Mastering Proram Management

Terms and Definitions Authorization For Expenditure (AFE) For earned value management to be successful, a request for authorization for expenditure should include a proposed plan with definitions of scope, cost, and schedule, plus a change control process for managing the same. The accuracy and level of detail in the proposed plan should seek to minimize the risk of ambiguity in the event that changes are requested. In other words, the definitions and level of detail should make clear whether a requested change is truly a deviation from the authorized plan. An authorization to proceed with the proposed plan is known as the Authorization for Expenditure (AFE). Baseline The plan associated with the AFE includes, at a minimum, a budget and a timeline. The plan associated with the AFE is the initial baseline. As you will see in the next section below, titled "Change Requests", a project can have one or more baseline schedules subsequent to the initial baseline schedule. When chan