Xaviers Institute of Business Management Studies

SUB: OPERATION MANAGEMENT

MARKS: 80

N.B.: 1) Attempt any Eight Questions

2) All questions carry equal marks.

1. How would operations strategy for a service industry be different if any

from that for a manufacturing industry? (It’s an example & explains)

ANS: - Operations strategies drive a company's operations, the part of the business that
produces and distributes goods and services. Operations strategy underlies overall business
strategy, and both are critical for a company to compete in an ever-changing market

Whereas Operations strategy provides the ability to improve products, services, and processes.
To develop the strategy, consider the business/corporate strategy and a market/needs analysis.
Then, consider the competing priorities of cost, quality, time, and flexibility — and how you'll
handle them.

There are five main differences between service and manufacturing organizations as
mentioned below.
 The tangibility of their output
The quality management literature considers a tangible outcome to be one that has
been operationalized and can be measured, monitored and controlled; and intangible
 outcomes, such as ''satisfaction'' as being operationalized on high to low perception
scales.

 Production on demand or for inventory

On-demand manufacturing or manufacturing on demand, is a method of producing
goods only when needed and only in the amounts required. Transitioning to an on-
demand manufacturing model gives companies more production flexibility and
removes the costs that come with housing inventory.

 Customer-specific production
Make to order (MTO), or made to order, is a business production strategy that typically
allows consumers to purchase products that are customized to their specifications. It is
a manufacturing process in which the production of an item begins only after a
confirmed customer order is received.

 Labor-intensive or automated operation

Labor intensive refers to a process or industry that requires a large amount of labor to
produce its goods or services. Labor costs encompass all of the costs necessary to secure
the human capital necessary to complete work

 The need for a physical production location.

Need for Plant Location. The plant Location of warehouses and other facilities are also
having direct bearing on the operational performance of organizations. The existing
firms will seek new locations in order to expand the capacity or to place the existing
facilities

3. What are the levels of aggregation in forecasting for a manufacturing

organization? How should this hierarchy of forecasts be linked and used?

ANS: - Aggregated forecasting that supports strategic decisions is discussed on three

levels: the aggregate retail sales in a market, in a chain, and in a store. Product level
forecasts usually relate to operational decisions where the hierarchy of sales data across
time, product and the supply chain is examined.
The most common forecasting hierarchies are:
Item, Location and/or Consumer or end user have the highest error
Product group, Region, and/or Segment have moderate error
Brand, country, and/or Division general is less nervous due to aggregating all the variation
from lower   levels and has the lowest error
Each one is an attribute that may have many levels of aggregation. With today’s data you could
easily add more attributes as well with even more levels. Think of price as an independent
variable – you could use data at each price increment of a penny, or bucket them by each
dollar change or another aggregation of the data at some higher increment. Even time can be
aggregated and reconciled, from months to weeks to days and hours

Diagram revealing levels of forecasting aggregation

The level of aggregation depends on the data and purpose of the forecast.

Brand Country Divesion

Product Group-
Regional Sub - Segment
SIZE or Style

Item Location Customer

Transforming data through aggregation or disaggregation allows you to gather additional

information about the series at hand, resulting in better forecasts. Each level for each attribute
provides levels of visibility but also provide varying levels of effectiveness or ineffectiveness.
 The most common forecasting hierarchies are:

o Item, Location and/or Consumer or end user have the highest error
o Product group, Region, and/or Segment have moderate error
o Brand, country, and/or Division general is less nervous due to aggregating all the variation
from lower   levels and has the lowest error

Each one is an attribute that may have many levels of aggregation. With today’s data you could
easily add more attributes as well with even more levels. Think of price as an independent
variable – you could use data at each price increment of a penny, or bucket them by each
dollar change or another aggregation of the data at some higher increment. Even time can be
aggregated and reconciled, from months to weeks to days and hours.

