Any evaluation represents a systematic method used to analyze different programs, projects or activities, in order to offer useful information and support for decision making. The different evaluation types They can assess any project or event that supports the choice of various alternatives of repercussion in the use of economic resources.
In the economic sphere, according to its relevance and nature of the project, three basic types of evaluation are distinguished; economic evaluation, financial evaluation and social evaluation.
Advertisements
In this article you will find:
Financial evaluation
It is carried out especially in private plans, it studies the project from the perspective of profitability, based in the objective of generating economic benefits, so it considers the flow of funds generated by said draft.
Advertisements
This evaluation is useful for:
- Determine the financial capacity of a certain project and the profitability of the invested capital.
- Determine the extent to which costs can be covered, so that it contributes to the design of a financing plan.
- Measure the utility or profitability of the Investment.
- Generate information necessary for making timely decisions and that serves as a basis for comparing the project with other investment opportunities.
The financial evaluation is carried out by studying the flows of income and expenses with prices in force in the market, focusing on the analysis of the fulfillment of its objective of generating benefits in return to those who they finance.
Advertisements
The following subtypes can be distinguished according to what they pursue.
Cost minimization study
It is carried out with the intention of finding a way to reduce the costs generated by the project.
Advertisements
Cost-effectiveness study
It is carried out in order to measure the effectiveness achieved in the achievement of goals by the investment, "achievement of expected effects"
Cost-utility study
Measures the utility achieved by the project with respect to its cost, "achievement of unexpected effects".
Advertisements
Cost benefit study
It measures the profit achieved in monetary units.
Economic evaluation
It is one that dismisses the financial field, assumes that both purchases and sales are made in cash and with own capital.
The economic evaluation constitutes the government's guide to decision-making regarding all the projects proposed in the country, not limited to investment projects. On the contrary, it is involved in any project where the government intervenes in the granting of licenses, permits, setting and control of rates, tariffs, prices and subsidies.
East evaluation type Its objective is to measure the contribution of a certain project to the national collective well-being, assuming its efficiency. In simple terms, the economic evaluation measures the benefit contributed by the project to the national economy as a whole.
Social evaluation
It is the evaluation where the benefits and costs of a certain project are compared in relation to the community, in view of that is not always a profitable project for investors, it is equally profitable for the community where it is developed and vice versa.
The social evaluation uses similar criteria to the financial evaluation, in order to study the viability of the project, however, differ in the evaluation of the variables that determine the costs and benefits that are associate.
It works based on social prices, in order to measure the effect that implementing a certain project would have on the community.
Indirect effects and externalities that generate well-being or discomfort to the community must be considered, among these effects to run for example are; environmental pollution, income redistribution, job creation, etc.
Importance of different types of evaluation
Project evaluations serve the same purpose, "support for strategic and tactical decision making." This requires a detailed and systematic analysis of all the costs and benefits of the different project alternatives, also including its risk factors.
The selection of the appropriate evaluation methodology and type allows risks to be minimized and facilitates adequate and timely decision-making.
How to select a type of project evaluation?
First of all, it should be clear that the evaluation process involves the use of qualitative and quantitative analysis to identify and address the different aspects of the design and find the critical elements in it and the scope of the project.
The evaluation to be carried out in many cases will depend specifically on the interests of those who deserve said evaluation, and may be of interest to investors, the government or the community national.
Quantitative analyzes assist project economics are used to support decisions based on measurable judgments.
On the other hand, qualitative analyzes support decisions based on the combination of judgments, knowledge and experiences.
Types of evaluation according to the moment it is carried out
Previous or prior evaluation
It's that one evaluation type that is carried out before implementing a project or during its design, in such a way that the information provided serves to fix what is wanted and facilitate its application.
The a priori evaluation allows defining the objectives adapting them to the real needs, guaranteeing the relevance and coherence of the project.
· Continuous assessment
It covers the implementation period, this form of evaluation is commonly known as follow-up or monitoring.
Continuous evaluation is given as in the form of detailed studies and includes continuous analysis of points that arise during implantation.
Midterm evaluation
It consists of a punctual and formal evaluation during execution. It differs from continuous monitoring because it is a practice that is commonly carried out in full execution, when the initial problems have been overcome.
It can be carried out two or three years after the project has started, it is considered the first broad look at the project from its inception, and the results can be used to introduce improvements.
Final and subsequent evaluation
Evaluation that summarizes and measures the project at the end of it, is useful to justify the use of resources, effectiveness and utility.
Try to deduce the elements of success or failure, the sustainability of the results obtained and the impact achieved.
Finally, it is necessary to mention that a project evaluation, regardless of its type, always seeks to generate useful information for taking decisions, from who has requested the evaluation, so this activity is considered work aimed at generating improvements in the efficiency and effectiveness of the Projects.
