Operations Management vs Project Management: Deciding Between Key Management Disciplines
Operations management and project management are two vital business management disciplines. But what are the key differences between project and operations management? And how do you decide which approach is best for managing different initiatives in your organization?
This in-depth guide examines the roles of project managers versus operations managers, the focus of each field, key similarities and differences, and tips for determining when to utilize each approach. Read on to learn the key differences between the two management disciplines so you can optimize efficiency, output, and success.
What is Project Management?
Project management is the planning, organizing, and managing of resources to successfully complete specific project goals and objectives. A project has defined start and end dates, with the objective of delivering a unique product, service, or result.
project management involves overseeing project activities and the project team to meet the project requirements outlined by stakeholders. Project managers utilize various processes, skills, tools and techniques to ensure the successful and on-time delivery of the project according to the project management plan.
Some examples of projects that are commonly managed by a project manager include:
Software development
Event planning
Construction
Business transformation initiatives
New product development
What is Operations Management?
Operations management focuses on managing the ongoing daily business activities and operations that produce goods and services. The goal of operations management is to optimize efficiency within business operations like production, manufacturing, accounting, supply chain management and quality control.
Operation managers are responsible for ensuring operations activities align with and work towards the overall business goals and objectives. Some examples of functions that fall under operations management include:
Manufacturing and production
Supply chain/logistics
Accounting
Quality control
Maintenance
Services
While projects have a defined start and end date, operations management involves ongoing management of business processes and workflows.
Project Manager vs Operations Manager Roles
Project Manager Roles & Responsibilities
project managers are responsible for planning and overseeing project activities to meet specific project objectives outlined by stakeholders. Their primary focus is ensuring projects are delivered on time, within budget and meet all requirements.
Common project manager roles include:
Developing project plans, objectives, budgets, schedules etc.
Assembling project teams and assigning tasks
Managing resources, schedules budgets
Tracking project progress and creating status reports
Identifying and addressing issues and risks
Managing communications with stakeholders
Ensuring quality standards are met
Many project managers have a degree or project management certification like Project Management Professional (PMP) or Certified Associate in Project Management (CAPM) from the Project Management Institute (PMI).
Operations Manager Roles & Responsibilities
Operations managers focus on efficiently managing ongoing business operations and processes to meet overall business goals. Their aim is to improve productivity, efficiency and quality within daily business activities.
Typical operations management roles include:
Designing operation processes, policies and procedures
Controlling operation costs and improving efficiencies
Ensuring quality control standards are met
Overseeing supply chain, logistics, manufacturing etc.
Identifying operational bottlenecks and gaps
Development operation strategies aligned with business goals
Managing maintenance and facility operations
Operations managers utilize tools like operations management software, quality management frameworks like Total Quality Management (TQM) and qualifications like APICS Certified in Production and Inventory Management (CPIM).
Key Similarities Between Project & Operations Management
While there are distinct differences in focus and approach, project management and operations management also have some core similarities:
Both Play a Vital Strategic Role
Project managers and operations managers both play an important strategic role within an organization. They oversee critical business activities that impact productivity, efficiency, costs, quality, growth and overall success.
Each Focus on Optimizing Efficiency
At their core, project management and operations management both aim to improve efficiency. Project management ensures resources are utilized efficiently to deliver projects on time and budget, while operations management strives to maximize efficiency in ongoing business processes and workflows for optimal productivity.
Require Strong Leadership & Management Skills
Effective project managers and operations managers require excellent leadership abilities combined with strong organizational, coordination and management competencies. They assemble teams, delegate tasks, oversee progress and processes, communicate objectives and address issues.
Focus on Shared Business Goals
While project and operations managers have different day-to-day responsibilities, they are both working towards the same overarching organizational goals and objectives whether that’s growth, revenue, quality etc. Alignment between departments is key.
10 Key Differences Between Project & Operations Management
While there are some core similarities, project management and operations management vary greatly when it comes to approach, deliverables, scope and more.