You’ll Often Need Multiple Levels of Aggregation

For anyone starting in forecasting, it soon becomes apparent that one size does not fit all. The
choice isn’t just between top-down and bottom-up. Middle-out forecasting is another option,
starting somewhere in the middle of a hierarchy; for example, from a specific product line or
category. Others prefer a hybrid approach, forecasting some items at lower levels and others
aggregated. It is clear that often, forecasts can and should be done and multiple levels of
aggregation.
With increases in detail of data and systems capabilities that perform dynamic hierarchy and
multiple integration forecasting, we have even seen predictive analytics optimizing our
aggregation. Much like ensemble methods in machine learning that are composed of multiple
weaker models that are independently trained and whose predictions are combined in some
way to make the overall prediction, we can do the same thing with reconciliation and
hierarchies. Multiple weaker hierarchies can be combined using regression or other
approaches to optimize the overall prediction at every level.

Key Points to Remember When Aggregating & Reconciling

So, how should we approach reconciliation and aggregation of forecasts?

There are a few things you should consider and you have a few options. Starting with the
consideration think about the following when deciding what level of aggregation to start and
end at:
The level of aggregation of the inputs into the process such as POS data, website clicks, or sales
and marketing intelligence, etc.
The level of aggregation needed as an output and the usage and downstream decisions to be
made from outputs
Hierarchy and reconciliation procedures within software design
The planning process design or constraints as well as organization structure and resources of
planning team
The aggregation of the optimal statistical algorithms and parameter settings
After you have considered the ins and outs and process in between, you should always attempt
to forecast at the highest level of aggregation compatible with the process and decisions goals.
This means that the hierarchy should only include levels needed for forecasting. Too often we
believe more detail always means better precision when it could be making things measurably
worse.
It is part of a demand planners’ responsibility to understand the attributes, the levels, the
inputs, outputs, and model limitations. We no longer have only a debate between top and
bottom but need to look at things dynamically. Managing this effectively can maximize your
resources used while improving the forecast the business uses.

4. How would forecasting be useful for operations in a BPO

(Business processes outsourcing) unit? What factors may be

important for this industry? Discuss.

ANS: - Forecasting would be very important for operations in a BPO unit.

Forecasting, in essence, makes for the ability to be proactive, intuitive and strategic, and it may
very well be the differentiating factor between success and failure.

You can have cash-flow forecasts, operating budget forecasts, call/e-mail/chat volume
forecasts, forecasts for attrition and absenteeism of phone agents...anything! By properly-
assessing historical information (whether that be cash-flow, sales, refunds, attrition, phone/e-
mail/chat volume, absenteeism...anything!)
You can develop some sort of expected trend or pattern for future time periods and make
decisions based on what that forecast means to your business.

Here is a very simple, rudimentary example. It can be applied to any part of your business, but I
will use the staffing of a contact center as the basis of my example:

For "ABC Toy Company", when I look back at historical call volumes, I notice that my call
volume in December is quadruple what it is in August, and that this trend has been apparent
for the last 3 years. If August of 2008 provided for 100,000 calls, then based on this
information, we can expect around 400, 000 calls in the month of December.

Based on that forecast, what do I need to do in order to provide adequate service to my

customers? Do I need to hire more phone agents? How many? Do I need to expand physical
space to allow for such a ramp-up in hiring? Perhaps there are ways other than by phone that I
can address my customers' needs? By developing a forecast, you can deal with the answers
these questions bring about ahead of time, making for smoother, more cost-effective business
operation.
Important Factors that are Important for BPO industry as follow

Regulatory Environment

This challenge primarily comes from the very nature of outsourcing – finding experts across
the borders that are capable of finishing tasks for your business, but how is this relation
regulated by regulatory bodies in each country?

This has been the primary challenge of the BPO industry ever since it started to exponentially
grow 15 years ago. The USA was among the first countries that have addressed this new legal
issue. Its regulatory bodies have produced many compliance-related documents in order to
make a clear legal frame for outsourcing partners and people working in the outsourcing
industry.
The European Union’s, the Philippines’ and India’s regulatory bodies are still working on this
legal frame. Many new regulations are being implemented, but until this is done, the demand
for outsourcing will stagnate.  

Cost of Doing Business

Ever since it started growing, the BPO industry was advertised as a huge money-saving
industry. In fact, everywhere you look, you will be able to see a promotion that goes like this –
get access to top talent for a minimal cost. Over time, the BPO industry has evolved into a
serious revenue-generating industry, but the budget and cost of doing business remain the
primary concerns for many outsourcing companies.

