ABSTRACT
A project is “a temporary endeavor undertaken to create a unique product, service, or result” (PMI 2013)—i.e., an attempt to do something new, once, and by a deadline. Projects comprise the opposite end of the spectrum of work from repetitive operations, where, at the extreme, the same thing is done over and over again. In contrast, projects are low-volume, high-variety operations (Maylor et al. 2015). However, projects come in many types and vary significantly in their degrees of novelty, complexity, innovation, dynamism, etc. Some projects seek to replicate previous projects, albeit under different circumstances. Other projects seek to create a recipe for a new product, process, or service, which will then be produced and delivered repetitively. Some projects seek to improve ongoing, repetitive operations. All projects contain some elements that are relatively well understood and perhaps even repetitive, but they all also have aspects that make them unique. Projects therefore tend to require a significant amount of creativity and innovation, as opposed to merely following established routines. (Projects thus have much in common with “white-collar” work (Hopp et al. 2009), although not all white-collar work is project work, nor vice versa.) Although projects and repetitive operations have some common characteristics and the dividing line between them is sometimes fuzzy, projects nevertheless require a distinctive perspective and analysis techniques. For example, while it is impossible to assemble two components on a production line when one is missing, it is often possible to do an activity in a project without one of its inputs (by using an assumption instead). In addition, it may be possible to build a model without having the exact values of all of its input variables or to do an analysis without knowing all of the factors completely, although doing so may increase the risk of later problems. Situations such as these give project managers additional degrees of freedom, albeit often at their peril, thus making for challenging decision problems (e.g., Loch and Terwiesch 2005). Projects permeate most modern organizations, and their effective and efficient execution can be a significant competitive lever.
