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: founded at 1969 PMBOK: 1987, 1996, 2020 Nov., 2020 Wanjun Jiang, Guanghua School of Management, Peking University ? Project management helps anizations meet their customers’ need by standardizing routine tasks and reducing the number of tasks that could potentially be fotten. Project management ensures that available resources are used in most effective and efficient manner. Project management provides senior executives insight into “what is happening” and “where things are going” within their anization. Nov., 2020 Wanjun Jiang, Guanghua School of Management, Peking University ? Many . Around the world such as NASA, IBM, ATamp。T utilize PM to enable innovative process, to plan,to anize, and control strategic initiative, to monitor enterprise performance,analyze significant deviations and forecast their impact on the anization and projects. ? The application of PM principles enables the senior executive to: Nov., 2020 Wanjun Jiang, Guanghua School of Management, Peking University ? Establish measures of success ? Quantify value mensurate with coat ? Incorporate quality principles ? Ensure fast timetomarket ? Enable customer focus and alignment ? Optimize the use of anizational resources ? Put strategic plan into practice ? READINGS…... Nov., 2020 Wanjun Jiang, Guanghua School of Management, Peking University II. Project Selection Nov., 2020 Wanjun Jiang, Guanghua School of Management, Peking University Project Selection ? Project selection is the process of evaluating individual project or groups of projects, and then choosing to implement some set of them so that the objectives of the parent be achieved. ? “Determining the right projects to pursue with the right people” Nov., 2020 Wanjun Jiang, Guanghua School of Management, Peking University Main points ? Types of project selection models ? Limitation, strengths, and weaknesses of project selection models Nov., 2020 Wanjun Jiang, Guanghua School of Management, Peking University 1 Criteria for project selection models ? Realism ? Capability ? Flexibility ? Ease to use ? Cost ? Easy to puterization Nov., 2020 Wanjun Jiang, Guanghua School of Management, Peking University 2 The nature of project selecting models ? Model do not make the decisions, people do ? All models,however sophisticated, are only partial representations of the reality they are meant to reflect. ? Meet the firm’s objectives: ? financial goals/nonfinancial goals Nov., 2020 Wanjun Jiang, Guanghua School of Management, Peking University ? A list of factors that contribute .’s objectives(goals)(Mamp。M: ): ? Production factors,18 ? Marketing factors,10 ? Financial factors,9 ? Personnel factors,10 ? Administrative and miscellaneous factors,14 Nov., 2020 Wanjun Jiang, Guanghua School of Management, Peking University ? Production factors ? time until ready to install ? length of disruption during installation/ degree of disruption during installation ? time until operating as desiredlearning curve ? efforts on waste and rejects ? energy requirement ? facility and other equipment requirement ? safety of process ? other application of technology ? consistency with current technological knowhow ? change in cost to produce a unit output /change in time to produce a unit output ? change in raw materials/availability of raw materials ? required development time and cost ? impact on current suppliers ? change in quality of output ? change in quality control procedures Nov., 2020 Wanjun Jiang, Guanghua School of Management, Peking University ? Marketing factors ? size of potential market for output ? probable market share of output ? time until market share is acquired ? impact on current product line ? ability to control quality ? consumer acceptance ? impact on consumer safety ? estimated life of output ? shape of life cycle curve ? spinoff project possibilities Nov., 2020 Wanjun Jiang, Guanghua School of Management, Peking University ? Financial factors ? profitability, present value of the investment ? impact on cash flow ? payout period ? cash requirement ? time until breakeven ? size of investment required ? impact on seasonal and cyclical fluc