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TOPIC: Project or Operations?

Project or Operations? 1 year 10 months ago #5659

  • Wai Wah Ong
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Given the scenario that you are given an annual contract to operate something, is this a Project or an Operation? The contract has a start and end date, and it is possible to get a renewal.

Project or Operations? 1 year 10 months ago #5663

  • Cornelius Fichtner
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From my perspective, this might be considered to be a "hybrid" model:

From your customer's perspective it sounds like this is operations - after all you say yourself 'you are given something to operate'.

However, from your perspective, this may be set up as a project in which you set up a new and dedicated team to fulfill the contract.
Until Next Time,
Cornelius Fichtner, PMP, CSM
President, OSP International LLC

Project or Operations? 1 year 10 months ago #5665

  • Michael DeCicco
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When in doubt, stick with the published definition of the word Project, according to PMBOK 5. P.553 states a project is a "temporary endeavor undertaken to create a unique product, service, or result."

Your contract has a start and end date, so that meets the temporary endeavor aspect in the above definition. Now ask yourself, in the temporary time are you creating something unique. You say you are operating something. Then in my opinion, it sounds like an operation, not a project.

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Michael DeCicco, PMP
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Project or Operations? 1 year 10 months ago #5670

  • Ahmed Amin
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I Agree with Michael, if you are not producing a unique result then I would consider this an operation contract rather than a project.
Ahmed Amin Abdullah, PMP
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Project or Operations? 1 year 10 months ago #5672

  • Wai Wah Ong
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Thanks all for the input. After reading the comments, I guess during the initial stage of the contract it would be a project. Since it fulfill both the "temporary" and "unique results" definition. Subsequent contract renewal (if no further changes), even if it is on a yearly basis, should be considered an operation.
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