Creating project plans to focus product development

The long-term competitiveness of most manufacturers depends on their product development capabilities. Yet few companies approach the development process systematically or strategically. They end up with an unruly collection of projects that do not match long-term business objectives and that consume far more development resources than are available. Instead of working on important projects, development engineers spend their time fighting fires. Their productivity sinks, and products are invariably late to market. To attack development malaise and reinvigorate the process, companies should put together an "aggregate project plan." The plan helps managers restructure the development process so they no longer think in terms of individual projects but in terms of the "set" of projects. It is the set, not individual projects, that shapes the creation of a successful product line. The aggregate project plan also helps managers allocate resources, sequence projects, and build critical development capabilities. A central element of the aggregate project plan is the project map. The map categorizes projects into five types: breakthrough, platform, derivative, research and development, and partnerships. Each project type has its own unique characteristics and requires a different amount of development time. Companies should have projects in all categories to ensure a robust development process.