Noun-Type Approaches
Basically, there are two noun-type approaches:
Physical decomposition— In projects that involve building products, it is tempting to follow the physical decomposition approach. Take a mountain bike, for example. Its physical components include a frame, wheels, suspension, gears, brakes, and so on. If each component is to be manufactured, this approach might produce a simple WBS. This type of WBS is initially attractive because it looks similar and, in fact, could be identical to a company’s financial chart of accounts (CoA). CoAs are noun-oriented because they account for the cost of developing things such as gears and brakes.
Note
A CoA should not be confused with the WBS. The WBS is a breakdown of work; the CoA is a breakdown of costs.
Functional decomposition— Using the bicycle example, you can build the WBS using the functional components of the bicycle. The functional components include the steering system, gear-shifting system, braking system, pedaling system, and so on. The same cautions that apply to the physical decomposition approach apply here as well.
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