Aug 1997 PM217: Project Management (Question 5) Suggested Solutions

5.	(a) Why is evaluation important?		[2]
	Evaluation contributes to accountability - it helps us to find out whether our objectives have been achieved in the prescribed fashion.		[1]
	It also provides us with a mechanism to fix problems relatively cheaply.		[1]

	(b) Describe four types of evaluation process. In each case, provide a suitable situation in which it should be used.		[8]
	One mark is available for each correctly named type of process, and a further mark is available for each satisfactory elaboration (up to a maximum of eight marks). Examples include the following:
		Bid/no-bid evaluation: For projects undertaken in a contractual environment, companies cannot spend precious resources on every contract opportunity they encounter. Bid/no-bid decisions can be made after studying a number of factors associated with a particular project.
		Business case evaluation: A business case evaluation focuses on the business implications of a project. A competitive analysis may be undertaken to identify strategies, goals, market presence; and capabilities of key competitors.
		Feasibility study: In general, the term feasibility study denotes the business implications of a project. A competitive analysis may be tested to see whether it performs effectively at low temperatures.
		Proposed evaluation: Companies that bid on large contracts with acceptance test milestones. Generally, customers review the results of these tests to see whether or not the deliverable is making acceptable progress.
		Acceptance testing: The life of a project may be punctuated with acceptance test milestones. Generally, customers review the results of these tests to see whether or not the deliverables is making acceptable progress.
		Root cause analyses: If a project runs into difficulties, a root cause analysis may be initiated to identify their origins. If these can be determined, then attention can focus on fixing the sources of the problems, rather than the symptoms.
		Postmortems: A postmortem can be a valuable exercise, particularly if the lessons learned are documented and incorporated into revisions of project methods and procedures. In this way, an organization can learn from its experiences and avoid making similar mistakes in the future.
		Performance appraisals: Performance appraisals concentrate on the performance of individuals.
		Audits: Financial audits are carried out by outside auditors, whose job it is to review project accounts and check their accuracy.
		Quality assurance: Targets are set, and the project is examined periodically to see whether the targets are being achieved.

	(c) Describe three problems associated with evaluation.		[6]
	One mark is available for each correctly named problem, and a further mark is available for each satisfactory elaboration (up to a maximum of six marks). Examples include the following:
		People being evaluated often do not see its value as a feedback mechanism designed to keep the project on track: At worst, people fell threatened by evaluation; at best, they see it as a nuisance. Perhaps the most negative feature of evaluation is its inherent threats.
		It is disruptive: Unfortunately, when outsiders review project work, an enormous amount of time must be dedicated to educating them about the project, its goals, its history, etc. Project staff may find themselves helping in this effort. Thus, the act of evaluation might contribute to schedule and cost overruns.
		It can easily be carried out in an arbitrary and capricious fashion: It may be the case that the evaluation process consists of an excess of subjectivity, and a lack of consistency.

	(d) What is the structured walk-through technique? What are the six rules associated with this technique?		[4]
	The structure walk-through technique is a relatively friendly approach to evaluating project efforts, which demonstrates that, with a bit of creative thinking, management techniques can be developed to deal with seemingly intractable problems.		[1]
	1/2 mark should be awarded for each correctly named rule:
		The group evaluated chooses the judge and the jury.
		The group being evaluated determines the rules of the evaluation effort.
		The group being evaluated runs the evaluation meetings.
		Customers should not be present at the evaluation sessions.
		Maintain good documentation throughout the whole evaluation process.