A resource breakdown structure is a hierarchical graph or computer model that shows the resources needed for a project, allowing for easier planning and cost forecasting. It can be organized by type or chronological progression, and helps ensure resources are used efficiently. The most common structure is hierarchical, with the main project team at the top.
A resource breakdown structure is a graph or computer model that shows the various resources required for a given project. Such structures can be organized in a variety of different ways, but are usually hierarchical in nature. They tend to contain material resources, such as personnel, machinery and raw materials, rather than monetary resources, although the monetary costs of material resources are usually included. These frameworks can then be used to develop forecasts for a project’s costs, as they are developed based on the resources needed rather than the money available. Using one can make the process of planning a project involving many different resources much easier and can help those involved stick to the plan by ensuring that the division of resources is clearly defined.
Using a resource breakdown structure can provide many benefits to a project, particularly when the project requires a complex array of different resources. Such structures allow managers to keep track of which resources are needed for which phase of a project and which personnel should be working with which resources. Using one can help ensure that resources are where they should be during the appropriate phases of a project and that redundant resources are not purchased or used.
You can organize this type of model in several ways. Many companies organize the resources needed by type and would group all machinery, raw materials and personnel separately. Alternatively, a breakdown can be arranged to reflect the chronological progression of a project. All the resources required for each phase are grouped and then separated into their respective chronological categories into different sub-categories. Resources can be further categorized by who is expected to use them, although many facilities simply count staff as resources themselves and do not organize the facility that way.
While the organization of the graph or model can vary, the most common type of structure is unified by an overall hierarchical organization. The “management,” or main project team, is placed at the top, with subordinate teams and the resources they need below. This organization of the resource breakdown structure ensures not only that everyone involved knows where the resources belong, but also that they know the reporting chain of the entire project.
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