INTRODUCTION
In the last unit,we discussed project definition. We discussed tangible and intangible projects. We also discussed the characteristics of projects. This consolidated our primary understanding of projects. In this unit, we shall discuss Project Evaluation – An Introductory Format.
OBJECTIVE
At the end of this unit, you should be able to:
•explain the format of project evaluation.
Our primary focus now is to introduce a format for carrying out our work. Ordinarily, the project evaluation format describes the way and manner in which our work will be arranged. To streamline our study, we need to arrange our work in carefully defined segments. We shall now discuss the various segments.
In the literature, there are five angles from which a standard project can be viewed and also appraised thus:
technical point of view.
management point of view.
marketing point of view.
financial point of view.
economic point of view. I
In the last unit,we discussed project definition. We discussed tangible and intangible projects. We also discussed the characteristics of projects. This consolidated our primary understanding of projects. In this unit, we shall discuss Project Evaluation – An Introductory Format.
OBJECTIVE
At the end of this unit, you should be able to:
•explain the format of project evaluation.
MAIN CONTENT
Project Evaluation – An Introductory Format
We started our study by discussing the project cycle. We then went ahead to discuss the concept of project definition. These two topics have provided us with a good foundation with which to start our real study which is Project Appraisal and Evaluation.Our primary focus now is to introduce a format for carrying out our work. Ordinarily, the project evaluation format describes the way and manner in which our work will be arranged. To streamline our study, we need to arrange our work in carefully defined segments. We shall now discuss the various segments.
In the literature, there are five angles from which a standard project can be viewed and also appraised thus:
technical point of view.
management point of view.
marketing point of view.
financial point of view.
economic point of view. I
n a nutshell, our work in Project Appraisal and Evaluation is to examine a project from the points of view of these five points and come up with a valuation. If two projects are being compared, the project analyst should be able to choose one, based on acceptable criteria.
At the back of your mind, you should note that you are being trained to:
(1) prepare an appraisal of a project – business plan.
(2) appraise a business plan prepared by another person.
For example, in all projects, there should be a location. In the location, there will be buildings. In the buildings, there could be plant and machinery used for various purposes.
Ideally, when analysing the technical segment of a project, it will be very necessary to list out all the items that the project ought to have. This type of list is called a checklist. For a start, let us draw up a simple checklist for technical analysis.
At the back of your mind, you should note that you are being trained to:
(1) prepare an appraisal of a project – business plan.
(2) appraise a business plan prepared by another person.
The Technical Segment
The technical segment of project appraisal tries to evaluate the total technical and engineering soundness of a project. It tries to see whether the project is achievable in technical terms.For example, in all projects, there should be a location. In the location, there will be buildings. In the buildings, there could be plant and machinery used for various purposes.
Ideally, when analysing the technical segment of a project, it will be very necessary to list out all the items that the project ought to have. This type of list is called a checklist. For a start, let us draw up a simple checklist for technical analysis.
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