Outsourcing companies are expected to provide the best results, while the cost of their services
is expected to stay minimal. This puts enormous pressure on the resources of these companies
since they are forced to give their maximum, while the budget has to remain the same. This
leads us to customer expectations and quality of service provided as the next major challenge.

Customer Expectations and Quality of Service

All industries are affected by one major factor – the customer-centric market – and the BPO
industry is no exception. This means that the BPO industry has to provide the best possible
results for the clients. In many cases, outsourcing companies also have to provide a consult and
maintain constant communication with their clients.

Thanks to social media, clients are now very familiar with the best practices in the BPO
industry. This puts tremendous pressure on outsourcing companies, which are now forced to
spread their resources as thin as possible to maintain the required level of service quality and
revenue.

Customer expectations are especially challenging for outsourcing companies that have just
entered the market. They have to compete with established companies by either lowering the
cost of their services or decreasing the profit margin to increase the quality of service by hiring
the top talent.

These three factors are not only affecting the BPO industry, but they are also shaping it and
making it more challenging. As you can see, regulatory compliance is still one of the primary
concerns for outsourcing companies, as well as client expectations and budget.

Employee Attrition and Health Concerns

Employee attrition was always one of the primary challenges faced by BPO companies, even the
major ones. And as time passes the attrition rates only get higher. It seems that that the BPO
companies have yet to find out ways to ensure jobs for their employees.

The scenario repeats itself. BPO companies employ new people, devote time and resources to
enable a smooth onboarding process, the market demand for that specific work diminishes, and
BPO companies are forced to let go of these employees. This significantly increases the time and
money spent on training new employees.

In addition, there are also specific health concerns tied to this line of business. As you know,
BPO companies are spread around the globe and they don’t apply any geographical restrictions
when it comes to both their clients and employees. This means that people working in this
industry may be forced to work on an erratic time table, thus resulting in major health
concerns for these employees.

Brand Building and Equity

All of the things that we have mentioned so far impact the branding strategy of the BPO
companies and their future on the market. With so many variables in the market, it becomes
next to impossible for BPO companies to develop a long-term branding strategy, which
significantly slows down the brand equity building momentum.

In any case, these companies are forced to invest so much more than the other ones in their
branding efforts if they want to become recognizable on the worldwide BPO market. High
employee attrition rates result in many unhappy ex-employees, which increases the chances of
negative word-of-mouth.

Maybe this is the reason why there are dozens of BPO companies out there and only a few of
them have established themselves as major players on the market.  

In the end, all the players in the BPO industry should consider taking a closer look at the
successful BPO companies and try to give their best to identify which practices have helped
these businesses succeed. Maybe the solution remains hidden in all the metadata that’s piled up
over the years.

5. A good work study should be followed by good supervision for

getting good results. Explain with an example.

ANS:- For many supervisors, their relationship with people who work for them could be a lot

better. A recent study by faculty members at the University of Florida said that more

than half of the employees found their supervisors untrustworthy, not good role models

and too free to share confidential information. This is indeed a severe indictment. Poor

supervision is often seen as a factor in high turnover, and increasingly employers are

holding supervisors accountable for turnover amongst their direct reports.

Supervision is about nurturing employees. It’s about being committed to making them
successful rather than waiting for them to make a mistake. Supervisors need to have a clear
and specific idea of how we can support the individuals who work for us. Just as we have a
specific plan to maintain a service or process, good supervision requires a road map to get us
where we want to get.

Supervisors are responsible for technical skills and attitudes or habits.

Generally speaking supervisors are better at dealing with technical skills than they are with
habits and attitudes; that is why habits and attitudes are responsible for more terminations than
the technical skills of the job. Which takes us to the Ten Commandments…since if followed, the
supervisor will be more successful at changing attitudes and habits.

1) Be organized. Don’t bring your employee into a cluttered office. Expect the employee to
have an agenda, to have done some preparation for the supervisory conference, but you
should prepare as well.

