Resource breakdown structure: what it is & how to make one

What is a resource breakdown structure (RBS)?

A resource breakdown structure is a comprehensive hierarchical framework that captures and categorizes every resource required for project completion. Unlike traditional resource lists, an RBS breaks down resources into increasingly detailed levels, similar to how a work breakdown structure decomposes project tasks. This systematic approach ensures that all resources, including personnel, equipment, materials, and technological assets, are accounted for.

Project managers typically create the initial resource breakdown structure during the project planning phase, often working alongside department heads and key stakeholders. However, treating an RBS as a one-time document is a mistake. The most effective resource breakdown structure examples show how this tool evolves throughout the project life cycle, reflecting changes in resource availability, project scope, and organizational priorities.

Benefits of using a resource breakdown structure

Using a resource breakdown structure can offer numerous tangible benefits directly impacting project success. From a financial perspective, businesses often see significant improvements in budget control because they can track resource utilization more precisely. 

For instance, when a manufacturing company implements an RBS for its product development project, it might reduce resource-related cost overruns by a significant percentage through better allocation and forecasting.

Project transparency also improves dramatically with a well-maintained RBS. Cross-functional teams gain clarity about available resources and their utilization, leading to more effective project collaboration. 

Capacity planning becomes more straightforward when backed by a detailed resource breakdown structure. Project managers and leads can make informed decisions concerning resource allocation, ensuring that critical skills and equipment are available when needed.

Use the capacity planning template to get real about your team’s bandwidth.

Key components of a resource breakdown structure

Before creating your resource breakdown structure, you must understand its essential building blocks. These components form the foundation for organizing and tracking resources throughout your project.

• Hierarchical organization structure: This breaks down resources from the highest-level categories to individual components, similar to an organizational chart. This includes major categories like human resources, materials, and equipment, each further divided into specific subcategories and individual resources.
• Human resources: This encompasses all people-related resources, including full-time employees, contractors, consultants, and support staff. This category includes skill sets, availability, and role-specific requirements.
• Material resources: This covers all physical materials needed for project completion, from office supplies to construction materials and manufacturing components.
• Equipment and machinery: This includes all tools, hardware, vehicles, and specialized equipment required to complete project tasks and deliverables.

• Technology infrastructure: This encompasses both hardware and software systems, including computers, networks, specialized software licenses, and digital tools.

It is always a good idea to have a resource coding system to identify and track different resources throughout the project life cycle. This system typically uses alphanumeric codes to indicate resource type, department, and specific identifiers.

Additionally, you should have a resource categorization framework that provides clear guidelines for grouping similar resources. This will make tracking, allocating, and managing resources easier. It will also help prevent resource conflicts and ensure proper resource utilization across projects.

How to make a resource breakdown structure

Ready to build your resource breakdown structure? We'll walk through each step, showing you how to organize your project resources effectively. Confluence makes this easier by giving your team a centralized workspace to document and update the RBS as your project evolves. Here's how to get started:

Define project scope

Get crystal clear on what your project needs to deliver. This is called the project scope. Map out your key deliverables, timeline, and significant constraints you're working with. This might seem obvious, but you'd be surprised how many project teams jump into resource planning without understanding what they're building.

Identify necessary resources

Look at your scope and list everything you need to complete the job. Think about people (who needs to be involved?), materials (what physical stuff do you need?), equipment (what tools and machinery?), and technology (what systems and software?). Talk to your team leads and subject matter experts to help you find any resources you might miss.

Categorize resources

Now, group your resources in a way that makes sense for your project. Most teams organize them by type (human resources, equipment, materials) or project phase. Pick an approach that makes it easy for everyone to find what they need. Keep your categories simple and logical.

Include cost, skills, and other information

Time to flesh out your resource list with important information. Note team members’ skills and availability. Include specs and maintenance schedules for equipment. For materials, add quantities and delivery timelines. The more specific you can be, the better. Only focus on details that matter for your project.

Review and validate with stakeholders

Share your RBS draft with key stakeholders and team leads. They'll help spot gaps, point out potential issues, and make sure you haven't missed anything critical. Don't skip this step. Getting input from those using these resources can save you a major headache later.

Take advantage of the free stakeholder communications template when sharing your RBS.

Best practices for building an RBS

Building a solid RBS is just the first step. These best practices will help you maintain and use your resource breakdown structure effectively throughout your project:

• Keep it simple and scalable: Don't overcomplicate your structure with too many levels or overly detailed categories. Start with core resources and add detail only where it adds clear value. Your RBS should be able to grow with your project without becoming unwieldy.
• Make regular updates part of your routine: Schedule weekly or bi-weekly reviews of your RBS to keep it current. As your project evolves, so will your resource needs. Outdated resource information leads to poor planning and missed deadlines.
• Use clear naming conventions: Create consistent, easy-to-understand names for your resources and categories. Avoid acronyms or technical jargon that might confuse team members from different departments.
• Build for visibility: Structure your RBS so anyone can quickly find the necessary information. This might mean organizing by department, project phase, or resource type – whatever makes the most sense for your team.
• Include resource dependencies: Note which resources depend on others. For example, if certain software licenses are required before developers can start work, make this connection clear.

• Document resource constraints: Note any limitations on resource availability, like team members who are only available part-time or equipment that needs to be shared across projects.

Start with Confluence's resource planning template. This ready-made template will allow you to jumpstart your RBS, eliminating the need to create one from scratch. It provides a proven structure that you can customize to fit your project's needs while maintaining best practices for resource organization.

Example of a resource breakdown structure

Let's walk through how the entire process works with this resource breakdown structure sample:

• Main resources: At the top, you have your main project resources - this is your starting point for everything you need to complete your project.
• Categories: The next level is divided into four major resource categories: human resources (your people), technical resources (your technology and systems), physical resources (tangible items and spaces), and external resources (outside help and vendors).

• Subcategories: Under each of these categories, you'll find more specific subcategories. For example, human resources are broken down into leadership roles, core project teams, and support staff. Technical resources are split into your hardware, software, and infrastructure needs. Physical resources are divided into facilities, equipment, and materials. External resources are separated into vendors and contractors.

From there, each subcategory gets even more specific. For instance, under hardware, you'd list all your specific equipment needs. Under facilities, you'd detail your space requirements.

Reading this structure is simple. Start at the top and follow the path to whatever resource you need information about.

Leverage Confluence for effective resource breakdown structures

Keep your RBS organized in one place with Confluence. With Confluence, teams can work together to build and update resource information, and everyone can see changes as they happen. No more digging through old emails or spreadsheets — all your resource details live in one spot that's easy to access and update.

Confluence's resource planning template helps you get started quickly. You can connect your RBS to other project tools and documents, keeping everything linked and organized. Teams can edit together in real-time, add comments, and track changes, making managing your resources simple and keeping everyone on the same page.

Use the resource planning template in Confluence for free