We are facing an era of knowledge economy and digital world. The emergence of Internet has brought a new scenario of ecology in project management， and its theorem， methodologies， procedures and tools are subjected to subversive changes. So a monograph of project management ( PM) under Internet era has urgently need of renewing concepts in our project management community. This book presents the basic concepts and methods of project management on the virtual platform through Internet， which is widely used in real world project management community based on knowledge economy; meanwhile， it is different from former industry economy with solid assets as its resources and runs the project on a real physical manner. Beside the traditional PM， this book presents how shall we accommodate to conventional PM principles and also accommodate to Internet environment. It also discusses program management and portfolio management under Internet as well as the challenges of project management in the future. This book is a response caused by the PM challenges facing to us for satisfying our countermeasures: “Talent! Innovation! Strategy!” to the challenges. From long-term strategic view point， we also need to cultivate our talent accommodating to the digital era and on the “Internet AI” platform. This is why the renewable project management textbook under Internet era and knowledge economy is initiated， which can be used for the graduate and undergraduate textbook in related majors; also as the reference book for PM practitioners．
我们正面临一个知识经济的时代和数字化的世界。互联网的出现为项目管理带来了新的生态场景，其原理、方法、流程以及工具都经历了颠覆性的变化，因此迫切需要互联网时代的项目管理专著来更新项目管理领域的概念。本书介绍了在互联网虚拟平台上实施项目管理的基本概念和方法，其基于知识经济，已经广泛应用于真实世界的项目管理行业；同时它不同于之前的有实体资产作为资源，它是以实际物理方式运行项目的工业经济。除了传统的项目管理模式外，本书还介绍了我们将如何调整传统项目管理原则和适应互联网环境，也讨论了在互联网环境中的项目集和项目组合管理以及未来项目管理面对的挑战。 本书是我们面对项目管理挑战的回应，符合我们对挑战提出的对策：“人才！ 创新！ 战略！”从长远的战略角度看，我们也需要培育适应数字时代和“互联网＋AI”平台的人才。 这就是要对互联网和知识经济时代的项目管理教材进行更新的原因，本书不仅可以作为相关专业的研究生和本科生的教材，还可以作为项目管理从业者的参考书。
Chapter 1 Introduction of Project Management 1
Reading Guide 1
Facing Digitization of Project Management 1
Case Guide 2
1 Knowledge Economy — Subversive Impacts on Project Management 32 Project Management under Knowledge Economy and Digital Internet Era 63 Talent，Innovation and Strategy in Project Management Future 113. 1 Talent and Project Management Educational Reform 113. 2 Strategy of Project Management Internet Era 123. 3 The Characteristics of Digital Economy 123. 4 Conclusion 144 Overall Accommodation to Updated Project Management 155 Conventional Project Management 175. 1 Project Life Cycle 175. 2 Scope，WBS，and SMART Principle 185. 3 Project Personnel and Organization 225. 4 Project Execution (Scheduling and Control) 276 Program Management 426. 1 Definition of Program Management 426. 2 Research Background of Program Management 436. 3 The Essence of Program Management 447 Portfolio Management 458 Challenges of Project Management in the Future 479 System Analysis and Structured Approach 51
Summary 53
Review Questions 53Homework 53
References 54
Chapter 2 Project Life Cycle Management 56
Reading Guide 56
Facing Digitization of Project Management 56
Case Guide 57
1 The Theory and Modeling of Project Overall Management 582 Project Initiation Phase 592. 1 Project Establishment and Planning 592. 2 Overall Consideration of Project Establishment 602. 3 Project Feasibility Analysis 612. 4 Project Decision-Making Trap 612. 5 Case Study 643 Project Solution Phase 653. 1 Project Bidding 653. 2 Project Tendering 673. 3 Award of Bid 683. 4 Project Solution 703. 5 Case Study 714 Project Implementation Phase 744. 1 Project Organization and Leadership 754. 2 Project Management Regulation and Process 754. 3 Management of Quality Standards and Other Technical Specifications 764. 4 Project Plan and Control Management 774. 5 Project Risk Management 775 Project Completion Phase 775. 1 The “Tailless”Finishing Process 785. 2 Project Self-Checking 785. 3 Project Acceptance 795. 4 Project Transferring 795. 5 Project Documentation Transfer 805. 6 Project Financial Audit and Cleaning 815. 7 Summarize Project Experience and Lessons 825. 8 Dissolution of the Project Team 845. 9 Post-Project Evaluation 856 Life Cycle Management under Internet 86
Summary 87
Review Questions 88
Homework 88
References 89
Chapter 3 Personnel and Organizations 90
Reading Guide 90
Facing Digitization of Project Management 90
