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Chapter Six

Project Monitoring and Evaluation

Muluadam Alemu (Ph.D)

10/28/2020 1

Chapter Six

Project Monitoring and Evaluation

1. Defining monitoring and evaluation

2.Why need for monitoring and evaluation?

3. Types of monitoring and evaluation

4.Planning for monitoring and evaluation

5.The monitoring and evaluation process

10/28/2020 2

CONCEPTUAL DEFIN. OF M&E Monitoring

• (^) It is a continuous process of gathering, analyzing and interpreting of information of the daily use of inputs and their conversion into outputs in order to enable timely adjustment or correction on the project when necessary.
• (^) It is a basic part of implementation management. Evaluation
• (^) It is a systematical and periodical gathering, analyzing and interpreting information on the operation as well as the effects and impacts of a project. Note:

Comparison Between M&E

Item Monitoring Evaluation Frequency Regular, ongoing Episodic/Sporadic Main action Keeping track/oversight Assessment Basic purpose Improving efficiency Adjusting work plan Improve effectiveness, impact, future programming Focus Inputs/outputs, process outcomes, work plans Effectiveness, relevance, impact, sustainability Information sources Routine systems, field visits, stakeholder meetings, output reports, rapid assessments Same, plus Surveys (pre-post project) Special studies Undertaken by Project/program managers Community workers Supervisors Community (beneficiaries) Funders Other Stakeholders External evaluators Community (beneficiaries) Project/program managers Supervisors Funders 5

Planning a Monitoring System

While Planning a Monitoring System, the following need to be considered:

1. What should be monitored?  (^) Keep information requirements to a bare minimum  (^) **Collect info that will be most helpful to those who will use it

2. How?**  (^) Select methods to track indicators/report on progress  (^) **Observations, interviews, routine reporting, sentinel sites
3. Who should be involved when?**  (^) The monitoring plan should identify who will be involved in reviewing **progress and providing feedback
4. What resources are needed and available?
5. Consultation and Training**
6. Prepare a work plan: 7

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Purpose of

M & E

Assess Project Goals, Objectives & Strategies Practice Bench- Marking Assess Project Activities Plan Program Improvement Enhance Accountability Forecast Performance Determine weather implementation is according to schedule Track Progress Assess Output and Results Assess the most needy are reached Identify Lessons for change and Improvement Gather information for early warning Mobilization of Stakeholders, Enhance Teamwork & Build Shared Commitment Ensure Quality Management

TYPES OF PROJECT EVALUATION

1. BASED ON TIME PERIOD

I. ex-ante evaluation:

 Carried out before the start of implementation

ii.mid-term or on-going evaluation:

 It takes place while the implementation of the

planned project is on-progress

iii. terminal evaluation:

 Conducted when the funding for the project comes

to an end.

iv. ex-post evaluation:

 Carried some time after the programme/project

activity has been terminated in order to determine

its impact on the target group and the local area.

Tools for Project monitoring/controlling:

The Earned Value Analysis

What is Earned Value? It is a project monitoring and measurement system that:

1. establishes a clear r/p b/n planned activities and actual accomplishments

2. reinforces and rewards good planning practices

Basic concepts of Earned Value Analysis (EVA)

Each task in a project earns value as planned work is completed

For example,

 If you were paid on this basis, you would earn $x at key milestones based on the

value of what you have completed (earned value)

Earned value can be compared to actual cost and budgeted cost to determine

variance and predict future performance

One way of measuring overall performance is by using an aggregate performance measure called Earned Value (EV) A serious difficulty with comparing actual expenditures against budgeted or baseline is that the comparison fails to take into account the amount of work accomplished relative to the cost incurred

Cont… Variances on the earned value chart follow two primary guidelines:  (^) Negative means there is a deviation from plan—not good  (^) The cost variances are calculated as the earned value minus some other measure

1. Earned Value (EV):  (^) The value (in person-hours) in terms of your base budget of what you have accomplished at a given point in time (or, % complete X Planned Value/Cost). In short, budgeted cost of work performed 2. Actual Cost (AC):  (^) How much work (person-hours) you have actually spent at a given point in time. In short, Actual cost of work performed 3. Planned Value/Cost (PV/PC):

 How much work (person-hours) you planned to have accomplished at a given

point in time (this is from the WBS in your plan). In short, Budgeted cost of

work scheduled

4. Scheduled Time (ST): Schedule for work performed 5. Actual Time (AT): Actual time of work performed

Earned Value: Example

14 On Day X:  (^) PLANNED VALUE (Budgeted cost of the work scheduled, BCWS) = 18 + 10 + 16 + 6 = 50  (^) EARNED VALUE (Budgeted cost of the work performed, BCWP) = 18 + 8 + 11.2 + 0 = 37.  (^) ACTUAL COST (of the work performed , ACWP) = 45 (from your project tracking - not evident in above chart) 18 8

Today

Earned Value: Example

16 Cost (Person-Hours) Time (Date) Toda y Budgeted (Planned) Spending Actual Spending Earned Value Behind Schedul e Over Budget

Variance

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 Any schedule or cost deviation from a specific plan.

 Used within an organization to verify the budget and schedule for a project

 Frequently used as a key component of plan reviews and performance

measurement

 Must compare scheduling and budget variance at the same time

Schedule variance: deviations from work planned – not a measure of

changes in cost

Cost variance: deviations from the budget – not a measure of work

scheduled vs. work completed

Example: applying more $$/people to a task may maintain the

schedule, but it adds to cost… schedule on track… over budget on

expenses (cost)

Variance Analysis with Ratios Variances are also formulated as ratios rather than differences

1. Cost Performance Index (CPI) = EV/AC  (^) When CPI>1An exceptional performance and If CPI<1Poor performance
2. Schedule Performance Index (SPI) = EV/PV  (^) When SPI>1An exceptional performance and If SPI<1Poor performance
3. Time Performance Index (TPI) = ST/AT Use of ratios is particularly helpful when comparing the performance of several projects

Earned Value & Variance: Example

20 On Day X:  (^) PLANNED VALUE (PV) = 18 + 10 + 16 + 6 = 50  (^) EARNED VALUE (EV) = 18 + 8 + 11.2 + 0 = 37.  (^) ACTUAL COST (AC) = 45 (from your project tracking) Therefore:  (^) Schedule Variance = EV – PV = 37.2 - 50 = -12.8 (behind schedule)  (^) Schedule Performance Index = 37.2 / 50 = 0.74 or 74% of plan  (^) Cost Variance =EV - AC = 37.2 - 45 = -7.8; Cost overrun  (^) Cost Performance Index = 37.2/45 = 0.826, or you are getting an 826¢ return on every $1. (or, person-hour) spent on this project 18 8 14