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An aggregate project plan (APP) is the process of creating development goals and objectives and using these goals and objectives to improve productivity as well as development capabilities. The purpose of this process is generally to ensure that each project will accomplish its development goals and objectives. Projects can be differentiated into five types of projects: breakthrough, platform, derivative, R&D, or partnered projects (such as projects performed with partners or allianced firms). This differentiation determines a project's development goals and objectives as well as resources allocated to that project.[1]
An aggregate project plan provides management with a categorized list of projects, which balances short and long term goals. This list assists management in making difficult decisions such as when to start projects and which projects should be cannibalized. Starting projects in a sequential manner according to the firm's strategy as well as resources available will allow fewer projects to continue simultaneously and improve productivity. Another benefit is the creation of an organizational form for each project type. This creates a focus on the generation of competence and builds the speed and productivity of individuals as well as the organization itself.[2]
Aggregate Project Planning Process
[edit]This is the process a firm undergoes to create an aggregate project plan:
1. Create a well-defined and easily understood strategy.
2. Relay the strategy with the aim of developing new products, processes, or services and improving efficiency of current projects.
3. Establish clear definitions of each type of project: breakthrough, platform, derivative, R&D, or partnered projects.
4. List current projects and classify each by project type.
5. Eliminate projects that don’t fit within a project type.
6. Estimate the average time and resources needed for each project type based on past experience.
7. Determine the desired mix of projects.
8. Identify existing resources and estimate the number of projects those resources can support.
9. Decide which projects to pursue and eliminate the rest.
10. Allocate resources to remaining projects and work to improve development capabilities. [3]
[4]
- ^ Wheelwright, Steven (1992). Revolutionizing product development. Simon and Schuster. p. 48. ISBN 0029055156.
{{cite book}}: More than one of|author=and|last=specified (help) - ^
[web.mit.edu/rhenders/www/Teaching/day2b_Jan05.ppt "Actually Doing (Technology & Product) Strategy"]. Retrieved 2009-04-28.
{{cite web}}: Check|url=value (help) - ^ Henry C. Co. "Technology in Strategic Planning". Retrieved 2009-04-28.
- ^
Dr. Savas Ozatalay. [muse.widener.edu/SBA/FacultyWebpages/Ozatalay/newpart4.ppt "Project Management"]. Retrieved 2009-04-28.
{{cite web}}: Check|url=value (help)