Project Manufacturing vs Operations
Project Manufacturing is an operation designed to produce unique but similar products. It takes advantage of common manufacturing requirements (and therefore efficiencies), while allowing for customization into “unique” combinations. Unique orders may be managed like a project.
Project Manufacturing is a temporary endeavour carried out to develop a unique product, service, and outcome. Temporary refers to have a definite beginning and end. The end is reached when the project’s objectives are accomplished or if the project is dismissed for any reason. Though there might be some repetitive elements of a project, the outcome should be exclusive. Consider an example of a housing project in a specific area, every design may be similar but the challenges for each house will be different.
Project Manufacturing is initiated by businesses for diverse reasons such as conducting various operations, producing innovative products and services to meet new market heights, gain competitive benefit and respond to new market trends. One important way to achieve these goals is by disbursing means of the organization with time such as equipment, raw materials, labour etc. Since Project Manufacturing explores new and creative ideas, an additional budget overhead is frequently required for unpredictable circumstances.
Operations refer to permanent enterprises that produce repetitive outcomes. The resources are allocated to do a set of chores and produce a standard output. During a product’s lifecycle, a number of tasks are performed to enhance the product such as adding up new features. The fundamental development of the product will remain persistent, though there will be modifications done and included in the product. To accomplish the results from the everyday operations, managers and employees are assigned to do the same tasks according to the business operating processes and policy. These operations aim to cut cost, enhance efficiency, and gain marketing advantage on an ongoing level. They do not produce any new outcomes but maintain and sustain the already established system.
Project Manufacturing requires project management while Operations need business process management or operations management. Project Manufacturing and Operations will interact with one another at key points in a product’s life cycle. One noticeable difference is projects are temporary while operations are ongoing. Both project manufacturing and operations are carried out by people, require effective planning and management and both are controlled by a definite amount of budget, capitals, and timelines.
Example of Project Manufacturing vs Operations
Project manufacturing or engineer-to-order (ETO) manufacturing is known and practised in the industry but not in a formal way. Project manufacturing is to produce or assemble one unit of each unique product. Although it is a manufacturing environment, it follows the definition of the project of being temporary and unique. **
A plumber is working to fix a leak. Every day he fixes leaks in 10 locations. Each leak may need a different solution such as some might need a new washer or a new pipe. Now imagine a situation, he realizes that the entire tubing is poor and damaged at several locations and it will eventually be going to explode at any time. Consequently, he informs the homeowner to redesign the bathroom project to undertake a permanent fix. For that reason, the plumber can provide details regarding the required work (scope), estimated time (schedule), and a quotation (budget). In case, the homeowner agrees to the conditions proposed by a plumber and ready to remodel the bathroom, it leads to project manufacturing while the activities are referred to as operations.