Bombardier ERP Implementation

Bombardier Aerospace is the third largest designer and manufacturer of commercial aircraft in the world. The Montreal-headquartered Aerospace division has over 27,000 employees across 13 facilities worldwide. Due to its many acquisitions, management had many concerns related to the operations process but their main concern was low visibility of inventory and lack of integration between its legacy system. It was essential for Bombardier to create an efficient integrated system. The goal for Bombardier was to create a “One Company” vision across the organization.  

To create this vision, Bombardier implemented an Enterprise Resource Planning (ERP) system. This would create a single unified system for all of its business processes. It would provide productivity, efficiency and effectiveness in business plans. Most importantly, the goal of implementing the ERP system would be to streamline most of Bombardier’s functions as a whole.

Bombardier Aerospace seeks to continuously improve its ERP implementation process and therefore will develop a best practice approach by analyzing and improving their previous implementation efforts.

1^st ERP Implementation:

Challenges:

·       Outdated company vision

·       Focusing the implementation on inappropriate business processes

·       Weak sponsorship model

·       Insufficient involvement of internal employees

·       Consultants limited knowledge of business

Performance measures should have been in place before the company spent $130 million in implementing this process. The company should have placed key performance indicators (KPI) to help create a strategy.

2^nd ERP Implementation:

 The Bombardier Manufacturing Information System (BMIS) had clear objectives, comprehension of the ERP strategy and the “One Company” vision. Bombardier wanted its employees to focus more on analytical tasks as oppose to administrative tasks. Therefore, it sought to reduce clerical tasks and expected that an automated and an enhanced integrated system would facilitate a paperless workplace. Once the BMIS plan was implemented it would support 9,500 users over 7 sites.

Import components of this 2^nd implementation:

•  Project sponsor who had 5 functional councils report back to him.
• Project Team-Their focus was on the preparation and deployment of BMIS, they requested the most experienced employees to provide organizational hands on knowledge of their department functional role.
• Design-Integration points were identified where a process crossed functional boundaries. 

The structure of the implementation was a success factor. The Mirabel plant would was selected for first implementation of this project because the CRJ700 was a “manufactured” model that was expected to eventually drive Bombardier’s future growth. This would be the pilot site for the SAP enterprise system which was selected as the ERP system. The integrated system, Go Live and training were all instrumental factors in achieving its goal. The company successfully had a reduction of $1.2 billion in inventory within the first year.

Improvements and a best practice approach that we can gather after analyzing previous implementation processes are:

Clear Vision:

Bombardier’s organization vision has to link its actions to its strategic goal. Employees will be driven if there is a clear understanding of the value they will create. The visioning process helped create key performance indicators required to successfully run the business and help propose vision.

Choosing the right software:

Bombardier had to match the software needed for its company based on the organization’s information needs, processes, functional requirements, and workflows. They chose SAP for this.

By choosing SAP it created an effective and efficient solution for Bombardier’s inventory and integration problem. This was proven with the reduction of $1.2 billion in inventory within the first year.

Plan for business transformation:

When an organizations implements ERP it will change the data flow processes. Time and resources needs to be allocated in this area so that employees can have a smooth transition converting to the new system.

Training:

Adequate training is key. End users must be thoroughly trained and must have an understanding as to how the new system affects their job role. Clear communication of the organization’s goal is immanent for motivation in adapting a new system. Trainees must be equipped with effective training materials so to avoid disconnect of the purpose. On-site support should be extended for a significant period after the Go Live. This would help identify significant issues. Completely eliminating the legacy system is essential because it inhibits the process of implementation. Upper management should make it a point to cease the legacy system and make sure that employees are aware of the importance of the change.

A functional strategy with clear objectives and vision is key. By identifying the company’s functional processes an effective implementation structure can be achieved.