The standard for project management



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PMBOK Guide (6th Edition)

Control thresholds. 

Variance thresholds for monitoring cost performance may be specified to indicate an 

agreed-upon amount of variation to be allowed before some action needs to be taken. Thresholds are typically 

expressed as percentage deviations from the baseline plan.

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Rules of performance measurement. 

Earned value management (EVM) rules of performance measurement are 

set. For example, the cost management plan may:

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Define the points in the WBS at which measurement of control accounts will be performed;

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Establish the EVM techniques (e.g., weighted milestones, fixed-formula, percent complete, etc.) to be 

employed; and

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Specify tracking methodologies and the EVM computation equations for calculating projected estimate at 



completion (EAC) forecasts to provide a validity check on the bottom-up EAC.

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