Project-based solutions

Project based solutions (PBS) is an enterprise wide computer software business solution to manage and coordinate all resources, information and functions of an organisation from a shared data source; where data can be attributed to and managed through individual projects.
A PBS system has a service-oriented architecture with modular hardware and software units or “services” that communicate on a local area network. This modular design allows a business to add or reconfigure modules (perhaps from different vendors) while preserving data integrity in one shared database that may be centralized or distributed.
Origin
The term was introduced by the research and analyst firm Forrester in 2007.
To be considered a PBS system, a software package must be able to link and manage details via a unique project reference and be managed within a project plan, including:
* Resources (people, equipment, facilities, materials and cash)
* Product information
* Customer details
* Supplier details
* Time.
Examples of the modules in a PBS system, which can exist as stand-alone applications include: Product lifecycle management, Supply chain management, Customer relationship management, Financials, Human Resources, Contract management, Project planning and Decision Support System.
Overview
The PBS modules are similar to those modules in a Enterprise resource planning solution. The fundamental difference is the planning and execution engine in PBS; designed to manage demands from customers in the form of orders, contracts or schedules; where the final deliverable may not be completely specified (either from a functional, design or date required perspective) at the contract/order acceptance stage. Project reference is integrated fully within each module to provide the ability to manage all the changes that occur through time in the transition from the accepted contract/order to what is finally required for delivery by the supplier to the customer.
PBS data is available for review and change in Project planning with the final changes and impact being reflected in the other modules.
In enterprises that run using PBS it would be common to find individual projects linked under a common program (Program management), forming perhaps the total contract with a customer for an EPCI contractor.
Project Based Solutions categories
The level of customer deliverables, in the form of a contract or a sales order that are connected to a unique project identity or reference will vary according to the requirements of each industry segment. Some segments will conduct all of their business activities using projects, while others will be very selective, and only use a project for certain products or customers or in certain geographies.
To clarify the degree to which industries are heavily dependant on the use of project, the PBS landscape can be segmented into five sub-categories on a scale from mandatory use of projects to no projects at all, as follows:
The first category is a business that due to rigorous regulatory compliance is mandated to track all resources consumed, their origins, qualities and performance criteria against each customer contract. such an industry can’t operate in business without integrating all their activities into project"Project critical"; an example is the construction of a nuclear power plant or the manufacture of a passenger carrying airplane; and their subsequent through-life service and maintenance.
The second category is an enterprise with fewer regulatory requirements to track all resources consumed in fulfilling each contract or order, with full traceability not absolutely mandated. However, from a business perspective, the need to control all resources at the contract level together with the lack of a final specification prior to commencing work drives the need for projects; and therefore all aspects of the business are controlled using projects. This type of business can be classified as "project centric"; an example is the building of a commercial container ship.
The third category is an enterprise that uses projects in some parts of their business; Although there are few regulatory requirements that demand linking of actual consumed resources and materials to each order, but certain products (or stages in the product life-cycle) or customers or geographies are managed more effectively using a project approach. an example would be a manufacturing company that manages prototypes using projects, where the prototype information is fully integrated into the companies systems. Therefore, for the full product production they use traditional Enterprise resource planning solutions. This type of business can be classified as "Project enabled"; an example is the manufacture of consumer white goods.
The last categories are different because they are enterprises that today do not use projects as an integrated part of their business solutions. The fourth is described as "Project potential", a business that may benefit from controlling certain activities, such as the design and manufacture of a new prototype or the launch of a new product rang using a PBS application, but can be operated without them. The fifth, final, category in Project never, a business that will obtain no business benefit from running any part of their enterprise using a PBS application; an example is a small local family owned restaurant, with a single outlet.

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