PRINCIPLES OF PROJECT MANAGEMENT

Assignment # 1
Name: Arsalan Javed
Reg No: 2384173
MPM 1-A

Similarities between Projects and Operations?

1. Goal Oriented: Both aim to achieve specific objectives i.e. to reach business goals.
2. Performance Measurement: Both are planned, executed, monitored & controlled and
have KPIs to measure performance for success and ensures relations with stakeholders.
3. Resource Management: Both require resources like manpower, materials, machinery,
money and methods to achieve objectives.

Difference between Projects and Operations?

Projects
1. Are initiated to earn a profit, do
social service or bring a
technology change.
2. They have a fixed budget
3. They close when objectives are
met.
Operations
1. Are performed to maintain a
product or lead in the market or to
sustain a business.
2. They have to earn a profit to run
3. They closed when not meeting
market demand. (salvage point)

Examples:
1) BMW i5
Project: The launching of new BMW i5 is a Project as it requires designing/planning, execution
and market analysis process. They define projects cost and time duration. This project is
initiated to bring a technology change (an innovation).
Operation: On the other hand, the making of BMW i5 as a product is an operation where it
goes through the manufacturing processes and then distributed to market or showrooms.
Once it is in the market it is also an operation as a BMW team is promoting and providing
maintenance to customers on daily basis.
2) Remodeling of Ammar Chock (Rawalpindi)

Project: The remodeling of Ammar Chock in Rawalpindi Chaklala Is a project. It has a defined
time period and budget with a construction plan (Approx 9 Months and Rs755 million). This
project is initiated to provide a social service (to avoid traffic jam and petrol consumption).

Operation: Once the remodeling is done project ends and now it is in operations phase. The
day-to-day activities like road maintenance, line painting and traffic management comes
under the operations.

In the above two examples of projects and operations

• The allocation of resources (manpower, machinery, money etc.)
• keeping in mind the risks involved during these projects and operations to achieve a
specific objective
• customer satisfaction by doing continuous improvement and
• relations with stakeholders
are the similarities project and operations have.