What is a Resource Breakdown Structure? A Complete Guide for Project Managers

Planning a complicated project without proper organization of resources is like trying to construct an entire house without knowing the resources and laborers. Resource breakdown structures (RBS) can solve this issue by giving a clear, high-level view of what is needed to finish your project.

In this article, we’ll discuss the steps to create a resource breakdown structure to change the project planning process and enhance the efficiency of your resources across your organization.

What is a Resource Breakdown Structure (RBS)?

A resource breakdown structure is an extensive framework that categorizes all resources necessary for project completion. As opposed to traditional lists compiled manually, RBSs divide resources more accurately, similar to how work breakdown structures categorize tasks within projects. This method of organization ensures every resource which including equipment, personnel, materials, or technological assets, is properly tracked.

Project managers generally develop resource breakdown structures during the planning phase of projects in collaboration with department heads and key participants. However, mistaking RBSs as standalone documents would be misguided. The most efficient examples of resource breakdown structures demonstrate how the tool changes throughout the process’s lifecycle and reflects the changes in resource availability, project scope, and organizational priorities.

Why is a Resource Breakdown Structure Important?

A well-designed resource breakdown structure can provide benefits beyond resource tracking. Implemented appropriately, project and resource management plans become the cornerstone for efficient project execution and resource allocation.

Take a look at a huge software development project. Without the RBS in place, managers could realize in the last minute that they don’t have adequate senior developers for crucial projects or that vital software licenses aren’t being adequately budgeted.

An RBS can help businesses avoid such mistakes by providing appropriate project management along with strategic planning direction. It allows project managers to predict resource requirements accurately and identify bottlenecks that could be causing problems prior to them becoming problems, and ensure that resources are distributed efficiently across the various phases of a project.

Also read: What Is a Project Baseline and Why Is It Important

What are the Benefits of Using a Resource Breakdown Structure

Utilizing a resource breakdown structure can provide a variety of tangible benefits that directly affect the project’s success. From a financial standpoint, firms often notice significant improvement in budget control since they can monitor their resource utilization more accurately.

For example, if manufacturing firms implement an RBS to fund the design and development initiative, the company can cut down on cost overruns related to resources by a significant amount due to better planning and allocation.

Transparency in projects also increases significantly when you maintain your RBS. Cross-functional teams gain a better understanding of available resources and how best to utilize them, leading to enhanced cooperation on projects.

Planning capacity is easier when supported by a thorough resource breakdown structure. Leads and project managers can make informed choices regarding resource allocation and ensure that essential equipment and skills are in place whenever they are needed.

Essential Elements of a Resource Breakdown Structure (RBS)

Before you create your resource breakdown structure, it is important to know its primary elements. These elements form the basis for managing and tracking the resources in the course of your project.

• Hierarchical organizational structure (HOS): It is a way of breaking down resources into smaller components from their top-level categories. Similar to organizational charts, resource classification charts help break down major categories like materials, human resources, and equipment into their constituent subcategories and resources.
• Human Resources: Human resources refer to everything related to people – contractors, full-time employees, consultants and support personnel alike. This encompasses their skill set availability and specific role requirements.
• Materials resources: This term encompasses all physical items required to complete a project, from office equipment and manufacturing materials to construction supplies and accessories.
• Machinery and Equipment: includes tools, hardware, vehicles and specialized equipment necessary for project completion or deliverable production.
• Technology infrastructure: Infrastructure includes both software and hardware systems such as networks, computers, software licenses and digital tools.

Always recommend creating and tracking resources throughout a project with alphanumeric codes indicating department type or individual identifiers. Resource coding systems are an ideal way to do just this.

Furthermore, you need a framework for categorizing your resources that provides specific guidelines for grouping similar resources. This makes managing, tracking, and allocating resources more efficient. By managing resources efficiently across projects, this approach will also serve to prevent resource conflicts and ensure their proper exploitation.

How to Create a Resource Breakdown Structure

Are you prepared to build a resource breakdown structure (RBS)? We’ll walk you through each step, demonstrating how to manage your project’s resources efficiently. Confluence helps in this by providing your team with a central workspace for documenting and modifying the RBS as the project progresses. Here’s how to start:

Define project scope

Be clear about the project’s requirements to accomplish. This is known as the scope of your project. Plan out your most important deliverables, timelines, and the major limitations you’re working with. It may seem simple, however, you’ll be shocked by how many project teams jump into action without fully understanding what they’re creating.

Identify necessary resources

Examine your scope and write down everything you’ll need to finish the task. Consider the people (who are required to participate? ), Materials (what physical things do you require? ), Equipment (which tools and equipment?). Technology (which software and systems?). Contact your team’s leaders and experts on the subject to help you locate any sources you may have missed.

Categorize the resources

Now, you must organize all your assets in a fashion that is appropriate for your project. Most teams group themselves according to type (human resources or materials) or project stage. Choose a method that is easy for everyone to locate the resources they require. Make your categories clear and sensible.

Include costs, skills or other information

Time to add essential details to your list of resources! Take note of team member abilities and availability. Include maintenance schedules for equipment. Include quantities and timelines for materials delivery. The more precise you can be about your lists, will make your work much smoother! Don’t overlook details vital to your project!

Review and confirm with the stakeholders

Distribute the RBS draft among your key members and stakeholders. They’ll be able to spot any gaps, highlight any potential problems, and help ensure that you’ve not overlooked anything crucial. Don’t skimp on this step. Inquiring from people who use these sources can help you avoid the hassle in the future.

Also read: How To Choose the Best Resource Management Tools for Your Company

Best Tips for Building an RBS

Implementing and using an RBS effectively throughout a project is just the first step towards success. Here are some best practices that can assist with managing it more efficiently:

• Keep Simple and expandable: Do not overcomplicate your structure by creating excessive levels or elaborate categories. Start with the basics and then add details only when it is of clear benefit. Your RBS is expected to expand with your project without becoming heavy.
• Regular updates to your routine: Plan a weekly or biweekly review of your RBS to keep it up-to-date. As your project develops and your resources grow, so do your demands. Information about your resources that is outdated can lead to poor planning and missing deadlines.
• Make sure to utilize clear naming conventions: use plain, easy-to-understand names for categories and resources. Avoid technical terms or acronyms that could confuse team members in different departments.
• Build to increase visibility: Create your RBS in a way that anyone can quickly locate the relevant information. This could mean arranging by department, phase of project, or type of resource, or whatever best suits your team.
• Include dependencies on resources: Take note of the resources that depend on each other. For example, if a certain software licenses are required before developers begin working, make this clear.
• Document resource limits: Be mindful of any limitations related to resource availability. For instance, team members working part-time may require special arrangements or equipment may need to be shared across projects.

Begin by using Confluence’s resource planning template. This template is ready to use and will let you jumpstart your RBS and eliminate the need to design an entirely new one. It is a tried and tested design that you can modify to suit your specific project’s requirements and still adhere to best practices in resource management.

Summing Up

Confluence provides teams with the means to organize RBS in one central place using collaborative team efforts, creating and updating information on resources in real-time, with everyone aware of changes as they happen. Don’t waste time on spreadsheets or emails for data related to resources – instead, you now have everything organized easily within Confluence for easy update and access!

Confluence’s Resource Plan Template will get your team moving quickly. By connecting it to other project tools and documents, ensuring everything is integrated properly, teams can edit each other in real-time, make comments about modifications tracked easily – making managing resources less of a headache while guaranteeing everyone works together as one team.