Project Evaluation Templates (for Macro Projects)
Project Evaluation Templates (for Macro Projects):
Purpose of theProject Evaluation Templates
The purpose of the Project Evaluation templates is to evaluate the project, transition the project to operations, provide a basis for feedback to the project team and management, to document the lessons learned to improve the process and future project potential.
Document Change Activity
The following is a record of the changes that have occurred on this document from the time of its original approval
#
Change Description
Author
Date
This template contains suggested POME language and assumes that the project will make appropriate additions, deletions, and changes for their specific needs.
DEGREE OF ATTAINMENT OF BUSINESS OBJECTIVES
Document how the project performed against each objective established in the Product Description and Integrated Project Plan.
Degree of attainment of objective
Success Factors
Nature and causes of variances
Degree of attainment of objective
Success Factors
Nature and causes of variances
DEGREE OF ATTAINMENT OF BUDGET OBJECTIVES
State the Planned Cost and Funding for the project, as approved in the Integrated Project Plan. State the Actual Cost and Funding at completion. Document and explain all cost and funding variances, including approved changes to the cost baseline.
Expenditures ($000)
Planned
Actual
Variance
Explanation
Internal Staff Labor
Service
Software Tools
Hardware
Materials and Supplies
Facilities
Telecommunications
Training
Contingency (Risk)
Total
Funding Source ($000)
Planned
Actual
Variance
Explanation
General Fund
Non-General Fund
Central
Other
Total
DEGREE OF ADHERENCE TO SCHEDULE
Compare the approved schedule baseline against the actual completion dates. Document and explain any schedule variances, including approved changes to the schedule baseline.
DEGREE OF SATISFACTION OF USER REQUIREMENTS
Document any changes to the Requirements and their impact on Performance, Cost, Quality or Schedule Baselines.
DEGREE OF REALIZATION OF ANTICIPATED BENEFITS
Document the primary benefits obtained by the project.
DEGREE OF PRODUCTIVITY – EXPERIENCED
Indicate the productivity level of the project and factors that caused increased performance, as well as, decreased performance.
DEGREE OF DELIVERY – PROJECT DELIVERABLES
List the major Project Deliverables and the date each was accepted by the user. Identify any contingencies or conditions related to the acceptance.
Deliverable
Date Accepted
Contingencies or Conditions
TRANSITION TO SERVICES AND MAINTENANCE
Describe the plan for services and maintenance of the product, good, or service delivered by the project below. In addition, state the projected annual cost to operate and maintain the product, good, or service. If the operation and maintenance plan is not in place, what is the target date for the plan and what is the impact of not having operations and maintenance for the product, good, or services in place.
Sample Format of Projects Hanidng over from Projects to Services:
Gautam Koppala ORG
Project Name:
JOB HANDOVER TO FACILITIES/ SERVICES GROUP
TO:
Service Manager
DATE:
CC(on e-mail):
AMS Head, Operations Head
FROM(name):
Gautam Koppala
JOB NUMBER
CUSTOMER
Operations must prepare the following documents for handing over the job to Facilities/ Services. This document and Project handover to Customer Form to be sent to Service Support/ Facility Manager for Records and Installed Base Updation
S.N.
DOCUMENTS LIST
Attached Y/N
Remarks/ Give reason if any item is NOT attached
1
Customer P.O. with all subsequent amendments, add-on orders, Spare Orders, Operation Contract/services
ü
2
Project Close-out form with all attachments : Duly signed by client/consultants and concerned Proj. Engr/Manager.
ü
3
Billing BreakUp Cum BOQ with complete part nos. for Main, Add ON and Spares orders.
ü
4
Copy of complete set of Engineering Documentation, ‘As Built’ drawings.
ü
5
Operations Manuals / Maintenance Manuals/catalogs/specs of various field instruments as submitted to customer.
ü
6
Complete System Software and Application Software on CD /Drivers/Any other & ALL PASSWORDS
ü
7
List of spares available at site & Recommended list of spares, if any given to the customer
8
Statutory Approvals (such as NOC< Fire Officer’s approvals etc.) ,if any.
9
All important communications (e-mail/letter copies to/from customer) during project execution
ü
Verbal / unrecorded commitments or understanding with customer/ consultants or any other important info. which may be useful for AMS to provide better service to customer/including any scope for add-on etc.
Is Handover to customer done with a snag list?
No
Is there an internal snag list?
No
Date committed by PM to clear the snag list
Date committed to clear internal snag list
Has one set of this document & Project close-out form duly signed by customer given to Service/ Facility Support Manager for records
YES
RSM must confirm this from SSM Sharjah before signing this Handover document.
