History of Project Management

WEEK 3
Source from nutcache.com
 THE HISTORY

 The concept of project management has been around

since the beginning of history. For ex: The Roman
structures or even the Egyptian pyramids.

https://www.youtube.com/watch?v=C1uxCBx2-UQ – History of Project Management

https://www.projectsmart.co.uk/brief-history-of-project-management.php
 These were massive projects where funding,
materials and labor had to be managed and
coordinated within a time frame to complete a
project.
 With the start of the industrial revolution the needs
of business and industry became more complicated
and often grew in scale.
 The need to manage a budget, supplies and labor
often across the country or even worse, another
continent, was really the ultimate test of
management skills.
 THE HISTORY

 In the United States, the forefather of

project management is Henry Gantt.
 He invented charts and diagrams to document and
measure the processes involved in Navy ship building
during World War I.
 This enabled him to see the big picture and analyze all
the functions involved in ship building.
 The Gantt chart became an important tool for project
management and has been used for the last 100 years.
 Scheduling Innovation
The Gantt Chart:
This chart was formulated for providing graphic
schedule for planning and controlling of the work,
and recoding progress towards stage of a
project.
The chart has modern variation, PERT(Program
Evaluation and Review Techniques.
(PERT is a tool for controlling Quality and Efficiency of the work and workers)

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Some GANTT CHART

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Free Powerpoint
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 THE HISTORY

 The 1950s marked the beginning of the modern project

management era.
 Russia’s lead in missile technology became an important
issue when members of the U.S. military questioned the
so called “missile gap”.
 Public misperceptions in 1959 and 1960 that the Soviet
Union had opened up a dangerous and growing lead over
the United States in the deployment of intercontinental
ballistic missiles (ICBMs)
 The safety of the nation was at stake and the military
needed to put their own missile program in place
immediately.
 PERT

 A project management program called PERT (Program Evaluation and

Review Technique) devised by Willard Fazar was put into place to
manage the program. PERT charts followed a critical path methodology
allowing managers control over huge and complex projects that
involved complicated tasks and logistics. Today, PERT is still the
standard for all U.S. Navy Projects.
 Project Management in the perspective of
science principles

 During the 1960s science principles were

being applied to business methodology.
 The most important theory that a business
or company could be compared to the
human body.
 A business has skeletal, muscular,
circulatory and nervous systems in place just
like a human.
 In the human body when those systems
integrated and worked together successfully
they produced life or in the case of business,
carried out a project.
 THE HISTORY

 In 1969, the Project Management Institute (PMI)

was formed to serve the interest of the project
management industry.
 The premise of PMI is that the tools and techniques
of project management are common even among the
widespread application of projects from the software
industry to the construction industry.
 In 1981, the PMI Board of
Directors authorized the
development of what has
become A Guide to the
Project Management Body
of Knowledge (PMBOK
Guide), containing the
standards and guidelines of
practice that are widely
used throughout the
profession.
Today’s Project Management
 Globalization

 Globalization has helped elevate the importance of

project management worldwide since many
companies are expanding or setting up new
businesses in other countries.

 Globalization is the process of international integration

arising from the interchange of world views, products, ideas,
and other aspects of culture.
 Globalization

 The need for new and more sophisticated tools to

accomplish complicated project management
functions has evolved through the design and
manufacture of web based project management
software.
 Construction Project Management Software

https://www.crazyegg.com/blog/best-construction-project-management-software/
Overview of Project
Management
 Overview of Project Management

 Projects have been managed for as long as there has

been projects
 “Project Management” term only 70 years old (since
1950s)
 Its influence has been very small BUT has high
potential influence in the future depending upon
using a broad definition of a project.
 Overview of Project Management

 All construction activities are projects, so are research activities,

product developments, one–off engineering activities (traditional PM
sectors)

 Also included are military activities, all government initiatives, all

business initiatives, all legal cases, all big social events and all
premeditated crimes

 Includes all deliberate creation of “things” and all deliberate changes to

“things” undertaken by groups of people
 Overview of Project Management

 A broader range of industries have adopted standardized

project management practices. These include public safety,
education, marketing and sales, fashion, legal and
agriculture, among others.

 Organizations in these industries are finding that good

project management delivers better results on time, on
budget, within scope and in accordance with requirements.

