The time may arise when the PMB no longer represents the plan that the project team is working to complete and the variances being reported are therefore not meaningful. In that event, the project manager, in consultation with the project sponsor, will rebaseline the project. Some rules should be decided in advance regarding how rebaselining is to be done. The following are the usual steps:

• Make a clear demarcation of the scope that is to be baselined in the second baseline.

• For the scope in the first baseline, set EV_baseline1 = PV_baseline1. All unearned planned value goes to the second baseline and applies to the scope moved to the second baseline. Note that setting the planned value equal to the earned value at the end of PMB 1 resets the schedule and value variance to $0. The cost variance remains unchanged in PMB 1 and for the project as a whole.

• The planned value moved to the second baseline is then decomposed into a second WBS and a second PMB is fashioned. The second WBS does not need to be structured the same as the first WBS, but the scope that moves should be mapped from WBS₁ to WBS₂.