Difference between Projects and Operations

Last Updated : 20 Jun, 2024

Projects and operations are both parts of the product life cycle. Projects are temporary efforts to create unique products or services, that involve phases like design, coding, and testing. Operations are the ongoing activities that produce and deliver these products repeatedly. While projects focus on creating something new, operations ensure consistent production and efficiency. Understanding both is essential for managing and sustaining business activities.

What is Project?

Any software is developed in various phases. These are called software development life cycle phases. They start from Requirement gathering and include designing, programming (coding), integration, testing and maintenance. All these procedures carried out in a specified time frame, for creation of a product are collectively called a Project. A project is an endeavor that is temporary in nature, that is undertaken to produce a unique product.

What are Operations?

After product is made it is then brought out to market. The processes of creating product again and again using same techniques that were used earlier, for purpose of distributing to users and (making profit in most cases) are a part of Operations. Operations are ongoing execution of activities which occur after product is made to produce same result or a repetitive service. Production, manufacturing, and accounting are examples of operations.

Differences between Projects and Operations

Category	Projects	Operations
Definition	A project is an endeavor that is temporary in nature, that is undertaken to produce a unique product.	Operations are ongoing execution of activities which occur after product is made to produce same result or a repetitive service.
Duration	It is temporary as it does not exist after product is made. This is because phase before a product is made includes a project.	It is permanent as it only exists after product is made and can go on forever. The same product is manufactured as long as it has a demand or as long as it generates profit.
Budget	The budget is Defined for Projects. The stake holders and management, who wish to get a product made, specify a budget for it.	The budget is not defined for Operations as the earning needs to be done to keep operations alive. This is because if there is a great response for or enough revenue and profit from product, more such products can be made.
Newness	It is new (new product). A project is undertaken to create a new kind of product.	It is has nothing new. This is because it is just process of making product in more numbers so as to be distributed among users.
Product	Unique product is created. The project is undertaken for creation of a unique product.	Same product is produced to keep system running. More numbers of the existing product are made for end-users.
Risk	It has more risk as it is done for first time. There is a risk of failure attached because specified thing has never been made before.	It has less risk as such products have already been made before and it is only process of creating them in greater numbers.
Focus	Performance is primary focus of projects. The project must be of optimal performance and meeting requirements specified by clients.	Efficiency is primary focus. The entire operation must be carried out in an efficient manner so as to reduce manufacturing time and optimizing processes for better revenue.
Type of Management	Management of project is called Project Management	Management of operation is called Business Process Management.
Reasons for Undertaking	It can be undertaken due to an opportunity or business need, Social need, Technological enhancement, Customer private need, Market demand, Legal requirements etc.	It is done to run business and sustain system.
Basis	Projects are based on achieving objectives that are specified in requirement specification phase.	Operations are based on metrics according to which entire product is measured.
Organization	The organization that deals with projects is called a Projectized organization.	The organization that deals with operations is called a Functional organization.
Existence	Projects exist before product is made. This is because once project is completed and is out in market, it is called a product.	Operations exist only after product is made. This is so, as only after one product is made, can more such products be developed.
Nature	It is Innovative in nature. The project is undertaken for creation of a new product.	It is Repetitive in nature. The process of making product once is again repeated for several other products manufacture.