 Rate of increase in the number of projects has increased

due to rapid scientific, technical & political development in
the last 200 years
 Overview of Project Management

 Changes in PM:
 becoming more concerned with the soft techniques & less with the
hard techniques
* Communication and Consultation
* Conflict and Crisis Management
* Flexibility and Creativity
* Leadership
* Learning and Development
* Negotiation
* Organisational Effectiveness
* Problem Solving and Decision Making
* Professionalism and Ethics
* Trustworthiness
* Self-control
* Teamwork
 Overview of Project Management
Predictable
 Previous Project
Management
 project according to plan if plan is
good enough,
 project clients will not change their
minds or impose design freeze.
 clients objectives, organization &
people will not change
Unpredictable
 Today’s Project Management
becoming more complex.
o it influences project planning, coordination,
and control;
o it hinders the clear identification of goals
and objectives of major projects;
o it can affect different project outcomes
(time, cost, quality, safety, etc.).
o it can affect the selection of an appropriate
project organization form and experience
requirements of management personnel;
 Project Management Activities

 Analysis and design of objectives and events

 Planning the work according to the objectives
 Assessing and controlling risk (or Risk Management)
 Estimating resources
 Allocation of resources
 Organizing the work
 Acquiring human and material resources
 Assigning tasks
 Directing activities
 Controlling project execution
 Tracking and reporting progress (Management information system)
 Analyzing the results based on the facts achieved
 Defining the products of the project
 Forecasting future trends in the project
 Quality Management
 Issues management
 Issue solving
 Defect prevention
 Identifying, managing & controlling changes
 Project closure (and project debrief)
 Communicating to stakeholders
 Increasing / decreasing a company's workers
 Benefits of Project Management

 Satisfied customers
 Additional business
 Expansion of career opportunities
 Satisfaction of being on a winning team
 Improved knowledge and skills

When projects are successful, everybody WINS

https://www.youtube.com/watch?v=49-LbHZSF3U Project Management

 INTRODUCTION TO
PROJECT MANAGEMENT
 What is a project?

A project is a set of people and other resources temporarily

assembled to reach a specified objective, normally with a fixed
budget and with a fixed time period. Projects are generally
associated with products or procedures that are being done for
the first time or with known procedures that are being altered.

Graham (1995)

A Project is a temporary endeavor undertaken to

create a unique product or service.
 Characteristics of a Project

# a project is a unique undertaking: each one will differ

from every other in some respect.(hence an atmosphere
of risk and uncertatinty)
# projects have specific objectives (or goals) to achieve
# Projects require resources
# projects have budgets
# projects have schedules
# projects require the effort of people
# measures of quality will apply
# projects require temporary organization
# projects are not permanent in nature
 Examples of Projects

 Planning a wedding
 Designing and implementing a computer system
 Hosting a holiday party
 Designing and producing a brochure
 Executing an environmental clean-up of a contaminated
site
 Holding a high school reunion
 Performing a series of surgeries on an accident victim
 What is not a project?

 Emergency response to operations problems

 Callouts
 Repairs and troubleshooting

 Routine operations support

 Maintenance of equipment
 Minor modifications and tuning of equipment
Project Phases
 PROJECT PHASES

Projects are usually divided into

SEVERAL PHASES
to
PROVIDE BETTER MANAGEMENT CONTROL

these phases are known as the

PROJECT LIFE CYCLE.
 PROJECT LIFE CYCLE

Project Life Cycle defines:

THE BEGINNING AND THE
END
of a project.

PLC Defines:

1. What TECHNICAL WORK

should be done in each
project phase;

2. WHO should be involved in

each phase.
 Phase 1 : Initiation

 This process helps in the visualisation of what is

to be accomplished.

 This is where the project is formally approved by

the sponsor/client, initial scope defined, and
stakeholders identified.

 projects are aligned with the strategic objectives of the

organisation

11
 Phase 2 : Planning

 gives guidance to stakeholders on where and

how to undertake the project.
 The planning stage is where the project plans
are documented, the project deliverables and
requirements are defined, and the project
schedule is created.
 It involves creating a set of plans to help guide
project team through the implementation and
closure phases of the project.
12
 Project Life Cycle 3 : Executing

 the plan designed in the previous phase of the project

activity cycle is put into action.

 The intent of the execution phase of the project activity

cycle is to bring about the project’s expected results.

 Normally, this is the longest phase of the project

management life cycle, where most resources are applied.

 During the project execution, the execution team utilises all

the schedules, procedures and templates that were
prepared and anticipated during prior phases.

13
Phases 4 : Monitoring & Controlling

 This process oversees all the tasks and metrics

needed to guarantee that the agreed and
approved project that is undertaken is within
scope, on time and within budget so that the
project proceeds with minimum risk.

 This process involves comparing actual

performance with planned performance and
taking corrective action to yield the desired
outcome when significant differences exist.

