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Lesson 1: Introduction to Project Management
Projects Versus Processes: What Makes Projects Different?
Having defined projects, let's consider how they differ from processes, such as operations or programs.
Projects Versus Operations
Every day you commute from home to your office. This is a routine decision made on a regular basis and can therefore be called an operation. Similarly, take the case of an automobile-manufacturing plant. Suppose this plant manufactures cars every day; this work can be termed operations. However, if instead of driving to work you drive to a vacation spot, or if the automobile manufacturer installs a new production line to manufacture more cars annually, these activities would be projects.
How do you know if something is a project or operation? Consider Pinto's (2016) list of elements of a project:
- Complex, one-time processes
- Limited by budget, schedule, and resources
- Developed to resolve a clear goal or set of goals
- Customer-focused
The vacation and new production line examples have the characteristics of projects: defined start and end dates, deliverables/goals, limits on resources, and so on.
Thus, projects differ from day-to-day operations, and that’s what makes them special. There are companies in the business of managing projects, but many people work on projects in addition to their day-to-day activities as they drive change through their organization.
Projects Versus Programs
Now consider the difference between a project and a program. Suppose you're pursuing your BSB degree at Penn State. This process can be called a program. However, in this program you will be executing many smaller projects (i.e., taking courses), which are essential for the completion of this program. You can play around with the projects (i.e., take courses that suit your schedule, adjust for major/minor requirements, etc.). What makes these courses projects is that selecting them is not a routine, day-to-day decision, and they all have distinct start and end dates and key deliverables (e.g., assignments).
Understanding programs is important, as decisions you make for individual projects also impact your programs—or project portfolio. More on that later.
References
Pinto, J.K. (2015). Project Management: Achieving Competitive Advantage. (4th ed.) Prentice Hall, p. 5-6.