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PROJECT MANAGEMENT 641
PAPER 4
MODERN PROJECT MANAGEMENT
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MODERN PROJECT MANAGEMENT
The 1940s
The Manhattan Project - first evidence of modern PM.
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MODERN PROJECT MANAGEMENT
The 1950s
2 major developments:
Network planning/control techniques -
PERT/CPM/PDM
Systems engineering and management.
Modern PM in early 1950s by US Air Force & Navy.
Large number of planes & rockets projects.
Engineering & Production offices combined
Atlas ICBMs used systems approach -
managed as 1 entity.
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MODERN PROJECT MANAGEMENT -
The 1950s [cont’d]
1956 USAF report:
Projects organised on product not functional basis
General elevation of the project management function
Polaris :
Elevated authority of 'Project' within organisation
Led to development of PERT
Gaddis - Article broaden the focus of PM
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MODERN PROJECT MANAGEMENT -
The 1960s
Growth in systems integration, & plan/control tools.
Major theme - theoretical organisational basis for PM
US Defence introduced core PM tools (esp. Apollo). eg: life-cycle
costing, C/SCSC, work breakdown structure.
Construction industry began to use modern PM tools
Emergence of an intellectual interest in PM
Growing use of matrix in many organisations
PM tools overemphasied, integration overlooked
MODERN PROJECT MANAGEMENT
The 1970s
Project-based firms use PM as permanent function.
Growing influence of external factors upon projects.
Growth of matrix as PM tools used for special tasks
Perceptions of PM: middle-management, intra-
organisational skill. But real projects indicate a fuller view -
ie impact of external factors
PMI & Internet established - focus on techniques used by
intra-project middle management.
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MODERN PROJECT MANAGEMENT
The 1980s
PM a mature management discipline.
creation of PM degree courses
proliferation of publications on PM
increasing use of PM PC-based tools.
focus on top-down strategic management of projects:
attention to defining project success criteria
importance of effects of external factors
importance of managing project as soon as an idea
involvement of client & end users of project's product
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MODERN PROJECT MANAGEMENT
The 1980s [cont’d]
application of quality assurance to project activities
sophisticated procurement & financing
IT - faciliated PM, & created a class of projects
Writings on PM : risk management; expert systems; project
success; strategic project management.
Gareis (1989) - "Management by Projects"
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MODERN PROJECT MANAGEMENT
SUMMARY
50S
- MPM by USAF
Organisational integration
Systems management
CPM/PERT
60s
Matrix
WBS,, earned value, PDM
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MODERN PROJECT MANAGEMENT
SUMMARY
70s
heavy focus on TCQ
Growing importance of external factors
Focus on middle-PM
80s
becomes mature & broadens
eg risk, TQM, partnering, project success
PC-based “PM” software
Pmbok published
“Management by Projects”
Why did modern PM emerged ?
COMPLEXITY
Growing complexity of tasks performed by organisations.
This required specialisation - multi-disciplinary inputs
This required a high level of coordination
Project management provided this INTEGRATION.
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Why did modern PM emerged ?
CHANGE
Organisations work in increasingly dynamic world
Constantly under pressure to implement change
And changes occurring at an accelerating pace.
Changes implemented by projects and PM
TIME
Intense competition -products made asap
Tight time and cost constraints - well suited for PM
1990s and the future
PM to be recognised as an individual discipline
“PM will become an expected professional skill”
Corporate Strategies
Organisations respond to rapid change by right CS.
PM seen as appropriate for implementing CS
PM as Mainstream
“change from perceiving PM unique towards seeing
PM methods as elements in management in general”
Broader Management Input
PM not mainly task of PMs, but all management
needed, top managers & project participants
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1990s and the future
Concurrent Engineering
CE aims for shorter product life cycles.
CE = requires multi-disciplinary teams.
This process lends itself to the application of PM
Stakeholder Management
More projects dealing with many influential SHs.
Interface management will be significant focus for
PM.
