A baseline is the item/items that provide you the ability to control project work and have valuable reporting capabilities.  All project reports should be based on this standard. This baseline

is a line fixing something from indiscriminate changes.  In project management there are three baselines discussed: requirements, budget, and schedule.  Each is calculated separately but all are controlled using a designed Change Control Process/Procedure.  Without these three baselines accurate and informative project reporting and control is impossible.

Requirements Baseline.   The requirements are solicited, developed, detailed and documented using any of several project tools that can serve as a Requirements Traceability Matrix (RTM).  With the requirements should be a document defining the related acceptance criteria of that requirement for the customer.  Any change that has a direct effect on either the requirements or the acceptance criteria should be controlled through the change control procedures.  (This is not to be mistaken for clarification of issues on the requirements or the acceptance criteria.)  A project Work Breakdown Schedule (WBS) can be developed from these requirements that will be used in the next baseline – the Schedule Baseline.  This WBS should be developed based on project deliverables that can be defined down to the work packages that will be developed during the execution of the project.

Schedule Baseline.   This baseline is established after the full development of the work breakdown structure and the sequencing of the work packages.  It also includes the establishment of the various dependencies and finally the assignment of resources to each work package.  The schedule reflects when the work should be done.  The final schedule may vary considerably from the initial plan that you would like to work to because of resource availability.  One should ensure that the schedule baseline takes into consideration things such as holidays, vacations, and allows for some non-defined flex time off for the resources working the project.  Likewise, when developing the schedule the individual resource capabilities, knowledge and experience should be considered.

Budget Baseline.  The budget baseline is established after the schedule is complete.  This baseline reflects the total budget for the project and the spending plan that will be used based on the schedule.  This baseline should include all project expenses in labor, material, and in some cases overhead (overhead costs will vary by organizational standards).  There is also normally a contingency budget included based on a percentage of the overall plan.  This contingency will be budgeted or planned in accordance with the organizational standard operating procedures and the risks associated with the project.  Control of the contingency fund should be established at the beginning of the project and included in the documented project plan.