(Signature )
(Signature)
Date of Hand Over agreed by PM and RSM
Project Manager
Regional Service/ Facilty Manager ( RSM)
SERVICE AND MAINTENANCE PLAN:
Define what will be maintained, who will be responsible for maintaining, how changes will be made to the application, how regular upgrades to infrastructure, software, utilities, and hardware will be prioritized, what business unit is responsible and any other service agreements. You may want to define what are “functionality enhancements”, “Operations enhancements”, “Defect enhancements” and “Emergency Fixes” and how these requests will be prioritized in the future.
Operations and Maintenance Cost
Expenditures ($000)
Yr1
Yr2
Yr3
Yr4
Yr5+
Explanation
Internal Staff Labor
Services
Software Tools/ others
Hardware
Materials and Supplies
Facilities
Telecommunications
Training
Contingency (Risk)
Total
Funding Source ($000)
Yr1
Yr2
Yr3
Yr4
Yr5+
Explanation
General Fund
Non-General Fund
Federal
Other
Total
RELEASE OF PROJECT RESOURCES
List the Resources used by the project. Identify to whom each resource was transferred and when it was transferred. Account for all project resources utilized by the project.
Resource
(Describe or name the resource used)
Person or Organization Who Received Resource
Turnover Date
Project Team
Customer Support
Facilities
Equipment
Software Tools/ Others
Other
TRANSITION OF PROJECT DOCUMENTATION
Identify all project documentation materials stored in the project library or other repository. Identify the type of media used and the disposition of the project documentation (see Communications Plan).
Report(s) and Document(s)
Media Used
Storage Location
Disposition
LESSONS LEARNED
Identify primary Lessons Learned. Lessons Learned should be stated in terms of Problems (or issues) and Corrective Actions taken. Site any references that provide additional detail. References may include project reports, plans, issue logs, change management documents, or Lesson-learned checklist.
Statement of Lesson
References
Corrective Actions
Project Closeout Transition Checklist
Complete the Status and Comments column. In the Status column indicate: Yes, if the item has been addressed and completed; No, if item has not been addressed, or is incomplete; N/A, if the item is not applicable to this project. Provide comments or describe the plan to resolve the item in the last column.
Item
Status
Comments/
Plan to Resolve
1
Have all the product or service deliverables been accepted by the customer?
1.1
Are there contingencies or conditions related to the acceptance? If so, describe in the Comments.
2
Has the project been evaluated against each objective established in the product description and Integrated Project Plan?
3
Has the actual cost of the project been tallied and compared to the approved budget?
3.1
Have all approved changes to the cost baseline been identified and their impact on the project documented?
4
Have the actual milestone completion dates been compared to the approved schedule?
4.1
Have all approved changes to the schedule baseline been identified and their impact on the project documented?
5
Have all approved changes to the project requirement been identified and their impact on the performance, cost, and schedule baselines documented?
6
Has operations management formally accepted responsibility for operating and maintaining the product(s) or service(s) delivered by the project?
6.1
Has the documentation relating to operation and maintenance of the product(s) or service(s) been delivered to, and accepted by, operations management?
6.2
Has training and knowledge transfer of the operations organization been completed?
6.3
Has the projected annual cost to operate and maintain the product(s) or service(s) been approved and funded? If not, note and explain who is responsible to resolve.
7
Have the resources used by the project been reassigned to other units or projects?
8
Has the project documentation been archived or otherwise disposed as described in the project communication plan?
9
Have the lessons learned been filed with the Project Management Office? Projects Department?
Approvals
Position/Title
Signature/Printed Name/Title
Date
Project Manager
Project Sponsor
Maintenance /Service Manager/ Agency Management
POME LIGHTER VEIN:
POME Prescribe
For a bookstore it is easy to tell when a customer has taken possession of the merchandise, thus qualifying the transaction as a sale. However, consider long-term projects such as large construction projects. Is it right to wait until the last brick is laid before recognizing the sale? Remember, according to the matching principle revenues and their associated expenses should be recognized in the same accounting period. The contractor has expenses throughout the course of the project. Should these expenses be held off the books until the project is completed as well?
For such projects, the matching principle is essentially turned around and the expenses are used to estimate the associated revenues. This process is called the percentage of completion (PoC) method. Prior to the projects start the contractor estimates the costs at each stage of the project. As time passes and the stages are completed, the contractor recognizes an estimate of the revenue that has been earned based on the percentage of the estimated costs that have already been incurred.
There are two potential issues for investors in companies that use the percentage of completion method. Both arise from the fact that the contractor is recognizing revenue on the basis of estimated expenses. Of course, actual expenses may be higher or lower than the estimate, even if the contractor is as scrupulous as possible.
