PMP PMP EXAM PREPRATION

Projects Vs. Operations

Projects
According to PMI’s PMBOK® Guide, a project is “a temporary endeavor undertaken to create a
unique product, service, or result”.
Using that definition, a project is temporary in nature, having a defined start and end date, and
produces a unique output. Projects are conducted as a means to obtain the organization’s
strategic objectives and are considered above and beyond normal organizational operations.

Operations
Operations, however, are the ongoing, routine activities that are involved in the organization’s
primary business. This is the “keeping-the-lights-on” work, such as staffing management,
payroll, product production, service delivery, etc. As such, operations includes all of the
“normal” business functions.

Summary
Both projects and operations are:
• Performed by people
• Constrained by limited resources (such as people, money, equipment, and time)
• Planned, executed, and controlled

Projects are unique and temporary (definitive beginning and ending), while Operations are
ongoing and permanent with repetitive output.
• Projects have a fixed budget; on the other hand Operations have to earn profit in order
to run the business.
• Projects are executed to start a new business objective and terminated when it is
achieved, while Operational work does not produce anything new and it is ongoing.
Projects create a unique product, service, or result; Operations produce the same product, aim
to earn profit, and keep the system running.

However projects:
• Are conducted to attain an objective and then terminate.
• Organize activities that are not supported under the organization’s normal operations.
• Are directly related to the achievement of the organization’s strategic plan.
Whereas operations:
• Are on-going and intended to sustain the business.

Fereydoun Fardad (MSc,PE,PMP,PRINCE2,PSM,SFC,EBCL,ICPA) Page 1