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 business alliances). This differentiation determines a project's development goals and objectives as well as resources allocated to that project.
An aggregate project plan provides
management
Management (or managing) is the administration of an organization, whether it is a business, a nonprofit organization, or a government body. It is the art and science of managing resources of the business.
Management includes the activities o ...
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.
Aggregate project planning process
This is the process a firm undergoes to create an aggregate project plan:
#Create a well-defined and easily understood strategy.
#Relay the strategy with the aim of developing new products, processes, or services and improving the efficiency of current projects.
#Establish clear definitions of each type of project: breakthrough, platform, derivative, R&D, or partnered projects.
#List current projects and classify each by project type.
#Eliminate projects that don't fit within a project type.
#Estimate the average time and resources needed for each project type based on past experience.
#Determine the desired mix of projects.
#Identify existing resources and estimate the number of projects those resources can support.
#Decide which projects to pursue and eliminate the rest.
#Allocate resources to remaining projects and work to improve development capabilities.
Five categories of development projects
Derivative projects
Derivative projects can vary from additions or augmentations to existing products or simple price reductions over time. Improvement work on derivative projects falls into three categories, incremental product changes, incremental process changes, and incremental changes in both sectors. Due to these minor changes, derivative projects require trivial effort & resources on both development and management.
:''Examples: special edition
car paint and
iPod
The iPod is a discontinued series of portable media players and multi-purpose mobile devices designed and marketed by Apple Inc. The first version was released on October 23, 2001, about months after the Macintosh version of iTunes ...
hard drive
A hard disk drive (HDD), hard disk, hard drive, or fixed disk is an electro-mechanical data storage device that stores and retrieves digital data using magnetic storage with one or more rigid rapidly rotating platters coated with magnet ...
size updates''
:Many organizations make derivative products, which can range from special editions of existing cars, adding nothing more than a special paint scheme and interior or a new iPod with a large hard drive.
Platform projects
These projects are the next generation of products for the company. These are major changes from existing products/services or the way the product/service is made or delivered. These create a new ‘platform‘ for growth in the future. These projects offer significant improvements in cost, quality, and performance. Platforms are created to meet the needs of a
core group
Core or cores may refer to:
Science and technology
* Core (anatomy), everything except the appendages
* Core (manufacturing), used in casting and molding
* Core (optical fiber), the signal-carrying portion of an optical fiber
* Core, the central ...
of customers changing more than one aspect of a product or service; while derivatives normally only change one aspect of a product or service.
:''Examples: new
car model
The model of a car is its design, in the context of the manufacturer's range or series of cars. Different models are distinguishable by technology, components, underpinnings, and/or style and appearance.
The methods used to categorise cars into ...
s.
Microprocessor
A microprocessor is a computer processor where the data processing logic and control is included on a single integrated circuit, or a small number of integrated circuits. The microprocessor contains the arithmetic, logic, and control circu ...
''
:New car models have major changes in a number of areas which include manufacturing and product changes when they are released creating a platform for the car company. A new microprocessor with changes in speed, size, and capabilities, while having a new process to create them, adds a new platform for the company.
Breakthrough Projects
These projects are the highest risk and the highest reward category. These involve the newest technology greater than that of a platform project. This use of this technology may be ‘disruptive’ to the rest of the
industry
Industry may refer to:
Economics
* Industry (economics), a generally categorized branch of economic activity
* Industry (manufacturing), a specific branch of economic activity, typically in factories with machinery
* The wider industrial sector ...
and create an entirely new product category to define the industry. This may be a brand new technology or significant changes to existing projects. These types of projects often incorporate new and innovative manufacturing or servicing processes. These types of projects should be given leeway to work outside of normal and existing operating techniques.
:''Examples:
fiber optic
An optical fiber, or optical fibre in Commonwealth English, is a flexible, transparent fiber made by drawing glass (silica) or plastic to a diameter slightly thicker than that of a human hair. Optical fibers are used most often as a means to ...
data transfer,
hybrid car
A hybrid vehicle is one that uses two or more distinct types of power, such as submarines that use diesel when surfaced and batteries when submerged. Other means to store energy include pressurized fluid in hydraulic hybrids.
The basic princip ...
s''
:Fiber optic data transfer cables revolutionized the industry of data transfer. This new technology was a breakthrough in the industry with lines of
dark fiber
A dark fibre or unlit fibre is an unused optical fibre, available for use in fibre-optic communication. Dark fibre may be leased from a network service provider.
Dark fibre originally referred to the potential network capacity of telecommunic ...
laid though many major cities. Hybrid cars are the first types of cars not to rely solely on the use of fossil fuels.
Research and development
The invention of knowledge of new materials and technologies that will be used in commercial development. R&D projects are high-risk endeavors with the possibility of high returns. Research & development is important since it will always occur before product and process development. R&D projects also use the same resources as commercial development and will always compete for them. Every organization has different expectations for R&D projects due to its high possibility of failure.
:''Example:
3D Television
3D television (3DTV) is television that conveys depth perception to the viewer by employing techniques such as stereoscopic display, multi-view display, 2D-plus-depth, or any other form of 3D display. Most modern 3D television sets use an ...
''
:An example of an R&D project would be a Television company attempting to develop a new, 3D viewing system for consumers. This would require extensive research & development that would have a high up-front cost and possible return with a large risk of failure.
Partnered projects
These projects can fall under any of the other four categories. However, these projects can often be overlooked while mapping the aggregate project plan. These plans are important and their resource usage should be included in planning.
:''Example:
Pepsi
Pepsi is a carbonated soft drink manufactured by PepsiCo. Originally created and developed in 1893 by Caleb Bradham and introduced as Brad's Drink, it was renamed as Pepsi-Cola in 1898, and then shortened to Pepsi in 1961.
History
Pepsi was ...
and
Starbucks
Starbucks Corporation is an American multinational chain of coffeehouses and roastery reserves headquartered in Seattle, Washington. It is the world's largest coffeehouse chain.
As of November 2021, the company had 33,833 stores in 80 c ...
''
:Starbucks has an agreement that Pepsi will bottle their beverages they sell in retail sources. This is a partnership between both companies that neither can ignore and the resources should be accounted for.
References
{{Reflist, 30em
Business planning
Project management