Purposes of evaluation—goals of the system/

When a project is successful

Certainly the major element in the evaluation of a project is its “success.”

Some rpoject managers have identified some factors constituting four
independent dimensions of project success. The project will be considered
when there is
Project’s efficiency
The first and most straightforward dimension is the in meeting both the
budget and the schedule.the project manager is given with insufficient
materials .if the resources are utilized on time , the project gets the
efficiency.

Customer impact/satisfaction
It is the second and most complex dimension. This dimension implies that
the project should meet its technical and operational specifications. It will
ultimately fulfill customer’s needs and solve the major operational
problems of the customer..

Business/direct success,
Business/direct success is measured primarily in terms of level of
commercial success and market share. If the bearing project organization
can become successfull, it is also the success for thw business.
Future potential opportunities
Successfull projects creates opportunities for opening a new market,
developing a new line of products, services or new technology.
Successfull projects must have this dimension.

Six-sigma or TQM of the project management

Some activities should be carried out in order to identify and understand
the project’s strengths and weaknesses. It is the equivalent of an
application of six-sigma or tqm to project management. They are also
called set of recommendations for improvements about ongoing projects
• Identify problems earlier
• reconfirm the organization’s interest in and commitment to the project

• clarify performance, cost, and time relationships

• improve project performance
• evaluate the quality of project management
• locate opportunities for future technological advances
• reduce costs
• improve the process of risk identification and management

• identify mistakes, remedy them, and avoid them in the future

• provide information to the client

Tough problems associated with finding the ancillary goals of a project

1.one cannot measure performance against an unknown goal
if a goal is not openly acknowledged, it is quite difficult to measure project
performance. The goals appearing in the project proposal must be
recognized and will presurize the team members to keep their
performance in accurate level.

2. Individuals pursue their own ends while working for organizations.

people are unwilling to admit to personal goal . they often think that their
goals are not entirely consistent with organizational objectives. Hence, it is
difficult to iedentify ancilliary goals.
3. Lack of trust of team members.
members of a project team are never quite comfortable in the presence of
an auditor/evaluator. The problem is that the think that the
auditor/evaluator is an “outsider. and the insider has some hidden agenda.

4.Projects are multipurposed

There are diverse set of direct and indirect project and individual goals
which are multipurposed. Various members of the project team may have
quite different ideas about which purposes are most important and which
are least important.

The project audit

the project audit is a thorough examination of the management of a
project, its methodology and procedures, its records, budgets and
expenditures. It may deal with the project as a whole, or only with a part
of the project.
The formal should contain comments on the following points:
1. Current status of the project.
Whether actually completed work match the planned level of completion
2. Future status.
Any possibility of changing in schedule will be indicated.
3. Status of crucial tasks.
the progress and procedures about on crucial tasks should be mentioned.
It could decide the success
or failure of the project

4. Risk assessment.
The potential risks about project failure or monetary loss should be noted.
5. Information pertinent to other projects.
Learned lessons from the project being audited can be applied to other
projects carried by the organization
6. Limitations of the audit.
The potential asumptions or limitations affect the data in the audit should
be refered.

Financial audits vs project audits

 Financial audit
Status It confirms status of business
with accepted standard
Predictions It predicts company’s
economic state of well being
Project audit
Create a basis for the work
It predicts future status of the
project

Measurement Mostly in financial terms Financial terms and

schedules, progress and
procedures.
Record-keeping Format is dictated by legal There is no such specified
system standards standard for record keeping
Existence of Minimal records are needed No past record is needed for
information to start the audit starting the audit
system
Recommendations Usually few or no A few recommendations are
recommendation from needed from the
management is needed management

Construction and use of the audit report

The project audit report should be clear reliable and relevant to the
project. The constructions of the project audit report are:
1.introduction
This section contains a description of the project and project goal. If the
objectives are not properly acknolwdeged , it will be difficult to to measure
the work.

2. Current status
The status about the time, cost, schedule and performance should clearly
be reported to measure the performance:

Time: actual time period should be compared with predetermined time.

Cost: this section compares actual costs to budgeted costs

Schedule: the percent completion and remaining portions of the project

should be clearly identified.

Quality: the output will be conformed with original specifications.

3. Future project status :

This section contains the auditor’s conclusions about progress and

recommendations for any changes in schedule, budget or technical
approach for the remaining tasks.

4. Critical management issues

Important issues to be monitored by senior management should be

included in this section. A brief discussion of time/cost/performance
balancing will give the senior management to take decisions about the
future of the project.

5. Risk management
This section should contain a review of major risks associated with the
project and their impact on project time/cost/performance.\

6. Caveats, limitations, and assumptions

The auditor is responsible for the accuracy and timeliness of the report. It
is the duty of the auditor is to include a statement about any limitations,
and assumptions of the project audit report.

The project audit life cycle

Like the project itself, the audit has a life cycle in orderly progression of
Well-defined events. There are six stages of project audit lifecycle

Project audit initiation

This step involves starting the audit process, defining the purpose and
scope of the audit. The auditor will gather sufficient information to
determine the proper audit procedure.

Project baseline definition

It is involved with identifying the performance areas to be evaluated and

determining standards for each area . It also includes identifying
management performance expectations for each area, and developing an
audit program.

3. Establishing an audit database

It is the starting of execution phase of audit . It needs to create a database

for use by the audit team. The database might include information about
past and current project status.

4. Preliminary analysis of the project

The auditor must analyze the data and present the analysis to the
managers. It is the auditor’s duty to brief the pm on all findings and
judgments before releasing the audit report.

5. Audit report preparation

audit report preparation referes organizing the relevent format for audit. A
set of recommendations, and plan for implemention are also parts of the
audit report preparation.

Project audit termination

After accomplishing its designated task, the audit process should be
terminated. When the final report is prepared, the audit and the audit team
should be formally disbanded.

Responsibilities of the project auditor/evaluator

The independence of auditor is essential for timely and accurate

information. the duties and responsibilities of a project auditor/evaluator.

Make effective Audit plan.

Arrange team with experienced and expert persons.

Ensure collaborations among the team members.

Keep in touch with the senior project members

Perform the audit the project on site

Continuousely evaluate and monitor the work

Take corrective actions wherever needed

• after completion, debrief the project’s management

• produce a written report according to a prespecified format