Bombardier Case

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.