Do you know why Microsoft named it scheduling management tool as Microsoft Project (MSP)?

Or for that matter, why there is an abundance of Project and Portfolio Management (PPM) tools and why there are only a few standalone tools for scheduling Operations?

Frankly speaking, I do not know the answer to these questions. However, over the years, I've found that project scheduling can be much more challenging and cumbersome than operational scheduling.

I may have piqued your interest about the nomenclature of PPM tools but I haven’t written this article to answer why PPM tools are called so. We will have to delve in history to find the answers to the above questions.

Well, that research is for another day.

For now, let us discuss the differences and similarities between projects and operations. After reading this article, you would know the importance of projects and operations in the business world.

A Brief History of Projects and Operations

You might know that projects and operations have been happening since very early ages. They are probably as old as the mankind. Early projects and operations were survival tools for the humans.

Humans started building stone houses in the Neolithic age. These were some of the early projects.

They also started organized farming and domesticated animals during the same time period. These were some of the early operations. Later, the projects became much more complex and bigger. Historians still wonder how they built those huge pyramids around 2500 B.C.

‍Let’s jump to the modern history.

While projects and operations have been around as long as the human history, there was no clear distinction between them. Projects were considered to be part of operations till around World War II.

Then WW II changed everything.

During the war, there was a huge investment in machinery and infrastructure development. The projects became much more complicated and sophisticated, which required them to be completed in record time. Governments and the private sector invested large amounts in new weapon development projects.

It is somewhat horrific to think now that development and production of weapons spurred the development of project management.

‍Sometime in 1950s, project management started to be recognized as a separate science from operations management.

What is a Project?

According to the PMBOK Guide, “a project is a temporary endeavor to create a unique product, service, or result”.

The crux of the definition is in two keywords: "temporary” and "unique."

Temporary means that the effort has a timeline (start date and end date) whereas Unique refers to an end result that has a novelty and has not been done before.

Temporary doesn't refer to the end result of a project. It does not mean the project's result is insignificant or of low value. It also does not mean that the endeavor is short-term. Temporary simply means that there is a specific start and end date for the project.

Projects do not continue forever and when they finish, they produce something new. Projects are inherently risky and they can be viewed as an agent for change.Let’s look at some business world examples of projects:

• Digging an oil well
• Developing an ecommerce website
• Designing a new car
• Constructing a highway

Projects are not unique to the business world. We also undertake a few projects during our lifetime. Here are some examples:

• Landscaping a garden
• Renovating a kitchen
• Organizing a birthday party
• Running a marathon

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What is an Operation?

An operation can be simply described as something that is not a project. They are not temporary i.e. there is no defined end date and they not produce anything unique. They are ongoing, repetitive, and maintain a status quo.Let’s look at some business world examples of operations:

• Manufacturing of ingots
• Supplying cement to a construction company
• Textile production
• Running a departmental store

Our daily life is full of operations. Here are some examples:

• Drive to work
• Prepare and cook meals
• Buy groceries

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What is the Difference Between Projects and Operations?

Similarities between Operations and Projects

Although projects and operations cater to altogether different aspects of business world, there are many similarities between them.

• Both are planned, executed, and monitored & controlled.
• Both are necessary to reach business goals.
• Both are limited by resources, time, and cost.
• Both are done by people.

Conclusion

Some people believe that projects are more important than the operations because they bring about a change. Nothing can be farther from the truth.

Both projects and operations have a role to play in the business world. In fact, operations employ more people in the world and generate far more GDP (Gross Domestic Product) than projects.

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Praveen Malik, PMP, has two-plus decades of experience as a project management instructor and consultant. He regularly conducts project management workshops and shares his project management thinking in his eponymous blog PM-by-PM.