A

PRESENTATION
ON
‘PROJECT REVIEW’

Guided by: By:

Prof. Ranjana Patel Group No. 15
Anuja Sharma
Harshita Kapoor
Utsav Makwana
WHAT IS PROJECT REVIEW?
 Project reviews are primarily a project manager’s
tool for monitoring progress at a practical level.
 It represents the final phase of capital budgeting
 Considers questions like
Are the costs of the project within reasonable
limits?
Should the project be continued or abandoned?
WHAT IS THE NEED?
 To consider the current and potential problems
and can be used to consider corrective action,
where appropriate
 To address situations where there is some concern
over the projects status.
 to ensure that all potential problems or
bottlenecks are considered.
 It aids in sub project management
ASPECTS INVOLVED IN PROJECT REVIEW
 Initial Review
 Performance Evaluation
 Abandonment analysis
 Behavioral issues in project abandonment
 Administrative aspects of capital budgeting
 Evaluating the Capital Budgeting System
 INITIAL REVIEW

Control of project in progress:

 Periodical control
It is exercised during project implementation to
ensure that actual expenditure doesn’t deviate
significantly from authorized expenditure.
 Over –runs
Marginal over-run may be permitted without
review but significant over-runs should be allowed
only after review.
Post Audit
 Why- It provides a documented log of experience
that may be valid in future decision making.
 When- the most appropriate time is when the
project operations stabilize.
 Who- performed by a group of executives drawn
from diff. backgrounds.
PERFORMANCE EVALUATION
 It is done periodically& seeks to measure the
performance of project on an on-going basis.
 It is done in two ways:
 Economic rate of return
= Cash flow + Changes in Present value
Present value at the beginning of year
 Book Return on Investment
= Cash flow + Changes in Book value
Book value at the beginning of year
ABANDONMENT ANALYSIS
 Possibility of abandonment in a project can
change the decision itself.
 Project must be abandoned if the present value of
expected future cash flows associated with it is
less than the current abandoned value.
BEHAVIORAL ISSUES IN PROJECT
ABANDONMENT

 Follow certain rules

 proper rewards and penalties
 Institute relatively independent reviews
ADMINISTRATIVE ASPECTS OF CAPITAL BUDGETING

 Identification of promising investment

opportunities:
 Monitoring the environment
 SWOT analysis

 Effective communication of the plan

 Encouraging employee involvement

 Classification:
Grouping of similar proposals into separate
categories.
 Submission of proposals:
A Standardized proposal form may be used by all
the sponsors of investment projects.
 Decision Making:

Decentralization is required to facilitate quick

decisions and top mgmt. should be consulted only
for imp matters.
 Preparation of Capital Budget & Appropriation:

After approval of the capital budget committee, the

final capital budget, which serves as the basis of the
budgetary appropriations should be drawn up after
availability of funds is insured.
 Implementation:
To avoid cost over-runs, expeditious
implementation should be emphasized at a
reasonable cost.
 Performance Review:

It is meant for reviewing actual

performance vis-à-vis projected performance.
It is concerned with the verifications of
assumptions regarding both revenues and
costs.
EVALUATING THE CAPITAL BUDGETING
SYSTEM OF AN ORG.
Soundness can be evaluated by following criteria:
 Results

 Techniques

 Communication

 Decentralization

 Intelligibility

 Flexibility

 Control

 Review
 CONCLUSION
Project Reviews that follow this process allow us
to take a deeper look and examine the
underlying values, practices, and assumptions
that got us in trouble in the first place. We can
then precisely craft an appropriate solution and
monitor the solution carefully.
 It facilitates the development of a clearer vision
of improvement in the system.