On top of that, you will learn how to set a project baseline, followed by an example to illustrate the matter and help you gain a better understanding of this project management concept.<\/p>\n\n\n\n
We will also explain its importance and highlight some problems that can arise due to not having a clear project baseline.<\/p>\n\n\n
![\"Baseline](\"https:\/\/plaky.com\/learn\/wp-content\/uploads\/2022\/02\/Baseline-in-project-management-cover.png\")
<\/figure>\n<\/div>\n\n\n- \n
- A project baseline is a fixed reference used to assess project performance over time.<\/li>\n\n\n\n
- A project baseline is commonly divided into scope, cost, and schedule baselines.<\/li>\n\n\n\n
- A clearly defined baseline can greatly improve project performance.<\/li>\n\n\n\n
- Precise baseline monitoring allows project managers to adapt and test changes.<\/li>\n\n\n\n
- A project baseline can improve reporting and stakeholder relationships.<\/li>\n<\/ul>\n\n\n\n
What is a baseline in project management?<\/h2>\n\n\n\n
A project baseline is a set reference point by which a manager can monitor and assess the project as it progresses. <\/strong>Project managers use it to compare the scope, cost, and schedule of an ongoing project against set expectations. This allows them to understand if there are any deviations from the initial plan and if so, determine what they can do about them.<\/p>\n\n\n\n
For example, a project set to complete in 4 weeks with a budget of $10,000 is going well and will be finished before the deadline, but is close to going over budget halfway through. <\/p>\n\n\n\n
In this case, you can tell your schedule is on point, but there is an obvious issue with cost planning, or with the way the money is being spent. This allows you to take steps to ensure the project is completed successfully, and helps you plan better for the future.<\/em><\/p>\n\n\n\n
Types of baseline in project management<\/h2>\n\n\n\n
A project baseline is divided into 3 distinct types of baselines:<\/p>\n\n\n\n
- \n
- Scope baseline,<\/li>\n\n\n\n
- Cost baseline, and<\/li>\n\n\n\n
- Schedule baseline.<\/li>\n<\/ul>\n\n\n\n
Scope baseline<\/h3>\n\n\n\n
A scope baseline is based on the approved version of a <\/strong>project scope<\/strong><\/a>, which outlines all the work that is required to complete the project. Sometimes, the scope also explicitly mentions things that aren\u2019t a part of the project.<\/strong><\/p>\n\n\n\n
For example, a project scope by a contractor hired to renovate a residential building might specify that renovating the basement is not a part of the scope, and that the employer is responsible for procuring required materials.<\/p>\n\n\n\n
Going by the PMBOK (7th edition) Guide<\/a>\u2019s definition, a scope baseline is an <\/em>approved version of a scope statement, work breakdown structure<\/a> (WBS), and its associated WBS dictionary, and it can only be changed through formal change control procedures.<\/p>\n\n\n\n
That said, in simple terms, a scope baseline serves to:<\/p>\n\n\n\n
- \n
- Define settled goals, deliverables, and a project work scope,<\/li>\n\n\n\n
- Document agreement between the stakeholders<\/a> relevant to the project,<\/li>\n\n\n\n
- Provide a project with a work structure, and<\/li>\n\n\n\n
- Provide guidance in daily work and project activities<\/a>.<\/li>\n<\/ul>\n\n\n\n
\n
\n\nFree project management software<\/h2>\n
Don't let the costs and scope get out of control. Keep track of your project baselines with Plaky.<\/p>\n\n
\n Sign up<\/a>\n\n Learn more<\/a>\n <\/div>\n <\/div>\n\n\n\n \n ![\"Illustration\"](\"https:\/\/plaky.com\/learn\/wp-content\/themes\/cake-learn\/src\/images\/plaky\/banners\/default.png\")
\n <\/picture>\n <\/div>\n<\/div>\n <\/p>\n\n\n\nCost baseline<\/h3>\n\n\n\n
A cost baseline is an estimate of the budget required to successfully complete a project. <\/strong><\/p>\n\n\n\n
Per the PMBOK guide, it excludes any <\/em>management reserves, and it can only be changed through established formal control procedures.<\/p>\n\n\n\n
In essence, the cost baseline serves to indicate how accurate the project manager\u2019s budget projections were. <\/p>\n\n\n\n
Ideally, the final costs should be below the cost baseline, or at the very least not exceed it significantly. <\/p>\n\n\n
