Work Package Sizing and Project Performance

Abstract

In organizing a project’s tasks into manageable work packages (i.e., forming a work breakdown structure), trade-offs arise. Defining smaller work packages increases project complexity and workload, and reduces economies of scale, whereas defining larger work packages reduces concurrent processing and adversely affects cash flow. In “Work Package Sizing and Project Performance,” C.-L. Li and N.G. Hall study this trade-off by developing and analyzing an optimization model for work package formation. The model minimizes total project cost, subject to a deadline constraint on project makespan. From a study of this model, the authors demonstrate the value of deliberately varying work package sizes within a project, in contrast with typical project management practice. This research enables more precise planning of work packages to improve performance, documents the value of integrating the planning of work packages and schedules, and provides insights that guide resource allocation decisions.