1. Scope & Timelines
A key difference is project management deals with clearly defined initiatives and objectives within set timeframes, while operations management involves ongoing management of business activities with no predetermined end date.
2. Deliverables
Project management focuses on delivering a specific product, service or result outlined by stakeholders, while operations management aims to ensure efficiency of ongoing business processes and functions.
3. Change Management
Project management expects and manages constant change whether that’s to project plans, timelines, budgets or resources until project completion. Operations management aims for consistency and steady improvement of standardized operations workflows over time.
4. Planning Horizons
Project managers develop detailed short-term plans with definite deadlines for project completion, while operations managers create longer-term strategies and frameworks designed to improve and streamline business operations far into the future.
5. Budget Sources & Oversight
Project budgets are assigned from special yearly allocations specifically earmarked for project work. Operations activities are funded through general yearly department budgets assigned by organizational leadership based on ongoing operational needs and forecasts.
6. Risk Appetite
There is often more tolerance for calculated risk-taking in project management to meet aggressive deadlines, budgets and ever-changing objectives until project completion. Operations management is typically more risk-adverse focused on consistency, improving on past performance and exception management.
7. Team Structures
Project teams are formed on an as-needed basis with required skillsets and expertise hired just for project duration then disbanded upon completion. Operations departments have fixed organizational structures staffed by employees focused on specialized, ongoing operational roles responsible for daily activities.
8. Measurement Metrics
Project management success is measured primarily by whether established project requirements are met within predefined time, cost and quality constraints. Operations management metrics focus more on totals and trends tied to output efficiency, quality, cost reductions and inventory turns over longer periods.
9. Management Styles
Project managers require adaptable, flexible management approaches to navigate uncertainty, change and varying priorities surrounding unique projects and temporary teams. Operations managers adopt a more standardized, process-based management style focused on consistency, improvement and alignment for permanent personnel performing specialized roles.
10. Tools & Methodologies
Project managers utilize various tools and techniques like software dashboards, Gantt charts, Scrum methodology and risk management frameworks specifically tailored to provide visibility and help manage projects. Operations managers leverage solutions like ERP, MRP and specialized techniques around TQM, Six Sigma and Lean aimed at optimizing operational efficiency.
Deciding Between Project & Operations Management Approaches
Choosing whether to manage an initiative as a formal project with a designated project manager or have operations departments incorporate activities into existing workflows depends on several factors:
Unique Deliverable – Projects involve delivering a unique product, service or capability that add value and fill a gap separate from existing operations.
Specialized Skills – Projects may require hiring team members with specialized expertise outside the current operations skill set.
Limited Duration – Projects have clearly defined timelines, budgets and completion dates unlike the ongoing nature of operations.
Higher Risks – Projects may involve more uncertainty and require riskier changes from normal operations activities.
Dedicated Resources – Project budgets, equipment and full-time team members may be assigned exclusively to focus on project work.
Big Impact – Projects can lead to transformational changes, innovations or additions beyond marginal gains to operations.
If an initiative meets several of these criteria, formally establishing a project is likely the best approach. For smaller improvements or changes, modifying operations workflows and processes guided by operational management is preferable.
Organizations often create a Project Management Office to provide guidance around project standards, processes, tools and best practices separate from operations management. The PMO also assists with project coordination and resource decisions across departments — helping bridge project and operational gaps.
Key Takeaways & Learnings
Project management deals with defined initiatives while operations management focuses on ongoing activities.
While roles differ, project and operations managers utilize similar leadership competencies and aim to improve efficiency.
There are key differences in approach, timelines, metrics, tools and more between the disciplines.
Certain criteria can shape decisions on formally managing initiatives as projects vs modifying operations.
Close coordination between departments ensures alignment on business goals and reduces inefficiencies from talent gaps to redundant work.
Carefully considering when to leverage project or operational resources for initiatives helps optimize spending, output and results across both groups for overall business success.
