Understanding Project and Operations Management: A Comprehensive Guide

The Importance of Project and Operations Management

For starters, project and operations management are not the only management applications experienced in organizations. Portfolio and program management are among others. See Figure 1.1 Relationship Between Strategy, Portfolio Management, Program Management, Project Management, Operations Management, and Business Value. Our focus is on project and operations management. It is important to note right off the bat that one is not better or more important than the other. The truth is, they need each other. Even though the argument can be made that they both can hold their own in their respective management disciplines, their collaboration is crucial.

Figure 1.1. Relationship Between Strategy, Portfolio Management, Program Management, Project Management, Operations Management, and Business Value.

Defining Project Management

To understand project management, we must first define what a project is. A project is “a temporary endeavor undertaken to create a unique product, service, or result” (A Guide to the Project Management Body Of Knowledge (PMBOK Guide), Sixth Edition., 2017, p. 4). In short, there must be a starting point and an end point. This is distinct and different from something that is ongoing, like operations.

“Project management is the application of knowledge, skills, tools, and techniques to project activities to meet the project requirements” (A Guide to the Project Management Body Of Knowledge (PMBOK Guide), Sixth Edition., 2017, p. 10). Project management brings an idea to life in a deliberate and concerted fashion. It aims to deliver value in the shortest amount of time at the lowest possible cost in an integrated, systematic way. Project management is not just an application of knowledge, skills, tools, and techniques; it is also a strategic competency. Projects can be executed in the realm of portfolios, programs, or as stand-alone projects. But, by definition, they are temporary and will end.

Operations management, on the other hand, “focuses on the efficient, effective production of products and/or services” (A Guide to the Project Management Body of Knowledge (PMBOK Guide)--Eighth Edition and The Standard for Project Management, 2025, p. 9). See Figure 1.2. A Basic Illustration of the Symbiotic Relationship Between Operations and Project Management.

Figure 1.2. A Basic Illustration of the Symbiotic Relationship Between Project and Operations Management.

The Role of Project Managers

Project managers “perform a variety of functions such as facilitating the project team’s work to achieve the intended outcomes and managing the processes to bring about those outcomes in order to enable value delivery” (A Guide to the Project Management Body of Knowledge (PMBOK Guide)--Eighth Edition and The Standard for Project Management, 2025, p. 5). They are the central point of a project. Additionally, they provide oversight and collaboration, solicit and manage feedback, facilitate support, perform work, apply expertise, provide organizational direction and insight, and allocate resources to projects. Projects are temporary, dynamic, and non-routine.

The Symbiotic Relationship Between Project and Operations Management

Project management and operations management can work separately and independently. However, when they come together, they create a type of business value that could not be achieved if executed separately. Project and operations management should have a symbiotic relationship. They work in tandem. If all management levels of an organization collaborate to plan and execute their strategic and financial goals, the likelihood of success increases. This leads to satisfied stakeholders.

Operations management ensures that the operations a business undertakes are done as accurately and quickly as possible while meeting customer demands. It is defined as "activities that relate to the creation of goods and services through the transformation of inputs to outputs" (Jay Heizer, 2017, p. 4). Operations are continuous, not dynamic, and are routine. Operations managers perform the basic functions of the management process: planning, organizing, staffing, leading, and controlling towards the ten (10) operations management decisions they must make.

Ten Strategic Operations Management Decisions

According to Jay Heizer (2017, p. 8), the ten strategic operations management decisions are:

1. Design of goods and services

2. Managing quality

3. Process and capacity strategy

4. Location strategy

5. Layout strategy

6. Human resources and job design

7. Supply chain management

8. Inventory management

9. Scheduling

10. Maintenance

Integrating Project and Operations Management

Tying the two together, if an idea is conceived, it is planned and executed at the project level before it is considered successful and passed on to operations. This ensures that the necessary resources are optimally utilized to maintain the expectations and results of the project.

An impactful, goal-oriented organization has less chance of achieving its objectives without an appropriate level of both project and operations management. It is becoming increasingly necessary for organizations to enable change and business value through projects. Operations management helps sustain or “finish” what projects have started. Change is not going anywhere. In fact, change is accelerating at a quick pace. Project managers, often seen as change makers, are a starting point for organizations to begin their pivots to embrace change effectively. Meanwhile, operations managers align the aforementioned operations management decisions with the project and the business value generated from the project(s).

In summary, project and operations managers working collaboratively and effectively can develop competencies for an organization. This leads to a higher success rate of initiatives, improved value delivery, and better returns.

Conclusion

In conclusion, understanding the relationship between project and operations management is essential for any organization aiming for success. The integration of both disciplines not only enhances efficiency but also drives innovation and growth. By fostering collaboration between project and operations managers, organizations can navigate the complexities of change and achieve their strategic goals more effectively.

References

A Guide to the Project Management Body Of Knowledge (PMBOK Guide), Sixth Edition. (2017). Newtown Square: Project Management Institute, Inc.

A Guide to the Project Management Body of Knowledge (PMBOK Guide)--Eighth Edition and The Standard for Project Management. (2025). Newtown Square: Project Management Institute, Inc.

Jay Heizer, B. R. (2017). Operations Management: Sustainability and Supply Chain Management, Twelfth Edition. Pearson.

Project Management Offices: A Practice Guide. (2025). Newtown Square: Project Management Institute, Inc.

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Meet Nikia Smith, Director of Project Management Office (PMO), driving success at Business and Wealth Generations. With over a decade of advisory expertise, Nikia orchestrates strategy and operations, spearheading growth and innovation. Beyond his professional endeavors, Nikia actively participates in his community, having served on the Board of Directors at the Project Management Institute Florida Suncoast Chapter in different roles for several years. Recognized for his contributions, he received the PMI Florida Suncoast Chapter Award in 2018 for significantly boosting membership and retention and was also selected to attend the 2019 PMI North America Leadership Institute Meeting in Philadelphia. Nikia holds a bachelor’s degree in management and organizational leadership with a focus on Project Management, alongside several business certificates from St. Petersburg College. He is also certified in CAPM and PMP by the prestigious Project Management Institute. For collaboration opportunities, reach out to Nikia at info@thebusinesswg.com.