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Successfully Navigating The Turbulent Skies of A Large-Scale ERP Implementation

Bombardier is a large aircraft manufacturer that grew through acquisitions, resulting in siloed systems and inefficiencies. A senior project manager determined an ERP system was needed to integrate processes. An initial ERP implementation failed. Bombardier's Irish facilities reattempted an ERP launch. The new project aimed to save over $1 billion through a single, unified system and improved roles, eliminating silos across the company's supply chain, production, and more. However, the initial game plan failed as not all divisions supported the project and new employees lacked knowledge of legacy data.

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Rizky Shiddiqy
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287 views2 pages

Successfully Navigating The Turbulent Skies of A Large-Scale ERP Implementation

Bombardier is a large aircraft manufacturer that grew through acquisitions, resulting in siloed systems and inefficiencies. A senior project manager determined an ERP system was needed to integrate processes. An initial ERP implementation failed. Bombardier's Irish facilities reattempted an ERP launch. The new project aimed to save over $1 billion through a single, unified system and improved roles, eliminating silos across the company's supply chain, production, and more. However, the initial game plan failed as not all divisions supported the project and new employees lacked knowledge of legacy data.

Uploaded by

Rizky Shiddiqy
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
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Download as DOCX, PDF, TXT or read online on Scribd
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Successfully Navigating the Turbulent Skies of a Large-Scale ERP

Implementation

Bombardier :
 The company was started by Joseph-Armand Bombardier. Bombardier submerged
within the transportation industry at the age of 15 when he created a snowmobile by
propelling a farm sleigh with a model Ford-T. In 1974, Bombardier entered the rail
transportation business and soon after purchased several large commercial large aircraft
manufacturers.
 Bombardier became the third largest designer and manufacturer of aircrafts. They offer
services such as aircraft charters, fractional ownership, aircraft maintenance, and pilot
training programs.
 Produced multiple sized jets that cater to different business scopes.
 Had 2 large competitors: Airbus and Boeing
Business Issues :
 Senior project manager suggested that the company had become a “Textbook silo
organization”
 New acquisition made communicating between systems nonexistence.
 Labour mobility suffered as a result of the collaboration
 Cost of system ownership doubled by the number of systems maintained.

Challenges of Integration:
 Due to the exponential growth of Bombardier since 1989 the company inherited multiple
different information systems, processes and business practices resulting in the silo
company label
o Silo company simply meaning certain departments or sectors are uncooperative
when it comes to sharing information with others in the company
 Silo environment created inefficiencies throughout the entire supply chain
o Systems don't communicate
o CReated process delays
o Low inventory returns
o Price inconsistencies
o Multiple bills of materials
 They also had to hire individuals to maintain multiple legacy systems

BMIS Project:
 ERP system was elected as the best solution for a business of its stature.
 Implementing an ERP was tried once and failed due to poor or unnecessary business
practices, outdated company vision statement, and lack of participation.
 Bombadier’s Irish facilities reissued the launch of ERP.
 The Senior Project Manager authored a project charter.
Benefits of Integration:
 Expected to save 1.171 billion and one-time cost reduction of 219 million in material cost
 Single set of unified and systems to help eliminate silo environment
 Five Functional Councils:
1. Methods
2. Quality
3. Production
4. Work and Material Planning
5. Procurement
 Improvement of employee roles
 Established new value indicators

Creating a Blueprint for Integration:


 Initial gameplan failures:
o Representatives from each division were place to have a joint solution created.
o Mirabel plant was not supportive of the project.
o Procurement system put in place to cut down on inventory.
o 50 employees were hired to support new system on launch fail to clean and align
data due to lack of old database knowledge.

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