This paper describes the system at Whirlpool for formulating their research program each year. This system, with some modifications, has been in use for several years and is doing an effective job. Although Whirlpool has a general plan for research that extends several years, their detailed planning is on an annual basis. Several inputs are a part of out planning process. There are a number of factors, called outside factors, over which the corporation has no control. The author discusses the following factors in some detail: Energy - Concern about energy saving products and manufacturing processes; Resources - Optimum use of critical resources - materials, water, people; Socio/Political Pressures - Rising expectations of the consumer for product performance, safety and reliability; Competition; Ecology - Reduction of undesirable effects on the environment from manufacturing processes or products; New Science and Technology - The acquisition and application of new scientific and technological knowledge.