2) Manage yourself. Model the behavior you expect to see from your employee. Handle
your own responsibilities well.

3) Acknowledge good work. Regularly and often. No employee has ever complained that
their boss compliments them too much. Compliments feel good.

4) Be positive and optimistic. Give your employees the confidence that things will work
out; give them a reason to believe that plans will lead to success. Describe strengths as
well as weaknesses.

5) Document your discussions. Describe the behavior you want from the employee both
verbally and in writing. Track progress and make note of it. This will save you a lot of
time and eliminates surprises when it comes to doing the annual review.

6) Have a respectful environment for supervision sessions. Don’t take phone calls during a
supervisory conference, except for true emergencies. Put a do-not-disturb sign on your
door and make sure your conversations are held in private. And while we are talking
about respect, don’t forget to remain objective and non-judgmental.

7) Refer often to the mission and goals of the organization. Make sure that the employee
knows exactly what to do in his/her own work situation to contribute to those goals.
 8) Demonstrate your own commitment to learning and to improving your own
performance. Don’t expect your employees to find time to go to training if you can’t
seem to break away for some time for personal growth. Be willing to admit your own
mistakes and areas in which you need to improve.

9) Be fair, but honest. Be prepared to speak clearly about areas of the employee’s
performance that must improve; don’t use vague language. Be behaviorally specific in
terms of the problem and the solution as well as the time frame for expected
improvement. One can be specific without being judgmental of the person receiving the
feedback.

10)Get to know the employee, what motivates them, what some of their personal interests
are, what their goals are for their personal and professional future. Be prepared to share
some of your own as well. This develops the bond between you and your employee,
enables better planning for the future and adds some zest to your work together.

As a supervisor, you must recognize that your job now requires that you help the company
achieve their goals through the cooperation of other people. You may have been really good at
making clay pots, but that is not your job now. Instead of the technical skills that were required
in making those pots, you now need the people skills which build loyalty and motivation. As
Dwight Eisenhower is quoted as saying, “Leadership (including supervision) is about getting
other people to do what you want them to do because they want to do it that way.”

6. What is job evaluation? Can it be alternatively used as job

ranking? How does one ensure that job evaluation evaluates the

job and not the man? Explain with examples?

ANS: - Job Evaluation is a systematic process of determining the worth of one job in relation to
another job in the organization. During job evaluation, the relative worth of various jobs are
assessed so that wages can be paid depending upon the worth of the job. To improve the
performance and maintain the high level of efficiency in work, employee should be
compensated with wages and salaries depending upon the job he is performing.

In the absence of job evaluation, it may happen that high value jobs may receive less pay than
low valued jobs. When the employees come to know about the differences, they may become
dissatisfied. Job evaluation is the quantitative measurement of relative worth of job for the
purpose of establishing wage differentials. It evaluates the job and not the job holder.
Evaluating the job holder is the task of performance appraisal.

Job evaluation is defined as the systematic process of assessing the value of each job in relation
to other jobs in an organization. It is intended to provide a rational, orderly hierarchy of jobs
based on their worth to the company by analyzing the difficulty of the work performed and the
importance of the work to the organization. The factors used to assess a job’s worth are
identified, defined, and weighted in the company’s job evaluation plan.

The focus of job evaluation is typically on the duties and responsibilities assigned to a job, not
on the credentials or characteristics of the person who occupies the job, nor the quality or
quantity of the incumbent’s performances. This approach assumes that a true sense of job’s
elements and demands can be ascertained, measured, and valued only through separating jobs
from incumbent employees.

Traditional job evaluation is described as an objective, fact finding, scientific approach that
seeks to measure and quantify the relative complexity, the degree of responsibility, and the
degree of effort demanded by the duties assigned to a position. The outcome is a hierarchy of
jobs, or a “top-down” list, ranked in order of their assigned responsibilities, or their relative
worth. While this is how job evaluation is described, some critics argue that the job evaluation
process is discriminatory and at least partially responsible for the differences in pay between
male and female dominated jobs.

