--- title: "Baseline management in project plan" subject: "ICT Project Management" chapter: 7 key: "semester_7/ict_project_management:baseline-management" source: https://www.bctengineer.com/q/semester_7/ict_project_management/baseline-management site: BCT Engineering --- # Baseline management in project plan ICT Project Management · Chapter 7: Project Integration Management - Asked in: year not given - Answer checked by Claude Opus 5.5 (high effort) on 2026-10-14 - Page: https://www.bctengineer.com/q/semester_7/ict_project_management/baseline-management - Whole chapter: https://www.bctengineer.com/md/semester_7/ict_project_management/chapter-7 ## Question How is baseline management useful in developing a project management plan? ## Short answer Baseline management establishes approved scope, schedule, and cost baselines as reference points for performance measurement. It enables variance analysis, earned value management, prevents scope creep through formal change control, and supports forecasting and accountability. ## Answer A **baseline** is the approved version of a plan (scope, schedule or cost) that can be changed only through formal change control, and is used as a basis for comparison. **Baseline management** means creating, approving, protecting and updating baselines so that actual performance can be measured against them. It is a vital part of the **project management plan**. #### Main baselines - **Scope baseline**: approved scope statement, WBS and WBS dictionary. - **Schedule baseline**: approved schedule with start and finish dates. - **Cost baseline**: approved time-phased budget (used for earned value). - Together these are called the **performance measurement baseline**. - Other baselines: quality, requirements, configuration. ```text Plan -> Approve -> BASELINE -> Compare with actuals ^ | +- Change control (approved changes) ``` #### Usefulness in developing the project management plan 1. **Reference for control**: variance = actual − baseline; shows deviations in time, cost and scope. 2. **Earned value management** requires a cost baseline. 3. **Clear agreement** between sponsor, manager and team about what was planned. 4. **Prevents scope creep**: any change must go through integrated change control, and the baseline is updated only with approval. 5. **Helps forecasting** (EAC, completion date). 6. **Version control**: previous baselines are kept to review history and for lessons learned. 7. **Accountability**: the team knows the target they will be judged against. 8. **Supports configuration management** by fixing the approved versions of documents and software. #### Rebaselining When a major approved change happens (e.g. the customer changes scope), a new baseline is set and the old one is retained for records. Frequent rebaselining hides poor performance and should be avoided. **Example:** A web project has a baseline of 6 months and Rs 10 lakh. After 3 months the actual cost is Rs 6.5 lakh against a planned Rs 5 lakh, which shows a cost overrun against the baseline and prompts corrective action. ## Check yourself The answer's key points as multiple-choice questions, with the correct option and why. 1. A baseline is: A. An approved plan version changed only via formal change control B. Any draft plan C. A list of risks D. A team meeting record Answer: A. A baseline is approved and used for comparison. (Key point: Baseline definition) 2. Which baselines together make the performance measurement baseline? A. Quality, risk, communication B. Scope, schedule and cost C. Only cost D. Only scope Answer: B. Scope, schedule and cost baselines together form it. (Key point: Performance measurement baseline) 3. Which baseline does earned value management require? A. Procurement baseline B. Communication baseline C. Cost baseline D. None Answer: C. EVM measures progress against the time-phased cost baseline. (Key point: Earned value) 4. What is the risk of frequent rebaselining? A. It removes scope creep B. It speeds work C. It lowers costs D. It hides poor performance Answer: D. Constantly resetting baselines masks variance and should be avoided. (Key point: Rebaselining) ## Related in ICT Project Management - [Quality management plan](https://www.bctengineer.com/question.md?key=semester_7%2Fict_project_management%3Aquality-management-plan) — ICT Project Management, chapter 10 - [Communication management plan](https://www.bctengineer.com/question.md?key=semester_7%2Fict_project_management%3Acommunication-management-plan) — ICT Project Management, chapter 11 - [Risk management plan](https://www.bctengineer.com/question.md?key=semester_7%2Fict_project_management%3Arisk-management-plan) — ICT Project Management, chapter 12 - [IT project management methodology](https://www.bctengineer.com/question.md?key=semester_7%2Fict_project_management%3Ait-pm-methodology) — ICT Project Management, chapter 14 - [Project management body of knowledge](https://www.bctengineer.com/question.md?key=semester_7%2Fict_project_management%3Adefine-pmbok) — ICT Project Management, chapter 2 - [Project management knowledge areas](https://www.bctengineer.com/question.md?key=semester_7%2Fict_project_management%3Apm-knowledge-areas) — ICT Project Management, chapter 2 ## Related in other subjects - [Process of developing IS security plan](https://www.bctengineer.com/question.md?key=semester_8%2Finformation_system%3Ais-security-plan) — Information System, chapter 2 - [Procedure for developing a project proposal](https://www.bctengineer.com/question.md?key=semester_7%2Fproject_engineering%3Aproposal-procedure-develop) — Project Engineering, chapter 2, asked 4× - [Function of project management in Nepal](https://www.bctengineer.com/question.md?key=semester_8%2Fconstruction_management%3Acpm-function-nepal) — Construction Management, chapter 1 - [Types of projects; effect of project management](https://www.bctengineer.com/question.md?key=semester_7%2Fproject_engineering%3Aproject-types-effect-of-management) — Project Engineering, chapter 1