Topic 1INTRODUCTION+PROJECT SELECTION,Nov., 2001,Wanjun Jiang, Guanghua School of Management, Peking University,I. Introduction,Nov., 2001,Wanjun Jiang, Guanghua School of Management, Peking University,1. Evolution of an Idea,People have been planning and managing Projects since the dawn of time. Whenever and wherever civilizations took root, there were projects to manage: building to erect, roads to pave, laws to write. Without the advanced tools, techniques and methodologies we have today, people created project timelines, located materials and resources and weighed the risk involved. Examples: great wall ,Nov., 2001,Wanjun Jiang, Guanghua School of Management, Peking University,Over time, people realized that the techniques for cost control,timeline development, resource procurement and risk management were applicable to a wide range of projects,whether erecting bridges, rotating crops or deciding how to govern themselves. These early idea were the precursors to a set of management techniques we now know as “modern project management”.,Nov., 2001,Wanjun Jiang, Guanghua School of Management, Peking University,Modern organizations are finding that project management provides many advantages-not the least of which is improving the bottom line! Savvy customers demand more and better products and faster services. Time-to-market pressures forces greater efficiency. Professional project management has found its place in todays competitive, global business arena.,Nov., 2001,Wanjun Jiang, Guanghua School of Management, Peking University,The past several decades have been marked by a rapid growth in the use of project management as a means by which Org. achieve their objectives. PM has emerged because the characteristics of our late 20th society demand the development of new methods of management. The exponential expansion of human knowledge; The growing demand for broad range of complex,sophisticated,customized goods and services; The evolution of worldwide competitive markets.,Nov., 2001,Wanjun Jiang, Guanghua School of Management, Peking University,All 3 forces combine to mandate the use of TEAM to solve problems that used to be solvable by individuals. Knowledge expansion-TEAM: call for high level of coordination and cooperation between groups of people. Intensive Competition-make their complex,customized outputs available as quickly as possible. “Time-to-market” is critical. The projects undertake are large and getting larger. “The more we can do, the more we try to do”.,Nov., 2001,Wanjun Jiang, Guanghua School of Management, Peking University,Project fails too often,Systems projects: 30-45%of system projects fail prior to completion. Over half of all system projects overrun their budgets and schedules by up 200% or more. Combined costs of failure and overruns total in the hundreds of billions of dollars. Computerworlds survey: failed system projects cost more than $100 billion per year; one of two projects overrun its budget by 180% or more; A survey of what was missing in PM process indicated: project office-42%; integrated methods-41%; training and monitoring-38%; policies and procedures-35%; implementation plans-23%; executive support-22% Example of failed projectChina, Rest of the world,Nov., 2001,Wanjun Jiang, Guanghua School of Management, Peking University,2. What is a Project?,Org. Perform work. Work generally involves either operations or projects. Operation: ongoing and repetitive Project: temporary and unique project is a temporary endeavor undertaken to achieve a particular aim. Every project has a definite beginning and a definite end. Examples: running a political campaign.,Nov., 2001,Wanjun Jiang, Guanghua School of Management, Peking University,In the broadest sense, a project is a specific, finite task to be accomplished. Whether large- or small-scale or whether long- or short-run is not particularly relevant. What relevant is that the project be seen as a unit. Attributes: Purpose, Life cycle, Interdependencies, Uniqueness, Conflict M Stakeholders with differing needs and expectations; Identified requirements and unidentified requirements.,Nov., 2001,Wanjun Jiang, Guanghua School of Management, Peking University,Projects General Objectives: performance, cost and time Fig.1-1,p.3: Performance, cost, time, and project targetsrequired performance-budget limit-due datetrade-offs,Nov., 2001,Wanjun Jiang, Guanghua School of Management, Peking University,PERFORMANCE,TARGET,COST,TIME(SCHEDULE),Nov., 2001,Wanjun Jiang, Guanghua School of Management, Peking University,Project management focuses critical attention on the interdependent nature of complex tasks-an action, or failure to take action, in one area will usually affect other areas.,Nov., 2001,Wanjun Jiang, Guanghua School of Management, Peking University,The project management knowledge areas,Project integration management: project plan development, project plan execution, overall change control Project scope management: initiation,