Aggregate Project Plan
Encyclopedia
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.
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.
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
hard drive 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.
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
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 models
. Microprocessor
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.
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
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
data transfer, hybrid cars
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
laid though many major cities. Hybrid cars are the first types of cars not to rely solely on the use of fossil fuels.
The invention of knowledge of new materials and technologies that will be used in commercial development. R&D projects are high risk endeavors with a 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
An example of a 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.
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
and Starbucks
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.
An aggregate project plan provides management
Management
Management in all business and organizational activities is the act of getting people together to accomplish desired goals and objectives using available resources efficiently and effectively...
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:- 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.
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
Paint sealant
A paint sealant is a sealant that protects cars from ultraviolet rays and acid rain. Paint sealants protect cars' finishes, and can make cars shiny. There are synthetic sealants and carnauba waxes....
and iPod
IPod
iPod is a line of portable media players created and marketed by Apple Inc. The product line-up currently consists of the hard drive-based iPod Classic, the touchscreen iPod Touch, the compact iPod Nano, and the ultra-compact iPod Shuffle...
hard drive 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 (group)
In group theory, a branch of mathematics, a core is any of certain special normal subgroups of a group. The two most common types are the normal core of a subgroup and the p-core of a group.-Definition:...
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 models
Car model
An automobile model is a particular brand of vehicle sold under a marque by a manufacturer, usually within a range of models, usually of different sizes or capabilities...
. Microprocessor
Microprocessor
A microprocessor incorporates the functions of a computer's central processing unit on a single integrated circuit, or at most a few integrated circuits. It is a multipurpose, programmable device that accepts digital data as input, processes it according to instructions stored in its memory, and...
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
Industry refers to the production of an economic good or service within an economy.-Industrial sectors:There are four key industrial economic sectors: the primary sector, largely raw material extraction industries such as mining and farming; the secondary sector, involving refining, construction,...
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
Optical fiber
An optical fiber is a flexible, transparent fiber made of a pure glass not much wider than a human hair. It functions as a waveguide, or "light pipe", to transmit light between the two ends of the fiber. The field of applied science and engineering concerned with the design and application of...
data transfer, hybrid cars
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
Dark fiber
A dark fiber or unlit fiber is an unused Optical fiber, available for use in fiber-optic communication.The term dark fiber was originally used when referring to the potential network capacity of telecommunication infrastructure, but now also refers to the increasingly common practice of leasing...
laid though many major cities. Hybrid cars are the first types of cars not to rely solely on the use of fossil fuels.
Research & 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 a 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
A 3D television is a television set that employs techniques of 3D presentation, such as stereoscopic capture, multi-view capture, or 2D-plus-depth, and a 3D display – a special viewing device to project a television program into a realistic three-dimensional field.- History :In the late-1890's,...
An example of a 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
Pepsi is a carbonated soft drink that is produced and manufactured by PepsiCo...
and Starbucks
Starbucks
Starbucks Corporation is an international coffee and coffeehouse chain based in Seattle, Washington. Starbucks is the largest coffeehouse company in the world, with 17,009 stores in 55 countries, including over 11,000 in the United States, over 1,000 in Canada, over 700 in the United Kingdom, and...
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.