Rebaselining the Performance Measurement Baseline

The time may arise when the PMB no longer represents the plan that the project team is working to complete and the variances being reported are therefore not meaningful. In that event, the project manager, in consultation with the project sponsor, will rebaseline the project. Some rules should be decided in advance regarding how rebaselining is to be done. The following are the usual steps:

■ Make a clear demarcation of the scope that is to be baselined in the second baseline.

■ For the scope in the first baseline, set EVbaseline1 = PVbaseline1. All unearned planned value goes to the second baseline and applies to the scope moved to the second baseline. Note that setting the planned value equal to the earned value at the end of PMB 1 resets the schedule and value variance to $0. The cost variance remains unchanged in PMB 1 and for the project as a whole.

■ The planned value moved to the second baseline is then decomposed into a second WBS and a second PMB is fashioned. The second WBS does not need to be structured the same as the first WBS, but the scope that moves should be mapped from WBS1 to WBS2.

Team LiB

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Project Management Made Easy

Project Management Made Easy

What you need to know about… Project Management Made Easy! Project management consists of more than just a large building project and can encompass small projects as well. No matter what the size of your project, you need to have some sort of project management. How you manage your project has everything to do with its outcome.

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