The subdivision of project deliverables into smaller, more manageable components is called decomposition. 2 is incorrect because this term is not valid for this question. 3 is incorrect because progressive elaboration describes any process that progressively elaborates on its theme. For example, the concept of building a house may be developed into a sketch, which is then developed into blueprints, and so on. 4 is incorrect because work packages are the smallest item in the WBS.