Chapter 1

History of Project Management

As a discipline, Project Management developed from different fields of
application including construction, engineering, and defense. In the United
States, the forefather of project management is Henry Gantt, called the father
of planning and control techniques, who is famously known for his use of the
"Gantt" chart as a project management tool. He was associated with
Frederick Winslow Taylor's theories of scientific management and for his
study of the work and management of Navy ship building. His work is the
forerunner to many modern project management tools including the work
breakdown structure (WBS) and resource allocation.

History of Project Management

The 1950s marked the beginning of the modern project management era.
Again, in the United States, prior to the 1950s, projects were managed on
an ad hoc basis using mostly Gantt Charts, and informal techniques and
tools. At that time, two mathematical project scheduling models were
developed: (1) the "Program Evaluation and Review Technique" or PERT,
developed by Booz-Allen & Hamilton as part of the United States Navy's
(in conjunction with the Lockheed Corporation) Polaris missile submarine
program; and (2) the "Critical Path Method" (CPM) developed in a joint
venture by both DuPont Corporation and Remington Rand Corporation for
managing plant maintenance projects. These mathematical techniques
quickly spread into many private enterprises.

Meaning of a Project
The word project comes from the Latin word projectum from
projicere, "to throw something forwards" which in turn comes from
pro-, which denotes something that precedes the action of the next
part of the word in time (paralleling the Greek ) and jacere, "to
throw". The word "project" thus originally meant "something that
comes before anything else is done".

Meaning of a Project
When the word was initially adopted, it referred to a plan of something, not to
the act of actually carrying this plan out. Something performed in accordance
with a project was called an object. This use of "project" changed in the
1950s when several techniques for project management were introduced.
With this advent the word slightly changed meaning to cover both projects
and objects. However in certain projects there may still exist so called objects
and object leaders.

Definition of a Project

To talk about project management, we first need to be sure we know what we

mean by a project. Although the term is widely used, and we all think we know
what it means, producing an adequate short definition is very difficult. This is
because the border line between something which is a project and something
which is not is rather poorly defined.

We can therefore use a very general definition such as the Oxford English
Dictionary which defines a project as: Plan, scheme This is so vague as to be
unhelpful in trying to look at project management.
make things as specific as possible.

Alternatively we can try to

Definition of a Project

An activity (or, usually, a number of related activities) carried out

according to a plan in order to achieve a definite objective within a certain
time and which will cease when the objective is achieved.
A collection of linked activities, carried out in an organized manner, with a
clearly defined start point and end point to achieve some specific results
desired to satisfy some clearly defined objectives.
A group of activities that have to be performed in a logical sequence to
meet pre-set objectives outlined by the client.

Definition of a Project

It may make it easier to define if we instead list the characteristics of a project,which

would include:
a start and a finish date
a budget
activities which are essentially unique and not repetitive
roles and relationships which are subject to change and need to be developed,
defined and established
a life cycle (which we will examine later)

What is a Project?

Three Elements of Project

Output
(Objective &
Scope)

Time
(Duration)
Start Date
End Date ?

What is the Output ?

Purpose & Scope
Service Performance specification

Resource
(Man power,
Facilities,
Money)
What are the requirements?
How much the cost?
Benefit Basis

What is Project Management?

Project Management is the application of skills, knowledge, tools and techniques to

meet the needs and expectations of stakeholders for a project
The purpose of project management is prediction and prevention, NOT
recognition and reaction
Effective Management of the Triple Constraints (Time, Cost, Goals)
Requirements Needs Identified or Unidentified Expectations
Cost/Resources People, Money, Tools
Schedule/Time

Definition of Project Management

One definition of project management could be:
Project Management is a dynamic process, conducted within a defined set of
constraints, that organises and utilises appropriate resources in a controlled and
structured manner in order to achieve some clearly defined objectives.
Making the project happen. As with projects, it may be clearer to define some of
the characteristics of project management, rather than trying to make a single
definition. Project management should be:
objectives-orientated
change-orientated
multi-disciplined
innovative (seeking new ideas and solving new problems)
control-orientated (to ensure it actually finishes)
performance-orientated
flexible (quickly adapted to changes)
This requires a wide variety of management and personal skills,

