Analyze the current project portfolio and identify clearly which projects should Ms. Gagne fund & why? How many can she fund? How should she handle the executive meeting?
What are we looking for with this analysis? Estimate if Le Petit Chef management innovation and more precisely New product development policy is handle in a success way and if they are positioning themselves in the best track to capture as much as possible value they can into their market. Does their process bring them to make the best choice in the project portfolio?
Thus, we have to asses and understand what they are currently doing and what are their options?
If we simply visualize and situate each project on a map in order to see how their project portfolio is balanced (see exhibit 1) we can see that their entire project, except one is concentrated in the derivative area. Their projects are not well balanced, especially in this type of market (maturity with fierce and growing competition).
From what I understand regarding Le Petit Chef current position and Challenge, Mrs. Gagne should choose to fund immediately (urgently) the project A, the one that could lead to a new intelligent line of Microwave cooking appliances with multiple sensors, and controls with fuzzy logic intelligence (306 person-months) – 18 months for completion.
Indeed, this project, even if as she remarks, will take almost all the resources from the R&D department (about 67% for year 1), is the project that will save le Petit Chef from bankruptcy (not less than that).
In fact, It solves a couple of serious troubles that they are facing in one shot.
First as Mr. François Truc, senior R&D design engineer says: Le petit Chef needs to develop a high-end Microwave oven: Fuzzy logic intelligence which will be or already is in some market, the next generation product (the breakthrough area) of their industry.
It will solve the problem Le Petit Chef has with variation in the quantity and combination of...
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