Case Guide 91
1 Project Manager 931. 1 Project Manager’s Responsibilities 931. 2 Personal Ability and Qualification of Project Manager 941. 3 Working Methods of Project Manager 961. 4 Project Manager Communication Skills 971. 5 Case Study 982 Project Team 992. 1 The Construction of Project Team 992. 2 Four Phases of Project Team Building 992. 3 The Characteristics of an Efficient Team 1002. 4 Conflict and Resolution of Project Team Work 1012. 5 Become a Member of a Successful Team 1023 Project Organization 1033. 1 Project Management Patterns 1033. 2 Project Management Organization 1073. 3 Case Study 1084 Project Human Resource Management 1104. 1 Human Resource Management and Personnel Management 1104. 2 HR Management is an Organizational Behavior of the Enterprises 1114. 3 Project Human Resource Management 1124. 4 Project Cultural Management 1144. 5 Project Team Management 1214. 6 Case Study 1235 Personnel and Organization Management under Internet Era 127
Summary 128
Review Questions 129
Homework 129
References 130
Chapter 4 Project Planning and Control 131
Reading Guide 131
Facing Digitization of Project Management 131
Case Guide 132
1 Project Scheduling 1341. 1 Work Breakdown Structure 1341. 2 Critical Path Method 1361. 3 Program Evaluation and Review Technique 1412 Project Control 1432. 1 General Description 1432. 2 Basic Content of Project Control 1442. 3 Progress Control 1472. 4 Cost Control 1512. 5 Quality Control 1583 Project Resource Management 1623. 1 Introduction to Project Resource Management 1623. 2 Targets and Requirements 1623. 3 Contents of Project Resource Management 1633. 4 Primary Criteria in Project Resource Management 1693. 5 Typical Method of Project Resource Management 1693. 6 Multi-Project Resource Management 1714 Case Study 1755 Project Scheduling and Control under Internet Era 1785. 1 New Features of Process Control based on the “Internet AI” 1805. 2 New Features of Resource Management Based on the “Internet AI” 1825. 3 Strategies for Constructing New Paradigms 184
Summary 188
Review Questions 188
Homework 188
References 189
Chapter 5 Economic Analysis in Project Management 190
Reading Guide 190
Facing Digitization of Project Management 190
Case Guide 190
1 Basic Concepts of Project Economics 1921. 1 Investment and Profit 1921. 2 The Cost of Capital 1931. 3 Time Value of Money 1931. 4 Interest and Compound Interest 1941. 5 Net Present Value 1951. 6 Case Study 1962 Discounted Cash Flow 1982. 1 Concept of Cash Flow 1982. 2 The Basic Elements of Cash Flow 1982. 3 Cash Flow of Project Revenue and Expenditure 1992. 4 Accumulated Cash Flow Chart 2002. 5 Case Study 2023 Profit of Investment 2083. 1 Profit Introduction 2083. 2 Payment Period and Payback Period of the Project 2083. 3 Net Present Value Profit — Investment Ratio 2083. 4 Discounted Cash Flow Rate of Return 2093. 5 Project Installment Repayment 2093. 6 Tax on Projects 2103. 7 Case Study 2134 Project Economic Analysis 2144. 1 Project Manager’s Business Philosophy 2144. 2 Investment Decision Cases for Large Projects 2165 Project Cost Management 2205. 1 Introduction to Project Cost Management 2205. 2 Resource Plan of Project 2235. 3 Project Cost Estimation 2245. 4 Project Cost Budget 2265. 5 Project Cost Control 2296 Earned Value Method Analysis and Applications 2316. 1 Earned Value Method 2316. 2 Relation between Cost and Schedule 2326. 3 Graphic Analysis of Project Earned Value Method 2337 Cost Management for Multiple Investment Projects 2367. 1 Establishment of Multiproject Optimum Capital Allocation Model 2367. 2 Establishment of Mathematical Model 2397. 3 The Realization of Mathematical Model 2397. 4 Case Study 2408 Project Financial Management under Internet Era 2438. 1 Project Financial and Cost Management under Internet Era 2438. 2 The Existing Difficulties for Digital Cost Management 2448. 3 Some Considerations in Digital Cost Management 2458. 4 The Implementation of Digital Cost Management 246
Summary 249
Review Questions 250
Homework 251
References 252
Chapter 6 Project Risk Management 254
Reading Guide 254
Facing Digitization of Project Management 254
Case Guide 255
