Following are the five factors differentiating projects from daily operations: 1
ID: 373248 • Letter: F
Question
Following are the five factors differentiating projects from daily operations:
1. A Project is of temporary nature while daily operations are routine and repetitive jobs performed everyday.
2. Each Project yeild a different result, but operations are daily business chores yeilding the same result.
3. A Project is is initiated to achieve something new and unique, while daily operations are the jobs that maintain and sustain the system.
4. A Project is allocated with a specific budget, while daily operations must generate profit in order to run the company/business.
5. Project Management is required to handle a project while Operations Management is required to handle opertions.
Importance of Funding in Project Strategy
For a project to execute, finance is the most important resource required apart from all the other resources. Its not just the generic fund required to kickstart the project. The project strategy is designed around the kins of funding that is allocated for the execution of the project. Sometimes it is beyond the operational limits of a company to fund a project, in which case they see to find a sponsor who can fund the project. The project strategy also decides where and how the allocated fund will be used.
There are four phases of cash flow in a project Financing, Investing, Operating, and Returning. Funds required to start a project, then to grow the project, sustain it till the objective is achieved and then return the funds to the sponsors and creditors.
Explanation / Answer
what are five that differentiate projects from other daily operations?
how is funding important to project strategy?