Baseline establishment is a critical process in project management that occurs during the planning phase of the project life cycle. It involves creating approved reference points against which project performance will be measured throughout the execution and monitoring phases. A baseline serves as …Baseline establishment is a critical process in project management that occurs during the planning phase of the project life cycle. It involves creating approved reference points against which project performance will be measured throughout the execution and monitoring phases. A baseline serves as the original plan that has been formally accepted and documented, providing a foundation for comparison as the project progresses.
There are three primary baselines established in project management: scope baseline, schedule baseline, and cost baseline. Together, these form the performance measurement baseline (PMB).
The scope baseline includes the approved project scope statement, work breakdown structure (WBS), and WBS dictionary. This defines all the deliverables and work required to complete the project successfully.
The schedule baseline represents the approved version of the project schedule, including start and finish dates for all activities. It establishes when specific tasks should be completed and milestones achieved.
The cost baseline is the approved time-phased budget that shows how funds will be spent throughout the project duration. This allows project managers to track actual expenditures against planned spending.
Once baselines are established, they become the standard for measuring project performance using techniques like Earned Value Management (EVM). Any deviations from the baseline indicate variances that require attention and potentially corrective action.
Baselines should only be changed through formal change control processes. When approved changes occur, the baseline is updated to reflect new targets. This ensures that performance measurement remains accurate and meaningful.
Proper baseline establishment enables effective project control by providing clear expectations for stakeholders, facilitating accurate progress reporting, supporting decision-making processes, and enabling early identification of problems. Project managers use baseline comparisons to determine whether the project is on track or requires intervention to meet its objectives successfully.
Baseline Establishment in Project Management
What is Baseline Establishment?
A baseline is a fixed reference point that represents the approved version of a project's scope, schedule, and cost. Baseline establishment is the formal process of capturing and documenting these approved plans at a specific point in time, typically after project planning is complete and before execution begins.
There are three primary baselines in project management:
1. Scope Baseline: Includes the project scope statement, Work Breakdown Structure (WBS), and WBS dictionary 2. Schedule Baseline: The approved version of the project schedule with start and finish dates 3. Cost Baseline: The approved time-phased project budget, excluding management reserves
Together, these form the Performance Measurement Baseline (PMB), which integrates scope, schedule, and cost parameters.
Why is Baseline Establishment Important?
Baselines serve several critical functions:
- Performance Measurement: Baselines allow project managers to compare actual progress against the original plan - Change Control: Any deviation from the baseline requires formal change control procedures - Variance Analysis: Enables calculation of schedule variance (SV) and cost variance (CV) - Stakeholder Communication: Provides a common reference point for all stakeholders - Accountability: Creates a documented commitment that the team can be measured against
How Baseline Establishment Works
The process follows these steps:
1. Complete Planning: Finish all planning activities including scope definition, scheduling, and budgeting 2. Obtain Approvals: Get formal sign-off from sponsors and key stakeholders 3. Document the Baseline: Record all baseline components in the project management plan 4. Store and Protect: Secure the baseline documentation to prevent unauthorized changes 5. Communicate: Ensure all team members understand the established baselines
Once established, baselines should only be changed through the integrated change control process. This ensures that modifications are evaluated for their impact on all project aspects.
Exam Tips: Answering Questions on Baseline Establishment
Key Concepts to Remember:
- Baselines are established after planning and before execution - Changes to baselines require formal change control - The Performance Measurement Baseline combines scope, schedule, and cost baselines - Baselines enable Earned Value Management (EVM) calculations
Common Question Scenarios:
- Questions may ask when baselines should be established - the answer is after planning phase completion - If asked about measuring project performance, look for answers involving baseline comparison - When a question mentions variance analysis, connect it to baseline measurement - Questions about scope creep often relate to deviations from the scope baseline
Watch for These Terms:
- Re-baselining: Creating a new baseline when significant approved changes occur - Baseline Review: Formal examination of baseline validity - Variance: The difference between baseline and actual performance
Common Pitfalls to Avoid:
- Do not confuse baselines with forecasts or estimates - Baselines are not updated with every minor change - only through formal processes - Remember that management reserves are excluded from the cost baseline
When you encounter questions about project control and monitoring, baseline establishment is typically the foundation that makes such activities possible.