14
 Phase 5 : Closing

 the project is formally closed and then a report is

produced to the project sponsor/client on the overall
level of success of the completed project.
 The closing process involves handing over the
deliverables to the sponsor/client, handing over
documentation to the owners, cancelling supplier
contracts, releasing staff and equipment, and
informing stakeholders of the closure of the project.
 Life Cycle of a Construction Project

Definition Planning Execution Delivery

Level of effort

1. Goals 1. Schedules 1. Status reports 1. Train customer

2. Specifications 2. Budgets 2. Changes 2. Transfer documents
3. Tasks 3. Resources 3. Quality 3. Release resources
4. Responsibilities 4. Risks 4. Forecasts 4. Reassign staff
5. Teams 5. Staffing 5. Lessons learned

Irwin/McGraw-Hill ©The McGraw-Hill Companies, 2000

LINKS AMONG PROCESS GROUPS IN A PHASE

INITIATING
PROCESSES PLANNING
PROCESSES

EXECUTING
CONTROLLING PROCESSES
PROCESSES

CLOSING
PROCESSES

ARROWS REPRESENT FLOW OF DOCUMENTS

AND DOCUMENTABLE ITEMS
What is Project Management?
Project Management is the application of:

“Knowledge, Skills, Tools & Techniques”

to
project activities
in order to
meet or exceed
stakeholders need and expectations
from a project.
 The Art of Project Management

Art encompasses:
• Political & Interpersonal skills
• Making creative decisions &
• Knowing intuitively when to delegate works.

• The Art of Leadership embodies Skills that are gain

through Experience, Sensitivity & a thorough
Knowledge of the Basic Science of Management.
 The Technological and Sociocultural
Dimensions of the Project Management Process

Sociocultural
Leadership
Problem solving
Teamwork
Negotiation
Technical Politics
Scope Customer expectations
WBS
Schedules
Resource allocation
Baseline budgets
Status reports

Irwin/McGraw-Hill ©The McGraw-Hill Companies, 2000

Objective of Project
Management
 Objectives of Project Management

1. to ensure that the project is correctly

designed to meet its objectives

2. to ensure that the project is completed on

schedule, within resources and budget

3. to provide a mechanism for monitoring the

project
 To ensure that the project is correctly
designed to meet its objectives

• ensure that the project objectives and outcomes

are fully agreed by all involved

• ensure that the objectives are achievable

• ensure that the objectives satisfy customer needs

 To ensure that the project is completed on
schedule, within resources and budget

• ensures that the resources and budget are agreed

and are consistent with the needs of the project

• ensures that the life of the project is clearly

defined
 To provide a mechanism for monitoring
the project

• ensures project does not depart from agreed path

• provides mechanism for examining project

progress (quarterly progress reports and agreed
regular communication)

• provides mechanism for correcting or stopping

failing projects (project restructuring)
Project Management Trade-offs
 Project Management Trade-Offs

Scope

Quality

Cost Time
Irwin/McGraw-Hill ©The McGraw-Hill Companies, 2000
 Project Priority Matrix

Time Performance Cost

Constrain

Enhance

Accept

Irwin/McGraw-Hill ©The McGraw-Hill Companies, 2000

Project Management Trade-Offs

 The TIME constraint

refers to the amount of
time available to
complete a project.
 The COST constraint
refers to the budgeted
amount available for the
project.
 The SCOPE constraint
refers to what must be
done to produce the
project's end result.
 Project Management Trade-Offs

These three constraints are often competing constraints:

increased SCOPE means increased

time and increased cost,

a tight TIME constraint could mean

increased costs and reduced scope

a tight BUDGET could mean

increased time and reduced scope.
PROJECT STAKEHOLDER
PROJECT STAKEHOLDERS

Who are the Stakeholders

of a project?
 PROJECT STAKEHOLDERS

Project Stakeholders are

INDIVIDUALS & ORGANIZATIONS
Who are actively involved in the project,

OR

Those whose interests may be

POSITIVELY OR NEGATIVELY AFFECTED
As a result of the project execution or successful
completion.
 PROJECT STAKEHOLDERS

 Project Manager
 Internal & External Customers
 The Performing Organization
 The Management
 The Project Sponsor
 Owners & Funders
 All the suppliers & Sub-contractors
 Team Members & their families
 Government Agencies & Media Outlets
 Individual Citizens affected by the project
 The society-at-large
 In Project,
What do you actually Manage?
 In Project, What do you actually Manage?

 Managing Projects is a matter of keeping:

SCOPE, SCHEDULE & RESOURCES in balance.

1. SCOPE Is the range of tasks required to accomplish

project goals.

2. A SCHEDULE indicates the time & schedule, as well as

the total project duration.

3. RESOURCES are the people, & equipments that

perform or facilitate project tasks.
 PROBLEMS OF PROJECT

THE MAJOR PROBLEMS ENCOUNTERED IN

MANAGING PROJECT:

1. INADEQUATE RESOURCES

2. UNREALISTIC DEADLINE

3. UNCLEAR GOALS OR DIRECTION

4. TEAM MEMBERS UNCOMMITTED

5. INSUFFICIENT PLANNING

6. COMMUNICATION BREAKDOWN
HOW IS PROJECT SUCCESS DEFINED?

1. On Time

2. Within Budget

3. Quality Conformance
END