Projects are composed of a unique set of activities established to realize a given set of objectives in a limited time span. Projects go through a life cycle that involves definition, planning, execution, and delivery/termination.The nonroutine nature of project activities places a set of demands on the project manager that are different in many respects from those the manager of more routine operations activities experiences, both in planning and coordinating the work and in the human problems encountered. Ethical conduct and risk management are among the key issues project managers must deal with.

PERT and CPM are two commonly used techniques for developing and monitoring projects. Although each technique was developed independently and for expressly different purposes, time and practice have erased most of the original differences, so that now there is little distinction between the two. Either provides the manager with a rational approach to project planning and a graphical display of project activities. Both depict the sequential relationships that exist among activities and reveal to managers which activities must be completed on time to achieve timely project completion. Managers can use that information to direct their attention toward the most critical activities.

Two slightly different conventions can be used for constructing a network diagram. One designates the arrows as activities; the other designates the nodes as activities.

The task of developing and updating project networks quickly becomes complex for projects of even moderate size, so computer software is important. Among the advantages of using project management software are the provision for a logical planning structure, enhanced communication, and automatically formatted charts and reports.

In some instances, it may be possible to shorten, or crash, the length of a project by shortening one or more of the project activities. Typically, such gains are achieved by the use of additional resources, although in some cases, it may be possible to transfer resources among project activities. Generally, projects are shortened to the point where the cost of additional reduction would exceed the benefit of additional reduction, or to a specified time.