Chapter 2 : Project Management
2.4 Brief History of Project Management
2.4.1 Five Periods in the Development of Modern Project Management
In an effort to capture the development of modern project management, Kwak et al. (2014) identified four periods in its history: prior to 1958, 1958–1979, 1980–1994 and 1995 to the present. With the introduction of Building Information Modelling (BIM) in 2011, however, there is now a fifth period in the development of project management. Numerous developments delineating these periods are shown in table 2.1. During these periods, project management transformed from a craft system to human relations administration, and is now moving towards collaborative partnerships.
· First Period Prior to 1958
In the period prior to 1958, improvements to transportation and telecommunication systems allowed for greater mobility and speedy communication. Gantt charts were also developed (in the second decade of the 20th century), and led to the development of job specifications, knowledge,
skills and abilities deemed necessary for successful project management (Kwak et al., 2005; Shenhar, 2008; Seymour and Hussein, 2014).
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In the USA, important projects of the pre-1958 period include the construction of Hoover Dam (1930s), the Manhattan Project (1940s), and the building of the Interstate Highway (1950s) (Hwang and Ng, 2013). Gantt charts were first used in the Hoover Dam project. These projects are important because they began the modern age of project management (Shenhar, 2008), with the Manhattan Project exhibiting “the principles of organization, planning, and direction that influenced the development of standard practices for managing projects” (Shenhar, 2008, p.1).
· Second Period 1958-1979
There were significant technological advancements between 1958 and 1979. In 1959, Xerox introduced the first automatic plain-paper copier. In the 1960s, many industries were influenced by the development of silicon chips and minicomputers (Franzen and Moriarty, 2008). In 1969, Bell Laboratories developed the programming language UNIX and the computer industry began to develop rapidly (Emmick, 2008). NASA’s successful Apollo project earmarked a historic event of mankind. In 1971, Intel introduced 4004, a 4-bit microprocessor, which was the foundation of the evolution of Intel’s 80386, 80486, and Pentium processors in the 1990s (Kwak et al., 2005). While many dedicated scientists developed ARPANET (Griffiths, 2002), in 1972 Ray Tomlinson introduced the first e-mail software (Showalter, 2007). In 1975, Bill Gates and Paul Allen founded Microsoft (Greene, 2011). Several project management software companies were developed during the 1970s, including Artemis (1977), Scitor Corporation (1979), and Oracle (1977) (Kwak et al., 2005; Camilleri, 2012).
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Table.2.1 Five periods of project management (adapted from Kwak et al., 2005)
* (BIM Industry Working Group, 2011)
Period Technology Management Science Project Management &
Technology Major Projects Project Office Standards Guidance Definitions
Focal point “Proximity” Traditional project office
functions Navy Special Project
Office (SPO) ISO Total Quality Management Globalisation Quality Management IBM 7090 Xerox copier UNIX Microsoft Founded Telegraph Telephone First computer Automobile Aeroplane First database Adam Smith Frederick W. Taylor Henry Fayor Henry Gantt A. McGregor's XY theory Parametric Cost Estimation PERT/CPM Gantt Chart Monte Carlo Simulation
Systematic Application Inter-continental railroads Hoover Dam Polaris Manhattan Project Panama Canal 3PM Digital & Network Office
ISO 21500:2012 PMBOK (PMI):2013 PRINCE2 Six Sigma Scrum Build Qatar Live 2012
New Crossrail Station at Woolwich Building Information Modelling (BIM)* PMBOK (PMI) Regeneration Sustainability Integration Maturity Personal Computer Wireless in-building network First Internet browser (MOSAIC) Manufacturing resource planning Risk management Matrix organisation PM Software for PC Boeing 777 Challenger Space Shuttle The English-French Channel
