Evaluation means to assess, so in the
context of project evaluation, we are looking at an assessment of the project
during the course of implementation. It is an interim assessment at major
milestone. When evaluations are carried out on major milestone, project
managers are able to steer the project in the right direction. Evaluations also
allowed project managers to compare if the project is progressing according to
plan activities and if objectives are achieved.
Project
Evaluation Objectives
1. To
verify if the progress of project implementation is as planned and to take
corrective measures if the project lags behind the schedule.
2. To
ascertain whether the actual costs are within the budgeted costs at the different
stages implementation and to take steps to contain costs if the actual costs
escalate over the budgeted costs.
3. To
ensure that the quality standards of the project are reached without any
compromise.
4. To
identify any unexpected problem areas and to plan for managing such situations
appropriately.(socio-cultural factors, political/legal factors)
5. To
appraise the clients about the progress of the project and to keep them
informed about the project status.
6. To
bring about overall improvement in project performances.
7. To
watch whether the project objectives are met and to suggest corrective measures
if the objectives are found to get defeated.
8. To
give confidence to the project team members and to reassure the organization’s
commitment to the project.
Evaluation
Methods
Smaller projects may be evaluated by
direct observation and by getting first-hand information from field staff,
specialists and others connected with the project implementation. Evaluation
can be done through periodic written reports, especially when it is a large
project. Written reports may be supplemented by charts, graphs and images etc.
Post
Project Evaluation (Post Audit) – Post project
evaluation is also known as Post Audit or Post Completion Audit. It is an
evaluation of the project after its completion. After a project is completed,
project audit is carried out to access the actual project cost and the actual
time taken for project completion. Post Evaluation on public projects also makes
assessment of the actual social cost benefit factors and the extent up to
whether project has achieved it goals or objectives.
Objectives
of Post Audit
·
Gained new knowledge
and experience (Building up Information Base)
·
Deviations for future
Control measures. (Education on Project Management)
·
Financial costs can be
realistically measured. (Establishing correct cost/time relationship
·
Create appropriate
standards and techniques for future projects.
·
Build better
understanding and coordination of activities for future performances.
Phases
of Post Audit
Post audit is carried out in two phases;
immediately after the completion of the project and after the lapse of
sometime, two to three years since the completion of the project.
Immediately after the project
completion;
1. For
studying the differences between the actual project cost and the estimated
project cost.
2. For
studying the differences between the actual time taken for the project
implementation and the estimated time.
3. For
locating the areas that have contributed to the variances in project cost and
time.
4. For
identifying the reasons for such variances, classifying them into avoidable and
unavoidable variances.
5. For
analysing the steps that could have been taken to avoid the avoidable
variances.
After Lapse of two or three years;
1. For
studying whether the product goals and objectives are achieved.
2. For
knowing whether the project produces products of acceptable quality.
3. For
knowing whether the estimated output is achieved.
4. For
knowing whether the product is accepted by the market and whether the
production volume is commensurate with the market share planned to achieve.
The stages taken to carry out post
evaluation audit whether immediately or after two or three years are to
identify any shortfall and other grey areas and to come up with corrective
measures for future projects.
Types
of Post Audit (Nagarajan, 2008)
Technical
Evaluation or Technical Audit – refers to evaluation
of quality and quantity of production; the operating costs in production etc. A
comparison of these factors is done between what is presented in the
feasibility report/detailed project report and what has been the actual
achievement.
Financial
Evaluation or Financial Audit – Financial
projections/estimates are made at the time of the project appraisal as to the
project cost under various heads, operating costs of the project, maintenance
costs, profitability estimates, cash-flow and fund-flow estimates, sources and
application of funds for the project etc. Financial evaluation is done to
verify whether the actual project cost, operating costs, profitability,
cash/fund flow etc., are as per the estimates and projections made at the time
of appraisal.
Economic
Evaluation or Economic Audit – Economic Evaluation
is the most difficult to make since it involves many subjective aspects which
are difficult to be quantified. According to Nagarajan, 2008, Evaluator should
have an eye for identifying the social costs and benefits of the project.
Economic evaluation is more relevant for public sector and community
development project since such projects are undertaken with social objectives
in mind apart from financial and other objectives.
Agencies
for Project Audit
In Papua New Guinea, the National
Planning and Monitoring Department is the government body that monitors and
carry out evaluation on public sector projects. The implementing departments
such as the Department of Works also ensure the public projects meets the
statutory requirements and guidelines and also carry out certification and
verifications of completed projects in the country. In PNG, there is also the
Auditor General Office that carry out audit on public sector projects.
Specimen
Project Evaluation Form
Name of the Project:………………………………………………………………………..
Audit Done By: Date
of Audit:………………
Period of Audit: From: ………………… to:……………………………
Evaluation: (Tick √ which is
applicable):
Progress
of Implementation
|
Budget
vs. Actual Expenditure
|
Quality
Aspect of Project
|
___Proceeding
as per target
___Proceeding
ahead of target
___Lags
behind target
|
___Expenditure
is as per budget
___Expenditure
is below budget
___Expenditure
is above budget
|
___As
planned
___Better
than planned
___Worse
than planned
|
If
lags behind target; Reasons thereof:
|
If
expenditure is above target, reasons thereof:
|
If
quality is worse than planned, reasons thereof;
|
Corrective
Steps to be taken to overcome the above:
|
Corrective
steps to be taken to overcome the above;
|
Corrective
steps to be taken to overcome the
above;
|
Problems
anticipated, if any that may delay implementation;
|
Problems
anticipated. If any that may increase expenditure:
|
Problems
anticipated in future if any, that may affect quality;
|
Precaution
to avoid the Above
|
Precautions
to avoid the above
|
Precautions
to avoid the above:
|
Changes experienced, if any in business
climate:
Changes/modification needed in project
objectives in view of the above:
Additional/Unanticipated problems that
project came across:
Comments:
Source: Project Management 3rd
Edition; K. Nagarajan (2008) New Age
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