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Chapter 1 Introduction of Project Management 1 Reading Guide 1 Facing Digitization of Project Management 1 Case Guide 2 1 Knowledge Economy ¡ª Subversive Impacts on Project Management 3 2 Project Management under Knowledge Economy and Digital Internet Era 6 3 Talent,Innovation and Strategy in Project Management Future 11 3. 1 Talent and Project Management Educational Reform 11 3. 2 Strategy of Project Management Internet Era 12 3. 3 The Characteristics of Digital Economy 12 3. 4 Conclusion 14 4 Overall Accommodation to Updated Project Management 15 5 Conventional Project Management 17 5. 1 Project Life Cycle 17 5. 2 Scope,WBS,and SMART Principle 18 5. 3 Project Personnel and Organization 22 5. 4 Project Execution (Scheduling and Control) 27 6 Program Management 42 6. 1 Definition of Program Management 42 6. 2 Research Background of Program Management 43 6. 3 The Essence of Program Management 44 7 Portfolio Management 45 8 Challenges of Project Management in the Future 47 9 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 58 2 Project Initiation Phase 59 2. 1 Project Establishment and Planning 59 2. 2 Overall Consideration of Project Establishment 60 2. 3 Project Feasibility Analysis 61 2. 4 Project Decision-Making Trap 61 2. 5 Case Study 64 3 Project Solution Phase 65 3. 1 Project Bidding 65 3. 2 Project Tendering 67 3. 3 Award of Bid 68 3. 4 Project Solution 70 3. 5 Case Study 71 4 Project Implementation Phase 74 4. 1 Project Organization and Leadership 75 4. 2 Project Management Regulation and Process 75 4. 3 Management of Quality Standards and Other Technical Specifications 76 4. 4 Project Plan and Control Management 77 4. 5 Project Risk Management 77 5 Project Completion Phase 77 5. 1 The ¡°Tailless¡±Finishing Process 78 5. 2 Project Self-Checking 78 5. 3 Project Acceptance 79 5. 4 Project Transferring 79 5. 5 Project Documentation Transfer 80 5. 6 Project Financial Audit and Cleaning 81 5. 7 Summarize Project Experience and Lessons 82 5. 8 Dissolution of the Project Team 84 5. 9 Post-Project Evaluation 85 6 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 93 1. 1 Project Manager's Responsibilities 93 1. 2 Personal Ability and Qualification of Project Manager 94 1. 3 Working Methods of Project Manager 96 1. 4 Project Manager Communication Skills 97 1. 5 Case Study 98 2 Project Team 99 2. 1 The Construction of Project Team 99 2. 2 Four Phases of Project Team Building 99 2. 3 The Characteristics of an Efficient Team 100 2. 4 Conflict and Resolution of Project Team Work 101 2. 5 Become a Member of a Successful Team 102 3 Project Organization 103 3. 1 Project Management Patterns 103 3. 2 Project Management Organization 107 3. 3 Case Study 108 4 Project Human Resource Management 110 4. 1 Human Resource Management and Personnel Management 110 4. 2 HR Management is an Organizational Behavior of the Enterprises 111 4. 3 Project Human Resource Management 112 4. 4 Project Cultural Management 114 4. 5 Project Team Management 121 4. 6 Case Study 123 5 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 134 1. 1 Work Breakdown Structure 134 1. 2 Critical Path Method 136 1. 3 Program Evaluation and Review Technique 141 2 Project Control 143 2. 1 General Description 143 2. 2 Basic Content of Project Control 144 2. 3 Progress Control 147 2. 4 Cost Control 151 2. 5 Quality Control 158 3 Project Resource Management 162 3. 1 Introduction to Project Resource Management 162 3. 2 Targets and Requirements 162 3. 3 Contents of Project Resource Management 163 3. 4 Primary Criteria in Project Resource Management 169 3. 5 Typical Method of Project Resource Management 169 3. 6 Multi-Project Resource Management 171 4 Case Study 175 5 Project Scheduling and Control under Internet Era 178 5. 