DIFFERENCE IN MANAGEMENT CONTROL BETWEEN PROJECT & ONGOING OPERATION

Management control of a project is different from an ongoing operation due to one or more of the following reasons:

1. Objectives: A project has a single objective, while operations have multiple objectives. Project manager has a fixed target that is the end of the project. His/her performance will be judged by the result of the end product. But manager for regular operation has to maintain his performance throughout the year.

2. Effect on organization:    

3. Emphasis of control : Control is emphasized on the project, so that the same can be satisfactorily completed within the projected time limit and at an optimum cost, preferably without cost overrun. Control in ongoing organization focuses on the activities for a specified time period on all the work done during that time period, keeping cost control, quality and delivery schedule in mind.

4. Interchangeability : Projects usually involve trade off among scope, schedule and cost. Cost can be reduced or increased by curtailing or increasing the scope of the project. Delivery schedule can be advanced by incurring extra cost by way of paying overtime, travel expenses, etc. Such practices are regulated in ongoing organization.

5. Cost standards : Cost estimates of a project are prepared by collecting data, which may be accurate or are unfamiliar at the time of making estimates. Hence, a contingency provision is created for adjustments. This is not accepted while computing standard cost of a product. Moreover, project plan may be changed frequently due to environment condition or unexpected situations which cause change in the cost estimates.

6. Environment: The projects which are undertaken outside the premises of the organization, suffer from numerous external problems arising out of natural calamity, political disturbance, interference by local people, etc. Ongoing organizations, generally, enjoy the protection of the factory premises.

7. Difference in rhythm : The rhythm of a project differs from that of an ongoing operation distinctly. Most of the projects start slowly, then build up momentum and take the activities to a peak, and then taper off as completion is in sight. Ongoing activities tend to operate at the same level of activity, unless there is a seasonal effect or change in activity plan.

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