Question

What is an organization breakdown structure (OBS)?

1) A structure used to assign responsibility for work packages
2) A structure used to summarize organization unit work performance
3) A structure used to tie the organizational unit to cost control accounts
4) A structure used to plan a project

Answer 1

The Organization Breakdown Structure (OBS) is a hierarchical framework assigning responsibilities within a project, summarizing work performance by organizational units, and linking those units to cost control accounts. It complements the Work Breakdown Structure (WBS) for efficient project management.

Step-by-step explanation:

An Organization Breakdown Structure (OBS) is a framework that delineates the hierarchical arrangement of an organization's personnel and delineates their responsibilities within a project. Specifically, it is:

1. A structure used to assign responsibility for work packages.
2. A structure used to summarize organization unit work performance.
3. A structure used to tie the organizational unit to cost control accounts.

The OBS serves as a pivotal tool for project managers to allocate project tasks, track performance, and manage project costs more efficiently. It is closely tied with the Work Breakdown Structure (WBS), which is used to plan and organize the project's work elements.