If a task duration was not well estimated and for certain reasons it is increased this will result in more work to be done and hence an additional cost. Also in rare cases the project was not well scheduled in the initial phase. Once the project plan gets approved the manager should save it as a baseline plan.
If budget is fixed for the project, the manager will need to find a solution to reduce costs in other areas of the project. All types of baselines are closely related and changes to one of them will result in changes to the others. When baselines do change, it is important to document and understand the reasons for the change.
Significant is a subjective term and should be measured in relationship to the project itself. Reference levels against which the project is monitored and controlled.
One possible solution would be to remove other expendable tasks but in this way the project deliverables might get affected, resulting a change in the scope baseline and further more a change in the schedule baseline.
Once a detailed budget is developed and approved, the project manager should publish this baseline and set it as a point of comparison for actual performance progress. With that being said, there could be two other reasons why a baseline may be changed.
This provides a record of the original plan. Ideally, once the project baseline is created it should not be changed anymore. If the scope stays the same, then there is not a need to add a new baseline. Risk analysis is impossible without a baseline which would, for example, include information on the objectives of the project, values of key financial parameters like discount rates, assumed levels of cash flows, financial model adopted, etc.
This way there will be several interim baselines that can be used to remember the potentially bad project management or the team members that did not deliver as promised.
Again, the baseline is a benchmark to measure performance against. Once requirement gathering is finished you will create another more realistic schedule to measure the progress further, and you would like to set that as baseline.
Significant re-estimates must be communicated to project sponsors, and may warrant re-setting the baseline of the project. Types of project baselines Since a project baseline includes many data from a project it is difficult to manage it as a whole and usually it is broken into several parts.
It is just a starting point from what to measure performance against. An element of the business case for a program, describing costs and performance levels that would be achieved if those operations continued unchanged over the planned period of the program.
Without it there is no possibility to compare the current status of the project with the initial estimated one. It is an approved budget usually in a time distribution format used to estimate, monitor, and control the overall cost performance of the project.
The change itself should have been reviewed and approved by a Change Control Board before modifying the baseline. In Project Management, the term baseline refers to an accepted and approved project plan. The cost baseline is that part of the project baseline that handles the amount of money the project is predicted to cost and on the other side when that money will be spent.
A copy of the project schedule for a particular time usually before the project is started that can be used for comparison with the current schedule. Time is another factor that can affect the costs. It is also fine. And we can have interim plan for gathering detailed requirement against set of features or WBS decided in the plan A planning and control instrument in the form of a summary of attributes such as quantity, quality, timing, costs, etc, that establishes a formal reference for comparison and verification of subsequent efforts, progress, analysis and control.
However, it is sometimes inevitable to adjust it due to a new requirement that implies a major change to scope or cost. This happens when either the project was not well planned or when significant changes appear to the scope of the project. Many organizations have specifications about when an initial baseline initiation phase is taken, and then when another baseline is saved - usually after requirements and stakeholder sign-off.In the field of project management, baseline represents the approved time phase plan for a particular item or a project phase, factoring in the addition or subtraction of approved project cost, scope, schedule, and technical changes.
The Planned Value (PV) is the time-phased budget baseline as an immediate translation of the schedule constructed from the project network (without or with resources, as discussed in “The critical path or the critical chain?The difference caused by resources”).
This article provides an introduction to the basic concepts of earned value management as scheduled. The resource loaded schedule is the basis for the monthly budget, or BCWS, for each task and thus the project.
This time phased budget is the The rules also apply to internal replanning and project analysis.
Lack of baseline control can. Developing a Baseline Budget for a Project. A cost baseline is an approved time phased plan. Once a detailed budget is developed and approved, the project manager should publish this baseline and set it as a point of comparison for actual performance progress.
I'm preparing a time phased budget - basically my project schedule with all resources and cost allocated. When its reviewed, I will need to baseline it for calculating variance (tracking) in future.
Time phased baseline is the distribution of activities, tasks, milestones, and resources over an appropriate time scale for the scheduled completion of a plan, program, or project. A time-phased baseline is critical for planning a project because it allows the project team to visually examine the project from a time sequence and cost (Larson.Download