Operations Management vs Project Management: Deciding Between Key Management Disciplines
Operations management and project management are two vital business management disciplines. But what are the key differences between project and operations management? And how do you decide which approach is best for managing different initiatives in your organization?
This in-depth guide examines the roles of project managers versus operations managers, the focus of each field, key similarities and differences, and tips for determining when to utilize each approach. Read on to learn the key differences between the two management disciplines so you can optimize efficiency, output, and success.
What is Project Management?
Project management is the planning, organizing, and managing of resources to successfully complete specific project goals and objectives. A project has defined start and end dates, with the objective of delivering a unique product, service, or result.
project management involves overseeing project activities and the project team to meet the project requirements outlined by stakeholders. Project managers utilize various processes, skills, tools and techniques to ensure the successful and on-time delivery of the project according to the project management plan.
Some examples of projects that are commonly managed by a project manager include:
Software development
Event planning
Construction
Business transformation initiatives
New product development
What is Operations Management?
Operations management focuses on managing the ongoing daily business activities and operations that produce goods and services. The goal of operations management is to optimize efficiency within business operations like production, manufacturing, accounting, supply chain management and quality control.
Operation managers are responsible for ensuring operations activities align with and work towards the overall business goals and objectives. Some examples of functions that fall under operations management include:
Manufacturing and production
Supply chain/logistics
Accounting
Quality control
Maintenance
Services
While projects have a defined start and end date, operations management involves ongoing management of business processes and workflows.
Project Manager vs Operations Manager Roles
Project Manager Roles & Responsibilities
project managers are responsible for planning and overseeing project activities to meet specific project objectives outlined by stakeholders. Their primary focus is ensuring projects are delivered on time, within budget and meet all requirements.
Common project manager roles include:
Developing project plans, objectives, budgets, schedules etc.
Assembling project teams and assigning tasks
Managing resources, schedules budgets
Tracking project progress and creating status reports
Identifying and addressing issues and risks
Managing communications with stakeholders
Ensuring quality standards are met
Many project managers have a degree or project management certification like Project Management Professional (PMP) or Certified Associate in Project Management (CAPM) from the Project Management Institute (PMI).
Operations Manager Roles & Responsibilities
Operations managers focus on efficiently managing ongoing business operations and processes to meet overall business goals. Their aim is to improve productivity, efficiency and quality within daily business activities.
Typical operations management roles include:
Designing operation processes, policies and procedures
Controlling operation costs and improving efficiencies
Ensuring quality control standards are met
Overseeing supply chain, logistics, manufacturing etc.
Identifying operational bottlenecks and gaps
Development operation strategies aligned with business goals
Managing maintenance and facility operations
Operations managers utilize tools like operations management software, quality management frameworks like Total Quality Management (TQM) and qualifications like APICS Certified in Production and Inventory Management (CPIM).
Key Similarities Between Project & Operations Management
While there are distinct differences in focus and approach, project management and operations management also have some core similarities:
Both Play a Vital Strategic Role
Project managers and operations managers both play an important strategic role within an organization. They oversee critical business activities that impact productivity, efficiency, costs, quality, growth and overall success.
Each Focus on Optimizing Efficiency
At their core, project management and operations management both aim to improve efficiency. Project management ensures resources are utilized efficiently to deliver projects on time and budget, while operations management strives to maximize efficiency in ongoing business processes and workflows for optimal productivity.
Require Strong Leadership & Management Skills
Effective project managers and operations managers require excellent leadership abilities combined with strong organizational, coordination and management competencies. They assemble teams, delegate tasks, oversee progress and processes, communicate objectives and address issues.
Focus on Shared Business Goals
While project and operations managers have different day-to-day responsibilities, they are both working towards the same overarching organizational goals and objectives whether that’s growth, revenue, quality etc. Alignment between departments is key.
10 Key Differences Between Project & Operations Management
While there are some core similarities, project management and operations management vary greatly when it comes to approach, deliverables, scope and more.
