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TEAMFLY220 CHANGE CONTROL AND SCOPE

there is a baseline plan (schedule and usually cost and effort), which is used to
calculate variances. In theory, we talk about freezing the baseline, early in the
project. But we all know that a frozen baseline is like the abominable snowman. It
is a myth, and it melts under pressure.

So the issue becomes: What are valid changes to the baseline and how do we
incorporate such changes into the database? There are some reasonable and prac-
tical approaches, which we share with you, here. There is also an auxiliary benefit
from addressing baseline management. It also provides a basis for controlling the
demon of all projects: scope creep.

A Basic EVA Concept

When we develop a project plan, we identify the work to be performed (activities
and tasks), which we then schedule and budget. Once we have negotiated a feasi-
ble plan, one that balances the work objectives with schedule, resource, and cost
considerations, we establish that plan as the baseline.

A basic premise of the earned value analysis protocol is that we establish such a
project baseline and then evaluate progress against that target. The traditional
EVA nomenclature uses this target, the Budget at Completion (BAC), as an es-
sential component of the base formula. The planned effort to date, which we call
the Budgeted Cost of Work Scheduled (BCWS), is calculated by multiplying the
BAC by the planned percent complete.

Sounds complicated? It’s really not. If you have identified a task and a cost
(budget) for that task, then you have the BAC. If you have scheduled that task,
then the system knows the planned percent complete at any point in time. When
the system multiplies the budget by the planned %C, it has calculated the BCWS,
which is the planned accomplishment at a specific point in time. Your software will
do all of this for you. All that you have to do is read the results of the calculations.

Later, when you have entered the task progress, the system will use the actual
%C to calculate the Budgeted Cost of Work Performed (BCWP). Schedule vari-
ances are then determined by comparing the work accomplished (BCWP) to the
plan (BCWS).

Tip Got a language problem? Let’s substitute some everyday
terms for the EVA jargon:

BAC (Budget at Completion). The budget.
BCWS (Budgeted Cost of Planned accomplishment (at

Work Scheduled). any point in time).