Project Management in the Oil and Gas Industry

3.1.3 Work Breakdown Structure (WBS)
The work breakdown structure (WBS) is the most important issue in the 
project plan. The WBS defines the work that has to be done to complete 
the project. Moreover, the WBS can help determine the cost of the project 
and its schedule.
Start
Plan
Preliminary
engineering
Training
plan
Materials request
Detail design
(define phase)
Train the
operators
Erect structure,
machine, piping
Machines
test
Project
complete
Detail design
(phase I)
Approved for Design
AFD
Materials request
Long lead item
Detail design
(phase II)
Approved for Construction
AFC
Materials
request
Shelf item
Train operators
Structure and
machine installation
(
a)
(
b)
Figure 3.1 Project key stages.

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88 
Project Management in the Oil and Gas Industry
As commonly used in projects, as in Figure 3.2, a project consists of 
three pipelines: a water pipeline to transport water, a pipeline for crude oil 
production from the plant to storage, and a gas pipeline to transport gas 
from the production plant to the treatment plant. 
The structure of the work activities are divided by the project to more 
than one level. In the first level, define the main stages of the project and 
then in level two and level three, as in the previous example of the pipeline, 
there are three pipelines intended for their establishment. Concrete work 
is the concrete base, as well as electrical work, which is the controller of the 
remote and can thus write the main stages.
The second level in the WBS will be focused on in the Figure 3.2 on the 
stage in the pipeline work where there will be more than one stage for the 
design drawings, calculations, and materials bill of quantity.