Why we called it Project? What differs Project with Operation?

Many of us have heard about the term “project”, even during our college days we often heard “mid-term project” or “final term project”. Project involves organization of people and other resources to perform work. But what makes it different with Operation? As we know that operation also involves people and resources to perform work. The main differences can bee noticed because projects are:
• Temporary
• Resulting a unique product or service

“Temporary” means that the project has a definite start time and finish time. The project starts when the initiation process has been launched. The project finishes when the project’s objectives have been achieved. The project duration can be short like matter of days. On the other hand, the project can take years as well. Take note that even the project can take year, this is because the scope of the project is huge. Small scope of the project should not take time to manage. If the project keeps on deviating from the objective or having delays in most of the time, then, the project management should think and act if the project should be terminated.

Even tough the project is temporary, the end result are mostly a permanent product. For example: project of implementing new customer information system for electricity company. The project itself is temporary to implement new system. When the project’s objective is achieved and the project closes, the system is going to be used by the company in permanent basis. The work will then become an operation work.

“Resulting a unique product or services” means that the project carries out a unique product or services. Let us continue the example of implementing customer information system for Electricity Company. One may say that the customer information system is not unique. It is a common system used by many electricity companies. So what makes it unique? The one that make it unique is because the project is implemented by different vendor. It is unique because the electricity company that is going to be implemented the system is different. It is unique because the customization of the customer information system for that electricity company is different. And many more but I think you get my point already.

As the project results into a unique product or service, the characteristics of the product or services should be defined clearly in the project scope. This is usually clearly stated in the contract if the project involves other party outside the company.