\n![\"Project](\"https:\/\/plaky.com\/learn\/wp-content\/uploads\/2024\/02\/A-project-budget-example-in-Plaky.png\")
Project budget tracking in Plaky<\/figcaption><\/figure>\n<\/div>\n\n\n \n\ud83d\udca1 Plaky Pro Tip<\/strong><\/p>\n\n\n\n
Planning a project budget can be one of the most intimidating parts of the job for an inexperienced project manager. If you\u2019d like to learn more about budgeting methods, some specific terminology in the domain of cost planning, and how to prevent cost overruns, check out the articles below:<\/p>\n\n\n\n
- \n
- What Is Project Accounting?<\/a><\/li>\n\n\n\n
- Best Project Management Budgeting Methods to Try<\/a><\/li>\n\n\n\n
- Cost Overrun: Why It Happens and How to Stop It<\/a><\/li>\n<\/ul>\n<\/div><\/div>\n\n\n\n
Schedule baseline<\/h3>\n\n\n\n
A schedule baseline includes project start and end dates, as well as other dates relevant to the project. <\/strong><\/p>\n\n\n\n
PMBOK defines this term as an approved version of a schedule model, and once again, highlights that it can only be changed using formal change control procedures.<\/p>\n\n\n\n
A schedule baseline can vary greatly based on the nature of your project and the project management methodology<\/a> you\u2019re using, but among other things, it can include:<\/p>\n\n\n\n
- \n
- Start and end of each project phase<\/a>, <\/li>\n\n\n\n
- Dates by which important project milestones should be met,<\/li>\n\n\n\n
- Sequences and durations of specific project activities,<\/li>\n\n\n\n
- Dependencies<\/a> between activities and teams,<\/li>\n\n\n\n
- Underlying constraints<\/a> or assumptions, and<\/li>\n\n\n\n
- Other components vital for project schedule planning.<\/li>\n<\/ul>\n\n\n\n
With the help of the schedule baseline and a project roadmap<\/a>, managers can easily monitor day-to-day activities and avoid delays.<\/p>\n\n\n\n
How do you set a project baseline?<\/h2>\n\n\n\n
Now, when you know the basics related to scope, cost, and schedule baselines, it\u2019s time to explain how we can develop each one and set an efficient project baseline.<\/p>\n\n\n\n
Set a scope baseline<\/h3>\n\n\n\n
First, you have to define a scope statement, including key deliverables<\/a>.<\/p>\n\n\n\n
As stated by the 7th edition of PMBOK, a project scope statement is a description of the project scope, major deliverables, and exclusions.<\/p>\n\n\n\n
Create a Work Breakdown Structure (WBS)<\/h3>\n\n\n
\n![\"The](\"https:\/\/plaky.com\/learn\/wp-content\/uploads\/2022\/02\/the-levels-of-a-work-breakdown-structure.png\")
The levels of a work breakdown structure<\/figcaption><\/figure>\n<\/div>\n\n\n Once you have set the scope baseline, you need to create a Work Breakdown Structure (WBS).<\/p>\n\n\n\n
A Work Breakdown Structure is used to subdivide project work and deliverables into smaller, more manageable components. <\/p>\n\n\n\n
Ultimately, a WBS serves to:<\/p>\n\n\n\n
- \n
- Minimize uncertainty,<\/li>\n\n\n\n
- Facilitate schedule planning,<\/li>\n\n\n\n
- Identify project milestones<\/a>,<\/li>\n\n\n\n
- Identify project risks<\/a>,<\/li>\n\n\n\n
- Highlight dependencies, and<\/li>\n\n\n\n
- Improve overall organization.<\/li>\n<\/ul>\n\n\n\n
\ud83d\udcd6 WBS is just one of many terms you should get familiar with if you\u2019re looking to learn more about project management. To read more about important terms and processes, visit our <\/em>Project Management Glossary of Terms<\/em><\/a>.<\/em><\/p>\n\n\n\n
Develop a project schedule baseline<\/h3>\n\n\n\n
The next step is defining a project schedule. Here, you have to identify project resources<\/a> for all activities and set a final project deadline<\/a>.<\/p>\n\n\n\n
Many project managers use a Gantt chart for this, as it is an efficient way to visualize the project schedule baseline. <\/p>\n\n\n\n
\n\ud83d\udca1 Plaky Pro Tip<\/strong><\/p>\n\n\n\n
Things rarely go according to the original plan, so project managers usually plan for extra time that might be necessary for a task to be completed due to unforeseen factors. Learn more about this below:<\/p>\n\n\n\n
- \n
- Float in Project Management: Definition, Types, Benefits, and Examples<\/a><\/li>\n<\/ul>\n<\/div><\/div>\n\n\n\n
Create a cost baseline<\/h3>\n\n\n\n
