan Resources Accurately
Creating a resource breakdown structure will help project managers examine each project task individually. As such, this process eliminates guesswork and ensures more accurate and effective resource planning. Then, don’t worry! There are no surprises down the road. So, this is a crucial benefit you can acquire by creating an RBS for your project.
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To Create a Project Budget Accurately
Creating a RBS helps project managers determine what resources are necessary to complete a project. As a result, they can prepare a more accurate budget and avoid overspending.
To Identify Missing Resources
The resource breakdown structure helps project managers spot gaps in their organization’s resources. As a result, it lets them know in advance if they need to hire another employee, buy necessary equipment, or stock up on materials. On the other hand, this will help them to increase their project performance and meet the deadlines.
To Ensure a Better Coordination Schedule
If the resource breakdown structure includes schedule (time) estimates for teams or individual team members, it’s easier to coordinate scheduling with managers. So, as a project manager, you can monitor the project tasks and activities to ensure that each team member has adequate time for other responsibilities. On the other hand, you can stay within the project’s triple constraints.
To Maintain an Effective Workflow
The resource breakdown structure helps you to determine exactly what resources you need and when you need them. As a result, you can prepare an efficient allocation schedule that minimizes delays and keeps the project on track.
To Save Money
The resource breakdown structure reduces the need for excess spending by enabling resource sharing across the organization. On the other hand, this will help the project managers increase the profitability of their organization.
To Effectively Monitor Resource Allocation
At any phase of the project life cycle, As a project manager, you can check the resource breakdown structure to see where your resources are being used in real time. If there’s any change in the project timeline, you can shift project resources quickly and maintain ahead motion. Effectively monitoring resource allocation helps project managers minimize bottlenecks and stay within the project’s triple constraints.
However, with the RBS, project managers can build a set of documents that they can use to analyze performance and predict future resource needs. Through this information, they can make more effective purchasing decisions and plan for the long term. On the other hand, this will help them minimize risk and uncertainty and produce more successful outcomes.
How to Create a Resource Breakdown Structure
According to the format, the resource breakdown structure is like the work breakdown structure and needs an estimation of which resources will be required for each task in the project.
Also, the project task list is essential for determining the resources. So, let’s explore how to create a resource breakdown structure.
After defining the project scope and objectives, you should identify deliverables and work packages in your project. Then, you can list the types and categories of resources needed for each work package, breaking down the resources into a hierarchical structure. Typically, the resource breakdown structure is created as a tree diagram. At the top are the project’s final deliverables, and each in an individual branch below the overall project healing. These branches help categorize resource types, such as people, materials, facilities, and software. Keep this in mind! Resource types depend on the nature of the project.
Finally, as a project manager, you can review and validate the RBS with the project team and stakeholders.
Project managers can format the resource breakdown structure as a diagram, list, or spreadsheet. As well as they can use project management software such as monday.com. However, many project managers use a tree diagram to visualize how available resources will be distributed throughout the project life cycle.
Example of a Resource Breakdown Structure
As a project manager, you must identify the project resources depending on the project’s requirements. Project resources can be categorized as follows.
- Human resources includes the people who need to complete project tasks or activities. List the employee’s name, title, and which part of the task they’re responsible for.
- Time includes how many hours an employee will spend on a task or how much time you’ll need on a certain piece of machinery.
- Materials include materials such as electronic components or parts.
- Equipment and tools include vehicles, lab equipment, video conferencing systems, and machines.
- Technology includes intangible resources such as software and cloud storage.
- Physical space includes a meeting room, testing facility, and other physical locations needed for the project.
- Services include outsourcing tasks such as marketing and cleaning.
Conclusion
Resource breakdown structure is another vital tool in project management. As a project manager, you can acquire many benefits by using RBS, including planning resources accurately, creating a project budget accurately, identifying missing resources, ensuring a better coordination schedule, maintaining an effective workflow, saving money, and monitoring resource allocation effectively.