The main characteristics of job evaluation may be summed up as:

1. It is a method with a systematic approach.
2. It is an analysis of the work involved in its starting point.
3. It is an attempt to determine the requirements of the work involved for any incumbent.
4. It is a process by which jobs in an organization are appraised.
5. It is a process of analyzing and describing positions, grouping them, and determining their
relative value by comparing the duties of different positions in terms of their different
responsibilities and other requirements.
6. It is a system to deal exclusively with assessment of the job and not concerned with
employees assigned to the job.
7. It is designed only to establish wage differentials and is not concerned with the absolute
wage level.

7. What is the impact of technology on jobs? What are the

similarities between job enlargement & job rotation? Discuss the

importance of training in the content of job redesign? Explain

with examples?

ANS: - In today’s world, the use of technology is inevitable. So instead of cursing it or

badmouthing it, we should learn to live with it and make the most out of it. It raises the bar of

efficiency, productivity, and safety which is not achievable by humans alone. Also, it will not be

for the first time when there will be a shift in employment due to technology. History has been

evidence of the fact that technology has been the creator of jobs than the destroyer.

The industrial sector all over the world is adopting technology for higher efficiency and

productivity. Machines can reduce the production of default products to a fault and also

decrease the production time. Although, this may lead to job loss for the unskilled and semi-

skilled labor if they remain uneducated and untrained. But if they become skilled through

training and development programs, there would be better job opportunities. Workers will
have more employment opportunities if their occupation undergoes some degree of computer

automation. As long as they can learn to use the new tools, automation will be of their benefit.

For example, when ATMs automated the tasks of bank tellers and when barcode scanners

automated the work of cashiers, rather than contributing to unemployment, the number of

workers in these occupations grew. With the advent of new technologies industry, experts see

the need for skilled workers increasing in the short run and persisting for at least another

decade. The experts call for training programs with a new curriculum and certifications to

standardize emerging job classifications. Technological innovations result in improved

lifestyles. If we take the example of 3D printing technology, building houses by 3D printing is a

great technological innovation. This innovation will create more affordable homes hence, more

and more people may want to buy a house. And so, with more consumers, more houses will be

built and hence will create so many jobs but of a different kind.

Technology changes the nature of jobs but it does not completely cause unemployment.

Therefore, there is no need to cause panic rather prepare for the future by constant updating

and learning.

Key Differences between Job Enlargement and Job Enrichment

The major differences between job enlargement and job enrichment are mentioned as under:

1. A job design strategy in which the number of tasks performed by a single job is
increased is known as Job Enlargement. Job Enrichment is defined as a motivational
tool, used by the management in which the range of activities performed by a single job
is increased to make it better than before.
 2. Job Enlargement involves quantitatively extending the scope of activities carried out by
the job whereas in Job Enrichment improvements are made in the existing job to
increase its quality.
3. Job Enlargement reduces boredom and monotony while performing a single task, on
and on. Conversely, Job Enrichment makes the job more challenging, exciting as well as
creative.
4. Job Enlargement does not require additional skills but job enrichment does.
5. In job enlargement, the expansion of tasks is made horizontally, i.e. at the same level.
On the other hand, job enrichment involves vertical expansion of activities like
controlling and doing the task.
6. Job enlargement requires more supervision as compared to job enrichment.
7. The consequence of introducing job enlargement is not always positive, but job
enrichment will produce positive outcomes.
8. Job Enlargement makes employees feel more responsible and valuable, while Job
Enrichment brings satisfaction and efficiency in employees.

Conclusion
Both job enlargement and job enrichment are regarded as motivational tools for the employees,
used by the management. However, employees find job enrichment is a far better tool than job
enlargement.
Job Enrichment gives planning, controlling and decision-making powers to the job holder. It
helps them to grow and develop. As opposed to job enlargement, which is just a tactic of
management to increase the workload of existing employees. The job holders feel satisfied that
his tasks have been extended, without knowing that his role and responsibilities are increased.

9. Would a project management organization be different from an

organization for regular manufacturing in what ways?

Examples.
ANS:- A general operations manager has a wider scope of responsibility than the project
manager — and the general operations manager role is permanent while the project manager
role is temporary. 