Next is the cost baseline, which is used to gauge the project\u2019s financial performance. <\/p>\n\n\n\n
Here, you need to estimate the total project costs. This means accounting for the costs of all the tasks necessary to complete the project successfully, including:<\/p>\n\n\n\n
- \n
- Labor costs,<\/li>\n\n\n\n
- Materials, and<\/li>\n\n\n\n
- Equipment.<\/li>\n<\/ul>\n\n\n\n
It\u2019s important to connect the budget plan to your schedule to ensure they are aligned. Track the project budget against the cost baseline to ensure no problems occur during project development.<\/p>\n\n\n\n
\n\ud83d\udca1 Plaky Pro Tip<\/strong><\/p>\n\n\n\n
Looking to learn more about how project managers determine, track, and optimize budgets? Take a look at the following articles:<\/p>\n\n\n\n
- \n
- Cost Performance Index (CPI) in Project Management: Explained<\/a><\/li>\n\n\n\n
- What Is Cost Variance (CV)? (+ Formula and Examples)<\/a><\/li>\n\n\n\n
- What Is Estimate at Completion in Project Management (EAC)?<\/a><\/li>\n<\/ul>\n<\/div><\/div>\n\n\n\n
Organize a meeting with project stakeholders<\/h3>\n\n\n\n
Once the project plan is laid out, the next step is to get the project stakeholders to approve it.<\/p>\n\n\n\n
At this relatively simple step, you need to organize a meeting with all the key stakeholders and present your plan in a way that is comprehensive and easy to understand.<\/p>\n\n\n\n
During the meeting, make sure to explain how baselines are used to determine whether or not the project is proceeding as planned.<\/p>\n\n\n\n
This is also the right moment to address any stakeholder concerns and make any necessary changes they require.<\/p>\n\n\n\n
\n
\n\nFree project management software<\/h2>\n
Streamline your business \u2014 improve planning, align teams, and finish all your tasks with Plaky.<\/p>\n\n
\n Sign up<\/a>\n\n Learn more<\/a>\n <\/div>\n <\/div>\n\n\n\n \n ![\"Illustration\"](\"https:\/\/plaky.com\/learn\/wp-content\/themes\/cake-learn\/src\/images\/plaky\/banners\/landing-2.png\")
\n <\/picture>\n <\/div>\n<\/div>\n <\/p>\n\n\n\nDocument and control the project baseline<\/h3>\n\n\n\n
A project baseline should be documented and controlled as the project progresses since significant changes can take place as time goes on.<\/p>\n\n\n\n
In the event of such changes, the project baseline may have to be updated. However, project managers should always retain any older versions of the project baseline for reference.<\/p>\n\n\n\n
However, changing a project baseline is no minor undertaking, and it should always follow the established change control procedures.<\/p>\n\n\n\n
Example of a project baseline <\/h2>\n\n\n\n
Now that we\u2019ve gone over the general steps to establishing a project baseline, let\u2019s take a look at a simple IT example of a project baseline.<\/p>\n\n\n\n
Suppose your company is launching a new app.<\/p>\n\n\n\n
Your task is to create a paid ads campaign using Google Ads and paid ads on LinkedIn and Facebook to:<\/p>\n\n\n\n
- \n
- Promote the launch, <\/li>\n\n\n\n
- Build awareness, and <\/li>\n\n\n\n
- Generate leads.<\/li>\n<\/ul>\n\n\n\n
You are assigned a project budget, and your goal is to encourage subscriptions for early access on a dedicated landing page.<\/p>\n\n\n\n
In this case, your project baseline could look like this: <\/p>\n\n\n\n
- What Is Cost Variance (CV)? (+ Formula and Examples)<\/a><\/li>\n\n\n\n
- Cost Performance Index (CPI) in Project Management: Explained<\/a><\/li>\n\n\n\n
- Identify project risks<\/a>,<\/li>\n\n\n\n
- Best Project Management Budgeting Methods to Try<\/a><\/li>\n\n\n\n
![\"Illustration\"](\"https:\/\/plaky.com\/learn\/wp-content\/themes\/cake-learn\/src\/images\/plaky\/banners\/default@2x.png)
\n <\/picture>\n <\/div>\n<\/div>\n <\/p>\n\n\n\n![\"Illustration\"](\"https:\/\/plaky.com\/learn\/wp-content\/themes\/cake-learn\/src\/images\/plaky\/banners\/landing-2@2x.png)
\n <\/picture>\n <\/div>\n<\/div>\n <\/p>\n\n\n\n![\"Illustration\"](\"https:\/\/plaky.com\/learn\/wp-content\/themes\/cake-learn\/src\/images\/plaky\/banners\/landing-4@2x.png)
\n <\/picture>\n <\/div>\n<\/div>\n <\/p>\n\n\n\n![\"Plaky](\"https:\/\/plaky.com\/learn\/wp-content\/uploads\/2022\/02\/Plaky-project-management-software-1-1.png\")