A Work Breakdown Structure or WBS is an organized framework in which you can progressively subdivide a project's work content into elements that can be easily identified and tracked. Using the WBS methodology:
Makes planning, scheduling, estimating, and reporting easy
Provides the framework for cost collection and responsibility assignment
Provides detail and summary reporting of cost, schedule, and performance
MPM's design is based on the government's concept of supplying data by WBS, OBS, and EOC. Government contractors managing major procurements generally follow the guidelines detailed in MS-881 (DOD) and MA-0295 (DOE).
To define a WBS, you use the Work Breakdown Structure window. You define each WBS element, assigning it a unique WBS ID and a level.
To provide time-phased cost data, you can link your OBS (which provides your organizational breakdown structure of human resources) to your WBS (which describes the tasks to be performed in the project). Linking the WBS to the OBS assigns the responsibility of the tasks to departments within your organization.
Defining the WBS is described in Creating the WBS.