Definition of Project Management

Key areas to consider when looking at project management are management of time, people,
and other resources. In general terms, these activities can be described as follows :
Management of
Time
Ensuring that the
Project completes its
work on time
Scheduling use of
resources
Rescheduling the
project in the light
of experience
Predicting problems
Before they arise

Management of People

Management of Other Resources

Ensuring that people are

available at the right time
Ensuring that personnel know
their roles and can perform their
functions properly
Managing peoples expectations
Resolving conflicts between
people
Changing peoples roles in the
light of experience

Ensuring that appropriate resources

are allocated
Ensuring that the appropriate
resources are available at the right time
Reallocating resources in the light of
experience
Tailoring activities to limited
resources
Making maximum impact with
available resources

What happens if the project consciousness is

not there?

Project Objectives

Project objectives define target status at the end of the project, reaching of
which is considered necessary for the achievement of planned benefits. They
can be formulated as S.M.A.R.T.
Specific,
Measurable (or at least evaluable) achievement,
Achievable (recently Acceptable is used regularly as well),
Realistic and
Time terminated (bounded).
The evaluation (measurement) occurs at the project closure. However a
continuous guard on the project progress should be kept by monitoring and
evaluating.

Objectives of a Project
3 Project Objectives:
Performance
Time
Cost
Expectations of clients are not an additional target, but an inherent part of
the project specifications

Chapter 1-3

Objectives of a Project

3 Project Objectives

Chapter 1-4

Project Management Institute

Chapter 1-6

Program VS Project

Must make a distinction between terms:

Program - an exceptionally large, long-range objective that is broken
down into a set of projects
Task - set of activities comprising a project
Work Packages - division of tasks
Work Units - division of work packages
In the broadest sense, a project is a specific, finite task to be accomplished

Chapter 1-8

Characteristics of a Project

Have a purpose
Have a life cycle
Interdependencies
Uniqueness
Conflict

Chapter 1-9

Why Project Management?

Companies have experienced:
Better control
Better customer relations
Shorter development times
Lower costs
Higher quality and reliability
Higher profit margins
Sharper orientation toward results
Better interdepartmental coordination
Higher worker morale
Chapter 1-10

Why Project Management?

Companies have also experienced some negatives:

Greater organizational complexity
Increased likelihood of organizational policy violations
Higher costs
More management difficulties
Low personnel utilization

Chapter 1-11

The Project Life Cycle

Stages of a Conventional Project:

Slow beginning
Buildup of size
Peak
Begin a decline
Termination

The Project Life Cycle

The Project Life Cycle

Time distribution of project effort is characterized by slow-rapid-slow

Project Life Cycle Phases:

All projects have to pass through certain phases. The attention that a particular
project receives is again not uniformly distributed throughout its life span, but it
varies from phase to phase. At a particular phase appropriate attention has to be
paid.

Following are the general phases of a project.

Conception phase

Definition phase

Planning and organizing people

Implementation phase

Project clean up phase

The above phases wont follow a sequence rather they overlap; sometimes
this overlapping is done deliberately in the interest of compressing the overall
project schedule. There are others who would encourage natural growth.

Project Life Cycle Phases

Conception phase:
Phase in which the project idea germinates. This phase is also known as
Identification of the problem, identifying the performance gap.
It we avoid or truncate this phase, the project will have innate defects and may
eventually become a liability for the investors.
How to implement the project is not the botheration of this phase. It we start
thinking about the implementation during this phase, it will unnecessary delays this
phase.
Definition Phase:
The definition phase of the project will develop the idea generated during the
conception phase and produce a document describing the project in sufficient details
covering all aspects necessary for the customer or investors to make up their minds
on the project idea.

Project Life Cycle Phases

Planning and organizing phase:
This phase can effectively start only after definition phase, but in
practice it start much earlier, almost immediately after the conception
phase. This phase overlaps so much with the definition and also with
implementation phases. That is why no formal recognition is given
to this by most organizations.
Implementation phase:
Period of hectic activity for the project. It is during this period,
something starts growing in the field and people for the first time can
see the project.

