Mihir Rawal

The Project is defined as – “ A temporary endeavor undertaken to create a unique product, or result.”

Every Project is,

• Temporary in nature, i.e. it has a distinct start date and a distinct end date; is it not ongoing like an operation. Once the project objectives are achieved, or when it becomes clear that the project objectives cannot be achieved that the project is no longer required, the project is formally closed,
• The output of project is unique, and
• The project characteristics are progressively elaborated, i.e. as we progress through the project life cycle our understanding of the project and/or its product/service/result characteristics keeps getting elaborated in gradual increments.

Project characteristics:

• Goal (measurable/verifiable) oriented
• Finite duration with a distinct beginning and a distinct end
• Unique to a great extent and related uncertainties
• Coordinated undertaking of interrelated activities
• Performing the activities involve resources
• Resources cost money

Distinction between projects and operations

The following table lists the differences among a project and an operation.

A Project-

• Has its own charter, Organization, and goals
• Typically plays a catalyst role for a change
• Creates a unique product, service or result
• May have heterogeneous teams
• Temporary in nature

An Operation-

• Has a semi-permanent charter, organization, and goals
• Maintains a status quo
• Related to a standard product, or service
• Primarily involves homogeneous teams
• An ongoing activity

The key difference is that operations are permanent endeavours that produce repetitive outputs, with resources assigned to do basically the same set of tasks whereas temporary endeavours.