SCHOOL OF BUSINESS AND ECONOMICS

NAIROBI CAMPUS

PROJECT AND CONTRACT MANAGEMENT

BBM 446

INDIVIDUAL ASSIGNMENT (C.A.T.)

NAME: MOHAMED HASHI JAMA

ADM. NO. BBM/2008/18

SUBMITED TO : DR. ROBERT BETT

16TH JULY 2021.

QUESTION ONE.

History of Project Management.

The Evolution of Project Management

The importance of Project Management is an important topic because all organisations, be they
small or large, at one time or other, are involved in implementing new undertakings. These
undertakings may be diverse, such as, the development of a new product or service; the
establishment of a new production line in a manufacturing enterprise; a public relations
promotion campaign; or a major building programme. Whilst the 1980s were about quality and
the 1990s were all about globalisation, the 2000s are about velocity. That is, to keep ahead of
their competitors, organisations are continually faced with the development of complex products,
services and processes with very short time-to-market windows combined with the need for
cross-functional expertise. In this scenario, project management becomes a very important and
powerful tool in the hands of organisations that understand its use and have the competencies to
apply it.

The development of project management capabilities in organisations, simultaneously with the

application of information management systems, allow enterprise teams to work in partnership in
defining plans and managing take-to-market projects by synchronising team-oriented tasks,
schedules, and resource allocations. This allows cross-functional teams to create and share
project information. However, this is not sufficient, information management systems have the
potential to allow project management practices to take place in a real-time environment. As a
consequence of this potential project management proficiency, locally, nationally or globally
dispersed users are able to concurrently view and interact with the same updated project
information immediately, including project schedules, threaded discussions, and other relevant
documentation. In this scenario the term dispersed user takes on a wider meaning. It not only
includes the cross-functional management teams but also experts drawn from the organisation's
supply chain, and business partners.

On a macro level organisations are motivated to implement project management techniques to

ensure that their undertakings (small or major) are delivered on time, within the cost budget and
to the stipulated quality. On a micro level, project management combined with an appropriate
information management system has the objectives of: (a) reducing project overhead costs; (b)
customising the project workplace to fit the operational style of the project teams and respective
team members; (c) proactively informing the executive management strata of the strategic
projects on a real-time basis; (d) ensuring that project team members share accurate, meaningful
and timely project documents; and (e) ensuring that critical task deadlines are met. Whilst the
motivation and objectives to apply project management in organisations is commendable, they
do not assure project success.

However, before discussing the meaning and achievement of project success it is appropriate at
this stage to provide a brief history of project management.

Brief History of Project Management

Project management has been practiced for thousands of years dating back to the Egyptian
epoch, but it was in the mid-1950s that organisations commenced applying formal project
management tools and techniques to complex projects. Modern project management methods
had their origins in two parallel but different problems of planning and control in projects in the
United States. The first case involved the U.S Navy, which at that time was concerned with the
control of contracts for its Polaris Missile project. These contracts consisted of research,
development work and manufacturing of parts that were unique and had never been previously
undertaken.

This particular project was characterised by high uncertainty, since neither cost nor time could be
accurately estimated. Hence, completion times were based on probabilities. Time estimates were
based on optimistic, pessimistic and most likely. These three time scenarios were mathematically
assessed to determine the probable completion date. This procedure was called program
evaluation review technique (PERT). Initially, the PERT technique did not take into
consideration cost. However, the cost feature was later included using the same estimating
approach as with time. Due to the three estimation scenarios, PERT was found (and still is) to be
best suited for projects with a high degree of uncertainty reflecting their level of uniqueness. The
second case, involved the private sector, namely, E.I du Pont de Nemours Company, which had
undertaken to construct major chemical plants in U.S. Unlike the Navy Polaris project, these
construction undertakings required accurate time and cost estimates. The methodology
developed by this company was originally referred to as project planning and scheduling (PPS).
PPS required realistic estimates of cost and time, and is thus a more definitive approach than
PERT. The PPS technique was later developed into the critical path method (CPM) that became
very popular with the construction industry.

During the 1960s and 1970s, both PERT and CPM increased their popularity within the private
and public sectors. Defence Departments of various countries, NASA, and large engineering and
construction companies world wide applied project management principles and tools to manage
large budget, schedule-driven projects. The popularity in the use of these project management
tools during this period coincided with the development of computers and the associated
packages that specialised in project management. However, initially these computer packages
were very costly and were executed only on mainframe or mini computers. The use of project
management techniques in the 1980s was facilitated with the advent of the personal computer
and associated low cost project management software. Hence, during this period, the
manufacturing and software development sectors commenced to adopt and implement
sophisticated project management practices as well. By the 1990s, project management theories,
tools and techniques were widely received by different industries and organisations.