Operations management is an ongoing function in an organization that performs activities that

produce products or services. Operations are ongoing; some examples include accounting and
human resources. An organization needs those roles no matter what initiative(s) they may be
working on. There are three main types of systems in operation and production management in
both manufacturing and service industries:

General Operations Management

1. Mass production system

2. Batch production system and

3. Non-repetitive systems.

Mass Production System

Industries with high-demand products or services and high investment use the product-
oriented mass production system, which centers on the important processes that help produce
that product or perform the service. Special purpose equipment, such as automated conveyors,
are used to perform the functions needed for the product or the service, making it very efficient
in producing large quantities of product or service. 

Batch Production System

When several products or services are required in the same factory, the batch production
system serves as a good alternative—especially when the demand is not high, the investment is
low, and when flexibility is a must. The system is adjusted when production changes from one
product to another. Here the complexity of management increases over the batch production
system, which is process-oriented, where a mass production system is product oriented.
Non-repetitive System

Systems related to low demands are very different from the other two types; the systems put
more emphasis on planning, monitoring, and controlling the activities of the product and/or
services. The requirements of these systems result in the growth of project management.

As you can see, the difference between product-oriented, process-oriented, or project-oriented

management is very thin and hard to define. To use a simplified example, planning and
designing a new car model is a project—whereas running a factory that builds the cars is a
mass-production system. When it’s time to change the model of the car, it’s time for a more
flexible and adjustable process-oriented system.

Project Management

As given earlier, the very fact that the role of a project manager is temporary; a project team is
basically a short-term association. In a fixed general operations management team, the team
members report directly the manager who leads that team; those member roles in the team will
generally be long-term. The manager is responsible for creating a good team working and
setting the norms and behaviors of the team. He/she needs to build trust and respect in the
team, encourage the sharing of information, opinions, and feelings for the benefit of the team,
and set targets to appraise the performance of the team members.

On the other hand, a project team will be made of people from different departments across
different sites of the organization. Though the project manager’s job is similar, sometimes
project team members may often report to the department manager as well as reporting to the
current project manager. As the priority of the other departmental manager's changes, the
project team’s stability can waver. 

It can be challenging to maintain teamwork as the team members may change every now and
then to accommodate the priorities of the departments. In a changing team, the team members
who do not know each other may find it difficult to share information, opinions, and feelings
openly. As the member often reports to more than one manager, appraisal of his or her work
may pose a problem or two.
Project management vs General Operations management

Conclusion

Put simply, project management is unique and highly planned, yet unpredictable. The principal
difference between project management vs operations management is that the project manager
has a temporary role, which leads to some specific differences and difficulty in the case of
team-building effort.

10. How project evaluation different from project appraisal? Explain

with examples.

ANS: - Project appraisal (or evaluation) is an independent activity, but similar to monitoring is
related to project monitoring in some aspects. The project evaluation is an analysis of the
information collected and systematized during the monitoring. It focuses on how the results
contribute to the immediate objective and to what extent it will lead to the achievement of the
common goals.
The aspects of the project evaluation (appraisal)

The project evaluation or appraisal is a purposeful and systematic assessment that can cover
various aspects:

 Relevance - whether the strategy adopted is consistent with the goals set;
 Impact - aims to clarify the differences and changes caused by the project and to check
whether the project is relevant to the specific circumstances;
 Efficiency and efficiency - whether the finances are used appropriately.

The main purpose of the project evaluation (appraisal)

The main purpose of the project evaluation (appraisal) is to provide information on the results,
and its purpose is to improve the quality and effectiveness of project management. The
evaluation is carried out at certain stages - during the preparation of the project, at some point
after its implementation and after its completion.

The ex-ante evaluation analyzes the adequacy of the implementing and monitoring provisions
and assists in establishing procedures and defining project selection criteria. It checks the
coherence between the project and the proposed activities, the quality of the strategy and
objectives, the allocation of resources, results, and impacts. The results of the ex-ante
evaluation are essential for the functioning of the monitoring system.

