RMT 556 – PROJECT AND

ORGANISATIONAL MANAGEMENT
INTRODUCTION
❑ Ancient times
Egyptian Pyramids
Great Wall of China
❑ Henry Gantt
Father of modern day project planning
and control
❑ 1950's
Genesis of modern day project
management
Military/aerospace projects in UK & US
GANTT CHARTS - 1900'S
❑ WW1 - Henry Gantt
❑ Visual aid for planning and controlling
ship building projects, Hoover Dam
and highway projects
❑ Significantly reduced the time for
building a ship
❑ Components
➢ Time scale
➢ Activities
➢ Scheduling of activities (horizontal
bar)
➢ Work done (2nd horizontal bar)
➢ Time to-date
PROJECT MANAGEMENT
1950'S - 1960'S
❑ Nearly all modern day project
management techniques were developed
in this period
❑ Key achievements:
PERT & CPM
Earned value
WBS
❑ 1969
PMI formed
A formal institute for project management
Currently, there are more than 500,000
members in 300 chapters across 208
countries
NETWORK DIAGRAMS
❑ Address
Activity time
Activity logic
❑ The logical relationship requires a model - CPM /
PERT
❑ Gantt chart was lacking for more complex projects
❑ In 1950's:
Project cost overrun
Project time overrun
Optimistic scheduling?
❑ US Navy & DuPont/Remington developed PERT and
CPM
CPM
❑ Main difference between CPM and PERT was the
manner in which they addressed activity time
durations
❑ Time estimates depended on previous projects
❑ CPM = deterministic approach
-suits a project where time durations can be
accurately predicted
-construction project
❑ PERT = probalistic approach
-time durations may vary
-research project
❑ CPM = CPA
❑ Set up to address "time/cost trade off" dilemma
ACTIVITY-ON-ARROW /
ACTIVITY-ON-NODE
❑ AOA
Benefits
indicates preceding and succeeding activities

❑ AON
Benefits
Offers:
- Start to Start
- Start to Finish
- Finish to finish
- Lag
- Offers a professional presentation
HISTORY OF PROJECT
MANAGEMENT
❑ Modern project management began with
the Manhattan Project, which the U.S.
military led to develop the atomic bomb
❑ In 1917 Henry Gantt developed the Gantt
chart as a tool for scheduling work in job
shops
❑ In 1958, the Navy developed PERT charts
❑ In the 1970s, the military began using
project management software, as did the
construction industry
❑ By the 1990s, virtually every industry was
using some form of project management
 THE PROJECT MANAGEMENT
PROFESSION
❑ A 1996 Fortune article called project management
the “number one career choice”
❑ Other authors like Tom Peters and Thomas
Stewart stress that projects are what add value to
organizations
❑ Professional societies like the Project
Management Institute have grown tremendously
❑ Currently there are 20 million people
participating in projects worldwide, but just one
million have professionally recognized formal
training on how to best execute those projects
❑ According to PMI, 15.7 million new project
management jobs will be available by 2020 in
project-intensive industries, including
manufacturing, business services, finance and
insurance, oil and gas, information services,
construction, and utilities.