Asset Life Cycle Management - Operations Management Vs. Capital Project Management
Asset Life Cycle Management - Operations Management Vs. Capital Project Management
Sr. No. | Operations Management (OM) | New Product/ Capital Project Management (PM) |
|---|---|---|
1 | Repeated annual activities for an already engineered product process | A one-time effort with a definite start and end |
2 | Funded by retained earnings and or short term borrowings | Funded by retained earnings and or Long term borrowings |
3 | OM utilizes capital Assets, Product manufacturing processes, and work-flow | PM creates and modifies Assets, Product manufacturing processes, and work-flow |
4 | Micro Manufacturing Life Cycle Process-oriented | Macro Asset/Product Life Cycle oriented to create capital Asset, Product, and Service |
5 | Annual Production Strategy | Long term Business Strategy |
6 | Impacts Current Assets and Revenues | Impacts Long Term Assets and Taxes |
7 | Optimal Expertise - 80% OM, 20% PM | Optimal Expertise - 80% PM, 20% OM |
8 | Human Capital span of control is narrow | Human Capital span of control is broad |
9 | Operations Control concepts and conventions | Project Control concepts and conventions |
10 | Supply Chain | Intellectual Property, Contract Management |
11 | Efficiency by Economies of Scale | Efficiency by Economies of Scope |
12 | Prime focus is productivity, reliability | Prime focus is innovation, creativity |