1. Scope & Timelines
A key difference is project management deals with clearly defined initiatives and objectives within set timeframes, while operations management involves ongoing management of business activities with no predetermined end date.
2. Deliverables
Project management focuses on delivering a specific product, service or result outlined by stakeholders, while operations management aims to ensure efficiency of ongoing business processes and functions.
3. Change Management
Project management expects and manages constant change whether that’s to project plans, timelines, budgets or resources until project completion. Operations management aims for consistency and steady improvement of standardized operations workflows over time.
4. Planning Horizons
Project managers develop detailed short-term plans with definite deadlines for project completion, while operations managers create longer-term strategies and frameworks designed to improve and streamline business operations far into the future.
5. Budget Sources & Oversight
Project budgets are assigned from special yearly allocations specifically earmarked for project work. Operations activities are funded through general yearly department budgets assigned by organizational leadership based on ongoing operational needs and forecasts.
6. Risk Appetite
There is often more tolerance for calculated risk-taking in project management to meet aggressive deadlines, budgets and ever-changing objectives until project completion. Operations management is typically more risk-adverse focused on consistency, improving on past performance and exception management.
7. Team Structures
Project teams are formed on an as-needed basis with required skillsets and expertise hired just for project duration then disbanded upon completion. Operations departments have fixed organizational structures staffed by employees focused on specialized, ongoing operational roles responsible for daily activities.
8. Measurement Metrics
Project management success is measured primarily by whether established project requirements are met within predefined time, cost and quality constraints. Operations management metrics focus more on totals and trends tied to output efficiency, quality, cost reductions and inventory turns over longer periods.
9. Management Styles
Project managers require adaptable, flexible management approaches to navigate uncertainty, change and varying priorities surrounding unique projects and temporary teams. Operations managers adopt a more standardized, process-based management style focused on consistency, improvement and alignment for permanent personnel performing specialized roles.
10. Tools & Methodologies
Project managers utilize various tools and techniques like software dashboards, Gantt charts, Scrum methodology and risk management frameworks specifically tailored to provide visibility and help manage projects. Operations managers leverage solutions like ERP, MRP and specialized techniques around TQM, Six Sigma and Lean aimed at optimizing operational efficiency.
Deciding Between Project & Operations Management Approaches
Choosing whether to manage an initiative as a formal project with a designated project manager or have operations departments incorporate activities into existing workflows depends on several factors:
Unique Deliverable – Projects involve delivering a unique product, service or capability that add value and fill a gap separate from existing operations.
Specialized Skills – Projects may require hiring team members with specialized expertise outside the current operations skill set.
Limited Duration – Projects have clearly defined timelines, budgets and completion dates unlike the ongoing nature of operations.
Higher Risks – Projects may involve more uncertainty and require riskier changes from normal operations activities.
Dedicated Resources – Project budgets, equipment and full-time team members may be assigned exclusively to focus on project work.
Big Impact – Projects can lead to transformational changes, innovations or additions beyond marginal gains to operations.
If an initiative meets several of these criteria, formally establishing a project is likely the best approach. For smaller improvements or changes, modifying operations workflows and processes guided by operational management is preferable.
Organizations often create a Project Management Office to provide guidance around project standards, processes, tools and best practices separate from operations management. The PMO also assists with project coordination and resource decisions across departments — helping bridge project and operational gaps.
Key Takeaways & Learnings
Project management deals with defined initiatives while operations management focuses on ongoing activities.
While roles differ, project and operations managers utilize similar leadership competencies and aim to improve efficiency.
There are key differences in approach, timelines, metrics, tools and more between the disciplines.
Certain criteria can shape decisions on formally managing initiatives as projects vs modifying operations.
Close coordination between departments ensures alignment on business goals and reduces inefficiencies from talent gaps to redundant work.
Carefully considering when to leverage project or operational resources for initiatives helps optimize spending, output and results across both groups for overall business success.