Project Life Cycle Phases

Project clean up phase:
Completion and handing over the project.
The curve in the above diagram shows that effort to build up a project
is very slow, but effort to withdraw is very sharp. It can also be seen
that time taken for the formative and clean up stage & implementation
stage. While this pattern is true for all the projects, the percentage of
effort in different phases would not be the same for all projects.
However for the same class projects the curve may be more or less the
same. A life cycle curve can thus represent a class of projects .

The Development Project Life Cycle

PP

Preliminary Planning

DD

Detailed Design

Conception phase
Definition phase
Planning and organizing

Implementation
Implementation

I
TO &
CO
The
Project

Duration 5-7 years

Turnover & Closeout Completed

Project clean up phase

Duration 5-7 years

is only an Intermediate Means to a Higher

Level objective
A Sustainable
PROGRAM
Duration 20 - 30 years

Project Life Cycle

1.
ConceptionPhases
Phase
1.Conception
Phase

2. Definition Phase
2.Definition
Phase
3.
Programming / organizing
Phase
3.Programing
4. Implementation Phase / Organizing
4.Implementation
Phase
5.
Termination Phase

Phase

5.Termination Pe

4
2
1

Project Life Cycles

Man Hours

Conceptualizat Planning
ion

Execution

Termination

The Project Cycle

Programming
Identification

Evaluation

Appraisal

Implementation

Financing

Political acceptability
Financial feasibility
Economic viability
Technical feasibility

The Project Life Cycle

1.

DEFINE

2 2.

3.

PLAN
PLAN

ORGANISE

4.

EXECUTE

5.

CLOSE
-OUT

R
E
V
I
E
W

Implementation Phase
FEASABILITY
PHASE
sometimes
called scoping
risk is assessed
feasibility tested
GO or NO GO
decision made.
If GO

PLANNING
PHASE
tasks
sequencing
milestones
estimating
budgeting
PROJECT
PLAN

ORGANISING
PHASE
resources
tools
reviews
reporting
communications

IMPLEMENTATION
PHASE
activities
monitoring:
costs
progress
controlling
quality

COMPLETION
PHASE
client hand-over (=
acceptance)
complete documentation.
review: sign off
post implementation audit
maintenance
value assessment

Participatory Monitoring and Evaluation

Participatory Impact Monitoring
Monitoring Exercise

Micro-Finance,
Co-operative and Group Formation,
Indigenous Forest Management

Spatial Data
Temporal Data
Social/Institutional Information
Discrete data
Indigenous or local data
Stakeholders Analysis,

The Logical Framework

The Work Breakdown structure
The Gantt chart
The Critical Path Method (CPM)
Exit strategies for project ending

Strengths, Weaknesses, Opportunities and Threats (SWOT) analysis

Problem-Alternative-Objective tree

Project Planning Steps Needs Analysis

Need Analysis

Aims & Objectives

Strategy or Methodology

Plan of Activities

Implementation

Follow up

Social
Analysis

Why?

What for ?

How ?

Where ?

