The most integral problem Bombardier Aerospace faces is the low visibility of inventory and the lack of communication and integration of its legacy systems. The individual systems did not communicate well with each other and it became increasingly difficult to share data and information between all the facilities. Bombardier inherited data and with it many inefficiencies, such as the aforementioned data sharing. As a direct reflection of these inefficiencies Bombardier began replacing its legacy system with an integrated Enterprise Resource System (ERP). They believed this would answer their problems and keep them ahead of the curve. The main problem this new ERP corrected was the lack of inventory visibility (and therefore to help reduce the value of the inventory being held). Since ERP's are highly complex and usually result in lower than expected performance it is no surprise that Bombardier hired a consultant company after their first failed run in 2000, which cost them approximately $130M. Bombardier also took the route of assembling an internal ERP development team to create a new vision. After many development delays and other issues Bombardier decided to implement the Bombardier Manufacturing Information System (BMIS) on individual plants one at a time. The first implementation took place at the Mirabel facility located near Montreal and the second one was at the Saint-Laurent plant. The main issue the company was facing at the point of facility implementation was that there was an inherent disconnection between the business and project teams that causes a big communication issue. This was adversely affecting the system transition and delaying training time.This problem really involves all of the plants/facilities that will implement the ERP system. They employ approx 27,100 people in 13 facilities worldwide. Before they can move forward with their implementation schedule they need to solve the new system adoption issues. There needs to be a more seamless transitions from old to new. Although Bombardier has made improvements since the first roll out they still need some refining on the implementation and acceptance of of the ERP system.
Situation Assessment:
The context of the problem lies mainly in the area of implementation at the first two locations. It stems from not having consistency in their game plan of rolling out the new ERP system. This roll out caused issues with the project team, employees and the management team. They need to work on setting clear, attainable objectives, strengthening communication between all parties involved, garnering management's approval and finally addressing the time and training issues.
List of Plausible Alternative Courses of Action:
There are a few key points that need to be taken into consideration by Bombardier. The first is that the management needs to remain actively involved in the implementation process and they need to be thinking ahead about their ability to help smooth out the potential organizational changes that can occur when a new ERP system is implemented. There should be a connection and understanding between the information technology department and the functional areas where the software is being implemented. The project team should be focusing on all the functional areas where the implementation can occur and employees should be given appropriate training on how to come together as a team and learn how to work together as a team before the implementation begins. Also they need to have a focused and knowledgeable project manager on board who's full time job is over seeing this implementation. One of the final things they should be doing is making sure that everyone is on board with the conversion of data from the old system to the new one. There should also be a very early window of conversion time within this project to ensure that all employees/team members have enough time to check for any kinks or work out any issues with the transition from training to actual use.
Evaluation of Alternatives:
When evaluating the alternative options it is important to remember to focus on what will cover the main problem and a majority if not all of the symptoms of the problem. The framework outlined above will help with the implementation process by requiring early planning and enhancing communication between management, the project ten and employees. It will also help lay out a more comprehensive game plan to help everyone navigate this transition a little more smoothly. I think starting with the revisions outlined above will be the best place for Bombardier to start. They need to be realistic in their approach and choose the options that will incorporate the most change/revamping for the better of the company and it's team members. These choosing of the best fit requirements will help in their implementation at their third location and any/all following locations as well.
Recommendation:
After hearing the consultants presentation at last week's meeting I feel that Bombardier is headed in the right direction in regard to their ERP implementation. There was vast improvement from the first implementation to the second implementation and it looks like we are headed to even more success for our upcoming third implementation. I believe that if we continue down this path and work on a few key aspects of the best practices we will have a highly successful third implementation.
The two biggest aspects that I think need to be focused on are project management/leadership and investment in training. I think that having strong project management will help correct the disconnect between the project team, management and employees. This would help the process move along more smoothly and it will keep all members of the company on board and feeling more like a cohesive unit rather than three seperate factions. Training is another key aspect of my recommendation. I think Bombardier should have a detailed plan laid out prior to start implementation. I think investing in trainers, training sessions and workshops would be very beneficial to all the team members. It would allow access to training, material and technical support allowing everyone to feel more comfortable and knowledgable about the upcoming implementation.
I think implementing all facets of best practices and really focusing on the two outlined above will cause Bombardier to have a much more successful and functional third rollout. Since Bombardier has already committed much of itself to this project I think striving to improve in these areas while maintaining the already successful portions will lead to overall success for them. If these key features are adjusted and all others are kept up to par then Bombardier is sure to surpass its second rollout.
