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Baseline Change Management Procedure in P6

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sam dsoza
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Hello All,

I would like to understand / learn more how my fellow planners manage baseline change on Project - 

1. What factors beyond the usual (Scope / Contract / Resource / Budget ) determine a change to the baseline? for example would low productivity rate constitute a baseline change?

2. Does one normally do a What-if scenario in P6 to determine whether or not to go ahead with the baseline change? If so do you use original baseline file which OR Most recent Statussed file?

3. How does one mimic changes made to the baseline file in to the most recent statussed file. What checks and crieteria does one use in P6 to ascertain that the historical Earnings was not changed? (I have usually done replication manually but it takes a lot of time if the baseline change is a complex one, hence would like to get feedback from you all on what could a effiecient way be to handle a change)

Thanks in advance

SD

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Rafael Davila
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Of particular interest might be the Department of Defense (DoD) Over Target Baseline and Over Target Schedule Handbook.

3.5.6.2 Adjusting Variances: A key consideration in implementing an OTB is to determine what to do with the variances against the pre-OTB baseline. There are essentially five basic options. This is a far more detailed effort than these simple descriptions imply, as these adjustments have to be made at the detail level (control account or work package). (See Appendix B for examples.)

Gives me stomach cramps!

sam dsoza
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Zoltan, Just want to know what the difference / demaracation would be between a "baseline change" to an "update or a revised baseline". 

Rafael, Thanks for additional reading links, will go through those as well.

sam dsoza
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Zoltan, Just want to know what the difference / demaracation would be between a "baseline change" to an "update or a revised baseline". 

Rafael, Thanks for additional reading links, will go through those as well.

 

Rafael Davila
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Department of Defense Earned Value Management Implementation Guide

Over Target Baseline - Formal reprogramming refers to replanning of the performance measurement baseline (PMB)

  • IBR
  • 2.2.3.7 Exclusions for Firm Fixed Price (FFP) Contract Type - was my experience.
  • The two references shall help.
  • I do not believe POTUS would be able to follow all the DOD convolution. Sad.
Zoltan Palffy
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Sam that sounds like an update to me or a revised baseline

Rafael Davila
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Sam,

The following link might be of interest to you.

The Great Divorce: Cost Loaded Schedule Updating

Look for Earned Value Report with “Divorced” Schedule/Cost.

https://en.wikipedia.org/wiki/URS_Corporation

URS provides ongoing management and operation of the 4,200-acre Kennedy Space Center complex, including its 900 mission-specific facilities, 16,000 unique NASA systems and equipment, and 600 unique U.S. Air Force systems and equipment.

Therefore I expect DOD to be familiar with this issue.

Good Luck,

Rafael

sam dsoza
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Hi Rafael, Thanks for the post. Completely agree that usually defense type contracts require changes to be incorporated in both cost and schedulineg tool.

sam dsoza
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Hi Zoltan.

I am not creating a NEW baseline but REVISING the original project baseline. I am incorporating all scheule / labor / non labor changes in to the original resource loaded baseline schedule as is the norm in any evms schedule esp. in defense / aerospace contracts. 

sam dsoza
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Hi Zoltan.

I am not creating a NEW baseline but REVISING the original project baseline. I am incorporating all scheule / labor / non labor changes in to the original resource loaded baseline schedule as is the norm in any evms schedule esp. in defense / aerospace contracts. 

Rafael Davila
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Over Target Baseline and Over Target Schedule Handbook

1.2.1 Rebaselining is the general term used for describing a major realignment of the performance measurement baseline to improve the correlation between the work plan and the baseline budget, scope, and schedule.

It does not need to happen a Change Order for the current schedule no longer be in correlation to a fixed in time reference.  It does not need for the current schedule be Over Target.

Say you have a contract to construct 10 buildings and your baseline plan considers working at a certain sequence, two at a time.  The only contractual milestone is project finish.  After a couple of months earthwork on the site for Bldg3 is delayed because of your own progress but site for Bldg4 is ready, it will have no impact on the total construction time but on the construction sequence.  It makes no sense to compare current project to such baseline.

