The Ultimate Guide to Creating an Effective Resource Breakdown Structure (RBS)

A resource breakdown structure (RBS) is a powerful project management tool that provides a systematic breakdown of all the resources - human, financial, materials etc. - needed to complete a project. Having an effective RBS is essential for the successful execution and management of any project. Read this ultimate guide to learn everything you need to know about resource breakdown and how to create an effective RBS for your next project.

What is a Resource Breakdown Structure (RBS)?

A resource breakdown structure (RBS) is a hierarchical representation of all resources required to complete a project. It outlines the types and quantities of resources - both tangible and intangible - needed for each activity in a project.

The RBS essentially categorizes resources into types and classes. This helps the project manager get an overview of the resources needed, in addition to details like cost and availability. Having all this vital information in one place aids in resource planning and allocation.

The resource breakdown structure is an extension of the work breakdown structure (WBS). While the WBS breaks down project deliverables, the RBS focuses on identifying and organizing resources. An effective RBS provides a detailed breakdown of:

• Human resources - project team, subject experts etc.

• Physical resources - equipment, machinery, materials etc.

• Financial resources - budgets, funding etc.

• Intangible resources - information, knowledge, softwares etc.

The RBS helps plan and manage resources across all phases of the project lifecycle. It is an invaluable organizational tool for any project manager.

Why is the RBS Important for Project Management?

An effective resource breakdown structure brings several benefits to a project:

• Comprehensive view of resources - The RBS gives the full landscape of all resources needed to complete project activities. This helps identify resource gaps.

• Better resource planning - With exhaustive resource information, it’s easier to plan optimal resource utilization. This ensures resources are allocated and leveraged efficiently.

• Enhanced resource tracking - Resource requirements and assignments are clearly outlined, making it easier to track resource usage throughout the project.

• Improved cost management - The RBS provides better clarity into resource costs. This helps analyze and control overall project costs.

• Higher project visibility - A detailed RBS gives clearer project transparency for stakeholders. This aids stakeholder communication and management.

• More accurate scheduling - Resource availability and constraints are factored in for realistic project timelines.

• Higher ROI - Improved resource and cost optimization ensures money is not wasted on underutilized resources.

• Better decision making - With comprehensive resource data, project leaders can make more informed decisions.

The RBS is a must-have project document that forms the backbone of robust resource management. The time invested in creating an RBS pays dividends throughout the project lifecycle.

How to Create an Effective Resource Breakdown Structure?

Now that you know what an RBS is and why it’s invaluable for project success, let’s look at how to create an effective resource breakdown structure. Follow these steps:

Step 1 - Analyze project scope and requirements

The first step is studying the project scope and requirements in detail. This gives you an understanding of the work involved and resources needed. Analyze the:

• Project plan, budget and timeline

• Deliverables and milestones

• Activities defined in the work breakdown structure (WBS)

• Technical expertise required

• Software, tools, and facility requirements

Step 2 - Identify types of resources

Based on the analysis, list down all the types of resources needed for the project. Common project resource types include:

• Human resources - project manager, core team, consultants, training staff etc.

• Physical resources - equipment, hardware, materials, facilities etc.

• Financial resources - budgets, funds for procurement, operational costs etc.

• Intangible resources - data, information, software, intellectual property etc.

Make sure all direct and indirect resources are identified at this stage.

Step 3 - Breakdown resource types into categories

For each identified resource type, define 2-3 specific categories to break them down further.

For example, human resources can be categorized into:

• Core project team

• Support staff

• External consultants

Breaking down resource types makes the structure more organized and usable. Too many categories, however, can overcomplicate things. Strike the right balance based on the project size and complexity.

Step 4 - Define resources needed for each category

This step involves detailing the specific resources needed under each defined category.

For the human resources category of “Core project team”, the resources can be:

• Project manager

• Business analyst

• Technical architect

• Developers (list each person)

Do this for every resource category. List down individual resources where possible. For procurable items, mention the item specifications.

Step 5 - Identify quantities needed

Alongside each resource, specify the quantities needed.

For example:

• Project manager - 1

• Business analyst - 1

• Technical architect - 1

• Developers - 5

• Laptops - 10 (Core i7, 16GB RAM, 1TB HDD)

Quantifying resources gives a realistic estimate of requirements. Estimate approximate numbers if exact quantities are unclear.

Step 6 - Specify resource attributes

Define important attributes for each resource like availability, location, cost, quality, and source.

For example:

• Project manager - Available full-time; Based in NYC; $80/hour; John Smith

• Laptops - Order from vendor XYZ; $1200 per unit; Need 10 units

Capturing this information aids resource planning and management.

Step 7 - Organize RBS structure

With the resource details in place, organize the structure logically keeping in mind the work breakdown structure (WBS).

There are 3 ways to structure the RBS:

• WBS-based - Organize resources under each WBS work package

• Category-based - Group resources by category

• Hybrid - Combination of WBS and category-based

Choose a structure that’s easy to navigate and provides the right level of detail. A spreadsheet or tool like MS Project can help visualize and organize the RBS.

Step 8 - Link RBS to schedule

Link or map the RBS to the project schedule to indicate:

• Which resources are needed for each activity

• When they are needed

• How long they are needed for

This linkage improves visibility into resource allocation across activities over time.

Step 9 - Finalize RBS

The draft RBS must be reviewed, refined and finalized before formal project approval. Ensure it is:

• Aligned with latest project scope

• Contains sufficient detail

• Structured logically

• Integrated with project schedule

Fill any gaps before finalizing the RBS. Also get key stakeholder sign-offs on the structure.

Step 10 - Manage RBS as a live document

Treat the RBS as a live document and update it as the project progresses. Resource requirements may change over the course of execution. So revise the RBS when:

• The project scope changes

• Resources are re-estimated or modified

• New resources get added

• Resource attributes like cost or availability change

Keeping the RBS up-to-date is key to ensuring smooth resource management throughout the project lifecycle.

Resource Breakdown Structure Example

Here is an example of what an effective RBS looks like for a software development project:

This gives you an idea of the level of detail and structure of an RBS. The exact format and organization can vary based on project complexity and management methodology followed.

Key Takeaways for an Effective RBS

Creating an effective resource breakdown structure requires time and effort upfront. But the long-term gains make it worthwhile. Here are some key takeaways:

• Analyze project scope, requirements and WBS activities in detail before starting the RBS

• Identify and break down all resource types into manageable categories

• List all resources needed under each category with quantities and attributes 

• Organize logically in line with the WBS or resource categories

• Integrate the RBS with the project schedule

• Refine and update periodically to keep it relevant

Following these best practices will result in an RBS that sets your project’s resource management up for success. Use this guide to craft a robust resource breakdown structure and execute projects with exemplary resource planning and cost control.