Last Updated on July 15, 2024 by andrewshih
PMP Project vs Operation
Understanding PMP project vs operation is an important topic, and you need to be able to distinguish the two for your success on both the PMP application and the PMP exam. A job function can involve tasks that can be considered a project or part of a continuous business function. While there are some similarities, there are distinctive differences between projects and operations.
This knowledge not only helps in grasping key PMP concepts but also enhances your ability to manage tasks effectively in real-world scenarios. Let’s delve deeper into these two critical aspects of project management.
Project vs Operation Video
What is a Project?
According to Project Management Institute:
A project is a temporary endeavor undertaken to create a unique product, service, or result.
A project has a defined start and end date, specific objectives, and a unique outcome. Projects are characterized by their temporary nature and their aim to bring about beneficial change or added value.
- Temporary Nature: Projects have defined start and end dates, which means they are inherently time-bound. They are initiated to achieve a specific goal within a predetermined timeframe.
- Can be canceled at any time or will be terminated at the completion. This flexibility distinguishes them from operations, which are ongoing.
- Unique Outputs: Projects aim to deliver something unique, whether it’s a product, service, or result. This distinctiveness sets them apart, as they are not meant to produce repetitive, routine work.
- Utilize Project Management Methodologies: Projects typically utilize project management methodologies and processes to ensure efficient execution and successful delivery.
What is an Operation?
Operations are ongoing activities that sustain the business and provide repetitive services or products.
Unlike projects, operations are continuous and repetitive, ensuring the business remains functional and productive.
- No Time Span Defined: Operations do not have a predefined time span, and they continue as long as the business or function itself exists. They lack the defined beginning and end characteristic of projects.
- Continuous and Ongoing: Operations are characterized by their continuous, repetitive nature. They involve the day-to-day activities required to maintain the stability and functionality of a business or organization.
- Outputs from Continuous Process: The outputs of operations come from ongoing processes, and these outputs are often repetitive and part of the routine functioning of an organization.
- Pre-Defined Procedures: Operations follow pre-defined procedures and established routines to ensure consistency and efficiency.
Common Characteristics Between Projects and Operations
Distinguishing between projects and operations can sometimes be confusing because they share several common characteristics:
- Resource Management: Both require effective management of resources, including people, time, and materials.
- Goal Orientation: Both aim to achieve specific objectives, whether they are unique deliverables (projects) or maintaining consistent performance (operations).
- Processes: Both follow structured processes and methodologies to ensure successful outcomes.
- Team Collaboration: Both involve teamwork and collaboration among different stakeholders to achieve their goals.
Key Differences Between Projects and Operations
Understanding the differences between projects and operations is crucial for effective project management. Here are the key distinctions:Aspect Projects Operations Duration Temporary with a defined end date Ongoing and continuous Objective Achieve specific goals and deliver unique outputs Maintain and support ongoing business activities Resources Unique resource allocation for a limited time Consistent resources to sustain daily functions Process Utilize project management methodologies Follow pre-defined procedures Change Associated with change and innovation Aim to sustain and optimize existing processes
PMP Project vs Operation Examples
Let’s look at some real-life examples to illustrate the differences between projects and operations in various industries:
Construction Industry
- Project: Building a new office complex is a project because it has a clear start and end date, with specific deliverables.
- Operation: Regular inspection and maintenance of existing buildings are operations as they are ongoing activities essential for the company’s functioning.
IT Industry
- Project: Developing a new mobile application is a project with specific goals and timelines.
- Operation: Providing continuous technical support and system maintenance are operations.
Healthcare Industry
- Project: Implementing a new electronic health record (EHR) system is a project because it involves a specific timeline and set objectives.
- Operation: Daily patient care and medical record management are operations as they are continuous activities crucial to the healthcare facility’s function.
Retail Industry
- Project: Launching a new product line is a project because it has a defined start and end date with specific goals.
- Operation: Managing the daily sales and inventory of existing products are operations as they ensure the ongoing functionality of the business.
Manufacturing Industry
- Project: Designing and building a new production line is a project with a set timeline and specific deliverables.
- Operation: Daily production of goods using the established production line is an operation.
Finance Industry
- Project: Developing a new financial product or service, such as a new type of loan or investment option, is a project with a defined start and end date.
- Operation: Daily processing of transactions, account maintenance, and customer service are operations.
Education Industry
- Project: Developing a new curriculum or educational program is a project because it has specific objectives and a timeline.
- Operation: Regular teaching activities, student assessments, and administrative tasks are operations as they are ongoing and repetitive.
PMP Project vs Operation Exam Sample Question
Eric Smith manages the toy manufacture assembly line. In order to improve productivity, he is looking to replace manual processes with machine automation. He has defined the requirements, justify the business needs, and estimated the potential return on investment of this endeavor. He has gotten the senior manager’s approval and currently going through the procurement process. Eric estimated that it will take 1 year to complete the process automation. What is Eric working on?
- Operation
- Project
- Management
- Portfolio
ANSWER:
The answer is (2) Project. Even though Eric is working at assembly line which normally deems as an operation because the job is continuous and does not produce unique output, Eric is handling this endeavor as a one-time project. Eric has sought sponsor approval and created the project charter by defining the requirement, business needs, and summary schedule. Eric is also applying multiple project methodologies as well as leading the project from initiation to closing.
Conclusion
Understanding the difference between a project and an operation is essential for effective project management, particularly for pursuing PMP certification.
Projects have clear start and end dates, produce unique outcomes, and require the application of project management methodologies, while operations are continuous, routine, and follow predefined procedures.
By recognizing and applying these distinctions, project managers can ensure the right approach is taken for each type of work, leading to successful project delivery and operational efficiency. Whether you’re preparing a PMP project description or managing daily tasks, this knowledge is a cornerstone of effective project management.
FAQ
Can a project become an operation?
Yes, a project can transition into an operation once the project’s unique deliverable becomes part of the regular, ongoing activities of the organization. For example, developing a new software system is a project, but maintaining and updating that system becomes an operation.
Why is it important to differentiate between projects and operations?
Differentiating between projects and operations is crucial because it helps in resource allocation, strategic planning, and decision-making. Understanding the unique characteristics of each ensures that project-specific and operational goals are met effectively without compromising one for the other.
How do the resource requirements differ between projects and operations?
Projects often require unique resource allocation for a limited time, focusing on specific goals and deliverables. Operations utilize consistent resources to sustain daily functions and ensure continuous business activity.
How do projects and operations contribute to a company’s success?
Projects contribute to a company’s success by driving change and innovation, creating new products, services, or processes that add value. Operations sustain the company’s success by ensuring smooth, efficient, and consistent business activities that maintain existing value.
Can the same team handle both projects and operations?
It is possible for the same team to handle both projects and operations or be involved in a temporary project while handling day-to-day operations. However,it may not always be practical. Projects and operations have different focuses, timelines, and resource requirements, so it is often more efficient to have dedicated teams for each.
How do you measure the success of projects and operations?
- Projects: Success is measured by whether the project meets its objectives, stays within budget, and is completed on time.
- Operations: Success is measured by the efficiency, consistency, and quality of ongoing activities, as well as customer satisfaction and adherence to service level agreements (SLAs).
