Integrated Baseline Review

Integrated Baseline Review

Question 1

Integrated Baseline Review is crucial to the process of establishing a performance measurement baseline it provides an understanding between the contractor and the program manager from the government, on the plan of action to evaluate the inherent risks in the management process and Performance Measurement Baseline that occurs during the execution phase. They are also used to determine corrective actions where necessary.

Question 2

Integrated Baseline Review meetings can devolve into a business management meeting if the focus is not kept on the objective. To ensure this does not happen, the right personnel need to be present from both sides to ensure proper engagement on IBR. The program manager from the customer team, to bring the program-wide perspective to conversation as well as program manager from the contractor’s side to overview the program and support IBR objectives. Other personnel includes; technician leads who clarify assumptions as well as identifying opportunities and risks. Control Account Managers (CAMs) to aid in navigating the schedule, an overview of control accounts and clarify assumptions, and finally, IBR facilitator to help keep on schedule and keep the focus topic on IBR.

Question 3

During the project life cycle, IBR is conducted during the Planning Phase, as it usually involves in the formal approval of the Performance Measurement Baseline, which occurs in the planning phase.

Question 4

Failure to not conducting an IBR will result in a lack of adequate resources for the project during execution, and managers have not correctly implemented the required management process. The tasks are poorly planned and cannot be measured objectively relative to the technical progress. Another consequence is the lack of mutual understanding of the project risks.

Question 5

Management reserve refers to the planned amount of cost, from the total allocated budget (or time) that is used to manage the unforeseeable risks. It is usually withheld for management control purposes, and it is up to the project manager after approval from the management team. The management reserve can be 5% of the total duration of the project or total cost, which is usually estimated based on the uncertainty of the project. Management reserve is crucial as project managers do not have to go back to sponsors in case of an unforeseen risk, which will take longer before the PM can get the much-needed resources to solve the risk

Question 6

During the proposal phase, quantify the probability of occurrence and consequences of identified risks, after performing a risk analysis. Identify plans to eliminate or mitigate the risk as well as identifying opportunities by including the cost of risk handling plans in the cost estimate. Include the cost of estimate in the risks that will be accepted and undertake additional analysis to determine the confidence level in the cost estimate. Determine the level of confidence for the acquisition based on management risk tolerance.

Another method is when awarding the contract, budget the Control Accounts at a lower overall level of confidence.

Management reserve can best be calculated also by adding 5% – 10% of the cost baseline though this is not the best practice. For example, assuming a cost baseline of $140,000 and a 5% management reserve, the project manager would calculate the management reserve as (i.e., $140,000 x 5%) =$7000

Question 7

The elements of management reserve include; considerable uncertainty which is: rate changes such as currency, material, and labor, increase in scope size from the original, and risks (the probability of occurrence and the expected impact)

Question 8

Potential risks are usually first identified, depending on the features of the task. Budgetary risks cannot be considered independent, as it can influence the project schedule. The budgetary component influences management reserve through risks such as equipment and labor rate cost uncertainty, and escalation sensitivity. Having the capability to predict with some certainty regarding how much the unforeseen risks will cost and at what rate is crucial to know whether the project will deliver with the allocated budget.

Question 9

The schedule component in management reserve refers to the risks that affect the time in the case of unforeseen risk. The risk criteria that affect schedule include personnel availability leading so some work having to be postponed, material availability, which causes further delay in identifying and acquiring the necessary equipment and personnel to operate it. The schedule component helps to determine how long each risk will take place and make the required changes to avoid passing the project’s deadline.

Question 10

The technical component refers to the technical issues that must be addressed to ensure successful project completion. Technical issues such as reliability, availability, and performance have to be identified as the risks which may occur during implementation and management reserve takes into consideration and plan how best to address it.