If expenses turn out to be higher than estimated, the past expenses recognized will be too low. As soon as the contractor realizes there is a cost overrun he must recognize all of the understated past expense in the current reporting period. This can cause significant earnings shortfalls relative to expectations. It is very difficult for investors to anticipate such events, so instead many investors simply discount the price they are willing to pay for a company that extensively uses the PoC method.
Then there is the possibility that the contractor is not entirely scrupulous. In addition to the difficulty in estimating costs at the project’s outset, at any stage along the way it can be difficult to determine exactly how much of the project is complete. If the contractor wants to boost revenue in the current accounting period he could make an aggressive estimate as to how much of the work is complete, shifting revenue that should be recognized later into the current period. Investors may be able to spot this type of activity by monitoring the unbilled receivables account for sudden spikes.
How to Use Percentage-of-Completion Accounting
Jones Builders just obtained a contract for $500,000 to build a home for Mr. & Mrs. Smith. Jones estimates his total cost on the job to be $400,000. During the first month of the job, the following transactions occur:
- Cash of $10,000 is paid for permits, fees and other startup costs.
- An invoice is received from the excavation subcontractor for $10,000.
- The first progress billing is prepared for $60,000.
If the above transactions were the only ones Jones Builders had for the month, its income statements under each accounting method would look like this:
Cash
Accrual
Completed
Contract
% of
Completion
Revenue
$0
$60,000
$0
$25,000
Costs
10,000
20,000
0
20,000
Gross Profit
$(10,000)
$40,000
$0
$5,000
Under the accrual method, revenue earned equals the amount invoiced on the first progress billing ($60,000). Revenue under the percentage-of-completion method was computed as follows:
- Calculate what percentage of the job is complete.
-
Calculate the amount of revenue to be earned.
Costs to date / total estimated costs = % complete
$20,000 / $400,000 = 5% completeContract amount x % complete = revenue earned
$500,000 x 5% = $25,000
By examining the four income statements, you see that the percentage-of-completion method best reflects the company’s revenue, costs and gross profit for the period. If the president of Jones Builders received an accrual-basis statement, he might think the company is really prospering (the job is only 5% complete, and the company already made $40,000).
However, this statement does not give a true picture of the company’s profitability as of the end of the month. Because the job was only 5% complete, only 5% ($5,000) of the total projected gross profit ($100,000) has been earned.
However, the costs and revenues calculated in this method are at best still estimates of the job’s true outcome. For this reason, care should be taken when determining job progress.
Few corporate utilizes a standard process making changes to the conventional POC for all project estimates at completion or ITC (Indicated Total Cost).
Percentage of Completion(POC) Process and is designed to:
- be a Global Process for all of projects, leaned by POME.
- establish a Standard Terminology for the POC process
The POC Process is designed to meet the management and internal control requirements for the level of approval of changes in a project POC cost based on the financial impact to the approved cost and revenue budget (control budget) of the project. The process requires that the Project POC be derived from cost and schedule analysis per the Project Management and Project Controls methods and standards in order to represent the most likely cost outcome of the project (excluding the benefit of pending change orders until they are booked, unless required by contract to be paid if incurred) and identify variations as quickly as possible. The process also requires that all Project POCs be systematically reviewed through the Monthly, Executive and Gating Review processes.
PoC Policy:
POME’s PoC requires that all projects meeting the criteria for input into the Project Balanced Scorecard (PBS). For projects meeting this criteria, no POC cost adjustment may be base lined in the local project accounting system prior to obtaining all of the required approvals of the POC cost adjustment. In addition, every project POC cost budget must be validated each month by the Project Manager in the PBS and the review dates for Monthly, Executive and Gating Reviews must be updated in the PBS. Projects falling below the criteria for input into the PBS are still required to follow the guidelines in this policy with respect to determination, review and approval of PoCs.
The Project Manager is responsible for the validity of their project PoC cost budget, ensuring that every PoC adjustment to their project has the required approvals prior to base lining in the local accounting system, and that their project is systematically reviewed in the three project review processes (Monthly, Executive or Gating).
All project PoC adjustments require the following analysis to be completed before approval:
- Detail hours and cost by major Estimate To Complete(ETC) task
- Documented mitigation actions taken and/or planned with responsibility and due dates identified
- Detail of hours and cost change by major PoC task, including reasons for change categorized as follows:
Contract T&C’s
Customer
Estimate
Customer Expectations
Proposal
Hardware/Software
Quality/re-work
Schedule
Scope
Sub Contractors or 3rd party
Technology
Process Description:
The Project Manager is responsible for initiating and ensuring completion of the PoC process. Upon completion of the PBS inputs the required documents are to be submitted to the Project Controls Management for their required functional review and approval.
