I have two lists. List 1 is Parent ( project name, status etc) and list 2 is Child ( project name, status, etc). I have created a workflow using the Create Item when an item in List 1 is added it creates a new item in List 2 using list 1's information (project name, status). I would like to have a workflow update List 2 if any of the information in List 1 changes for example if the status changes from Open to Resolved. I tried creating a workflow using Update item but it is not working. Is it possible to update List 2 when List 1 is updated using workflows? If anyone knows plz explain with example.
Yes its definitely possible.
Anuja's approach will work but it needs some change (no need to create lookup).
When you create item in list 2 save item id to list 2. (e.g. Create one column in list 2 named "list1itemid" and save list 1 item's id to that column when you create an item into list 2.
Now create another workflow on list 1 updated event(or you can use existing with some condition) and update list 2 item by matching item id and list1itemid value.
I use this approach in my SharePoint.