35.All of the following are tools and techniques of the Control Schedule process except forwhich one?A.Critical path methodB.Schedule compressionC.Agile release planningD.Project management information system Show
36.During a risk management meeting, Bob walks the project team through new risksadded to the risk register. He highlights the risk of flooding at a new call center site theirproject is dependent on because of unexpected inclement weather. The team unanimouslyagrees that additional insurance should be purchased on the gear that would be installedat this location. What type of risk response strategy has the team used? 198Chapter 6■Full-Length Practice Exam37.Ashley is a principal project manager working for a global tour company headquartered inIreland. Recently, Ashley was formally tasked with leading the development of a new tourthat would take customers across 10 countries in 10 days within South America. WhileAshley is grabbing a coffee at the office café, a colleague from the marketing departmentapproaches her, noting that she was excited to be joining Ashley as the marketing lead forthe project. Ashley was unaware of any preassignments. Where can Ashley look to validatewhether her colleague was preassigned to the project? 38.Based on the following information, which project should be selected by the steeringcommittee?Project A: payback period = 4 years; IRR = 5 percentProject B: payback period = 3.5 years; IRR = 7 percentProject C: payback period = 2 years; IRR = 3 percent 39.Ron is a project manager who has a reputation for motivating his team to delivertop performance. In his most recent project, he was able to obtain approval from thesponsor to provide a team-wide bonus if they hit an upcoming critical milestone. Whatmotivational theory is Ron leveraging to motivate the team?A.Achievement TheoryB.Expectancy TheoryC.Maslow’s Hierarchy of NeedsD.Hygiene Theory 40.You are a project manager for Book Lovers’ Exchange, a retail chain of bookstores. Thecompany has recently decided to offer its titles on an Internet site and has asked you tohead up this project. The project sponsor has told you that quality is a primary driver onthis project. You are using techniques such as flowcharts, logical data model, and matrixdiagrams to perform a Planning process. Which of the following is true? Chapter 6■Full-Length Practice Exam199 Every journey begins with a single step. In project management, that step should be establishing a project baseline. In this guide, we will define a project baseline and identify types of baseline in project management. We will also explain its importance and highlight some problems that can happen due to not establishing a clear project baseline. Furthermore, 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.
What is a baseline in project management, in simple terms?The Association for Project Management (APM) defines a project baseline as “the reference levels against which a project, program or portfolio is monitored and controlled.” In simple words, a project baseline is a clearly defined point in a project plan that project managers use as a reference point to measure performance and progress. It enables project managers to determine the project’s overall health. There are several types of project baselines. Types of baseline in project managementA project baseline actually consists of three types of baselines. We use them to evaluate different project aspects, and they are identified as:
Let’s define each one and explain them briefly. Scope baselineIn a nutshell, a scope baseline is an approved version of a scope statement, WBS, and its associated WBS dictionary, which we use as a reference point to monitor project progress and compare actual to planned results. In plain language, a scope baseline also:
It is a component of the project management plan and consists of the following elements:
Cost baselineThe PMI defines a cost baseline as “the approved version of the time-phased project budget, excluding any management reserves, which can only be changed through formal change control procedures.” A cost baseline also plays a significant role in a project, as it serves as a point of reference for project costs. But, it is not the same as a project budget. Instead, it’s a sum of cost estimates for all tasks in a project schedule. In an ideal situation, the cost estimates match or are lower than the actual project costs. Schedule baselineBefore starting any project, you should consider the time required to complete it. Therefore, you need a project schedule. And, a schedule baseline is the approved project schedule. Its primary purpose is to provide start and finish dates against which we can measure project performance and compare our project progress. The schedule baseline components depend on your project. However, the essential ones usually include:
Without a schedule baseline, we cannot identify whether we are doing well or falling behind the predicted schedule. What is the importance of a baseline in project management?As previously stated, all projects need a baseline against which project managers can monitor project performance. Actual performance is compared to scope, cost, and schedule baselines to identify variances. Scope, schedule, and cost baselines serve as a map in a treasure hunt — they help us navigate a project, as our points of reference. They help us identify how far the project has strayed from the initial baselines — and whether or not it is an acceptable level for us. If there is only a minor variance from our baseline, we can say that our project is going well. If variances from baselines are huge, the baselines are unrealistic — or the project hasn’t been executed well. For example, say your budget for a website development project is $100,000. You go into week two of work and realize you have already spent almost half of this sum — this is a clear indication that something isn’t right. For this reason, you should use the project baseline to review the project’s actual costs and identify what went wrong and when. What are the problems caused by not having a project baseline?As we have already learned, having a project baseline helps us keep our project on the right track. But what happens if we don’t establish it? The most common problems related to not having a project baseline include:
Let’s briefly explain each one. Schedule delaysWithout a project baseline, you are at risk of experiencing schedule delays. When does this happen? Well, for instance, you may underestimate the number of people you need at a certain point in a project — and, you may have difficulty finding new team members when you need them. Not being able to find people to work on your project will undoubtedly cause schedule delays. You may also underestimate the time required to complete tasks. According to the Project Management Institute’s 2018 survey, inaccurate time estimates cause 25% of project failures. Let’s illustrate this by providing a concrete example. Suppose your company decides to launch a new website while working on projects for various clients. Without a project baseline, you may underestimate how many developers and designers you need for that specific project. As a consequence, your team will have to work long hours — but may still fail to meet deadlines. Lack of adequate or insufficient resourcesNot setting a schedule baseline may contribute to experiencing a lack of adequate resourcing or poor resource forecasting. That can happen because you may not know which resources you need and when you need them. For instance, if you work on a construction project, timing for material procurement can make a difference between finishing a project on time or making it a never-ending failure. After all, procurement delays may slow down