June 2002?LMJoseph 200263Need?At start of project, all information is not present?Uncertainties are handled by assuming values forimportant parameters?Uncertainty can arise from both in-scope workand out-of-scope-work?Accounting for these risks and uncertainties isprudent project managementJune 2002?LMJoseph 200264Contingency Trend?As project proceeds contingency will be reduced–more information es known–assumptions are either proven or modified?Management of Contingency Pool es avital measure of essJune 2002?LMJoseph 200265Contingency PoolJune 2002?LMJoseph 200266Cautions?Clearly identify who controls contingency pool?Educate management on the role thatcontingency plays in a essful project?Contingency is not “fat” or “padding”?Document contingency management practices inProject PlanBaseline ManagementJune 2002?LMJoseph 200268Project Baselines?Scope Baseline?Cost Baseline?Schedule BaselineJune 2002?LMJoseph 200269Principles in EstablishingBaselines?Baseline elements are traceable to the Work Breakdown Structure(WBS) and WBS dictionary.?The technical scope baseline is derived from corporate strategy(mission requirements) and is used as the basis for establishing theschedule and cost baselines.?The near-term portions of the baselines are detailed to a levelenabling annual budget formulation.?The long-term portions of the baselines will evolve in detail andprecision as work is exe
