| Importance of Project Management is an | | | | (1979). In the 1970's other project |
| important topic because all | | | | management tools such as Material |
| organisations, be they small or large, | | | | Requirements Planning (MRP) were also |
| at one time or other, are involved in | | | | introduced.Examples of projects |
| implementing new undertakings. These | | | | undertaken during this period and which |
| undertakings may be diverse, such as, | | | | influenced the development of modem |
| the development of a new product or | | | | project management as we know it today |
| service; the establishment of a new | | | | include: (a)Polaris missile project |
| production line in a manufacturing | | | | initiated in 1956 that had the objective |
| enterprise; a public relations promotion | | | | of delivering nuclear missiles carried |
| campaign; or a major building programme. | | | | by submarines, known as Fleet Ballistic |
| Whilst the 1980's were about quality and | | | | Missile for the U.S Navy. The project |
| the 1990's were all about globalisation, | | | | successfully launched its first Polaris |
| the 2000's are about velocity. That is, | | | | missile in 1961; (b) Apollo project |
| to keep ahead of their competitors, | | | | initiated in 1960 with the objective of |
| organisations are continually faced with | | | | sending man to the moon; and (c) E.I du |
| the development of complex products, | | | | Pont de Nemours chemical plant project |
| services and processes with very short | | | | commencing in 1958, that had the |
| time-to-market windows combined with the | | | | objective of building major chemical |
| need for cross-functional expertise. In | | | | production plants across the U.S.[3] |
| this scenario, project management | | | | 1980-1994: Production Centre Human |
| becomes a very important and powerful | | | | Resources. The 1980s and 1990's are |
| tool in the hands of organisations that | | | | characterised by the revolutionary |
| understand its use and have the | | | | development in the information |
| competencies to apply it.The development | | | | management sector with the introduction |
| of project management capabilities in | | | | of the personal computer (PC) and |
| organisations, simultaneously with the | | | | associated computer communications |
| application of information management | | | | networking facilities. This development |
| systems, allow enterprise teams to work | | | | resulted in having low cost multitasking |
| in partnership in defining plans and | | | | PCs that had high efficiency in managing |
| managing take-to-market projects by | | | | and controlling complex project |
| synchronising team-oriented tasks, | | | | schedules. During this period low cost |
| schedules, and resource allocations. | | | | project management software for PCs |
| This allows cross-functional teams to | | | | became widely available that made |
| create and share project information. | | | | project management techniques more |
| However, this is not sufficient, | | | | easily accessible.Examples of major |
| information management systems have the | | | | projects undertaken during this period |
| potential to allow project management | | | | that illustrate the application of high |
| practices to take place in a real-time | | | | technology, and project management tools |
| environment. As a consequence of this | | | | and practices include: (a) England |
| potential project management | | | | France Channel project, 1989 to1991. |
| proficiency, locally, nationally or | | | | This project was an international |
| globally dispersed users are able to | | | | project that involved two governments, |
| concurrently view and interact with the | | | | several financial institutions, |
| same updated project information | | | | engineering construction companies, and |
| immediately, including project | | | | other various organisations from the two |
| schedules, threaded discussions, and | | | | countries. The language, use of standard |
| other relevant documentation. In this | | | | metrics, and other communication |
| scenario the term dispersed user takes | | | | differences needed to be closely |
| on a wider meaning. It not only includes | | | | coordinated; (b) Space Shuttle |
| the cross-functional management teams | | | | Challenger project, 1983 to 1986. The |
| but also experts drawn from the | | | | disaster of the Challenger space shuttle |
| organisation's supply chain, and | | | | focused attention on risk management, |
| business partners.On a macro level | | | | group dynamics, and quality management; |
| organisations are motivated to implement | | | | and (c) xv Calgary Winter Olympic of |
| project management techniques to ensure | | | | 1988 which successfully applied project |
| that their undertakings (small or major) | | | | management practices to event |
| are delivered on time, within the cost | | | | management.[4] 1995-Present: Creating a |
| budget and to the stipulated quality. On | | | | New Environment. This period is |
| a micro level, project management | | | | dominated by the developments related to |
| combined | | | | the internet that changed dramatically |
| with an appropriate information | | | | business practices in the mid 1990's. |
| management system has the objectives of: | | | | The internet has provided fast, |
| (a) reducing project overhead costs; (b) | | | | interactive, and customised new medium |
| customising the project workplace to fit | | | | that allows people to browse, purchase, |
| the operational style of the project | | | | and track products and services online |
| teams and respective team members; (c) | | | | instantly. This has resulted in making |
| proactively informing the executive | | | | firms more productive, more efficient, |
| management strata of the strategic | | | | and more client oriented. Furthermore, |
| projects on a real-time basis; (d) | | | | many of today's project management |
| ensuring that project team members share | | | | software have an internet connectivity |
