A resource breakdown structure is a hierarchical chart that shows the resources needed for a project, allowing for cost forecasting and resource allocation. It can be organized in different ways and helps managers keep track of resources and personnel. The most common structure is hierarchical, with management at the top.
A resource breakdown structure is a computerized chart or model that shows the various resources required for a given project. Such structures can be organized in many different ways, but are generally hierarchical in nature. They tend to contain tangible resources such as people, machines and raw materials rather than monetary resources, although the monetary costs of tangible resources are usually included. These frameworks can therefore be used to develop forecasts for a project’s costs, as they are developed based on required resources rather than available cash. Using one of these can ease the planning process for a project that involves many different resources and help those involved stick to the plan by ensuring that the allocation of resources is clearly defined.
Using a resource breakdown structure can provide many advantages 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 work 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 template in several different ways. Many companies organize the necessary resources by type and group all machines, raw materials and personnel separately. Alternatively, a breakdown can be arranged to reflect the chronological progression of a project. All resources needed for each phase are grouped and separated into their chronological categories in different subcategories. Resources can be further divided based on who should use them, although many structures simply count people as resources and don’t organize the structure that way.
While the organization of the chart or template can vary, the most common type of structure is unified by an overarching hierarchical organization. “Management,” or the core group of projects, is placed at the top, with subordinate groups and required resources 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 for the entire project.
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