project Project Headquarter War Room 2011 ~ Present Collaborative working tools A temporary endeavour undertaken to create a unique product or service (PMI, 2013) BS 9000:1971 BS 5179: 1974 BS 5750: 1979 BS 5750: 1979 ISO 9000:1987 ISO 9000:1994 ASTM E 621: 1994 EN 13290-1:1999 BS 6079-3:2000 ISO 9001:2000 BS ISO 15188:2001 BS ISO 10006:2003 BS EN 9200:2004 GAPPS:2007 ISO 22263:2008 BS 6079-1:2010 ISO 21500:2012 BSR 08-002-2013 EN 16601-60:2014 PAS 1192-3:2014 EN 16601-10:2015 ASTM E 1369: 2015 ISO 9001:2015 BS ISO 21504:2015 PMBOK (PMI) PRINCE2 ISO 15188:2001 Six Sigma Scrum Virtual Project Office
Web-based Project Office
1980 ~ 1994 Six Sigma:1980 A project is an organisation of people dedicated to a specific purpose or objective (Tuman, 1983) 1995 ~ 2011 Internet An endeavour in which human, financial and material
resources are organized in a novel
way to undertake a unique scope of work
(Turner, 1999) Iridium Y2K project PMBOK (PMI) Critical chain Enterprise Resource Planning ~ 1958 ANSI Project is a problem scheduled for solution
(Juran, 1951) 1959 ~ 1979 Complex of activities involved in using resources to gain benefits (Gittinger, 1972) Project Supporting Office
Apollo 11 ARPANET PMI Inventory Control Material requirement planning
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Between 1950 and 1979, various core project management tools including Critical Path Method (CPM), Programme Evaluation Review Technique (PERT), Material Requirement Planning (MRP) and others were introduced (Kwak et al., 2005). CPM/PERT was calculated in large computer systems, and specialised programmers operated the CPM/PERT mainly for government projects. Many organisations used the project office as “brokers of information” with a small number of skilled schedulers and estimators (Carayannis et al., 2005). The two major professional project management bodies Project Management Institute (PMI) and International Project Management Association (IPMA), one North American and the other European, were established in the 1960s, indicating the extent of the development of project management through the 1960s, primarily thanks to CPM, PERT and PDM (Stretton, 2007).
In relation to the expansion of project management application areas. Forty-five years ago, project management was confined to the construction companies and Department of Defense contractors. Today, the concepts behind project management have spread to virtually all industries, including construction, defence, chemicals, pharmaceuticals, law, accounting, banking, advertising, government agencies, and the United Nations (Kerzner, 1979). In the 1970s, writing on project management took two significant new directions. We might call this period one of ‘applications’ and ‘professional recognition’. New names joined the list as a wide variety of applications surfaced (Snyder, 1987).
· Third Period 1980 - 1994
During the 1980s and early 1990s, the revolution in the IT/IS sector shifted people from using mainframe computers to multitasking personal computers highly efficient at managing and controlling complex project schedules (Kwak et al., 2005). In the mid-80s, the Internet served developers and researchers, and local area networks and Ethernet technology began to dominate network technology (Leiner et al., 2000).
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During the 1950s through 1970s, most computer engineers were responsible for operating project management systems because the mainframe systems were not easy to use (Antich, 2013). Morris and Hough (1987) acknowledged the unfriendliness of the mainframe software. During the late 1970s and early 1980s, project management software for PCs were made widely available by a number of companies in the mid-1980s, which made project management techniques more easily accessible (Kerzner, 2004)
The Calgary Winter Olympic Games in 1988 applied project management to the field of event management. Its successful adoption of project management practices expanded to various event management practices (XV Olympic Winter Games Organizing Committee, 1988). Whereas, the 70s of the last century saw the spread of individual applications of project management, and many refinements and extensions of project management tools and techniques, the decade of the 80s was several attempts to integrate the emerging experience from the many various application areas into principles and practices that would be applicable in most projects in most application fields and areas (sometimes referred to as generic). (Stretton, 2007). The most conspicuous of these initiatives was the Project Management Institute’s publications of its body of knowledge of project management, known as PMBOK (Ibid).
