Project Evaluation
Project evaluation in software project management is the process of checking and reviewing a
project to see if it has achieved its goals and delivered the expected results. It is done during the
project to monitor progress and after completion to measure success. Project evaluation looks at
whether the work was finished on time, within budget, and with the required quality. It also checks
the performance of the software and whether the stakeholders, especially the clients and users, are
satisfied. The main purpose of evaluation is to find out the strengths and weaknesses of the project,
ensure resources were used properly, and provide lessons for improving future projects. In simple
terms, project evaluation helps us understand how successful a software project was and what can
be done better in the next one.
Importance of Project Evaluation
1. Measures success – Checks if the project met its goals of time, cost, scope, and quality.
2. Ensures efficiency – Evaluates how well resources like money, manpower, and tools were
used.
3. Improves quality – Helps in identifying strengths and weaknesses of the software product.
4. Stakeholder satisfaction – Confirms whether clients and users are happy with the outcome.
5. Learning for future – Provides lessons and guidelines for improving future projects.
6. Accountability – Makes project managers and teams responsible for results.
7. Decision-making – Supports decisions about continuing, modifying, or stopping projects.
8. Value for investment – Ensures that the project delivers benefits worth the cost and effort.
Benefits of Project Evaluation in Software Project Management
1. Measures success – Helps in checking if the project achieved its goals of cost, time, scope,
and quality.
2. Better decision-making – Provides information for deciding whether to continue, modify, or
stop a project.
3. Improves efficiency – Identifies wastage of resources and suggests ways to use them
effectively.
4. Enhances quality – Ensures that the software product meets required standards and user
expectations.
5. Risk control – Detects problems and risks early, allowing corrective actions.
6. Stakeholder satisfaction – Builds trust by showing that project goals and client needs are
being met.
7. Learning for future – Provides lessons and guidelines for managing future projects better.
8. Accountability – Holds the project team responsible for results, creating transparency.
9. Value for investment – Confirms that the project provides real benefits compared to the cost
and effort spent.
10. Continuous improvement – Encourages organizations to improve their project management
practices over time.
Methods of Project Evaluation in Software Project Management
Project evaluation can be carried out at different stages of the project to ensure proper planning,
smooth execution, and successful completion. The main methods are Pre-Project Evaluation,
Ongoing Evaluation, and Post-Project Evaluation.
1. Pre-Project Evaluation (Pre-Project Assessment)
• This evaluation is done before the project begins.
• The aim is to check whether the project is feasible, realistic, and worth doing.
• It studies the project idea in terms of technical feasibility (can it be developed?), financial
feasibility (is it affordable?), and organizational feasibility (does it align with business
goals?).
• Tools like cost-benefit analysis, feasibility studies, risk analysis, requirement analysis are
used.
• The outcome of this stage is a decision: start the project, modify it, or reject it.
2. Ongoing Evaluation (Concurrent or Mid-Project Evaluation)
• This is carried out while the project is in progress.
• Its main purpose is monitoring and controlling.
• It checks whether the project is moving as per the schedule, budget, and quality standards.
• Managers track progress using milestones, performance reports, status meetings, and
project management tools (like Gantt charts, PERT charts, dashboards).
• If deviations or risks are found, corrective actions are taken immediately.
• This ensures that the project stays on the right track and prevents major failures.
3. Post-Project Evaluation (Final or Ex-Post Evaluation)
• This evaluation is done after the project is completed and delivered.
• The main purpose is to check whether the project objectives were fully achieved and
whether the stakeholders are satisfied.
• It measures time, cost, quality, performance, and overall success of the software product.
• It also focuses on user feedback, system performance in real use, and business value
delivered.
• A "lessons learned report" is often prepared to help future projects avoid mistakes and
repeat successes.
• Post-project evaluation is also linked with maintenance and support, since real-life use may
reveal new challenges.
IN SHORT:
• Pre-Project Evaluation ensures the project is feasible.
• Ongoing Evaluation ensures the project is on track.
• Post-Project Evaluation ensures the project was successful and beneficial.
Evaluation Criteria
Criteria Description (Meaning) Simple Understanding
Checks if project objectives match
Relevance & Strategic Does the project align with
beneficiaries’ needs, country goals, global
Fit bigger goals and needs?
priorities, donor policies.
Project Proposal Evaluates if the proposal is logical, coherent, Is the plan clear and
Validity and realistic. sensible?