Four Periods in the Development of Modern Project Management

[1] Prior to 1958: Craft system to human relations. During this time, the evolution of
technology, such as, automobiles and telecommunications shortened the project schedule. For
instance, automobiles allowed effective resource allocation and mobility, whilst the
telecommunication system increased the speed of communication. Furthermore, the job
specification which later became the basis of developing the Work Breakdown Structure (WBS)
was widely used and Henry Gantt invented the Gantt chart. Examples of projects undertaken
during this period as supported by documented evidence include: (a) Building the Pacific
Railroad in 1850s; (b) Construction of the Hoover Dam in 1931-1936, that employed
approximately 5,200 workers and is still one of the highest gravity dams in the U.S. generating
about four billion kilowatt hours a year; and (c) The Manhattan Project in 1942-1945 that was
the pioneer research and development project for producing the atomic bomb, involving 125,000
workers and costing nearly $2 billion.

[2] 1958-1979: Application of Management Science. Significant technology advancement took

place between 1958 and 1979, such as, the first automatic plain-paper copier by Xerox in 1959.
Between 1956 and 1958 several core project management tools including CPM and PERT were
introduced. However, this period was characterised by the rapid development of computer
technology. The progression from the mainframe to the mini-computer in the 1970s made
computers affordable to medium size companies. In 1975, Bill Gates and Paul Allen founded
Microsoft. Furthermore, the evolution of computer technology facilitated the emergence of
several project management software companies, including, Artemis (1977), Oracle (1977), and
Scitor Corporation (1979). In the 1970s other project management tools such as Material
Requirements Planning (MRP) were also introduced.

Examples of projects undertaken during this period and which influenced the development of
modem project management as we know it today include: (a) Polaris missile project initiated in
1956 that had the objective of delivering nuclear missiles carried by submarines, known as Fleet
Ballistic Missile for the U.S Navy. The project successfully launched its first Polaris missile in
1961; (b) Apollo project initiated in 1960 with the objective of sending man to the moon; and (c)
E.I du Pont de Nemours chemical plant project commencing in 1958, that had the objective of
building major chemical production plants across the U.S.

[3] 1980-1994: Production Centre Human Resources. The 1980s and 1990s are characterised by
the revolutionary development in the information management sector with the introduction of the
personal computer (PC) and associated computer communications networking facilities. This
development resulted in having low cost multitasking PCs that had high efficiency in managing
and controlling complex project schedules. During this period low cost project management
software for PCs became widely available that made project management techniques more easily
accessible.

Examples of major projects undertaken during this period that illustrate the application of high
technology, and project management tools and practices include: (a) England France Channel
project, 1989 to1991. This project was an international project that involved two governments,
several financial institutions, engineering construction companies, and other various
organisations from the two countries. The language, use of standard metrics, and other
communication differences needed to be closely coordinated; (b) Space Shuttle Challenger
project, 1983 to 1986. The disaster of the Challenger space shuttle focused attention on risk
management, group dynamics, and quality management; and (c) xv Calgary Winter Olympic of
1988, which successfully applied project management practices to event management.

[4] 1995-Present: Creating a New Environment. This period is dominated by the developments
related to the Internet that changed dramatically business practices in the mid 1990s. The Internet
has provided fast, interactive, and customised new medium that allows people to browse,
purchase, and track products and services online instantly. This has resulted in making firms
more productive, more efficient, and more client oriented. Furthermore, many of today's project
management software have an Internet connectivity feature. This allows automatic uploading of
data so that anyone around the globe with a standard browser can: (a) input the most recent status
of their assigned tasks; (b) find out how the overall project is doing; (c) be informed of any
delays or advances in the schedule; and (d) stay "in the loop" for their project role, while
working independently at a remote site.

An example of a major project undertaken during this period is the Year 2000 (Y2K) project.
The Y2K Project, known as the millennium bug referred to the problem that computers may not
function correctly on January 1st, 2000 at 12 AM. This was a global phenomenon and was highly
problematic because resolving the problem at one's organisation did not guarantee immunity,
since a breakdown in the organisation's supply chain could affect the organisation's operating
capability. Many organisations set up a project office to control and comply with their
stakeholders regarding the Y2K issue. Furthermore, use of the Internet was common practice that
led to the establishment of the virtual project office. The goal of this virtual project office was:
(a) to deliver uninterrupted turn-of-the-century; (b) monitor Y2K project efforts; (c) provide
coordination; (d) develop a risk management plan; and (e) communicate Y2K compliance efforts
with various stakeholders. Thus, the virtual project office was a focal point for all the project
works, and it increased the awareness and importance of risk management practices to numerous
organisations.
There is no doubt that organisations today face more aggressive competition than in the past and
the business environment they operate in is a highly turbulent one. This scenario has increased
the need for organisational accountability for the private and public sectors, leading to a greater
focus and demand for operational effectiveness and efficiency.