The 1980s and 1990s saw the project management professional associations begin formalising what they considered to be the intellectual “scope”, or definition, of the subject in their “bodies of knowledge” (BoKs) (Peter, 2013). For APM, the 1980s were a decade of consolidation, change and growth as professional project management became increasingly recognised and required. A professional standards group was formed under the leadership of Eric Gabriel and set out the standards and codes of practice. Technology and professional printing began to enter help cope, but the dedicated input of hard work, skills, knowledge and
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creativity (APM, 2010). The Project Manager had become a well-received quarterly publication and in 1983, led by APM, INTERNET (later IPMA) published the first issue of The International Journal of Project Management, printed in the UK under the control of an international board and edited by a succession of APM members, the last of whom, Professor Rodney Turner, is still the editor today (APM, 2010).
The first complete version of PMI’s Project Management Body of Knowledge (PMBOK) appeared in the August 1986 edition of the Project Management Journal. This was an extraordinarily more developed version of the PMBOK than the 1983 ESA Report (Stretton, 2007; Cagle, 2005).
· Fourth Period 1995 - 2011
Projects have been undertaken for millennia, but it was only in the last decades of the 20th century that people started talking about ‘project management’ (Weaver, APM, 2006). The Internet started to change virtually every business practice in the mid-1990s (Turban et al., 2000; Wankel, 2007; Venkatachalam and Sellappan, 2010). It provided a fast, interactive, and customised new medium that allowed people to browse, purchase, and track products and services online instantly. As a result, the Internet permitted organisations to be more productive, more efficient, and more customer-oriented (Jyoti, 2010; Chui et al., 2012).
· Fifth Period 2011 - Current Day
In recent years, the effects of globalisation have had significant implications for information technology. Companies face the increasing needs of the market, and tend to change or update their business approaches in line with new trends (Surugiu et al., 2015). Project management research has shown increased focus on linking competencies and information technologies (Obradovic et al., 2014). From one point of view, the rapid development of mobile technology has an increasing influence on project management approaches (Chin, 2014). From
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another perspective, more sophisticated IT tools help project managers to effectively capture information in a wide network around the world (Surugiu et al., 2015).
Web-based project management tools integrate knowledge management issues with collaboration tools, focusing on communication between project managers, different employees, stakeholders and top management (Obradovic et al., 2014). Furthermore, project manager assignment and sufficient resource allocation contribute to improved project performance, and management of the interrelationship between projects contributes to project manager development (Patanakul, 2013).
Nowadays, the desire to reduce operational and capital costs and relieve the impact of carbon from both the construction and operation of the built environment is a pivotal driver for change (Turner and Townsend, 2014). Building Information Modelling (BIM) has become a higher priority following its mandate by a number of governments and states (APM, 2014; Turner and Townsend, 2014). By 2016, United Kingdom (UK) Government Construction made BIM mandatory on all centrally procured government projects. The Government Construction Strategy also encouraged the use of information technology – most notably BIM – to facilitate integration, and support the design, construction and long-term operation and maintenance of its built assets (H M Government, 2015).
BIM is a set of digital tools that can assist in the effective management of construction projects (Kensek, 2015). It is a technology-guided process to manage construction projects (Azhar et al., 2012). It has also been described as a new approach to construction procurement and a new way of working for construction stakeholders facilitated through virtual technologies (Kehily and Underwood, 2015), representing a set of technological developments and processes that has transformed the ways in which infrastructure is designed, analysed, constructed and managed (Cho et al., 2011). BIM can enhance and improve the planning
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process, design and construction of projects, providing an alternative approach to the traditional paper-based method of project design and management (Kehily and Underwood, 2015). The BIM concept was first introduced in 1970 by Professor Charles M. Eastman (Forbes and Ahmed, 2010; Eastman et al., 2011). AEC industries started to implement BIM in construction projects in the mid-2000s (Azhar et al., 2012). The United States of America (USA) was the first country to implement BIM (NIBS, 2007). Nowadays, BIM is implemented in many countries such as the United Kingdom (UK), Denmark, Australia, Hong Kong, Finland, Norway and Singapore (NIBS, 2007; Cheng et al., 2015).