Project Progress & Measures if immediate objectives are achieved Is the project moving in right
Effectiveness or likely to be achieved. direction with results?
Checks how efficiently resources (funds, time, Are resources being used
Resource Efficiency
manpower) are used. wisely?
Management Evaluates whether management systems & Is management capable and
Effectiveness capacities support project success. organized?
Impact Orientation & Measures if project benefits are long-term and Will the impact last in
Sustainability continue after support ends. future?
Project Evaluation Steps
1. Planning
• Objective: To design a clear evaluation plan.
• Key Activities:
o Prepare a project evaluation document explaining scope, goals, and process.
o Identify stakeholders (who will use results, e.g., clients, donors, team).
o Define short-term goals (immediate project outcomes).
o Define long-term goals (impact after project completion).
o Establish evaluation criteria (success measures, e.g., ROI, quality, timelines).
o Decide methods of data collection (surveys, reports, software metrics).
• Example: For an Online Shopping Project → Planning stage defines how success will be
measured: number of active users, order success rate, customer satisfaction.
In short: Plan “what, how, who, when” of evaluation.
2. Implementation
• Objective: To perform the actual evaluation activities.
• Key Activities:
o Apply the evaluation plan prepared in step 1.
o Collect data and evidence about project progress (time logs, cost sheets, defect
reports, user feedback).
o Monitor project against benchmarks (planned vs actual).
o Use evaluation tools (Gantt chart, Earned Value Analysis, Cost-Benefit Analysis).
o Conduct interviews, surveys, testing if needed.
• Example: In Online Shopping System → Check actual development progress vs planned
milestones (login module completed? payment integration working?).
In short: Do the evaluation and gather results.
3. Completion
• Objective: To analyze results and finalize findings.
• Key Activities:
o Compare project’s planned objectives with actual achievements.
o Identify gaps, risks, and reasons for success or failure.
o Document findings (evaluation report).
o Record lessons learned for future projects.
• Example: Online Shopping System → Planned to support 1000 users per day but achieved
only 700 → identify reasons (server capacity, code inefficiency).
In short: Conclude whether goals were achieved and summarize findings.
4. Dissemination (Communication)
• Objective: To share evaluation results with stakeholders.
• Key Activities:
o Prepare final evaluation report and presentations.
o Share results with donors, clients, managers, team.
o Provide recommendations for improvement.
o Suggest strategies for sustainability and replication.
• Example: Present report to company management → showing ROI, benefits, issues, and
future improvements.
In short: Communicate results, give recommendations, and close evaluation.
Final Flow (Easy to Remember)
Planning → Implementation → Completion → Dissemination
• Planning → Decide what to evaluate.
• Implementation → Do the evaluation.
• Completion → Analyze results.
• Dissemination → Share findings & recommendations.
Cost Benefit Analysis (CBA)
Theory:
Cost-Benefit Analysis (CBA) is a financial evaluation technique used in project management to decide
whether a project is worth undertaking. It involves identifying all the costs (development, resources,
time, maintenance) and benefits (profits, efficiency, customer satisfaction, long-term savings)
associated with a project, and then comparing them. If the benefits are greater than the costs, the
project is considered feasible and worthwhile.
CBA helps managers and stakeholders make informed decisions by quantifying both tangible (money,
time) and intangible factors (reputation, user satisfaction). It is widely used in software projects to
justify investments like system upgrades, automation tools, or new product launches.
In simple words: CBA = “Check if the money and effort spent will give more benefits than costs.
Steps in CBA:
1. List all costs (capital, operating, maintenance).
2. List all benefits (revenue, savings, social benefits).
3. Convert everything into monetary terms (₹).
4. Compare benefits and costs.
Example:
You want to start a small juice shop.
• Costs:
o Equipment: ₹50,000
o Rent for 1 year: ₹24,000
o Raw materials for 1 year: ₹36,000
o Salaries: ₹60,000
Total Cost = ₹50,000 + 24,000 + 36,000 + 60,000 = ₹1,70,000
• Benefits (Revenue):
o Juice sales in 1 year: ₹2,40,000
• Net Benefit = Revenue – Cost = ₹2,40,000 – ₹1,70,000 = ₹70,000
Since benefits > costs, the project looks profitable.
2. Net Profit
Definition:
Net Profit = Total Revenue – Total Expenses
Example:
From the juice shop example:
• Revenue = ₹2,40,000
• Expenses = ₹1,70,000
Net Profit = 2,40,000 – 1,70,000 = ₹70,000
. Payback Period
Definition:
Time required to recover the initial investment.