With What

With What

Needs Analysis includes

Situation of
the target group

Political
Analysis

Problem
Analysis

Economic
Analysis

Problem Tree

Problem Tree
Effects

Objective Tree
Overall objectives

Focal problem

Project Purpose

Causes

Results

Problem Tree
Effects

High infant &

Maternal mortality
rates

High rates of
infection among
babies & infants

Poor nutritional
status of babies &
infants

Few babies &

Infants vaccinated

High incidence of
acute birth
complications

Birth complications
diagnosed late or
not at all

High rates of postpartum & neonatal infection

Low standards of
hygiene & patient
care by staf

Low attendance
Commercial
pressure to use
milk supplements

Poor seasonal
availability of high
protein foods

at rural clinics

Mothers unwilling
to attend clinics

Infrequent &
inadequate
coverage of clinics

Shortage of drugs

Low staff skills

Causes

Problem & Objective Analysis

Problems Identified

Problem tree

Objective tree

High incidence
of malnutrition

Incidence of
Malnutrition reduced

Effect

Food shortages

Rice production in
low lands decreasing

Irrigation water
does not reach field
in desired quantity

Canals are
blocked

Food production in
hills decreasing

Irregular supply
of inputs for rice
cultivation

Dikes are
degraded

Poor maintenance
system for
irrigation facilities

Ends

Improved food situation

High
immigration
rates

Soil fertility on
hill slopes is
decreasing

Rice production in
low lands improved

Ethnic clashes
in neighboring
districts

Sufficient Irrigation
water reaches the
field

Soil erosion
on hill slopes

Canals
cleared

Cause

Food production in
hills increased

Regular supply
of inputs for rice
cultivation

Dikes are
upgraded

Maintenance
system for irrigation
facilities improved

Lower
immigration
rates

Soil fertility on
hill slopes is
increased

Less Ethnic clashes

in neighboring
districts

Soil erosion
on hill slopes
reduced

Means

City Bus Service Problem Tree

City Bus Service Objective Tree

Use of CBS by
the population
decreases

Financial situation
of the company
improved

Service offered
by the CBS
unreliable

Many
passengers
wounded

Increased use of
the CBS by the public

Service offered by
the CBS is reliable

Frequent
delays

Number of
wounded
passengers
decreased

Frequent bus
accidents

Fewer delays
Scheduling & utilization
of buses is improved

Fewer bus
accidents
Drivers are
rude

Long
workday

Drivers drive
poorly

Low
salaries

Bus fleet
in old

Bus fleet in
poor condition

Poor bus
maintenance

Drivers
are
courteous
Roads are
poor

Poor
topography

Regular
Workday
Fair
Salaries

Drivers
Drive well

Safety
precautions &
inspection
system
implemented

Bus fleet in
good condition

Bus
drivers
trained

Incentive
system
implemented

Schedule for
replacement
of buses
established

Good bus
maintenance

Redesign &
recondition
of roads

Roads are
in good
condition

Good
road
maintenance

Transforming problems into objectives

Problems

Objectives

Infant & maternal mortalit

High infant & maternal
rates reduced
mortality rates
High incidence ofReduced
acute birth
incidence of acute
complications
birth complications

Birth complications diagnosed

Increased / earlier diagno
late or not at all
of birth complications

Children miss schools

Crop yields decreases

So what

So what
No money to pay school fees

No money to buy new seeds

So what

So what
Lack of
income
But why
Nothing to sell
But why
Poor yields

But why
Few Jobs
But why
But why
Local factory closed
Immigration

Incidence of
malnutrition
reduced

Improved
food
situation

Rice production
in low lands
increased

Food
Production on
hills increased

Lower
Immigration
rates
Imm
igrat
ion

Sufficient
irrigation water
reaches field
Irrig
ation
s

Regular supply
of inputs for
rice production
Agri
cu l

ystem

Canals
cleared

Dikes are
upgraded

tura
l

i npu

Soil fertility
on hill slopes
increased
Soil

ts

Less ethinic
clashes on
hill slopes

ferti
lity

Soil erosion of
hill slopes
reduced

Strategies
Maintenance of
irrigation
facilities
improved

Work Breakdown Structure

Work breakdown structure for the recruitment of a new person to fill a vacant post.

Project Evaluation Review Technique

Network diagram for the recruitment of a new person to fill a vacant post.

CRITICAL PATH

PERT Chart

GANTT Chart
for the recruitment of a new person to fill a vacant post

GANTT charts are a user-friendly visual version of network diagrams, designed to be

easily understood and applied by non - chart-ographers !

GANTT Chart

PERT Diagram

Phase

Major Attributes/Emphasis

Leadership Style/Blend

Feasibility Study
(Pre-formulation)

Sense of vision
"Big Picture"
(conceptual)
Analysis

Visionary
Creates future
Empowerment
Expansive

Conceptual
(Formulation)

Listening
Analysis
Alignment

Analytical
Listener
Change master
Convergence

Development

Participative/Accept Team builder

ance
Power and
and commitment
influence
Cooperative
Integrator

Execution

Re-alignment

Decision maker
Balances work
and fun
Trustworthiness
Team and
synergy

Finishing

Transfer of product
and information

Administrator
Closure

The Project Life Cycle

Risk during project life cycle
With most projects there is some
uncertainty about the ability to meet
project goals
Uncertainty of outcome is greatest at
the start of a project
Uncertainty decreases as the project
moves toward completion
Chapter 1-18

Risk During Project Life

Cycle
Uncertainty decreases as the project moves
toward completion

Chapter 1-19

Success of a Project

Good /
Careful
Planning
Project
addresses
the
real problems
of the
target groups

Parties
involved
stick to
their
commitments

Fair
representation
of different
interests
through
participation

Efficient project
management

Competent &
Motivated
project team

Success of a
Project

Beneficiaries
are clearly
identified by
gender &
socio economic
group

Fair
allocation
of costs &
benefits
between
men & women

Organizational
capacity

What is a successful project?