  • There is no change order.
  • There is no need to recover contractual milestone.
  • There is a need for Rebaselining.

The infatuation with fixing baseline schedule is born from DOD EVM a bureaucratic requirement that is questioned by many.

  • Earned Value Management as a tool for Project Control - A tiny (if compared to total project duration) schedule variance of an activity can become a cause for substantial rearrangements in the project network, it can change critical path or order of activities, enforce a total reorganization of works.
  • EVA is widely used but shall be applied very carefully and together with other methods because it may provide wrong motivation of project teams and does not consider activity network dependencies.
  • We would be better off if we start looking more at current schedule buffers, success probabilites and trends instead of comparing current schedule to a frozen baseline.
Zoltan Palffy
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you do not create a NEW baseline unless you have to recover the schedule. Then you have a revised baseline. You can always compare the current udate against the previous update at any time. 

Rafael Davila
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If I were the Client and current schedule update disclose the Contractor will not be meeting contractual milestones by an amount of concern I would require the Contractor to submit a recovery schedule for the delays caused by the Contractor.  Once approved the recovery schedule will become new baseline.

I would expect the Contrator to timely request any claim for Owners delays.

Activity durations shall be based on volume of work, resource assignments and feasible production rates for it to be credible.  Because P6 is incapable of relating volume of work, resource assignments and production rates to activity duration in a transparent and meaningful way then under a separate document I would require a disclosure on how the activity durations are calculated for each schedule version based on the activity volume of work and resource production rates.  Because periodic schedule updates shall represent current conditions the any adjustments to resource assignments and production rates shall also be disclosed on every period update.

  • In estimating it is almost a universal standard to use meaningful production rates per effort-hour such as 10 bricks /man-hour if resource is labor resource and 30 cy /equipment-hour if resource is equipment.  This is the language everyone in the field understands, asking for a production rate of one for everything does not help to manage the work [schedule].

If production rates are consistently lower than planned then activity durations will take longer if Contractor keeps the resource assignments unchanged.  Among many other strategies, after adjusting the production rates Contractor can increase planned resource assignments and availability, increase the number of crews, increase the number of shifts, increase the hours per shift, plan for overtime or change methodology as to meet current contractual requirements.

Volume of work from Rafael Davila
sam dsoza
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Hi Zoltan, Thannks for taking the time out to reply to my queries.

I have few follow up questions - 

1.If I shows changes (adding new activities / removing existing activities / modifying existing activities) to the latest statussed file then how should I create a new baseline file reflectiing all of this?

We do not use store period performance . is there any other way out?

Zoltan Palffy
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1. What factors beyond the usual (Scope / Contract / Resource / Budget ) determine a change to the baseline? for example would low productivity rate constitute a baseline change?

That depends on wha the casue for the lwo productivity rate is maybe it is self inflected. Create a measured mile whne the productivity rate is at 1 and then you can measure agaisnt the measured mile.

2. Does one normally do a What-if scenario in P6 to determine whether or not to go ahead with the baseline change? If so do you use original baseline file which OR Most recent Statussed file?

If the change is large enough then a what if scenario maybe necessary.  Other wise no.

NEVER EVER add a change to the baseline that defeats the whole purpose of the baseline. Add any changes to the latest statused file.

3. How does one mimic changes made to the baseline file in to the most recent statussed file. What checks and crieteria does one use in P6 to ascertain that the historical Earnings was not changed? (I have usually done replication manually but it takes a lot of time if the baseline change is a complex one, hence would like to get feedback from you all on what could a effiecient way be to handle a change)

a.) mimic changes. You dont you just put the changes into the current schedule. b.) Historical Earnings ? If you use Store period performance after each update then it cant be changed the values are stored for the particular period. 

just add the change into the schedule and create an activity code to and assign the activity code to newly added change activities. Then run a claim digger to show the changes made from the previous schedule  to the current schedule.