Nov.,2001WanjunJiang,GuanghuaSchoolofManagement,PekingUniversityTopic1INTRODUCTION+PROJECTSELECTIONNov.,2001WanjunJiang,GuanghuaSchoolofManagement,PekingUniversityI.IntroductionNov.,2001WanjunJiang,GuanghuaSchoolofManagement,PekingUniversity1.EvolutionofanIdea•PeoplehavebeenplanningandmanagingProjectssincethedawnoftime.Wheneverandwherevercivilizationstookroot,therewereprojectstomanage:buildingtoerect,roadstopave,lawstowrite.Withouttheadvancedtools,techniquesandmethodologieswehavetoday,peoplecreatedprojecttimelines,locatedmaterialsandresourcesandweighedtheriskinvolved.•Examples:greatwall……Nov.,2001WanjunJiang,GuanghuaSchoolofManagement,PekingUniversity•Overtime,peoplerealizedthatthetechniquesforcostcontrol,timelinedevelopment,resourceprocurementandriskmanagementwereapplicabletoawiderangeofprojects,whethererectingbridges,rotatingcropsordecidinghowtogovernthemselves.Theseearlyideaweretheprecursorstoasetofmanagementtechniqueswenowknowas“modernprojectmanagement”.Nov.,2001WanjunJiang,GuanghuaSchoolofManagement,PekingUniversity•Modernorganizationsarefindingthatprojectmanagementprovidesmanyadvantages--nottheleastofwhichisimprovingthebottomline!Savvycustomersdemandmoreandbetterproductsandfasterservices.Time-to-marketpressuresforcesgreaterefficiency.Professionalprojectmanagementhasfounditsplaceintoday’scompetitive,globalbusinessarena.Nov.,2001WanjunJiang,GuanghuaSchoolofManagement,PekingUniversity•ThepastseveraldecadeshavebeenmarkedbyarapidgrowthintheuseofprojectmanagementasameansbywhichOrg.achievetheirobjectives.•PMhasemergedbecausethecharacteristicsofourlate20thsocietydemandthedevelopmentofnewmethodsofmanagement.•Theexponentialexpansionofhumanknowledge;•Thegrowingdemandforbroadrangeofcomplex,sophisticated,customizedgoodsandservices;•Theevolutionofworldwidecompetitivemarkets.Nov.,2001WanjunJiang,GuanghuaSchoolofManagement,PekingUniversity•All3forcescombinetomandatetheuseofTEAMtosolveproblemsthatusedtobesolvablebyindividuals.•Knowledgeexpansion-TEAM:callforhighlevelofcoordinationandcooperationbetweengroupsofpeople.•IntensiveCompetition-maketheircomplex,customizedoutputsavailableasquicklyaspossible.“Time-to-market”iscritical.•Theprojectsundertakearelargeandgettinglarger.“Themorewecando,themorewetrytodo”.Nov.,2001WanjunJiang,GuanghuaSchoolofManagement,PekingUniversityProjectfailstoooften•Systemsprojects:30-45%ofsystemprojectsfailpriortocompletion.Overhalfofallsystemprojectsoverruntheirbudgetsandschedulesbyup200%ormore.Combinedcostsoffailureandoverrunstotalinthehundredsofbillionsofdollars.•Computerworld’ssurvey:failedsystemprojectscostmorethan$100billionperyear;oneoftwoprojectsoverrunitsbudgetby180%ormore;AsurveyofwhatwasmissinginPMprocessindicated:•projectoffice-42%;integratedmethods-41%;trainingandmonitoring-38%;policiesandprocedures-35%;implementationplans-23%;executivesupport-22%•Exampleoffailedproject……China,RestoftheworldNov.,2001WanjunJiang,GuanghuaSchoolofManagement,PekingUniversity2.WhatisaProject?•Org.Performwork.Workgenerallyinvolveseitheroperationsorprojects.•Operation:ongoingandrepetitive•Project:temporaryandunique•projectisatemporaryendeavorundertakentoachieveaparticularaim.Everyprojecthasadefinitebeginningandadefiniteend.•Examples:runningapoliticalcampaign…...Nov.,2001WanjunJiang,GuanghuaSchoolofManagement,PekingUniversity•Inthebroadestsense,aprojectisaspecific,finitetasktobeaccomplished.Whetherlarge-orsmall-scaleorwhetherlong-orshort-runisnotparticularlyrelevant.Whatrelevantisthattheprojectbeseenasaunit.•Attributes:Purpose,Lifecycle,Interdependencies,Uniqueness,Conflict•M&M,p.8-9Nov.,2001WanjunJiang,GuanghuaSchoolofManagement,PekingUniversity•Projectstakeholdersandconflict•Individualsororganizationswhoareactivelyinvolvedintheproject,orwhoseinterestmaybepositivelyornegativelyaffectedasaresultofprojectexecutionorsuccessfulprojectcompletion.•Theyinclude:projectmanager,customers,performingorganization,sponsor,suppliersandcontractors,teammembersandtheirfamilies,governmentagency,lobbyingorganizationsetc•thestakeholdersoftenhaveverydifferentobjectivesthatmaycomeintoconflict.Examples:theownerofrealestatedevelopmentproject,localgoverningbody,environmentgroup,nearbyresidents…...Nov.,2001WanjunJiang,GuanghuaSchoolofManagement,PekingUniversityTheprojectlifecycle•%ofprojectcompletion:•Slowstart----Quickmomentum----Slowfinish(Fig.1-2,p.13)•100Nov.,2001WanjunJiang,GuanghuaSchoolofManagement,PekingUniversity•Projectlifecycle(Fig.1-3):•Conception•Selection•Planning,scheduling,monitoring,control•Evaluationandtermination•ExamplesofProjectlifecycle:seePMBOK1996,p.13-16,Fig,2-2,2-3,2-4,2-5.Nov.,2001WanjunJiang,GuanghuaSchoolofManagement,PekingUniversity•Levelofeffort••peakeffortlevel•conceptionselectionplanning--controlevaluationandterminationNov.,2001WanjunJiang,GuanghuaSchoolofManagement,PekingUniversity•Uncertaintyoftheprojectcostatspecificpointsintime•cost•ttimeNov.,2001WanjunJiang,GuanghuaSchoolofManagement,PekingUniversity3Whatisprojectmanagement•Projectmanagementistheapplicationofknowledge,skills,toolsandtechniquestoa