Bombardier Case study

Problem/Issue Statement

In the early 2000’s Bombardier committed to replacing its legacy systems with a state-of-the-art integrated system that would allow efficiency and effectiveness throughout its operations. The essential issue is how the company can incorporate a large scale ERP implementation across an organization with many different divisions. As a result, the systems from each division did not communicate with other effectively. Bombardier had to figure out a way for all of these systems to integrate in an effective manner. However, these large systems efforts are complex and frequently result in lower than expected performance.

Situation Assessment

The first step was establishing the goal of a “One Company” approach.  In order for the ERP implementation to be successful, it was going to have to be more about a business transformation than a technology implementation. The steps in a Best Practice approach to ERP implementation would be to:

• Define clear goals and objectives 
• Strong management support
• Choosing the right software
• Prepare for business transformation
• Training and support resources
• Clear implementation plan and timeline
• Allocate the necessary resources 

Mirabel vs. Saint-Laurent plant

The plant manager at Mirabel did not agree with the scope of the project and some internal managers and users felt that the system was being forced upon them. Whereas examining the Saint-Laurent plant, management was much more involved.  The plant managers felt that the project was theirs, and took control early on in the process.  The vision for the project was clearer when it came time for implementation at Saint-Laurent.  Employees had presentations that preceded training which enabled users to have a better understanding of the change leadership that would be occurring.  Employees felt that there was a need for change and were all on board.  These visual aids/presentations should be continued for all further facilities.  It was good for employees to see how Bombardier was doing versus its competitors and to see that the new ERP system will aid in the Company’s vision.

In terms of training, Mirabel plant felt that they had insufficient training in advance of implementation.  However, the users at the Saint-Laurent plant were more satisfied. Management at the Mirabel plant noted that issues may not arise within the first few weeks of implementation, but rather several weeks or even months later (at this point there was no support staff on the premises – other than power users).  At Saint-Laurent there were similar issues, however the issues that came up after the “Go Live” were more specific in nature and not necessarily general.  These required more in-depth and detailed follow-ups without necessary professionals on site. Training should be closer to implementation with a more generalized theme and then have follow-up, more detailed training once the system is up and running and users have a chance to see it with their own eyes and touch it with their own hands.  Going to training on something that you’ve never seen or used in some respects can be a waste of time.  People may not know the right questions to ask until they can “play” with it.

First time blunders

Some of the biggest contributing factors that lead to Bombardier having failed their ERP implementation were both strategic and structural in nature. Strategically, the ERP system did not incorporate the new business focuses that Bombardier took on after the ERP was developed. Consequently, the ERP system did not adequately reflect all the future strategic needs .In addition, there were deep rooted structural deficiencies that Bombardier was plagued with including weak sponsorship both by management and by employees.

Second time accomplishment

In 2001, the process of establishing the need for a new integrated manufacturing system was organized by senior managers who were involved in the design and project goal setting. The course-plotting committee would focus on making the ERP system as relevant and practical as it could be to insure success. The amount budgeted to implement the ERP system was $363 million. The amount of effort and initiative that Bombardier took the second time was the main reason Bombardier created a robust plan of selecting senior employees to show to the developers all of the relevant and core functions that were important and critical in being adopted into the ERP system. To insure that there were quality decisions being made, small teams consisting of senior project directors were established to review the outputs and functionalities expressed by senior employees and reviewed to make sure that these system designs also supported the overall objectives and strategies of the firm. Another successful strategy introduced by Bombardier was that they decided to progressively implement the ERP software which provided a useful and supplemental strategy for employees as they were offered training classes before the ERP program was instituted. This helped insure that everyone would be comfortable with using the new ERP system.

Conclusion

ERP systems are very important for all of the various reasons, including achieving divisional coordination within a company, having a centralized data base with customer and supplier information and having employees share in the input of one unified IT system. For many companies an ERP system plays an important role with how a company competes amongst its peers, however within the Manufacturing Aerospace industry- such as the industry that Bombardier currently competes in, an ERP system is NECESSARY and CRUCIAL for future company viability.