| accurate, meaningful and timely project | | | | feature. This allows automatic uploading |
| documents; and (e) ensuring that | | | | of data so that anyone around the globe |
| critical task deadlines are met. Whilst | | | | with a standard browser can: (a) input |
| the motivation and objectives to apply | | | | the most recent status of their assigned |
| project management in organisations is | | | | tasks; (b) find out how the overall |
| commendable, they do not assure project | | | | project is doing; (c) be informed of any |
| success.However, before discussing the | | | | delays or advances in the schedule; and |
| meaning and achievement of project | | | | (d) stay "in the loop" for their project |
| success it is appropriate at this stage | | | | role, while working independently at a |
| to provide a brief history of project | | | | remote site.An example of a major |
| management.Brief History of Project | | | | project undertaken during this period is |
| Management | | | | the Year 2000 (Y2K) project. The Y2K |
| Project management has been practiced | | | | Project, known as the millennium bug |
| for thousands of years dating back to | | | | referred to the problem that computers |
| the Egyptian epoch, but it was in the | | | | may not function correctly on January |
| mid-1950's that organisations commenced | | | | lst, 2000 at 12 AM. This was a global |
| applying formal project management tools | | | | phenomenon and was highly problematic |
| and techniques to complex projects. | | | | because resolving the problem at one's |
| Modern project management methods had | | | | organisation did not guarantee immunity, |
| their origins in two parallel but | | | | since a breakdown in the organisation's |
| different problems of planning and | | | | supply chain could affect the |
| control in projects in the United | | | | organisation's operating capability. |
| States. The first case involved the U.S | | | | Many organisations set up a project |
| Navy which at that time was concerned | | | | office to control and comply with their |
| with the control of contracts for its | | | | stakeholders regarding the Y2K issue. |
| Polaris Missile project. These contracts | | | | Furthermore, use of the Internet was |
| consisted of research, development work | | | | common practice that led to the |
| and manufacturing of parts that were | | | | establishment of the virtual project |
| unique and had never been previously | | | | office. The goal of this virtual project |
| undertaken.This particular project was | | | | office was: (a) to deliver uninterrupted |
| characterised by high uncertainty, since | | | | turn-of-the-century; (b) monitor Y2K |
| neither cost nor time could be | | | | project efforts; (c) provide |
| accurately estimated. Hence, completion | | | | coordination; (d) develop a risk |
| times were based on probabilities. Time | | | | management plan; and (e) communicate Y2K |
| estimates were based on optimistic, | | | | compliance efforts with various |
| pessimistic and most likely. These three | | | | stakeholders. Thus, the virtual project |
| time scenarios were mathematically | | | | office was a focal point for all the |
| assessed to determine the probable | | | | project works, and it increased the |
| completion date. This procedure was | | | | awareness and importance of risk |
| called program evaluation review | | | | management practices to numerous |
| technique (PERT). Initially, the PERT | | | | organisations.Why Project |
| technique did not take into | | | | Management?There is no doubt that |
| consideration cost. However, the cost | | | | organisations today face more aggressive |
| feature was later included using the | | | | competition than in the past and the |
| same estimating approach as with time. | | | | business environment they operate in is |
| Due to the three estimation scenarios, | | | | a highly turbulent one. This scenario |
| PERT was found (and still is) to be best | | | | has increased the need for |
| suited for projects with a high degree | | | | organisational accountability for the |
| of uncertainty reflecting their level of | | | | private and public sectors, leading to a |
| uniqueness. The second case, involved | | | | greater focus and demand for operational |
| the private sector, namely, E.I du Pont | | | | effectiveness and |
| de Nemours Company, which had undertaken | | | | efficiency.Effectiveness and efficiency |
| to construct major chemical plants in | | | | may be facilitated through the |
| U.S. Unlike the Navy Polaris project, | | | | introduction of best practices that are |
| these construction undertakings required | | | | able to optimise the management of |
| accurate time and cost estimates. The | | | | organisational resources. It has been |
| methodology developed by this company | | | | shown that operations and projects are |
| was originally referred to as project | | | | dissimilar with each requiring different |
| planning and scheduling (PPS). PPS | | | | management techniques. Hence, in a |
| required realistic estimates of cost and | | | | project environment, project management |
| time, and is thus a more definitive | | | | can: (a) support the achievement of |
| approach than PERT. The PPS technique | | | | project and organisational goals; and |
| was later developed into the critical | | | | (b) provide a greater assurance to |
| path method (CPM) that became very | | | | stakeholders that resources are being |
| popular with the construction industry. | | | | managed effectively.Research by Roberts |
| During the 1960s and 1970s, both PERT | | | | and Furlonger [2] in a study of |
| and CPM increased their popularity | | | | information systems projects show that |
| within the private and public sectors. | | | | using a reasonably detailed project |
| Defence Departments of various | | | | management methodology, as compared to a |
| countries, NASA, and large engineering | | | | loose methodology, improves productivity |
