School of Computing Science and Engineering

Course Code: BTCS8102 Course Name:Project Management

Unit-5
EVALUATING AND TERMINATING
THE PROJECT
EVALUATION

Faculty Name: C.Vairavel Program Name: B.Tech

 Prerequisite/Recaptulations

• We now come to the final stage in any project — evaluating the result and shutting
down the project.
• As we will see, there are many ways to do both, some relatively formal, some
quick and dirty, and some rather casual.

Program Name: B.Tech

 Objectives

• We discuss evaluation first, in the generic sense,

and then discuss a very specific and often formal
type of evaluation known as the project audit

Program Name: B.Tech

 EVALUATION
• The term “ evaluate ” means to set the value of or appraise. A project
evaluation appraises the progress and performance relative to the
project ’ s initial or revised plan.
• The evaluation also appraises the project against the goals and
objectives set for it during the selection process — amended, of
course, by any changes in the goals and objectives made during the
project ’ s life.
• In addition, evaluations are sometimes made relative to other similar
projects.

Program Name: B.Tech

 EVALUATION
• The project evaluation, however, should not be limited simply to an after - the -
fact analysis.
• Rather, it is useful to conduct an evaluation at a number of crucial points during
the project life cycle
• Because the primary purpose of a project evaluation is to give feedback to senior
management for decision and control purposes, it is important for the evaluation
to have credibility in the eyes of both senior management and the project team.
• The control purpose of evaluation is meant to improve the process of carrying
out projects. The decision purpose is intended to improve the selection process.
• Thus an evaluation should be as carefully planned and executed as the project
itself.

Program Name: B.Tech

 EVALUATION
• The use of post-project evaluation to help the organization improve its project -
management skills on future projects means that considerable attention must be
given to managing the process of project management.
• This is best accomplished and most effective if there is already a project -
management guide or manual detailing standardized project - management
practices for the organization.
• Such manuals commonly cover best practices for planning, monitoring, and
controlling projects and may include advice on both selecting and terminating
projects.

Program Name: B.Tech

 Evaluation Criteria
• There are many different measures that may be applied in a project evaluation.
• As indicated, senior management may have particular areas they want evaluated
for future planning and decisions, and these should be indicated in the charge to
the evaluation committee.
• Beyond that, the original criteria for selecting and funding the project should be
considered — for example, profitability, acquiring new competencies for the
organization, or getting a foothold in a new market segment.
• Any special reasons for selection should also play a role.
• Was this project someone ’ s sacred cow?
• Did a scoring model identify particularly important quantitative or qualitative reasons to
select this project?
• Was the project a competitive necessity?

Program Name: B.Tech

 Evaluation Criteria- project success
• One study identified four important dimensions of project success.
• The first dimension is simply the project ’ s efficiency in meeting the budget and
schedule.
• The second (and most complex) dimension is customer impact/satisfaction .
• This dimension includes not only meeting the formal technical and operational
specifications of the project but also the less tangible aspects of fulfilling the customer ’ s
needs, whether the customer actually uses the project results
• The third dimension is business/direct success meaning, for external projects,
factors such as the level of commercial success and market share and for internal
projects, the achievement of the project ’ s goals such as improved yields or
reduced throughput time.
• The final dimension, more difficult to assess, is future potential which includes
establishing a presence in a new market, developing a new technology, and such.
Program Name: B.Tech
 Evaluation Criteria
• For nonroutine projects, however, two other criteria should also be considered:
• the project ’ s contribution to the organization ’ s unstated goals and objectives,
and the project ’ s contributions to the objectives of project team members.
• To recognize the project ’ s contributions, all facets of the project must be
considered in order to identify and understand the project ’ s strengths and
weaknesses.
• The evaluation report should include the findings regarding these two criteria

Program Name: B.Tech

 Items to Consider for Project Evaluation Report
Recommendations
• Communication with the client and senior management.
• Locating opportunities for technological advances.
• Reduction of indirect costs and direct costs.
• Improving the project - management process.
• Identification of risks in the organization ’ s use of projects.
• Utilization of the skills resulting from project members ’ work on projects.
• Employment of general management experience gained by project managers.
• Improving the organization ’ s use of projects.
• Increasing the speed of obtaining results in projects.

Program Name: B.Tech

 Measurement
• Measuring the project ’ s performance against a planned budget and schedule is
relatively straightforward, and it is not too difficult to determine if individual
milestones have been reached.
• There are complications regarding measurement of actual expenditures and
earned values, as well as with reporting on difficult technical issues that may
have been deferred while progress was being made along other fronts.

Program Name: B.Tech

 Measurement
• If the project selection process focuses on profits, the evaluation usually includes
determination of profits and costs and often assigns these among the several
group working on the project.
• Conflict typically results. Each group wants credit for revenues.
• Each group wants costs assigned elsewhere. Although there are no “
theoretically correct ” solutions to this problem, there are politically acceptable
solutions.
• As with budget and schedule, these are most easily addressed if they have been
anticipated and decided when the project was initiated rather than at the end.
• If allocations are made by a predetermined formula, major conflicts tend to be
avoided — or at least lessened.

Program Name: B.Tech

 Measurement
• When a multivariate model has been used for project selection, measurements
may raise more difficult problems.
• Some measures may be objective and easily measured.
• Others, however, are typically subjective and may require careful, standardized
measurement techniques to attain reliable and valid evaluation results.
• Interview and questionnaire methods for gathering data must be carefully
constructed and executed if their results are to be taken seriously

Program Name: B.Tech

 Summary
• A project evaluation is an appraisal for use by top management.
• Its criteria should include the needs of management; the organization ’ s stated
and unstated goals;
• the original selection basis for the project; and its success to date in terms of its
efficiency, customer impact/satisfaction, business success, and future potential.
• Measuring the project ’ s success on budget, schedule, and performance is easier
than measuring revenues or qualitative, subjective factors.
• Establishing the measures at project formation is helpful, as well as using
carefully standardized measurement techniques for the subjective factors.

Program Name: B.Tech

 References

1. Clifford Gray and Erik Larson, Project Management, Tata McGraw Hill Edition, 2005.
2. Gido and Clements, Successful Project Management, Second Edition, Thomson Learning,
2003.
3. Harvey Maylor, Project Management, Third Edition, Pearson Education, 2006.
4. John M. Nicholas, Project Management for Business and Technology - Principles and
Practice, Second Edition, Pearson Education, 2006.

Program Name: B.Tech

 Questions?

Write your queries to            

c.vairavel@galgotiasuniversity.edu.in​

Program Name: B.Tech