Lab 2: Create Work Breakdown Structure (WBS), Project Network Diagram, and High-Level Budget

Estimated time needed: 135 minutes

Objectives

After completing this lab, you will be able to:

• Create a work breakdown structure (WBS)
• Create a project network diagram
• Create a high-level budget using an RBS

Prerequisites

1. You must have Microsoft Excel installed on your computer or a Microsoft Office 365 account online. If you want to sign up for Microsoft Office 365 online and need help with the steps to sign up, click here.

2. If you are new to Microsoft Excel, click here.

3. You should have completed the following labs before starting:

   • Create a project charter
   • Create a stakeholder register

4. It is highly recommended that you watch the following videos before starting:

   • Create a WBS
   • Create a Network Diagram
   • Create a High-Level Budget

Scenario: Develop an Application (App) to Provide Real-Time Marketing Data

Good news! The project charter and stakeholder register have been approved. The Project Management Institute (PMI) recommends that scope, schedule, and cost be planned in this order during initial baseline planning. Your team will follow this recommendation.

The project charter divided the project into five phases for scheduling purposes. The project team has decided to tailor the work breakdown structure (WBS), schedule, and high-level budget estimate using these phases.

The table below identifies each phase and tasks to be considered in the scope, schedule, and cost planning for this project. Note that the key task requirements for the major tasks are not listed in the order in which they will occur. When planning scope, schedule, and cost, your team must determine the task flow.

Project Phase	Key Task Requirements
Design (30 days)	Gain final design approval Identify vendor to design and develop app Solicit initial design feedback Define key app functionality requirements Develop initial design Finalize vendor contract Update design based on feedback
Development (90 days)	Perform prototype beta test Develop an initial prototype Develop an app launch plan Update prototype based on feedback Implement IT upgrades Solicit beta test feedback Gain prototype sign-off
Test (30 days)	Test the final app prototype Begin full-scale development Begin IT hiring Gain customer acceptance Approve the launch plan Train Marketing personnel on a new app
Launch and approve the app (60 days)	Monitor app performance Plan v2 upgrades Launch a new app Finalize new hires Plan app upgrades Implement app upgrades Launch app v2 Document app issues Complete the final project report

The team determined that direct costs will be required as follows:

• App development: Design Phase 50%, launch and improve app 50%
• IT software and hardware: Development phase
• IT storage: Test phase
• Data feeds: Development phase
• App security upgrades: Test phase
• IT personnel HR costs: Launch phase

All personnel costs are considered indirect. The organization bears training costs, and are also indirect.

It's time to get to work!

Exercise 1: Create a WBS

1. In the WBS template, create the work breakdown structure with at least three levels. Start with the project name, followed by the project phases, and end with the activities.

2. Save your WBS document with a meaningful name

   WBS Template

WBS Example

Level 1 Project level Level 2 Phase level Level 3 Work package level \begin{tabular}{|c|} \hline Level 2 \\ Phase level \\ \hline \end{tabular}