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