Customer / Clients requirements satisfied/exceeded
Completed within allocated time frame
Completed within allocated budget
Acceptance by the customer

Project Sustainability

Sustainability Defined
To keep in existence; maintain (The American Heritage)
The ability of a system of any kind to endure and be healthy over the long
term. A sustainable society is one that is healthy, vital, resilient, and able
to creatively adapt to changing conditions over time. (Top 10 by 2010,
Southwest Louisiana)
The ability of an organization to develop a strategy of growth and
development that continues to function indefinitely. (Dorothy A. Johnson
Center for Philanthropy & Leadership)

Project Sustainability Defined

What project sustainability means
Maintaining

the

outcomes,

goals and products

Institutionalizing the process

What

project

sustainability

doesnt mean
Maintaining staff positions
Maintaining all activities
Depending on grant funding

Project Sustainability:
Ask the right questions
What are we doing? Do other people know what were doing?
What outcomes do we want to sustain?

Is there data to support our

results?
What are the fiscal needs?
What are the management needs?
Who champions this initiative?
Who else do these outcomes affect? Whose interests does this support?

Strategies for Sustainability

Develop broad-based relationships/partnerships that foster collaboration.
Involve all stakeholders:

parents, students, business, politicians,

community leaders, school administrations, funders.

Nurture community involvement.
Develop a core of supporters.
Be visible. Develop an outreach plan.
Link evaluation to project success and then to marketing.
Be flexible. Modify the project based on evaluation and feedback.
Communicate, communicate, communicate.
Share resources. Share expertise. Share successes.

Textbook Structure
Structure of the text follows the life
cycle of projects
Text divided into 3 main sections:
Part I - Project Initiation
Part II - Project Implementation
Part III - Project Termination

Chapter 1-20

Summary
The Project Management Institute (PMI) was
founded in 1969 to foster the growth and
professionalism of project management
Project management is now being
recognized as a valuable career path in
many organizations, as well as a way to
gain valuable experience within the
organization
Chapter 1-21

Summary
The three primary forces behind
project management are:
1. The growing demand for complex,
customized goods and services
2. The exponential expansion of human
knowledge
3. The global production-consumption
environment
Chapter 1-22

Summary
The three prime objectives of project
management are:
1. To meet specified performance
2. To do it within specified costs
3. Complete on schedule

Terminology follows in this order:

program, project, task, work
package, work unit
Chapter 1-23

Summary
Projects are characterized by a
singleness of purpose, a definite life
cycle, complex interdependencies,
some or all unique elements, and an
environment of conflict
Project management, though not
problem-free, is the best way to
accomplish certain goals
Chapter 1-24

Summary
Projects often start slow, build up
speed while using considerable
resources, and then slow down as
completion nears
This text is organized along the project
life cycle concept:
Project Initiation (Chapters 2-6)
Project Implementation (Chapters 7-11)
Project Termination (Chapters 12-13)

Chapter 1-25

Projects in Contemporary
Organizations

Questions?

Chapter 1-26

Projects in Contemporary
Organizations

Picture Files

Projects in Contemporary
Organizations

Figure 1-1

Projects in Contemporary
Organizations

Figure 1-2

Projects in Contemporary
Organizations

Figure 1-3

Projects in Contemporary
Organizations

Figure 1-4

Projects in Contemporary
Organizations

Figure 1-5

Projects in Contemporary
Organizations

Figure 1-6

Copyright 2000 John Wiley & Sons, Inc. All rights

reserved. Reproduction or translation of this work
beyond that permitted in Section 117 of the 1976
United States Copyright Act without the express
written permission of the copyright owner is unlawful.
Request for further information should be addressed
to the Permissions Department, John Wiley & Sons,
Inc. The purchaser may make back-up copies for
his/her own use only and not for distribution or resale.
The Publisher assumes no responsibility for errors,
omissions, or damages, caused by the use of these
programs or from the use of the information
contained herein.