Page 27 - Banking Finance December 2017

ARTICLE

the project plus © judging the value of a project during the
implementation of the project.

Summative evaluation calls for detailing a plan to evaluate
the extent to which accomplished the goals or objectives of
the project are accomplished, while at the same stroke the
same helps to identify the changes or modifications that are
needed for the next iteration of the project. That is why, a
summative evaluation occurs after the completion of the
project, evaluates the outcomes or accomplishments of the
project, judges the value of a project after fully implemen-
tation, as well as suggests what changes need to be made
to the program.

It is better not forgotten that evaluation and assessment
cannot be interpreted as interchangeable with respect to
Most developing countries face capital constraints. So the documenting the outcomes of a funded project. Though
question of choice naturally comes up. The choice of invest- evaluation and assessment are related, yet they are not iden-
ment projects will normally also involve a ranking of all tical. Assessment refers to specifically the measurement of
projects that meet the NPV rule. Projects are ranked by outcomes. Clearly, evaluation is a broader concept that takes
descending NPV & more precisely NPV/K ratio is calculated into accounts not only program outcomes, but program in-
for each project Project or set of projects with the highest puts (resources and activities) also. When a project has dif-
NPV/K is chosen first, then the next highest & so on down ferent purposes (such as furthering of a specific subject), as-
the line until all available capital investment funds are ex- sessment would not better be featured in the evaluation plan.
hausted.
Thus, a project needs to have a clear achievable value added
Evaluation, Assessment and Manage- goal which is to be achieved utilizing limited resources within
a time limit. Here, the biggest issue shall be managing to
ment achieve the goal with limit resources. Thus, achieving goal
The purpose of project evaluation is to document as clearly is not the only goal of a project management. The 'control-
and specifically as possible the implementation and impact ling of resources' is one of the biggest issues in project man-
of the project. The evaluation segment describes evidences agement. It has rightly been observed that project manage-
that are collected concerning project activities and their ment, in fact, is visualization of all activities that is needed
outcomes. A strong evaluation plan is a core element of a in achieving a goal within a time limit and with limited re-
project and as such the evaluation plan must include, among sources.
others, the major aspects: (a) clear statement of the in-
tended outcomes of the project, (b) the very evidence that This is where the importance of a detailed project report
will indicate the extent to which the outcomes are being comes into picture. Contents of a perfect project report
achieved. includes - brief description of the goal, benefits of the project,
rationale of the project, financial involvement, manpower
It would not be out of the context to mention that there planning, activities planning, financial projections, monitor-
are two general types of evaluation, with somewhat differ- ing and controlling mechanism and risk analysis.
ent purposes. While formative evaluation details a plan to
evaluate the project during the completion of the project, The main task for the smart professionals is really guiding
it helps to identify the changes or modifications that are the entrepreneurs with the concept to make their dreams
needed along the way. A formative evaluation calls for (a) fulfilled ultimately. An appropriate structure could minimize
focusing on improving a program or project, (b) identifying the risk leading to fulfilling goals on time avoiding with com-
improvements, modifications, and management needs of promises' bumps!! T

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