Case: Bombardier -- Succesfully Navigating the Skies of a Large Scale ERP
Implementation
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. Senior management felt that
given the competitiveness in the aerospace market, moving to an ERP system was
necessary.
However, these large
systems efforts are complex and frequently result in lower than expected
performance. Bombardier went through
multiple rounds of ERP implementations; with the Company’s first attempt – in 2000
– being scrapped mid-project after $130MM had been spent. After hiring a consulting team, establishing
a new “One Company” vision throughout Bombardier, getting senior leadership on
board and creating a project plan, Bombardier was ready in late 2001 to move
forward with their Bombardier Manufacturing Information System (BMIS) – a new
integrated manufacturing system that would be implemented through SAP. All of these practices proved valuable as the
second round of implementation was much more successful. Bombardier successfully implemented BMIS at
its Mirabel plant and followed suit with implementation at Saint-Laurent.
Seeing the
improvement and success with these plants, Bombardier would like to further
analyze their implementation efforts and look at a Best Practices approach to
ERP implementation to further enhance their project. Senior management would like to evaluate
their situation and see how a Best Practices approach could assist with an even
more successful next round of implementation.
Situation
Assessment
The first step in a Best Practice approach to ERP implementation would be
to define clear goals and objectives.
An ERP system will affect
many departments and business processes throughout any organization. Making
sure goals are clearly defined as well as what objectives and deliverables each
group within Bombardier is looking to achieve will help better ensure the
system is capable of effectively achieving the overall goals. Having goals and objectives goes
along with having strong management support.
Another best practice is to ensure that you are choosing the right software. To gain full value from an ERP system, Bombardier must match the software to the organization’s information needs, processes, functional requirements, and workflows. After much consultation, Bombardier chose to use SAP and implement the BMIS system for manufacturing facilities as management felt it was the best option for the Company.
Bombardier should also prepare for business transformation. ERP is fundamentally about transforming information flows through an organization. By definition, therefore, both roles and processes are likely to change during the ERP implementation. Bombardier will need to devote time and resources to change management – ensuring that a clear process is defined and implemented to help workers through the process of change from the old system to the new.
Training and support resources are also essential. A new ERP system will need highly qualified consultants experienced at implementation and training. The vendor chosen should have consultants readily available to train and support users on the daily use of the system and any problems and questions that could arise. A training program should also be established for new hires.
The next step in ERP best practices is to have a clear implementation plan and timeline. A crucial part of implementing an ERP system is deciding the exact steps of how it will be done and when. Management at Bombardier will need to make sure all affected departments are consulted as to when the best time is to implement the new system. (For example, choosing to implement an accounting ERP system at year-end accounting closing would be a bad decision.) Making the cut over to a new system in the most crucial periods of business is not a good decision.
Bombardier will also need to allocate the necessary resources. Allocating the necessary resources, across financial, managerial and end to end support for training and change management is necessary in order for a successful implementation of an ERP system.
Recommendation
Looking at the differences between Bombardier’s implementation at both
the Mirabel and Saint-Laurent plants, while both were successful, the process
went smoother at Saint-Laurent. Bombardier
had more management support, clearer goals, and better training when beginning
the implementation at Saint-Laurent. The changes made during the process made the
implementation at Saint-Laurent go smoother.
Below I will outline some of the missteps at Mirabel that were corrected
at Saint Laurent and what Bombardier could do to improve even further.
While the VP of Operations and Project Sponsor continued to show support
for the project, 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. They were not as eager
to implement – attendance at meetings was being delegated downward and IT was
complaining that users were not providing sufficient information for training
materials. When examining the
Saint-Laurent plant, management was much more involved. The plant managers felt that the project was
theirs, not just IT’s, and took control early on in the process. This aided with getting all other employees
on board. 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.
Training was another key issue.
The Mirabel plant felt that they had insufficient training too far in
advance of implementation. When it came
time for implementation they could not remember everything they had learned during
training and felt “behind the eight ball” when the BMIS system was
launched. Training materials were
re-vamped and the users at the Saint-Laurent plant were more satisfied. Both facilities however felt that support
left too soon after implementation.
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. For the next round of implementation,
Bombardier should make sure that there are at least 1 or 2 people that stay on
for an extended length of time at facilities to provide needed support. Even if it is done on a part time basis,
users of the new system need to have the proper training and support available
to them in order for the implementation to be truly successful.
Also, training is so
important for any new system; as previously mentioned some changes were made
between the implementations at Mirabel and Saint-Laurent, these should be
carried forward to the next stage of facilities for implementation with some
further enhancements. 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.
Bombardier now has
clear goals and objectives in place, the most important steps are to continue
disseminating the goals and objectives throughout all of the Company’s
facilities so that they are aware early on of the changes that are going to be
made. Employee buy in is important for
any system, if employees are not going to be willing to use the system it is
bound to fail. Everyone wants their life
to be a little easier, showing how the system can and will do that is
important.
Presentation
In order to present this case, the consultants should go through some of
the Best Practice frameworks that exist and give a detailed approach that
Bombardier could use. It would be
helpful to see the successes and missteps along the journey in order to see
where the Company did a good job and where improvements could be made.