This approval is to verify that the standard methods and tools were effectively used to derive the POC adjustment. Upon approval the PoC adjustment is forwarded to Company Management for their required business review and approvals. The Business Reviewers must determine the ultimate financial treatment of PoC adjustments from tasking project teams with recovery targets and representing the potential risk in quarterly representation letters to taking the adjustment to the P&L.
Should any approver find sufficient reason not to approve the POC cost adjustment it is to be returned to the originator for re-work and re-submittal or to be filed in the project archive as rejected if it cannot be re-worked. Once the PoC adjustment has final approval it is to be submitted to the local Financial Analyst/Accountant for entry into the local project accounting system and re-base lining of the project budget.
Project Reviews:
Project Management is responsible to ensure that project reviews are occurring on a systematic basis, regardless of whether an adjustment is deemed currently necessary. At least 3 levels of review must take place. The first, monthly reviews are to include management up through the Regional Project Leader level. The second, gating reviews, are conducted when large projects in contract value reach pre-defined stages of project execution. This process is maintained by Project Controls. Participation requirements for gating reviews are documented. The third, quarterly reviews, are conducted based on the selection of the Pole Finance Manager in coordination with the Pole Project Director and Pole Project Control Manager. Criteria are documented but flexibility exists to select additional projects based on the request of the regional or global management teams.
PoC Adjustment Sample Approval Matrix:
Current quarter POC adjustment impact (+/-)
Very Large Projects
Large Projects
Medium Projects
Small Projects
President
X
CFO
X
Global Operations VP/GM
X
Contracts VP
X
Regional VP/GM
X
Regional General Manager
X
Pole Contracts Director
X
Pole Project Director
X
Regional Project Leader
X
Program Manager/PMC Manager
X
Project Manager
X
Pole Engineering Director
X
Pole Finance Director
X
Regional Finance Manager
X
Local Financial Analyst
X
Global Project Finance Director
X
Pole Project Finance Manager
X
Global Project Controls Director
X
Pole Project Controls Manager
X
Project Controls Lead
X
The expectation is that the individual approving these adjustments must attend an appropriate project review (monthly, gating, quarterly) and has reviewed the POC change approval form. In addition, the following specific functional roles and responsibilities must be in operation during the review:
Project Management
Concurrence with the project Revenue, Margin and Percentage of Completion (PoC) confidence of +/- X%( X stands for the projects acceptable deviation)and that the business strategy and project management methodology being employed on the project ensure effective project management.
Project Controls
Concurrence with the project PoC confidence of +/- X% and that the project control processes and tools being employed on the project effectively track project performance, facilitate project control and accurately forecast the project estimate to complete.
Finance
Concurrence that the PoC presented is reasonable considering all known items. Also responsible for the determination of how to account for any PoC adjustment in the financials within approved policy. Reviewed all items included on Project Balanced Scorecard as well as addressed relevant items from Finance Project Review Checklist.
Engineering Management
Concurrence with the technical state of the project and that the technical aspects of the project are appropriately accounted for in the project PoC.
Regional Management
To assess the full range business impact of PoC adjustments and forecasts and work with Finance and Project Management to determine how to they are reflected in the regional business forecast.
Contracts
To ensure the PoC reflects the requirements of the contractual terms and conditions, as well as optimize the Projects position under the agreement for issues such as schedule delays and change orders.
Compliance Reporting:
PoCh month, Project Controls shall be publishing an POC Scorecard that must include the following metrics:
Average PoC Adjustment and Standard Deviation Monthly
% of Projects with PoC Validated by Project Management and Project Controls Monthly
% of Plan vs. Actual of Projects with scheduled Executive Reviews Quarterly
% of Plan vs. Actual of Projects with scheduled Gating Reviews Quarterly
In addition, Project Controls must maintain documentation of PoC approvals including the required analysis and review participation/signatures. In addition, action logs must be prepared, published and followed-up.
Checks and Balances:
The POC and Project Review Processes are designed to ensure that effective business checks and balances are institutionalized within the implied Projects. The Project Management function is responsible for delivering the project safely, on time, within budget, and per client requirements. The Project Controls function is responsible for ensuring that the project planning, tracking and forecasting is being done in compliance with the Project Controls standards and tools. The Project Finance function is responsible for ensuring that the financial representation of the project is in accordance with Project Financial Terms and Corporate Policies.
POC Audit:
To ensure there are no systemic failures in the execution of the POC Policy that would expose Projects to material financial risk, the Project Finance function must conduct both scheduled and random audits of projects on a global basis. In addition to the primary objective, these audits must reinforce the checks and balances in the organization, and identify opportunities to continuously improve the POC process and the execution of projects.
GAUTAM KOPPALA
