Bombardier Case

Bombardier Case Preparation

Problem

After implementing two installments of ERP previously, management is looking to improve the system and learn from prior mistakes in order to have a more successful third ERP implementation.

Following the first ERP implementation, the outcome was lower than expected, so management hired consultants for the second ERP implementation to explain best practices. Although the results were better than following the first implementation, they were not as successful as Bombardier had expected.

At this point, problems have been identified by management that they are attempting to address in order to maximize benefits of the ERP system. The limited success they have had in the past is costing the company in resources. Ultimately Bombardier would like to see its information sharing and data maintenance are kept in view so the information flow is according to the company’s expectations.

 

Situation Assessment

According to Frantz, Southerland and Johnson they compiled 16 best practices in which companies should use a guide in implementing the best practices for ERP systems. These are used to measure effectiveness and success of ERP implementation.

The context of this problem is that Bombardier Limited is a leading international manufacturer of aerospace and transportation products with its aerospace division reporting 48.2 billion 2007. In an increasingly competitive aerospace manufacturing industry, Bombardier recognized that it needed to transition its legacy information systems towards an ERP system. Although technically a success according to management due to its ability to reduce inventory by $1.2 billion without jeopardizing operations or productions, the first rollout of ERP at the Mirabel plant was extremely frustrating to users due to a large communication gap between the project team and employees and the mismanagement of user input and expectations by executives and the employees and the mismanagement of user input and expectations by executives and the project team. The second rollout was much smoother transition wise and employees were trained more adequately as a result of a clear vision and unified message from senior management as to what employee involvement and the priority placed on a company wide support of the new system’s implementation. This third foray into ERP deployment should build on the successes of Saint Laurent and improve on its failings by adhering to ERP best practices.

 

Plausible Alternatives

The alternative course of action would be to adopt the best-of-best practices that lead to a positive ERP implementation. I would recommend that Bombardier employ these best-of-best practices:

·         Executive management should endorse the ERP and remain active throughout implementation. The importance and relevance of the project will be reflected to employees as long as the “tone from the top” shows acceptance. Support from the employees is critical for the success of the ERP for all.

·         Assign a full-time Project Manager. With this practice you can ensure that focus and attention is given at a high priority. The dedicated employee would focus on the success of the rollout, gather feedback, and work to resolve issues.

·         Training for employees before and after implementation. The use of training throughout the implementation will ensure that the system is understood and business needs are met. This would mean an introduction to the new system and once implemented a more rigorous training class on the new system. This allows the users to become familiar with the system prior to classroom training. This was one of the major issues with the Mirabel plant. Employees at the plant felt a disconnect with the implementation process due to the training occurring at times prior to the event occurring. The result showed that the employees could not recall training exercises which caused the employees to feel “behind the pack” when the new system was launched. I would recommend that Bombardier keep 1 or 2 people to stay on for an extended period of time to provide additional support if need be.

·         Communication is key. Here Bombardier needs to be transparent with the flow of information to the users. This will establish a sense of trust between the business community and the project team.

Recommendation

I would suggest using all of these best practices listed in combination. Being mindful of the prior phases, Bombardier should reflect on those lessons. Bombardier should be able to establish a new foundation and strive for on-going communication and involvement to gain maximization of benefits.