Schedule & Budget Thresholds and Change Request As the project schedule and budget are created it is important that boundary conditions are set by the project sponsor to establish the schedule and budget parameters within which the project is expected to operate.  Table 2 provides an example only of the level of control that may be appropriate to apply to the project.  It may be appropriate to have different levels of control for schedule and cost according to the sponsor's requirements.  If so, then Table 2 will have to appear twice clearly showing the different control limits.  Delete the control limits that do not apply to your project.

 

All variances in the green zone indicate the status of the schedule or cost performance index is as planned and falls within acceptable tolerance levels.  Any variances in the yellow zone define the status of the schedule or cost as cautionary, needing close monitoring.  Any variances in the red zone define the status of the schedule or cost performance to an alert level requiring corrective action.

 

Level of Project Control Required	Green	Yellow	Red
Strict Controls	≤ 2% variation from baseline (0.98 to 1.02)	3% - 4% variation from baseline (0.96 to 0.97 or 1.03 to 1.04)	≥ 5% variation from baseline (≤0.95 or ≥1.05)
Average Controls	≤ 5% variation from baseline (0.95 to 1.05)	6% - 9% variation from baseline (0.91 to 0.94 or 1.06 to 1.09)	≥ 10% variation from baseline (≤0.90 or ≥1.10)
Lenient Controls	≤ 10% variation from baseline (0.90 to 1.10)	11% - 19% variation from baseline (0.81 to 0.89 or 1.11 to 1.19)	≥ 20% variation from baseline (≤0.80 or ≥1.20)

Table 2 - Control Threshold Limits to Agreed Baseline

 

Change Control Process

Nominate the actions that will be taken if the project triggers a corrective action.  As a part of the response process the Project Manager typically needs to present options for corrective action to the CCB or Project Sponsor via a change request.

 

Any corrective actions should follow the project change control process as outlined in the Change Management Plan (refer back to your Scope & Change Management Plan).  Corrective actions will require a project change request be raised and approved by the CCB or Project Sponsor before it can become part of the scope of the project. Any variances should be noted in the Status Report .

Answer rating: 100% (QA)

In the given project context the schedule and budget thresholds are established to define the acceptable levels of variation from the baseline These t... View the full answer