Operations Management vs Project Management: Deciding Between Key Management Disciplines
Operations management and project management are two vital business management disciplines. But what are the key differences between project and operations management? And how do you decide which approach is best for managing different initiatives in your organization?
This in-depth guide examines the roles of project managers versus operations managers, the focus of each field, key similarities and differences, and tips for determining when to utilize each approach. Read on to learn the key differences between the two management disciplines so you can optimize efficiency, output, and success.
What is Project Management?
Project management is the planning, organizing, and managing of resources to successfully complete specific project goals and objectives. A project has defined start and end dates, with the objective of delivering a unique product, service, or result.
project management involves overseeing project activities and the project team to meet the project requirements outlined by stakeholders. Project managers utilize various processes, skills, tools and techniques to ensure the successful and on-time delivery of the project according to the project management plan.
Some examples of projects that are commonly managed by a project manager include:
Software development
Event planning
Construction
Business transformation initiatives
New product development
What is Operations Management?
Operations management focuses on managing the ongoing daily business activities and operations that produce goods and services. The goal of operations management is to optimize efficiency within business operations like production, manufacturing, accounting, supply chain management and quality control.
Operation managers are responsible for ensuring operations activities align with and work towards the overall business goals and objectives. Some examples of functions that fall under operations management include:
Manufacturing and production
Supply chain/logistics
Accounting
Quality control
Maintenance
Services
While projects have a defined start and end date, operations management involves ongoing management of business processes and workflows.
Project Manager vs Operations Manager Roles
Project Manager Roles & Responsibilities
project managers are responsible for planning and overseeing project activities to meet specific project objectives outlined by stakeholders. Their primary focus is ensuring projects are delivered on time, within budget and meet all requirements.
Common project manager roles include:
Developing project plans, objectives, budgets, schedules etc.
Assembling project teams and assigning tasks
Managing resources, schedules budgets
Tracking project progress and creating status reports
Identifying and addressing issues and risks
Managing communications with stakeholders
Ensuring quality standards are met
Many project managers have a degree or project management certification like Project Management Professional (PMP) or Certified Associate in Project Management (CAPM) from the Project Management Institute (PMI).
Operations Manager Roles & Responsibilities
Operations managers focus on efficiently managing ongoing business operations and processes to meet overall business goals. Their aim is to improve productivity, efficiency and quality within daily business activities.
Typical operations management roles include:
Designing operation processes, policies and procedures
Controlling operation costs and improving efficiencies
Ensuring quality control standards are met
Overseeing supply chain, logistics, manufacturing etc.
Identifying operational bottlenecks and gaps
Development operation strategies aligned with business goals
Managing maintenance and facility operations
Operations managers utilize tools like operations management software, quality management frameworks like Total Quality Management (TQM) and qualifications like APICS Certified in Production and Inventory Management (CPIM).
Key Similarities Between Project & Operations Management
While there are distinct differences in focus and approach, project management and operations management also have some core similarities:
Both Play a Vital Strategic Role
Project managers and operations managers both play an important strategic role within an organization. They oversee critical business activities that impact productivity, efficiency, costs, quality, growth and overall success.
Each Focus on Optimizing Efficiency
At their core, project management and operations management both aim to improve efficiency. Project management ensures resources are utilized efficiently to deliver projects on time and budget, while operations management strives to maximize efficiency in ongoing business processes and workflows for optimal productivity.
Require Strong Leadership & Management Skills
Effective project managers and operations managers require excellent leadership abilities combined with strong organizational, coordination and management competencies. They assemble teams, delegate tasks, oversee progress and processes, communicate objectives and address issues.
Focus on Shared Business Goals
While project and operations managers have different day-to-day responsibilities, they are both working towards the same overarching organizational goals and objectives whether that’s growth, revenue, quality etc. Alignment between departments is key.
10 Key Differences Between Project & Operations Management
While there are some core similarities, project management and operations management vary greatly when it comes to approach, deliverables, scope and more.
