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