Formula:
Initial Investment / Annual Cash Inflow
Payback Period=
Example:
• Initial Investment = ₹1,70,000
• Annual Cash Inflow = ₹2,40,000
Payback Period= 2,40,000/1,70,000 = ≈0.71 years≈8.5 months
So, you recover your investment in less than 1 year.
Return on Investment (ROI)
Definition:
ROI shows profitability as a percentage of investment.
Formula:
Net Profit/Investment*100
ROI (%)=
Example:
ROI=70,000/1,70,000×100≈41.18%
This means the project earns 41.18% of investment as profit.
Net Present Value (NPV)
Definition:
NPV calculates the present value of future cash inflows minus investment, considering time value
of money.
Formula:
NPV= ∑*Cash Inflow/(1+r)t−Investment
Where:
• r = discount rate
• t= year
Example:
• Investment = ₹1,70,000
• Cash inflow: ₹70,000 each year for 3 years
• Discount rate = 10%
Step by step:
1. Year 1 PV = 70,000 / 1.1 ≈ ₹63,636
2. Year 2 PV = 70,000 / 1.21 ≈ ₹57,851
3. Year 3 PV = 70,000 / 1.331 ≈ ₹52,587
Total PV = 63,636 + 57,851 + 52,587 ≈ ₹1,74,074
NPV = 1,74,074 – 1,70,000 ≈ ₹4,074 Positive, so profitable.
Internal Rate of Return (IRR)
Definition:
IRR is the discount rate that makes NPV = 0. It tells the rate of return of a project.
Example:
We want IRR such that:
We can try 10% (as in NPV example): NPV = +4,074
Try 11%:
• Year 1 = 70,000 / 1.11 ≈ 63,063
• Year 2 = 70,000 / 1.2321 ≈ 56,826
• Year 3 = 70,000 / 1.3676 ≈ 51,197
Total PV ≈ 63,063 + 56,826 + 51,197 ≈ 1,71,086
NPV = 1,71,086 – 1,70,000 ≈ ₹1,086 Slightly positive
Try 11.5% → NPV ≈ 0
IRR ≈ 11.5%
So, the project gives 11.5% return per year.
Software Evaluation
Software Process Assessment is a disciplined and organized examination of the software process
which is being used by any organization bases the on the process model. The Software Process
Assessment includes many fields and parts like identification and characterization of current
practices, the ability of current practices to control or avoid significant causes of poor (software)
quality, cost, schedule and identifying areas of strengths and weaknesses of the software.
Types of Software Assessment :
• Self Assessment : This is conducted internally by the people of their own organisation.
• Second Party assessment: This is conducted by an external team or people of the own
organisation are supervised by an external team.
• Third Party assessment:
In an ideal case Software Process Assessment should be performed in a transparent, open and
collaborative environment. This is very important for the improvement of the software and the
development of the product. The results of the Software Process Assessment are confidential and
are only accessible to the company. The assessment team must contain at least one person from the
organization that is being assessed.
Software Process Maturity Assessment:
The scope of Software Process Assessment includes many components like it should cover all the
processes in the organisation, a selected subset of the software process or a specific project. The
idea of process maturity serves as the foundation for the majority of standard-based process
evaluation methodologies.
Though an organisation is the assessment objective, even when the same approach is applied again,
the outcomes of a process evaluation may vary. The different results are mainly due to two reasons.
The reasons are that the organization that is being investigated must be determined. When the
company is very large it is possible for the company to have different definitions due to which the
actual scope of appraisal may be different in successive assessments. Even if it is the same
organization the sample of projects selected to represent the organization may affect the scope and
result. Process maturity is important when the organisation intended to embark on an long term
improvement strategy.
Software Process Cycle:
Generally there are six different steps in the complete cycle:
• Selecting a team: The first step is to select all the team members. Everyone must be software
professionals with sound knowledge in software engineering.
• The standard process maturity questionnaire is filled out by the representatives of the site
that will be evaluated.
• In accordance with the CMM core process areas, the assessment team analyses the
questionnaire results to determine the areas that call for additional investigation.
• The evaluation team visits the location to learn more about the software procedures used
there.
• The evaluation team compiles a set of results outlining the organization's software process's
advantages and disadvantages.
• In order to deliver the findings to the right audience, the assessment team creates a Key
Process Area (KPA) profile analysis.