1 Introduction to Risk Management 2571. 1 Definition of Risk 2571. 2 Characteristics of Risk 2571. 3 Risk Management 2582 Risk Assessment 2582. 1 Qualitative Assessment of Risk 2582. 2 Quantitative Assessment of Risk 2593 Risk Countermeasures 2604 Qualitative Analysis of Risk 2604. 1 Qualitative Analysis of Risk 2604. 2 Case Study 2624. 3 Project Decision and Trap 2655 Apply Probability Theory to Quantitative Risk Decision Making 2685. 1 Apply Probability Theory to Risk Management 2695. 2 Weighted Sensitivity Venture Capital Decision 2715. 3 Decision Tree Method 2745. 4 Risk and Uncertainty — Monte Carlo Simulation 2796 Use Fuzzy Set Theory to Make Risk Analysis Decisions 2816. 1 Summary of Fuzzy Set Theory 2816. 2 Fuzzy Set Project Risk Assessment 2826. 3 Fuzzy Set Project Risk Decision 2876. 4 Case Study 287
Summary 293
Review Questions 294
Homework 295
References 296
Chapter 7 Project Management under “Internet AI” Era and Knowledge Economy 297
Reading Guide 297
Facing Digitization of Project Management 297
Case Guide 298
1 Two Types of Economy and Their Characteristics 2992 Business Mode Internet Era and Knowledge Economy 3023 Sustainable Development of Successful Enterprise under Knowledge Economy 3054 Case Study 3135 Program of Studies on Project Management under Digital Era and Knowledge Economy 3166 Expert System for Aircraft Structural Design 3186. 1 On AI and Expert System for Structural Design 3186. 2 Production System and Inference Network 3206. 3 The Building of Expert System for Aircraft Structural Design 3227 “Internet AI”based Engineering Application Systems 3267. 1 Background Information 3267. 2 The AI exploration for Application Systems 3278 PMO under Internet Era 328
Summary 332
Review Questions 334
Homework 334
References 335
Chapter 8 Project Management under VUCA Era 337
Reading Guide 337
Facing Digitization of Project Management 337
Case Guide 338
1 The Essentials of Quantity in VUCA Era 3392 General Methodology of Problem Solution under VUCA Era 3403 Solution of Chinese Philosophical Thinking in VUCA Era 3414 Taiji Logic for Project Governance 3435 Using new VUCA against conventional VUCA 345
Summary 346
Review Questions 347
Homework 347
References 348
Conclusive Remarks for 2nd Edition 349
Index 351
內容試閱：
【再版序】 Foreword to the second edition
Taking account of modern digital era， the emergence of Internet has brought a new scenario of ecology in project management (PM)， its methodology， platform， procedures and tools are subjected to subversive changes. So a monograph of Project Management under Internet Era is urgently needed for renewing concepts in our PM community. The concept of how PM is implemented on the virtual platform through Internet， widely used in PM community of knowledge economy， which is different from former industrial economy with solid assets as its resources and run the project on a real physical manner. Beside the traditional PM， the first edition of this book presents how shall we accommodate to conventional PM and also accommodate to Internet environment， it also discusses program management and portfolio management under Internet as well as the challenges of PM in the future. From strategic point of view， talent cultivation is extremely critical to PM development， so we need to cultivate our talents accommodating to the digital era and on the “Internet ” platform. This is the impetus and the reason of why this monograph is initiated. Moreover， it can be used as the textbook for graduate and undergraduate students in related majors， also a reference book to the practitioners who are working on PM under digital Internet era.
The second edition of the monograph seems necessary since the quick emergence of VUCA (volatility， uncertainty， complexity and ambiguity) era， while all the concept of quantitative value could not be meaningful. In other word， the exact value will no longer exist， as the rule of “1 1= 2” will not be taken place. Instead， a new conceptual rule of “1 1 = 2 ± ε (t)” will replace it. This new conceptual rule means the conventional rule will not valid， just adding “± ε (t)” a small quantity behind the conventional solution “2”. This small quantity ε is a function of time， which means that it is changeable all the time.
We are entering the Internet and VUCA era. The characteristics of project management in this era is not only on the digital real time processing platform， but also it has no exact value processing. All the process quantities are not the real value， but they are acceptable， satisfactory and reasonable values at the instantaneous moment.