1. Scope & Timelines
A key difference is project management deals with clearly defined initiatives and objectives within set timeframes, while operations management involves ongoing management of business activities with no predetermined end date.
2. Deliverables
Project management focuses on delivering a specific product, service or result outlined by stakeholders, while operations management aims to ensure efficiency of ongoing business processes and functions.
3. Change Management
Project management expects and manages constant change whether that’s to project plans, timelines, budgets or resources until project completion. Operations management aims for consistency and steady improvement of standardized operations workflows over time.
4. Planning Horizons
Project managers develop detailed short-term plans with definite deadlines for project completion, while operations managers create longer-term strategies and frameworks designed to improve and streamline business operations far into the future.
5. Budget Sources & Oversight
Project budgets are assigned from special yearly allocations specifically earmarked for project work. Operations activities are funded through general yearly department budgets assigned by organizational leadership based on ongoing operational needs and forecasts.
6. Risk Appetite
There is often more tolerance for calculated risk-taking in project management to meet aggressive deadlines, budgets and ever-changing objectives until project completion. Operations management is typically more risk-adverse focused on consistency, improving on past performance and exception management.
7. Team Structures
Project teams are formed on an as-needed basis with required skillsets and expertise hired just for project duration then disbanded upon completion. Operations departments have fixed organizational structures staffed by employees focused on specialized, ongoing operational roles responsible for daily activities.
8. Measurement Metrics
Project management success is measured primarily by whether established project requirements are met within predefined time, cost and quality constraints. Operations management metrics focus more on totals and trends tied to output efficiency, quality, cost reductions and inventory turns over longer periods.
9. Management Styles
Project managers require adaptable, flexible management approaches to navigate uncertainty, change and varying priorities surrounding unique projects and temporary teams. Operations managers adopt a more standardized, process-based management style focused on consistency, improvement and alignment for permanent personnel performing specialized roles.
10. Tools & Methodologies
Project managers utilize various tools and techniques like software dashboards, Gantt charts, Scrum methodology and risk management frameworks specifically tailored to provide visibility and help manage projects. Operations managers leverage solutions like ERP, MRP and specialized techniques around TQM, Six Sigma and Lean aimed at optimizing operational efficiency.
Deciding Between Project & Operations Management Approaches
Choosing whether to manage an initiative as a formal project with a designated project manager or have operations departments incorporate activities into existing workflows depends on several factors:
Unique Deliverable – Projects involve delivering a unique product, service or capability that add value and fill a gap separate from existing operations.
Specialized Skills – Projects may require hiring team members with specialized expertise outside the current operations skill set.
Limited Duration – Projects have clearly defined timelines, budgets and completion dates unlike the ongoing nature of operations.
Higher Risks – Projects may involve more uncertainty and require riskier changes from normal operations activities.
Dedicated Resources – Project budgets, equipment and full-time team members may be assigned exclusively to focus on project work.
Big Impact – Projects can lead to transformational changes, innovations or additions beyond marginal gains to operations.
If an initiative meets several of these criteria, formally establishing a project is likely the best approach. For smaller improvements or changes, modifying operations workflows and processes guided by operational management is preferable.
Organizations often create a Project Management Office to provide guidance around project standards, processes, tools and best practices separate from operations management. The PMO also assists with project coordination and resource decisions across departments — helping bridge project and operational gaps.
Key Takeaways & Learnings
Project management deals with defined initiatives while operations management focuses on ongoing activities.
While roles differ, project and operations managers utilize similar leadership competencies and aim to improve efficiency.
There are key differences in approach, timelines, metrics, tools and more between the disciplines.
Certain criteria can shape decisions on formally managing initiatives as projects vs modifying operations.
Close coordination between departments ensures alignment on business goals and reduces inefficiencies from talent gaps to redundant work.
Carefully considering when to leverage project or operational resources for initiatives helps optimize spending, output and results across both groups for overall business success.