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The management of operations in the project-based organisation

Project-based organisations require a different approach to their management from the functional hierarchical line-management approaches adopted for most of the 20th century. The latter works well where products are stable. During the latter half of the century, however, the nature of work has changed so that now, for many organisations, almost every product or service is supplied against a bespoke design, and markets and technologies change continuously. The classical management theories developed to manage mass production no longer apply; the new organisation needs new theories for its management. At Erasmus University, we are investigating the management of project-based organisations, to identify practices adopted by firms internationally. In this paper, we report our findings about operations management practices adopted. We suggest a six-step process model for operations management, and show that different approaches are used in the implementation of this model, depending on the size of projects undertaken and the number of customers. We describe different approaches in each of the four cases: large projects-few customers; large projects-many customers; many projects-few customers; and many projects-many customers.