Software Process Evaluation Cycle
Definition:
The Software Process Evaluation Cycle is a continuous process used to assess and improve software
development processes. Its main goal is to ensure that the software process is efficient, effective,
and delivers quality software.
It usually follows these steps:
1. Define Objectives
• Decide what you want to evaluate.
• Objectives could be: improving productivity, reducing defects, or shortening delivery time.
Example:
A company wants to reduce the number of bugs in its web application releases.
2. Select Process Metrics
• Choose measurable indicators to evaluate the process.
• Common metrics:
o Defect density (bugs per 1000 lines of code)
o Time taken for coding, testing, or deployment
o Customer satisfaction
Example:
Metric chosen: Number of bugs found during testing per module.
3. Collect Data
• Gather real data from the software process.
• Can use tools, logs, surveys, or reports.
Example:
During testing of 5 modules:
• Module 1 → 10 bugs
• Module 2 → 15 bugs
• Module 3 → 8 bugs
• Module 4 → 12 bugs
• Module 5 → 5 bugs
SCAMPI;
SCAMPI stands for Standard CMMI Assessment Method for Process Improvement. To fulfil the
demands of the CMMI paradigm, the Standard CMMI Assessment Method for Process Improvement
(SCAMPI) was created (Software Engineering Institute, 2000). Moreover, it is based on the CBA IPI.
The CBA IPI and SCAMPI both have three steps.
1. Plan and become ready
2. Carry out the evaluation on-site
3. Report findings
The planning and preparation phase includes the following activities:
• Describe the scope of the evaluation.
• Create the assessment strategy.
• Get the evaluation crew ready and trained.
• Make a quick evaluation of the participants.
• CMMI Appraisal Questionnaire distribution
• Look at the survey results.
• Perform a preliminary document evaluation.
The onsite evaluation phase includes the following activities:
• Display the results.
• Execute the findings.
• Complete / end the assessment.
The GQM Paradigm
• The Goal/Question/Metric (GQM) method is a proven technique used for goal-oriented
measurement.
• It has three basic elements:
1. Goal
2. Question
3. Metric
• In the GQM method, measurement is always linked to goals. First, the objectives (goals) must
be clearly defined, so that they can be measured during software development.
• In this method, goals are defined, then converted into questions and metrics.
• The questions are answered, and it is checked whether the answers meet the goals or not.
• This method uses a top-down approach (start with goals → break into questions → convert
into metrics) and also a bottom-up approach (collect metrics → analyze them → check if
goals are met).
2.4.4.1 Steps in the GQM Method
1. Clearly define and describe the objectives.
2. Transform the objectives into appropriate questions.
3. Transform the questions into metrics.
2.4.4.2 Stages of the GQM Method
1. Planning
• In this phase, a project plan is prepared by identifying the basic requirements.
2. Definition
• In this phase, the goals, questions, and metrics are described.
• These three must be clearly defined.
3. Data Collection
• Current/project data is collected in this phase.
4. Interpretation
• In the last stage, the collected data is analyzed.
• The answers to the questions are checked and it is verified whether the goals are achieved or
not.
Example: Banking System Project
Goal:
Improve the security of the online banking system.
Questions:
1. How many times does an unauthorized login attempt happen?
2. How many customers report suspicious activities?
3. How often is user data leaked or exposed?
Metrics:
• Number of failed login attempts per week.
• Number of customer complaints related to security.
• Count of data breach incidents.
How it works:
• First, we set the goal (make the system more secure).
• Then, we ask questions that help check if the system is really secure.
• Finally, we collect metrics (numbers) that give clear proof whether the goal is achieved or
not.
Benefits of the GQM Paradigm
● Alignment with Business Goals: Ensures that the metrics collected are directly relevant to the
organization’s objectives.
● Focused Measurement: Helps in identifying what to measure and why, reducing unnecessary
data collection.
● Improved Decision Making: Provides insights that are actionable and aligned with strategic
goals.
● Continuous Improvement: Facilitates ongoing assessment and refinement of processes based
on measured data.
Process Analysis
Definition
Process analysis is the study of how work is performed within an organization. It involves identifying,
understanding, and documenting processes to improve efficiency, reduce waste, and ensure
consistency.
It asks questions like:
• What are the steps in the process?
• Who performs them?
• What inputs and outputs are involved?
• Where are the inefficiencies or bottlenecks?
