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