1. September 2016
EVM 202—Lesson 4 Integrated Baseline Review Process (Part 4: Baseline Maintenance)

2. Management Processes Process Description Baseline Maintenance Process
Maintains the PMB as a current depiction of the plan for accomplishing remaining work and accommodates changes to PMB caused by program dynamics
Risk Management Process
Documents and classifies risks associated with the PMB
PMs should document action risks from IBR in risk management planning
Each action risk addressed in risk management planning should be classified as to its probability of occurrence, consequences, handling, and identification of the individuals responsible for mitigation actions
Business Processes
Include scheduling, estimate to complete, earned value methodology, and managerial analysis
Each process supports the project management
Inappropriate or inadequate use of these processes may fail to identify project risks and may add risk to the project
After an IBR, the emphasis shifts to management processes, which provide PMs with a continuous source of project information that enables a mutual understanding and reduces or eliminates the need for future IBRs.

3. Baseline Maintenance Ongoing Baseline Validity and Realism Validity
PMB still represents goals and objectives
PMB points to valid variances
Variances result in management action
Timely incorporation of contract changes
Proper use of management reserve (MR) and undistributed budget (UB)
Realism
PMB changes made for management reasons, not for reporting reasons
Use of over target baselines (OTBs)
Use of single point adjustments (SPAs)

4. Baseline Maintenance Process
PMB Chart—The program at a glance
Troublesome baselines
Front loaded
Rubber baseline
SPAs
PMB changes
Contract changes
Internal replanning
Formal reprogramming

5. The Program at a Glance

6. Troublesome Baselines

7. Hypothetical PMB Contract structure
Period of performance: 38 months
1000 uniform control accounts (CAs) scheduled to approximate a Rayleigh distribution
CA budgets: $10/each (BCWS)
Actual CA costs: $11/each (ACWP)
Assume that there are no schedule issues: BCWP = BCWS (budgeted cost for work performed = budgeted cost for work scheduled)
Contractor has purposely underestimated costs to win contract
This is a buy-in contract

8. Front-Loaded Baseline PMB Plot

9. Front-Loaded Cost Variance (CV) Chart

10. Rubber Baseline PMB Plot

11. Rubber Baseline CV Chart

12. Single Point Adjustment (SPA)
An arbitrary baseline adjustment at any level of the Work Breakdown Structure (WBS) where BCWS is set equal to BCWP, or BCWP is set equal to actual cost of work performed (ACWP), or both BCWS and BCWP are set equal to ACWP and incomplete work is replanned to be completed on schedule and within the original PMB budget
SPAs distort earned value cost and schedule metrics and make index-based earned value estimate at completion (EAC) computations unreliable.

13. SPA PMB Plot

14. SPA CV Chart

15. PMB Changes

16. Use of Management Reserve (MR) PMB Plot

17. Use of MR CV Chart

18. Effect of Contract Changes on PMB

19. Effect of Contract Changes on CV

20. Over Target Baseline/Over Target Schedule (OTB/OTS)
Replanning actions involving establishing cost or schedule objectives that exceed the desired or contractual objectives on the program
An OTB is a recovery plan, a new baseline for management when the original objectives cannot be met and new goals are needed for management purposes.
The contractor must get permission from the Government before executing an OTB/OTS.

21. Over Target Baseline (OTB) PMB Plot

22. Effect of OTB on CV

23. IBR Risk Management Processes and PMB
Do PMB revisions support program goals, objectives, and milestones?
Changes must be incorporated in a timely manner
Changed budgets must be reconcilable with prior budgets
Retroactive changes must be controlled
Changes must be made in the period the issue is identified
The change-trail must be clearly documented
An over-arching question: Is the new PMB valid?

24. Lesson 4 Summary Terminal Learning Objective
Examine the performance measurement baseline (PMB) validity
Enabling Learning Objective
Explain the PMB development process
Apply the DoD Integrated Baseline Review (IBR) policy and process
Given the Earned Value (EV) technique, analyze control account EVM variables to select EVM metrics
Analyze a schedule using the Precedence Diagram Method (PDM)
Analyze IBR documents to determine areas of concern within the five risk areas in preparation for control account manager (CAM) interviews
Analyze the current schedule to determine status
Explain the importance of PMB maintenance