Objectives of Process Analysis
1. Understand – Gain a clear picture of how the process currently works.
2. Visualize – Represent the process in diagrams for better communication.
3. Identify Issues – Find redundancies, delays, errors, or bottlenecks.
4. Improve – Suggest changes for efficiency, quality, and productivity.
5. Document – Keep a record of processes for training, auditing, and automation.
Steps in Process Analysis
1. Identify the process – Select the process to be studied (e.g., payroll, customer order).
2. Gather information – Observe workflows, interview staff, collect documents.
3. Map the process – Represent it using a technique (flowchart, BPMN, etc.).
4. Analyze the process – Look for delays, unnecessary steps, data duplication.
5. Redesign/improve – Suggest new workflows or automation.
6. Implement changes – Apply improvements in practice.
7. Monitor and review – Track the process to ensure efficiency is achieved.
Techniques of Process Analysis (Explained in Depth)
1. Flowchart
• Definition: A graphical tool using standardized symbols to represent the sequence of steps in
a process.
• Why used: To give a clear, simple overview of how activities and decisions flow.
• Strengths: Easy to create and understand, good for basic workflows.
• Example: A flowchart for an online shopping order:
Customer Order → Payment Verification → Inventory Check → Shipment → Delivery.
2. BPMN (Business Process Model and Notation)
• Definition: A standardized notation for modeling business processes developed by OMG.
• Why used: To create detailed, professional process diagrams that can be understood by both
business and technical teams.
• Key Elements:
o Events (Start, Intermediate, End)
o Activities (Tasks, Sub-processes)
o Gateways (Decisions, Splits, Merges)
o Flows (Sequence, Message, Association)
• Strengths: Provides a universal language, useful for automation and system integration.
• Example: BPMN diagram for loan approval → Start Event → Customer submits application →
Credit Check → Gateway (Approve/Reject) → End.
3. UML (Unified Modeling Language)
• Definition: A modeling language used in software/system design.
• Why used: To model both structural and behavioral aspects of systems.
• Diagrams used in process analysis:
o Use Case Diagram (shows actors and system interactions)
o Activity Diagram (workflow of activities)
o Sequence Diagram (interaction between objects over time)
• Strengths: Widely used in IT, suitable for software-based processes.
• Example: An activity diagram showing a student’s login process → Enter credentials → Verify
→ Access dashboard.
4. Gantt Chart
• Definition: A horizontal bar chart used in project management to visualize tasks over time.
• Why used: To analyze processes from a time scheduling perspective.
• Components:
o List of tasks
o Timeline
o Bars representing task duration
o Dependencies between tasks
• Strengths: Helps in project planning, progress monitoring, deadline tracking.
• Example: Software project → Requirement gathering (2 weeks), Design (3 weeks),
Development (6 weeks), Testing (2 weeks), Deployment (1 week).
5. RAD (Rapid Application Development)
• Definition: A process modeling methodology that emphasizes quick prototyping and iterative
development rather than long planning.
• Why used: To analyze and improve processes quickly with constant user involvement.
• Phases:
1. Requirements Planning (gather inputs from stakeholders)
2. User Design (create prototypes with user feedback)
3. Construction (develop the final system in iterations)
4. Cutover (final testing, training, and implementation)
• Strengths: Fast, flexible, reduces risk of failure.
• Example: Payroll system developed with frequent feedback from HR managers.
6. Data Flow Diagram (DFD)
• Definition: A structured diagram showing how data flows between processes, data stores,
and external entities.
• Why used: To understand data movement in a system.
• Symbols:
o Process – Circle/rounded rectangle
o Data Store – Open rectangle
o External Entity – Square
o Data Flow – Arrow
• Strengths: Focuses on data rather than steps, helps in system analysis and database design.
• Levels:
o Level 0 (Context Diagram) – High-level view of the system.
o Level 1, 2, … – More detailed breakdown of processes.
• Example: Banking DFD → Customer → Deposit Request → Teller System → Database →
Updated Balance.
Comparison of Techniques
Technique Focus Main Use Strengths Best For
Simple process
Flowchart Workflow steps Easy, visual Small processes
mapping
BPMN Business processes Professional, detailed Standardized Enterprise workflows
System
UML Software modeling Very detailed IT systems
behavior/design
Gantt
Time scheduling Project planning Time-focused Projects
Chart
RAD Fast prototyping Iterative improvement Quick, flexible User-driven systems
Clear data Database/system
DFD Data movement System/data analysis
flow design
