Over Target Baseline (OTB)

Normally the TAB equals the CBB. An OTB is used when the existing baseline is no longer a valid yardstick, so the Cost and Schedule Variances measured against it have lost their value. The remaining work is replanned, historical variances are typically set to zero, and a new baseline is established for the work that remains. An OTB requires agreement with the customer and doesn't change the contract's negotiated cost. The amount by which the TAB exceeds the CBB is the Above Target Budget (ATB). Management Reserve and Undistributed Budget are usually brought to zero first. The Above Target Budget is added at the work package and planning package level and rolls up. Cumulative Schedule Variance, Cost Variance, or both may be reset, but ACWP is never adjusted.

What this means for you

A baseline that no longer reflects how the work will actually be performed produces Cost and Schedule Variances that tell management nothing it can act on. Replanning the remaining work against a valid baseline restores the measurement, while the visible gap between the Total Allocated Budget and the Contract Budget Base keeps the overrun on the record rather than buried in a reset.

See also

FAQ