Operations Management in the Project-Based Organization

There are six essential steps in the operations management process in the PBO.

1. Winning the customer's order. In order to win the order the firm must identify potential customers, define their requirements, and demonstrate a superior ability to deliver them. This will often involve preparing a competitive tender, or bid, for the work.

2. Designing the product and the process for its delivery: The unique product and novel process required to deliver the client's requirement is designed. This includes the functionality of the product, its components and how they are configured to deliver the functionality, and the process by which they will be produced.

3. Producing the components of the product: Components of the product may be sourced from a number of different places, internal or external to the organization. The chain or network of supply needs to be designed and managed.

4. Configuring the components of the product: The individual components must then be configured into the eventual product to deliver the required functionality.

5. Commissioning the product and delivering to the customer: Not only must the product deliver the required functionality; it must work to meet the customer's requirement. The commissioning may be done by the customer or the PBO, or both working together. The firm may also need to provide ongoing support to the customer and continue to manage the relationship to win future work.

6. Maintaining customer support after delivery: After delivery of the product the customer may require ongoing maintenance or other support. This will also be an essential part of maintaining links with the customer to obtain leads for potential future work.