Econ106 Lecture-Discussion No.

Project Audit/Evaluation/Review
A more or less formal inquiry into any aspect of the

project A major vehicle for evaluation Evaluation to set the value of; to appraise Project evaluation appraises the progress and performance of a project compared to that projects planned progress and performance, or compared to the progress and performance of other similar projects

Purposes of Evaluation
Four dimensions of project success Efficiency in meeting both the budget and schedule (meeting cost, time and scope objectives) Customer impact/satisfaction (loyalty, repurchase, fulfilling customers needs, actual use by the customer) Business/direct success (level of commercial success, market share; yields, cycle times, quality, processing steps) Future potential (factors relating to opening a new market, developing a new line of products and services, developing a new technology, skills, competencies)

Purposes of Evaluation, 2
To help translate the achievements of the projects

goals into a contribution to the parent organizations goals.

To do this, all facets of the project are studied in order to

identify and understand the projects strengths and weaknesses. It is the equivalent of an application of Six-Sigma or TQM to project management. Result in a set of recommendations for the projects direct goals

Purposes of Evaluation, 3
To review contributions of ancillary/ unplanned goals:
Improve understanding of the ways in which projects may be of value to the

organization Improve the process for organizing and managing projects (project management maturity) Provide information and experience for entering new markets Provide a congenial environment in which project team members can work creatively together Identify organizational strengths and weaknesses in project-related personnel, general management and decision-making techniques and systems Identify and improve the response to risk factors in the firms use of projects Allow access to project policy decision-making by external stakeholders Improve the way projects contribute to the professional growth of project team members Identify project personnel who have high potential for managerial leadership

The Project Audit

A thorough examination of the management of a

project, its methodology and procedures, its records, its properties, its budgets and expenditures and its degree of completion. Different from and broader than a financial audit (use and conservation of resources) and technical audit It may deal with the project as a whole, or only with a part of the project

The Formal Audit Report

Current status of the project Does the work actually completed match the planned level of completion? Future status Are significant schedule/scope changes likely? If so, indicate the nature of the changes Status of crucial tasks What progress has been made on tasks that could decide the success or failure of the project?

The Formal Audit Report, 2

Risk assessment What is the potential for project failure or monetary loss? Information pertinent to other projects What lessons learned from the project being audited can be applied to other projects being undertaken by the organization? Limitations of the audit What assumptions or limitations affect the data in the audit?

The Project Audit Life Cycle

Project Audit Initiation
Project Baseline Definition Establishing an Audit Database Preliminary Analysis of the Project Audit Report Preparation Project Audit Termination

Responsibilities of the Project Auditor/Examiner

Tell the truth: objective, ethical manner Walker et al (1980): independence: Assemble a small team of experienced experts Familiarize the team with the requirements of the project Audit the project on-site After completion, debrief the projects management Produce a written report to the PM and project team for their response Follow up to see if the recommendations have been implemented

The Varieties of Project Termination

By extinction
stopped due to success or failure/overrun by the external

environment, also project murder

By addition
institutionalization (transfer of project assets and functions)

By integration
project assets and functions are distributed among existing

elements of the parent organization

By starvation
slow starvation by budget decrement; phase out

When to Terminate a Project: Fundamental Causes of Project Failure

Project organization not required
Insufficient support from senior management Naming the wrong person as project manager Poor planning; crisis management becomes a way of

life

The Termination Process

Decision The primary argument for project continuance or termination is whether or not the organization is willing to invest the estimated time and cost required to complete the project, given the projects current status and current expected outcome. Implementation: project closeout process

Duties of Termination Manager

Ensure completion of the work, including tasks performed by

subcontractors. Notify the client off project completion and ensure that delivery (and installation) is accomplished. Acceptance of the project must be acknowledged by the client. Ensure that documentation is complete, including a terminal evaluation of the project deliverables and preparation of the projects Final Report. Clear for final billings and oversee preparation of the final invoices sent to the client. Redistribute personnel, materials, equipment, and any other resources to the appropriate places.

Duties of Termination Manager, 2

Clear project with legal counsel or consultant. File for

patents if appropriate. Record and archive all nondisclosure documents. Determine what records (manuals, reports, and other paperwork) to keep. Ensure that such documents are stored in the proper places and that responsibility for document retention is turned over to the parent organizations archivist. Ascertain any product support requirements (e.g. spares, service), decide how such support will be delivered, and assign responsibility. Oversee the closing of the projects books.

The Final Report: A Project History

Project Performance A comparison of what the project achieved (termination evaluation) with what the project tried to achieve (project proposal) Administrative Performance Review of administrative practices and highlight those that worked particularly well or poorly; report the reasons why some specific practice was effective or ineffective; recommendations for future use

The Final Report: A Project History, 2

Organizational Structure How project team was organized and a discussion on how the structure aided or impeded the progress of the project; also report modifications that were helpful to project management Project and Administrative Teams Assessment of each member of the project teams duties and performance (strengths and weaknesses); discussion of reasons for good and poor performance; recommendations (usually confidential)

The Final Report: A Project History, 3

Techniques of Project Management

How the key tasks (forecasting, planning, budgeting, scheduling, resource allocation, risk management and control) were handled

ADDITIONAL For Econ106 requirement: cover page must be individually signed by members to indicate that you have read and agree to the full report TOC (Table of Contents) Appendices (lettersincluding copy of thank you letter and list of addressees thanked, certificates, photos, video in cd with envelope attached to inside back cover) Feedback evidence (evaluation survey summary ratings, evaluation survey questionnaires, confidential letter of assessment from partners in a sealed envelope)

Econ106 Project Portfolio

Portfolio Envelope

Contents
Final Report Project Register Individual essays

TEAM NAME Members

PROJECT NAME