The mid-term evaluation aims to evaluate the initial results and make recommendations for the
changes needed to achieve the objectives. Outcome and impact indicators, together with
monitoring indicators, are a source of information on which the evaluation of projects during
their implementation is based. The evaluation addresses a set of specific project implementation
issues - relevance, efficiency, effectiveness, impact, and sustainability, in the context of the
defined objectives. It is important to note here that the evaluation of projects carried out by an
independent evaluator is based on the monitoring information, and its results are used by the
monitoring bodies to outline problems and opportunities for corrective action.

The data for the interim evaluation

The data for the interim evaluation (including, where necessary, revision of the indicators) is
contained in the interim evaluation reports. Performance is measured based on a limited
number of monitoring indicators reflecting the effectiveness, quality of management, and
financial implementation of the projects. The mid-term evaluation data shall be provided to the
monitoring body for the evaluation of the initial results of the project support, their relevance,
and the degree of achievement of the objectives. All information provided to the monitoring
body shall specify the frequency and timetable for its collection and provision, as well as the
authorities and institutions responsible for providing the data at all levels of government
(project, program).

Performance evaluation

The performance evaluation considers the extent to which the resources, efficiency and
effectiveness, socio-economic impact, and relevance of the project have been used in the
context of the objectives set. It identifies the factors that contribute to the success or failure of
the project, achievements, and results, including from a sustainability perspective, and
identifies good practices.

Ex-post evaluation is usually carried out in the form of an independent review of the history,
objectives, results, activities, and resources to draw lessons from the lessons learned that may be
useful in future project activity. A detailed analysis of the original plan, changes made over
time, actual development and relative success should be made. The main objective is to identify
procedures and techniques that have not been effective. Missing or insufficient management
tools, new project management techniques must also be identified, and unnecessary processes
and tools eliminated if necessary.

Project evaluation efficiency

For evaluation efficiency, the techniques used must have the following characteristics: reach
and involve all key actors; carry out a quality analysis, enabling end-users to express their
views; use different techniques to collect quantitative information. Information can be collected
through surveys, questionnaires, surveys, and discussions.
The evaluation process can be complicated due to differences in understanding and objectivity,
reluctance to provide/disclose information, difficulty in measuring quality indicators.

Completion of the project is carried out with the preparation of a final report describing the
results achieved by the project, the type, and extent of its impact on the improvement of the
situation of the sector or region concerned.

The Project evaluation (appraisal) report

The report shall contain the following information: 

 Progress made on implementation in line with project objectives; 

 Financial performance; 
 Actions taken to ensure the quality and efficiency of implementation; 
 Information on significant implementation problems and measures taken to address
them.

Information on the actual costs and duration of activities, costs, and use of resources, as well as
all contracts, reports, and project reports, should be stored in an organized database to support
planning for future projects.

SUMMARY

Monitoring is an activity consisting of the systematic and continuous collection, reporting and
transfer of information on the reached stage of project implementation and spending,
identifying problems, making recommendations, and taking corrective measures.

Project monitoring indicators are physical and financial and show specific goals, physical
implementation, and implementation of the financial plan.

The system of monitoring indicators consists of baseline indicators, program indicators, and
performance indicators.

Baseline data form the basis for developing the project plan, setting goals, and assessing project
impacts.
The program indicators are input indicators, end-product indicators, performance indicators,
indicators for general and specific impacts.

Performance indicators measure interim performance over the original quantitative targets and
address three issues: efficiency, quality of management, and financial performance.

The monitoring system contains four interconnected elements: collected data, management
information systems, procedures for collecting, processing, and transferring data via the
database, institutions operating the system.

The primary purpose of project control is to ensure compliance with the principles of sound
financial management - economy, efficiency, and effectiveness.

The project's financial management and control system include: 

 control criteria; 
 frequency of inspections; 
 units and specialists exercising control; 
 forms for providing control results; 
 Types of control (control of the physical implementation of the project and financial
control).

The evaluation of the project is a purposeful and systematic assessment, which has various
aspects: relevance, impact, efficiency and effectiveness. In the chronological perspective, the
project evaluation is: preliminary, intermediate, and subsequent.

Performance appraisal identifies the factors that contribute to the success or failure of the
project, achievements, and results, identifies good practices, including procedures, techniques,
management tools.