People often gets confused between Project and Operation. Insipite of working for so many years, still people don’t understand if they are working in a project or operations. Both of them are different terms.
Therefore it is very important to understand difference between Project and Operations. I will try my best in this article to differenciate between two.
Project: A Project have different defination as per PRINCE2 and PMP. As per PRINCE2
A Project is defined as a temporary organization that is created for the purpose of delivering one or more business products according to an agreed Business Case.
While as per PMP a Project is a temporary endeavor undertaken to create a unique product, service, or result.
Although defination is different but literal meaning is safe for both.
From Defination we can conculde 2 things
- A project is temporary in nature
- A project produces a unique output which can be in form of a product, service, or result.
A project has definative start and end. Once a project delivers the product, service or result then it moves towards closure.
Example of project
Operation: Operation is an on going activity. Operation is repetative in nature. It is permanent in nature. Some of the example of operation is Production, manufacturing and accounting.
We do not see new things in Operations, but they are required to maintain and sustain the system. Operations are different from projects, which are known for their uniqueness.
Operations are permanent, and main aim is to make a profit for the organization.
Some Similarities by Project and Operations
- Both are planned, executed and controlled
- Both are performed by people
- Both can have resource crunch
Differences between Project and Operations
| Project | Operation |
| 1. Projects are unique and temporary | Operations are ongoing and permanent with a repetitive output. |
| 2. Projects have a fixed budget. | Operations have to earn a profit to run the business |
| 3. Projects are executed to start as a new business Objective and Closed when deliverable are achieved. | Operational work does not produce anything new and is ongoing. It is used to sustain business. |
| 4. Projects create a unique product, service, or result. | Operations produce the same product, aim to earn a profit and keep the system running. |
| 5. Projects have more risks as they are being taken care for the first time | Operations there are fewer risks as they are repeated many times. But operations can have a major impact if not performed well. |
| 6. Project brings change in system. | Operations sustains the business. |
