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Creating Project Plans
to Focus Product
Development
by Steven C. Wheelwright and Kim B. Clark
Harvard Business Review
Reprint 92210
With an “aggregate project plan,” companies map out and manage a set
Creating Project Plans to Focus
by Steven C. Wheelwright
and Kim B. Clark
The long-term competitiveness of any manufac- cause it had believed its annual business plan pro-
turing company depends ultimately on the success vided the guidance that the marketing and engi-
of its product development capabilities. New prod- neering departments needed to generate and sched-
uct development holds hope for improving market ule projects.
position and financial performance, creating new To get to the root of the problem, the chief execu-
industry standards and new niche markets, and tive first asked senior managers to compile a list of
even renewing the organization. Yet few develop- all the current development projects. They discov-
ment projects fully deliver on their early promises. ered that 30 projects were under way–far more than
The fact is, much can and does go wrong during de- anticipated, and, they suspected, far more than the
velopment. In some instances, poor leadership or organization could support. Further analysis re-
the absence of essential skills is to blame. But often vealed that the company had two to three times
problems arise from the way companies approach more development work than it was capable of
the development process. They lack what we call completing over its three-year development plan-
an “aggregate project plan.” ning horizon. (See the chart “PreQuip’s Develop-
Consider the case of a large scientific instru- ment Predicament: Overcommitted Resources.”)
ments company we will call PreQuip. In mid-1989, With su
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