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1 - INTRODUCTION

• At each closeout phase;
• When developing a new product, upgrading a product, or expanding outputs; 1

• While improving operations or the product development process; or
• Until the end of the product life cycle.

At each point, deliverables and knowledge are transferred between the project and operations for implementation
of the delivered work. This implementation occurs through a transfer of project resources to operations toward the
end of the project, or through a transfer of operational resources to the project at the start.

Operations are ongoing endeavors that produce repetitive outputs, with resources assigned to do basically the
same set of tasks according to the standards institutionalized in a product life cycle. Unlike the ongoing nature of
operations, projects are temporary endeavors.

1.5.1.1 operations Management

Operations management is a subject area that is outside the scope of formal project management as described
in this standard.

Operations management is an area of management concerned with ongoing production of goods and/or
services. It involves ensuring that business operations continue efficiently by using the optimum resources needed
and meeting customer demands. It is concerned with managing processes that transform inputs (e.g., materials,
components, energy, and labor) into outputs (e.g., products, goods, and/or services).

1.5.1.2 operational Stakeholders in Project Management

While operations management is different from project management (see 1.5.1.1), the needs of stakeholders
who perform and conduct business operations are important considerations in projects that will affect their future
work and endeavors. Project managers who consider and appropriately include operational stakeholders in all
phases of projects, gain insight and avoid unnecessary issues that often arise when their input is overlooked.

Operational stakeholders should be engaged and their needs identified as part of the stakeholder register, and
their influence (positive or negative) should be addressed as part of the risk management plan.

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©2013 Project Management Institute. A Guide to the Project Management Body of Knowledge (PMBOK Guide) – Fifth Edition 13

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