Project and Operation

Project:

Project can be defined in many ways.

Project is time bounded activity, which has beginning and end point. It can be service, result or Product.

A project as defined by PMI states the following:

"A Project is a temporary endeavor undertaken to create a unique product, service, or result."

The project is completed when the objectives have been reached from the customer’s perspective, when the project is terminated because its objectives cannot be met, or if the need for the project no longer exists.

Yes, the definitions are different but essence is same.

It is temporary and it is performed to achieve some specific defined objective.

Project is temporary means it should be terminated when object is achieved or it deliver the deliverable. Project should have certain result or output.

Operation:

Operation is the activity which continues for the lifetime of the Project. It can be improvement or enhancement to the Project. It is repetitive process.

It can be have no new output but it is necessary to maintain system. It is the service to achieve goal of the business.

Differences between two:

Project can have unpredictable risks and it can be gradually defined, on the other hand operations have predicted risks.

Projects have fixed cost but operations are performed to earn profit. Operations keeps the system going.

Project has certain start and end point while operations are never end process.

Let’s take an example of project to build Software Development Company.

When this project starts that mean construction of building is started. After construction finished, the building means company hand over to owner. Now the project is over because it’s achieved the objective. The construction team is released and it’s free from this project.

It’s time to start operations in it. Now company start software development, that is actual operation started to earn profit.  It will produce same output in repetitive manner. So we can say that projects are performed to produce some result or output in repetitive manner.

Operations improves the performance of the Project. Operations minimize the risks of Project. By management of both, organisation can achieve its objectives. Both are planned, executed and controlled.