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Excel is powerful, but it has limitations as a project management tool. This video clarifies that it won't cover creating interactive dashboards or progress reports in Excel. The main issue with using Excel for project management is that it is effective only for a small number of tasks (10 to 20). In reality, even small projects with around 10 to 15 team members can generate approximately 100 tasks monthly. Many Excel-based tools fail to handle this volume of tasks effectively, as they rely on a spreadsheet with raw data that is not suited for larger project deliverables. Consequently, the video advises against using Excel for project management purposes.