| and construction companies world wide | | | | by 20 to 30 percent. Furthermore, the |
| applied project management principles | | | | use of a formalised project management |
| and tools to manage large budget, | | | | structure to projects can facilitate: |
| schedule-driven projects. The popularity | | | | (a) the clarification of project scope; |
| in the use of these project management | | | | (b) agreement of objectives and goals; |
| tools during this period coincided with | | | | (c) identifying resources needed; (d) |
| the development of computers and the | | | | ensuring accountability for results and |
| associated packages that specialised in | | | | performance; (e) and encouraging the |
| project management. However, initially | | | | project team to focus on the final |
| these computer packages were very costly | | | | benefits to be achieved. Moreover, the |
| and were executed only on mainframe or | | | | research indicates that 85-90% of |
| mini computers. The use of project | | | | projects fail to deliver on time, on |
| management techniques in the 1980s was | | | | budget and to the quality of performance |
| facilitated with the advent of the | | | | expected. The major causes identified |
| personal computer and associated low | | | | for this situation include: |
| cost project management software. Hence, | | | | (a) Lack of a valid business case |
| during this period, the manufacturing | | | | justifying the project; |
| and software development sectors | | | | (b) Objectives not properly defined and |
| commenced to adopt and implement | | | | agreed; |
| sophisticated project management | | | | (c) Lack of communication and |
| practices as well. By the 1990s, project | | | | stakeholder management; |
| management theories, tools, and | | | | (d) Outcomes and/or benefits not |
| techniques were widely received by | | | | properly defined in measurable terms; |
| different industries and | | | | (e) Lack of quality control; |
| organisations.Four periods in the | | | | (f) Poor estimation of duration and |
| development of modern project | | | | cost; |
| management.[1] Prior to 1958: Craft | | | | (g) Inadequate definition and |
| system to human relations. During this | | | | acceptance of roles (governance); |
| time, the evolution of technology, such | | | | (h) Insufficient planning and |
| as, automobiles and telecommunications | | | | coordination of resources.It should be |
| shortened the project schedule. For | | | | emphasised that the causes for the |
| instance, automobiles allowed effective | | | | failure to deliver on time, on budget |
| resource allocation and mobility, whilst | | | | and to the quality of performance |
| the telecommunication system increased | | | | expected could be addressed by the |
| the speed of communication. Furthermore, | | | | application of project management |
| the job specification which later became | | | | practices. Furthermore, the failure to |
| the basis of developing the Work | | | | deliver on time, on budget and to the |
| Breakdown Structure (WBS) was widely | | | | quality of performance expected does not |
| used and Henry Gantt invented the Gantt | | | | necessarily mean that the project was |
| chart. Examples of projects undertaken | | | | itself a failure. At this stage what is |
| during this period as supported by | | | | being discussed is the effectiveness and |
| documented evidence include: (a) | | | | efficiency of project execution and not |
| Building the Pacific Railroad in 1850's; | | | | whether a project is a success or |
| (b) Construction of the Hoover Dam in | | | | failure.Conclusion |
| 1931-1936, that employed approximately | | | | Project management should be viewed as |
| 5,200 workers and is still one of the | | | | a tool that helps organisations to |
| highest gravity dams in the U.S. | | | | execute designated projects effectively |
| generating about four billion kilowatt | | | | and efficiently. The use of this tool |
| hours a year; and (c) The Manhattan | | | | does not automatically guarantee project |
| Project in 1942-1945 that was the | | | | success. (project success will be |
| pioneer research and development project | | | | discussed in a subsequent issue). |
| for producing the atomic bomb, involving | | | | However, in preparation for the next |
| 125,000 workers and costing nearly $2 | | | | issue, I would like you to think about |
| billion.[2] 1958-1979: Application of | | | | the distinction between project success |
| Management Science. Significant | | | | and project management success. This |
| technology advancement took place | | | | distinction will provide further insight |
| between 1958 and 1979, such as, the | | | | to the questions: Why are some projects |
| first automatic plain-paper copier by | | | | perceived as failures when they have met |
| Xerox in 1959. Between 1956 and 1958 | | | | all the traditional standards of |
| several core project management tools | | | | success, namely, completed on time, |
| including CPM and PERT were introduced. | | | | completed within budget, and meeting all |
| However, this period was characterised | | | | the technical specifications? Why are |
| by the rapid development of computer | | | | some projects perceived to be successful |
| technology. The progression from the | | | | when they have failed to meet two |
| mainframe to the mini-computer in the | | | | important criteria that are |
| 1970's made computers affordable to | | | | traditionally associated with success, |
| medium size companies. In 1975, Bill | | | | namely, not completed on time and not |
| Gates and Paul Allen founded Microsoft. | | | | completed within budget?Sandro Azzopardi |
| Furthermore, the evolution of computer | | | | is a professional author who writes |
| technology facilitated the emergence of | | | | several articles on various subjects on |
| several project management software | | | | his web site and local newspapers and |
| companies, including, Artemis (1977), | | | | magazines. |
| Oracle (1977), and Scitor Corporation | | | | |