Quality
TQM in projects will grow - ISO/CD 10006
Collaborative Arrangements
Strategic alliances & partnering to grow in
popularity
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1990s and the future
Information Technology
Computer-based developments in projects to grow
- better PM software; expert systems, risk analysis, EDI
Multi-project Management
Manage network of projects. Integration needed
Certification
Process to verify PM’s competencies to others
PMI - PMP APM UK AIPM - RegPM
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1990s and the future
Front-End Management
Greater emphasis in starting up projects- Verification of
objectives, value management, risk management;
Team Building
Team processes will grow, eg - team empowerment,
consensus decision-making
Beyond Technical Expertise
Require PMs whose competency is PM - not technical
Skills in business, risk, integration - not technical
Virtual teams
Project teams to be geographically dispersed
The Professionalism of PM
Project Management Institute
1969. 44,000. 1998 budget -$12m
Developed PmBok. Annual Conference
PM Journal (4) & PM Network (12)
International Project Management Association
1985. 22 European bodies. 10,000. UK -
4,000
International Journal of PM (6)
Australian Institute of Project Management
1976.2000.Australian Project Manager (12)
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Modern Project Management - Overview

  • 1. PROJECT MANAGEMENT 641 PAPER 4 MODERN PROJECT MANAGEMENT © www.asia-masters.com
  • 2. MODERN PROJECT MANAGEMENT The 1940s The Manhattan Project - first evidence of modern PM. © www.asia-masters.com
  • 3. MODERN PROJECT MANAGEMENT The 1950s 2 major developments: Network planning/control techniques - PERT/CPM/PDM Systems engineering and management. Modern PM in early 1950s by US Air Force & Navy. Large number of planes & rockets projects. Engineering & Production offices combined Atlas ICBMs used systems approach - managed as 1 entity. © www.asia-masters.com
  • 4. MODERN PROJECT MANAGEMENT - The 1950s [cont’d] 1956 USAF report: Projects organised on product not functional basis General elevation of the project management function Polaris : Elevated authority of 'Project' within organisation Led to development of PERT Gaddis - Article broaden the focus of PM © www.asia-masters.com
  • 5. MODERN PROJECT MANAGEMENT - The 1960s Growth in systems integration, & plan/control tools. Major theme - theoretical organisational basis for PM US Defence introduced core PM tools (esp. Apollo). eg: life-cycle costing, C/SCSC, work breakdown structure. Construction industry began to use modern PM tools Emergence of an intellectual interest in PM Growing use of matrix in many organisations PM tools overemphasied, integration overlooked
  • 6. MODERN PROJECT MANAGEMENT The 1970s Project-based firms use PM as permanent function. Growing influence of external factors upon projects. Growth of matrix as PM tools used for special tasks Perceptions of PM: middle-management, intra- organisational skill. But real projects indicate a fuller view - ie impact of external factors PMI & Internet established - focus on techniques used by intra-project middle management. © www.asia-masters.com
  • 7. MODERN PROJECT MANAGEMENT The 1980s PM a mature management discipline. creation of PM degree courses proliferation of publications on PM increasing use of PM PC-based tools. focus on top-down strategic management of projects: attention to defining project success criteria importance of effects of external factors importance of managing project as soon as an idea involvement of client & end users of project's product © www.asia-masters.com
  • 8. MODERN PROJECT MANAGEMENT The 1980s [cont’d] application of quality assurance to project activities sophisticated procurement & financing IT - faciliated PM, & created a class of projects Writings on PM : risk management; expert systems; project success; strategic project management. Gareis (1989) - "Management by Projects" © www.asia-masters.com
  • 9. MODERN PROJECT MANAGEMENT SUMMARY 50S - MPM by USAF Organisational integration Systems management CPM/PERT 60s Matrix WBS,, earned value, PDM © www.asia-masters.com
  • 10. MODERN PROJECT MANAGEMENT SUMMARY 70s heavy focus on TCQ Growing importance of external factors Focus on middle-PM 80s becomes mature & broadens eg risk, TQM, partnering, project success PC-based “PM” software Pmbok published “Management by Projects”
  • 11. Why did modern PM emerged ? COMPLEXITY Growing complexity of tasks performed by organisations. This required specialisation - multi-disciplinary inputs This required a high level of coordination Project management provided this INTEGRATION. © www.asia-masters.com
  • 12. Why did modern PM emerged ? CHANGE Organisations work in increasingly dynamic world Constantly under pressure to implement change And changes occurring at an accelerating pace. Changes implemented by projects and PM TIME Intense competition -products made asap Tight time and cost constraints - well suited for PM
  • 13. 1990s and the future PM to be recognised as an individual discipline “PM will become an expected professional skill” Corporate Strategies Organisations respond to rapid change by right CS. PM seen as appropriate for implementing CS PM as Mainstream “change from perceiving PM unique towards seeing PM methods as elements in management in general” Broader Management Input PM not mainly task of PMs, but all management needed, top managers & project participants © www.asia-masters.com
  • 14. 1990s and the future Concurrent Engineering CE aims for shorter product life cycles. CE = requires multi-disciplinary teams. This process lends itself to the application of PM Stakeholder Management More projects dealing with many influential SHs. Interface management will be significant focus for PM. Quality TQM in projects will grow - ISO/CD 10006 Collaborative Arrangements Strategic alliances & partnering to grow in popularity © www.asia-masters.com
  • 15. 1990s and the future Information Technology Computer-based developments in projects to grow - better PM software; expert systems, risk analysis, EDI Multi-project Management Manage network of projects. Integration needed Certification Process to verify PM’s competencies to others PMI - PMP APM UK AIPM - RegPM © www.asia-masters.com
  • 16. 1990s and the future Front-End Management Greater emphasis in starting up projects- Verification of objectives, value management, risk management; Team Building Team processes will grow, eg - team empowerment, consensus decision-making Beyond Technical Expertise Require PMs whose competency is PM - not technical Skills in business, risk, integration - not technical Virtual teams Project teams to be geographically dispersed
  • 17. The Professionalism of PM Project Management Institute 1969. 44,000. 1998 budget -$12m Developed PmBok. Annual Conference PM Journal (4) & PM Network (12) International Project Management Association 1985. 22 European bodies. 10,000. UK - 4,000 International Journal of PM (6) Australian Institute of Project Management 1976.2000.Australian Project Manager (12) © www.asia-masters.com