Wednesday, April 25, 2012

Project Management vs Operations Management

The differences between Project Management and Operations Management are a matter of perspective. From the Project Management Institute (PMI) point of view, the differences are clear and distinct. However, from a practitioner's view, it appears to be a matter of management style where the best practices from project management and operations management can be combined for better efficiencies and effectiveness.
The Project Management Institute's PMBOK Guide provides the following differences between Project Management and Operations Management:
  • Temporariness vs Permanence
  • Definite Beginning and End vs Repetitive Cycle
  • Scope, Time and Budget Constraints vs Supply Chain Constraints
Differences between Project Work and Traditional Functional Work
Project work and traditional functional work differ in many ways. It is important to understand these differences.
Functional work is routine ongoing work. Each day machine operators, car salesmen, secretaries, accountants, financial analysts and quality inspectors perform functional work that is routine, notwithstanding some variations from day to day. The functional worker gets training from a manager assigned to the specific function, and the manager supervises and manages the worker according to standards of productivity and quality set for the particular function.
In contrast to functional work, project work is a temporary endeavor undertaken to create a unique, non-routine product or service. A project manager manages a specific project with people and other resources assigned to him only for project management support on the specific project, and not on an ongoing basis. The project manager is responsible for the approved objectives of a project such as budget, schedule and specifications. Project terms are typically not organised in the same hierarchical structure as that of functional group.

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