the project or even stop it for some time. Consequently, your company may lose not only money but also damage its reputation. Unfortunately, such poor resource management is not a rare thing. The Project Management Institute’s survey reveals that inadequate resource forecasting is the reason for 18% of project failures — while resource dependency causes 26% of project failures. Without a clearly defined scope baseline, you can face quality management problems, as project deliverables may be less than what you or your clients intended. After all, a scope baseline sets out the approved deliverables of a project and the work needed to create them. Let’s provide an example. Suppose your company is hired to develop an e-commerce website for a client. Without having every detail specified, you may end up delivering a functional website — but the client may not be satisfied with the result. Maybe the client wanted the website to have category-specific filters — but didn’t specify whether the filters should include price, product category, color, material, or something else. As a result, your team developed a completely functional website the client doesn’t like because it doesn’t incorporate all the needed or desired filters. Issues with monitoring project progressWithout a schedule baseline, you won’t be able to monitor project progress — as you won’t have a point of reference. So, you should set a time for all project activities and try to stick to it. For tracking project progress, a project management software comes in handy. It helps you monitor the project progress and react timely if any problems arise. For example, Plaky project management software offers labels for task statuses in different colors, so you always know whether your team is doing well — or if someone is stuck on a task. Plaky project management softwareImproper change managementIf you don’t have project baselines, it’s not easy to track and manage changes. They serve as another benchmark, and without having them, you won’t be able to know if your outcome is different from your prediction. The Project Management Institute reports that 28% of projects fail due to poor change management. Well-determined project baselines can help you minimize the chances you’ll fall under these disheartening statistics. How do you set a project baseline?Now, when you know the basics related to scope, cost, and schedule baselines, it’s time to explain how we can develop each one and set an efficient project baseline. Don’t worry — it is not that complicated. You should take the following steps:
Set a scope baselineFirst, you have to define a scope statement, including key deliverables. As stated by the sixth edition of PMBOK Guide, a project scope statement is a description of:
Create a Work Breakdown Structure (WBS)Once you have developed the project scope statement, you need to create a Work Breakdown Structure (WBS). As previously mentioned, by using a Work Breakdown Structure, you subdivide project work and deliverables into smaller components that are more manageable. Creating WBS is beneficial as it provides a framework of what has to be delivered. Then you need to develop a project schedule baseline. Develop a project schedule baselineIn this step, you have to identify project resources for all project activities and define their due dates and a final deadline for the project. Many project managers use a Gantt chart as it is an efficient way to visualize the project schedule baseline. After setting the project schedule baseline, the following step is related to establishing a cost baseline. Create a cost baselineTake time to plan project costs and create a cost baseline that will serve as a reference point to determine whether your project is on track — or if you are spending too much. In this step, you have to estimate the total project costs. When doing that, keep in mind all the tasks and resources you need to accomplish them. Some costs you should plan may include:
Then, connect the budget plan to your schedule to ensure these two are aligned. Track the project budget against the cost baseline, to ensure no problems occur during project development. Organize a meeting with project stakeholdersAfter taking all these steps, you will need stakeholder buy-in. In other words, you want project stakeholders to approve what you’re doing. So, set up a meeting to go into detail about the cost, schedule, and scope baselines. During the meeting, make sure you explain how baselines are used to determine whether or not the project is on track. Also, this is the moment to address any stakeholder concerns and make any necessary changes they require. Document and control the project baselineA project baseline should be documented and controlled. It may change if a significant change happens. In that case, we have to issue a new, updated version. Still, we should save the previous version to avoid losing all historical data. You should not change a project baseline without following formal change control procedures, such as a change request form and approval process. – Now you know how to set a project baseline. But, maybe you struggle to picture these steps in action. Let’s explain how to set a project baseline by providing an example. Example of a project baselineSuppose your company is launching a new app. Your task is to create a paid ads campaign using Google Ads and paid ads on LinkedIn and Facebook to:
You are assigned a project budget, and your goal is to encourage subscriptions for early access on a dedicated landing page. In this case, your project baseline could look like this:
The first task is to outline all you need to achieve your goal of 1500 subscriptions in one month. You should ask yourself the following questions:
Then, you need to prepare a schedule containing dates when each ad will be lunch and how long it will be active. Finally, you have to determine and divide costs for Google, Facebook, and LinkedIn ads. In this particular case, having scope, cost, and schedule baselines determined helps us to:
Wrapping up: A project baseline acts as a project navigation systemAs sailors need GPS, project managers need a project baseline. After all, a baseline in project management is the outlined starting point for your project plan. Scope, cost, and schedule baselines are used as reference points and help keep our projects on track. So, take your time to create, optimize, manage, and track them. References
What is included in the schedule baseline?A baseline schedule is one of the main project management documents that should be created before the project starts. It sets out the project execution strategy, key project deliverables, activity planned dates and milestones. Activities are grouped under different work breakdown structure levels.
What is true about project baseline?A project baseline is a key tool for a successful project outcome. It helps you oversee the entire project, monitor performance, spot potential problems, and easily identify areas for change. The lack of a clear project baseline can lead to scope creep, cost overruns, and even project failure.
What is true of the project baseline quizlet?The project baseline includes the approved schedule, cost, scope, and quality plans and documents and is approved by the project sponsor. The project baseline is then used to measure performance as the project progresses.
What is the purpose of a schedule baseline?A baseline schedule is what can fairly be called a frozen project timeline. What this means is that a baseline schedule is a fixed project timeline that does not allow for variance. It is utilized for tracking progress on a project, including the accomplishment of contract milestones and budgetary compliance.
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