General

Baseline

The approved version of a work product used as a basis for comparison.

Detailed Explanation

A baseline is the approved version of scope, schedule, or cost that serves as a reference point for measuring project performance. The three primary baselines — scope, schedule, and cost — together form the Performance Measurement Baseline (PMB) used in Earned Value Management.

Any changes to a baseline must go through the formal change control process. This ensures that deviations are documented, evaluated, and approved. Without this discipline, there is no objective reference for determining whether the project is on track.

Baselines are established during the planning phase and serve as the answer to 'Are we on track?' They provide the foundation for all performance reporting, variance analysis, and forecasting throughout the project lifecycle.

Key Points

  • Three main baselines: scope, schedule, and cost
  • Changes require formal change control approval
  • Used as reference for Earned Value Management
  • Established during the planning phase
  • Performance Measurement Baseline = scope + schedule + cost
  • Deviations trigger formal variance analysis

Practical Example

A construction project has a cost baseline of EUR 2M over 12 months. After month 6, spend is EUR 1.2M against planned EUR 950K. Comparing actual spend against the baseline reveals a EUR 250K overrun, prompting the PM to investigate and propose corrective action to the CCB.

Tips for Learning and Applying

1

Establish baselines only after thorough planning and stakeholder agreement

2

Use EVM to track performance against baselines quantitatively

3

Never change a baseline without formal change control

4

Maintain baseline history to improve future project estimates

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