Effectiveness and efficiency may be facilitated through the introduction of best practices that are
able to optimise the management of organisational resources. It has been shown that operations
and projects are dissimilar with each requiring different management techniques. Hence, in a
project environment, project management can: (a) support the achievement of project and
organisational goals; and (b) provide a greater assurance to stakeholders that resources are being
managed effectively.

Research by Roberts and Furlonger in a study of information systems projects show that using a
reasonably detailed project management methodology, as compared to a loose methodology,
improves productivity by 20 to 30 percent. Furthermore, the use of a formalised project
management structure to projects can facilitate: (a) the clarification of project scope; (b)
agreement of objectives and goals; (c) identifying resources needed; (d) ensuring accountability
for results and performance; (e) and encouraging the project team to focus on the final benefits to
be achieved. Moreover, the research indicates that 85-90% of projects fail to deliver on time, on
budget and to the quality of performance expected. The major causes identified for this situation
include:

1. Lack of a valid business case justifying the project;

2. Objectives not properly defined and agreed;
3. Lack of communication and stakeholder management;
4. Outcomes and/or benefits not properly defined in measurable terms;
5. Lack of quality control;
6. Poor estimation of duration and cost;
7. Inadequate definition and acceptance of roles (governance);
8. Insufficient planning and coordination of resources.
It should be emphasised that the causes for the failure to deliver on time, on budget and to the
quality of performance expected could be addressed by the application of project management
practices. Furthermore, the failure to deliver on time, on budget and to the quality of
performance expected does not necessarily mean that the project was itself a failure. At this stage
what is being discussed is the effectiveness and efficiency of project execution and not whether a
project is a success or failure.

Conclusion

Project management should be viewed as a tool that helps organisations to execute designated
projects effectively and efficiently. The use of this tool does not automatically guarantee project
success. (project success will be discussed in a subsequent issue). However, in preparation for
the next issue, I would like you to think about the distinction between project success and project
management success.
QUESTION TWO.

Project cycle (A case of Kenya Red Cross Society – Global Fund Program)

What is the project life cycle?

The project life cycle includes the steps required for project managers to successfully manage a
project from start to finish. There are 5 phases to the project life cycle (also called the 5 process
groups) initiating, planning, executing, monitoring/controlling, and closing. Each of these project
phases represents a group of interrelated processes that must take place.

The 5 process groups of project management

Initiating phase

The initiating phase of the project life cycle consists of just two separate processes: the project
charter and stakeholder register. The point of this phase is to determine the vision for your
project, document what you hope to accomplish, and secure approvals from a sanctioning
stakeholder. The key components of the project charter include:

 Business case

 Project scope

 Deliverables

 Objectives

 Resources needed

 Milestone plan and timeline

 Cost estimate

 Risks and issues

 Dependencies
When you take the time to establish a clear and cohesive vision, think through who should
ideally be involved in bringing the project to life, and secure the resources you’ll need up front,
you give your project a strong start that sets the stage for everything that comes next.

Planning phase

The planning phase process group is where you build the project infrastructure that will enable
you to achieve your goal within your predetermined time and budget constraints, starting with a
project management plan, project scope, work breakdown structure and more—and wrapping up
with qualitative and quantitative risk analyses and risk responses. This is your detailed
roadmap—your blueprint for success. When you reach the end of this phase of the life cycle,
everyone on your team will not only understand the vision of the project, they’ll also understand
precisely what they need to do to reach the finish line on time and within budget.

Executing phase

The executing phase is where the rubber hits the road—where most of the budget is allocated and
most of the project deliverables are produced. You take your project plan and put it into action,
whether that takes weeks, months, or even years. Villanova University defines the goal of this
phase as, “managing teams effectively while orchestrating timeline expectations and reaching
benchmark goals.” The executing phase often includes team development, stakeholder
engagement, and quality assurance activities, either on a formal or informal basis.

Monitoring and controlling phase

The monitoring and controlling phase involves keeping an eye on the actual progress of the
project against your plan and taking corrective action where necessary. No amount of perfect
planning will exempt you from the need to be constantly vigilant with tracking and reporting.
You know what they say about the best-laid plans, after all.

Closing phase

The closing phase is the final phase of the project life cycle includes just one solitary process,
and it’s more than simply checking off the project as done. It’s essential to formally close the
project and secure a sign-off or approval from the customer, stakeholders, and/or project sponsor.
This process might include:
  Delivering the project

 Hosting a post-mortem meeting

 Archiving project records

 Celebrating or acknowledging the achievement

 Officially disbanding or releasing the team

The importance of this final step of the project life cycle can’t be overstated, especially as more
organizations are adopting the Hollywood model of work, where temporary teams come together
around a specific project, and then disband and regroup for another project, much the way film
crews operate. Every film production ends with a “wrap party,” and so should every major work
project.