1 New Features of Process Control based on the ¡°Internet AI¡± 180 5. 2 New Features of Resource Management Based on the ¡°Internet AI¡± 182 5. 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 192 1. 1 Investment and Profit 192 1. 2 The Cost of Capital 193 1. 3 Time Value of Money 193 1. 4 Interest and Compound Interest 194 1. 5 Net Present Value 195 1. 6 Case Study 196 2 Discounted Cash Flow 198 2. 1 Concept of Cash Flow 198 2. 2 The Basic Elements of Cash Flow 198 2. 3 Cash Flow of Project Revenue and Expenditure 199 2. 4 Accumulated Cash Flow Chart 200 2. 5 Case Study 202 3 Profit of Investment 208 3. 1 Profit Introduction 208 3. 2 Payment Period and Payback Period of the Project 208 3. 3 Net Present Value Profit ¡ª Investment Ratio 208 3. 4 Discounted Cash Flow Rate of Return 209 3. 5 Project Installment Repayment 209 3. 6 Tax on Projects 210 3. 7 Case Study 213 4 Project Economic Analysis 214 4. 1 Project Manager's Business Philosophy 214 4. 2 Investment Decision Cases for Large Projects 216 5 Project Cost Management 220 5. 1 Introduction to Project Cost Management 220 5. 2 Resource Plan of Project 223 5. 3 Project Cost Estimation 224 5. 4 Project Cost Budget 226 5. 5 Project Cost Control 229 6 Earned Value Method Analysis and Applications 231 6. 1 Earned Value Method 231 6. 2 Relation between Cost and Schedule 232 6. 3 Graphic Analysis of Project Earned Value Method 233 7 Cost Management for Multiple Investment Projects 236 7. 1 Establishment of Multiª²project Optimum Capital Allocation Model 236 7. 2 Establishment of Mathematical Model 239 7. 3 The Realization of Mathematical Model 239 7. 4 Case Study 240 8 Project Financial Management under Internet Era 243 8. 1 Project Financial and Cost Management under Internet Era 243 8. 2 The Existing Difficulties for Digital Cost Management 244 8. 3 Some Considerations in Digital Cost Management 245 8. 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 257 1. 1 Definition of Risk 257 1. 2 Characteristics of Risk 257 1. 3 Risk Management 258 2 Risk Assessment 258 2. 1 Qualitative Assessment of Risk 258 2. 2 Quantitative Assessment of Risk 259 3 Risk Countermeasures 260 4 Qualitative Analysis of Risk 260 4. 1 Qualitative Analysis of Risk 260 4. 2 Case Study 262 4. 3 Project Decision and Trap 265 5 Apply Probability Theory to Quantitative Risk Decision Making 268 5. 1 Apply Probability Theory to Risk Management 269 5. 2 Weighted Sensitivity Venture Capital Decision 271 5. 3 Decision Tree Method 274 5. 4 Risk and Uncertainty ¡ª Monte Carlo Simulation 279 6 Use Fuzzy Set Theory to Make Risk Analysis Decisions 281 6. 1 Summary of Fuzzy Set Theory 281 6. 2 Fuzzy Set Project Risk Assessment 282 6. 3 Fuzzy Set Project Risk Decision 287 6. 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 299 2 Business Mode Internet Era and Knowledge Economy 302 3 Sustainable Development of Successful Enterprise under Knowledge Economy 305 4 Case Study 313 5 Program of Studies on Project Management under Digital Era and Knowledge Economy 316 6 Expert System for Aircraft Structural Design 318 6. 1 On AI and Expert System for Structural Design 318 6. 2 Production System and Inference Network 320 6. 3 The Building of Expert System for Aircraft Structural Design 322 7 ¡°Internet AI¡±based Engineering Application Systems 326 7. 1 Background Information 326 7. 2 The AI exploration for Application Systems 327 8 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 339 2 General Methodology of Problem Solution under VUCA Era 340 3 Solution of Chinese Philosophical Thinking in VUCA Era 341 4 Taiji Logic for Project Governance 343 5 Using new VUCA against conventional VUCA 345 Summary 346 Review Questions 347 Homework 347 References 348 Conclusive Remarks for 2nd Edition 349 Index 351