An additional chapter entitled in “Project Management under VUCA Era” is presented in the second edition of the monograph， which is an attempt of further explore the initial nature of the problem and hope to rise interests of our professional colleagues to pay their valuable joint efforts.
【前言】 Foreword
Why a monograph of Project Management under Internet Era is needed? The reason is quite obvious: the emergence of Internet has brought a new scenario of project management (PM) professional ecology; moreover， both the operational platform and accessing objects of PM have sequentially changed from “real” to “virtual”; its theorem， methodologies， procedures and tools are subjected to change. We are facing an era of knowledge economy and digital world， and PM environment is facing subversive challenges.
Everybody understands that the economic development depends on the success of projects. We expect the best practice of each project， so we certainly need qualified talent who can achieve the project goals with updated PM philosophy， especially under the digital Internet era nowadays.
It is clearer that we are in the transition stage from industrial economy to knowledge economy. The assets in industrial economy are solid ones represented by fixed and live capitals， in contrast， the assets in knowledge economy are virtual ones represented by the knowledge as the potential assets. Due to this reason， the fundamental mission of an enterprise under industrial economy is entirely different from that of an enterprise under knowledge economy. The previous one is using capital to mobilize material， machine and manpower for achieving good products sold in the market and then making profits. Nevertheless， for the latter case， the profits from the market are realized through the competitiveness of products (or services) with innovative ideas initiated by the realization of knowledge assets. Then one may imagine that the essentials and procedures of PM are going to change compared with the past time.
What are the processes of project management? It can be understood as to make a series of decision under uncertainties in order to do the right things; to get its right Human-machine and human-human relation as well as to do the things right. The first one needs to go through system analysis; the second one should be well treated with technologies and stakeholders’management; and the third one is guaranteed by managerial rules and regulations. As everyone knows that the second one is more difficult especially in large scaled complex projects， where the “human-human” relation is far complex than that of “human-machine” relation.
How can the project management education respond? How to reform the project management education for accommodating to the new challenges? This is what and why we should make corresponding changes in this monograph as our textbook， and make our PM talent education accommodate to the new digital Internet era.
“Talent! Innovation! Strategy!” that is the only way to respond to the challenges， so we need to cultivate our talent with updated knowledge for maneuvering the changes. We also need from longterm strategic viewpoint， to cultivate our talent accommodating to the digital era and on the “Internet AI” platform; as well as with the commercial analysis capabilities in project economics aspect. This is why the renewable project management textbook under Internet era and knowledge economy is initiated.
为什么需要互联网时代的项目管理专著？原因相当明显：互联网的出现为项目管理行业生态带来了新的场景，并且项目管理的运作平台和处理对象也从“真实”变为“虚拟”；项目管理的原理、方法、流程、工具也要改变。我们正面临一个知识经济的时代和数字化的世界，项目管理环境正面对颠覆性的挑战。
大家都知道经济的发展取决于项目的成功。我们希望每个项目都能得到实践，因此尤其在当今的数字互联网时代，必然需要能实现项目目标的、有项目管理理念的合格人才。
很明显我们正处于工业经济到知识经济的过渡阶段。工业经济中的资产是由固定和流动资本代表的实体资产，而知识经济中的资产是知识经济代表的虚拟资产，以作为潜在资产。由于这个原因，工业经济中企业的基本使命完全不同于知识经济中企业的基本使命。前者是利用资本调动物料、机器和人力来生产在市场上销售的优质产品，获得利润，而后者从市场上获取利润是通过知识资产创新产品／服务形成的市场竞争力实现的。我们可以想象，相比过去，项目管理的要素和流程将会发生改变。
什么是项目管理的过程？可以理解成为“做正确的事情”，在不确定的情况下，做一系列决策；“处理好人—机和人—人之间的关系”以及“正确地做事”。点需要经过系统分析，第二点需要通过技术和干系人管理得到恰当的处理，第三点由管理规章制度所保障。众所周知，第二点尤其在大型复杂项目中更难处理，其中“人—人”关系要比“人—机”关系要复杂得多。
项目管理教育如何应对呢？如何对项目管理教育进行改革以适应新的挑战？这就是在作为教材的本书中，我们要做出的和为什么要做出的相应改变，使我们的项目管理人才教育适应新的数字互联网时代。
“人才！创新！战略！”是应对挑战的方法，因此我们需要培育有知识的人才，以应对变化。从长远战略角度看，我们也需要培育适应数字时代和“互联网＋人工智能”平台，并且在项目经济学方面具有商业分析的能力的人才。这就是要更新互联网和知识经济时代中项目管理教材的原因。
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