Bombardier “Successfully Navigating the Turbulent Skies of a Large-Scale ERP Implementation"

Problem/Issue Statement

Through acquisitions and expansion, Bombardier Aerospace inherited data, processes and specific systems of each company.   This “silo organization” model resulted in problems and inefficiencies especially in inventory, through the purchasing and procurement department. The individual systems did not communicate with each other efficiently and it was difficult to share data between all facilities. 

Due to these inefficiencies and problems, Bombardier Aerospace committed to replacing its legacy systems with a state-of-the-art integrated Enterprise Resource System. Implementing an ERP system was thought to be the answer to maintaining a competitive advantage in the turbulent market.   The primary goal of the system was to improve the visibility and reduce the value of the inventory held by the company.

These large ERP systems are complex and frequently result in lower than expected performance. Research has shown that less than 50% of implementations achieve expected benefits while only 17% of the companies experiences more than eighty percent of their projected benefits.  After the first failed attempt to implement an ERP system in 2000 costing the company about $130 million, the company decided to hire a consultant company, assembled an in-house ERP development team and establish a new vision throughout the organization “One Company”.

After years of development and delays, Bombardier decided to implement the Bombardier Manufacturing Information System (BMIS) one plant at a time, the first being at the Mirabel plant located near Montreal. The second implementation occurred at the Saint-Laurent plant.

The main problem the company facing during the implementation/roll out phase of the ERP system. Even though there was an improvement in the efficiency and success of execution at Saint-Laurent plant from the first implementation at Mirabel, there is room for great improvement. There is an inherent disconnect between the business and project team causing a lack of communication. This is adversely affecting the roll out and training periods. To address the main problem going forward, the company needs to prepare a Best Practices framework to follow.

The following symptoms have been identified:

·        lack of communication between business and project team;

·        specialized knowledge concentrated in a few individuals;

·        members of management who are openly adverse to the new system;

·        training was not seen as a priority;

·        new system was not see as a priority with business members;

·        lack of time for training/poor time management;

·        employees still utilizing legacy systems to complete functions of their jobs;

·        embellishing scorecards to hid issues;

·        lack of protocol to measure success of implementation;

·        employees lack a general understanding as to why they were being sent for training and why the system was necessary;

·        training was intense and users complained it focused on exceptions and details;

·        employee roles were still being defined during the implementation causing further questioning;

·        issues timing of when to roll out at different locations/departments;

·        lack of methods/protocol to address change orders or errors with technology;

·        Users lack of ownership of the system;

The scope of the problem involves the rest of the plants and locations of Bombardier that will implement the ERP system. This includes over 27,130 employees and13 facilities worldwide. Before moving further in the implementation process, it is imperative to establish best practices to ensure a seamless transition for the employees and the project team. Bombardier has already improved from the first roll out, so these best practices later identified will enhance the process.  Using a best practices framework, will rely on management to take a proactive role in the implementation and embrace the new ERP system. 

Situation Assessment

The context of the problem is based on the implementation (both positively and negatively) at the first two locations: Mirabel and Saint-Laurent.  The context of the problem stems from not having a consistent plan for rolling out the ERP system which causes issues with the project team, employees and management.  The lack of best practices is causes disorganization and distress among trainers and employees.

When assessing which Best Practices Bombardier should include in the framework, the following decision criteria should be considered:

·        Set clear goals and objectives

·        Stronger communication between management and employees and between project team and company

·        Gain management’s support for ERP

·        Address the timing issue

·        Address training issues

List of Plausible Alternative Courses of Action

The alternative course of action for Bombardier is to adopt a Best Practices framework for ERP implementation.  After researching ERP Best Practices from numerous corporations and consulting firms, eight key requirements have been identified.  These key requirements address not only the main problem but also the symptoms.   

The best practices framework Bombardier should implement are based on the following:

1)     Understand business processes and key requirement.

The absolute first step in executing any business system is to gain a thorough understanding of the processes that comprise the business operations. A complete knowledge of the business processes is essential for implementing an ERP system. In addition, prioritizing business requirements is very important.  The best strategy for this is to satisfy immediate business needs then longer-term objectives. The project team should discuss with employees their everyday work and what it entails.This will eliminate the discount between the new software and employees.

2)     Clear goals and objectives.

The next step in the best practice framework should be to define clear goals and objectives on three fronts: project team, business management and employees.  These goals should also be obtainable and define the benefits the company expects from implementing an ERP system. Employees need to know why the system is necessary. The new ERP system affects many departments throughout the organization and by making goals/objectives clear it will help everyone get a sense of the company’s direction. It will also create a sense of responsibility to individual employees. 

3)     Choosing the right software.

Bombardier needs to match the software to the organization’s needs, business processes, functional requirements and normal business operations. For example, Bombardier chose to use SAP and implement the BMIS system for manufacturing facilities.  

4)     Ensure proper project management and resource commitment

A dedicated project manager who is involved in both planning and ongoing management is essential to implementing an ERP system. In addition, Bombardier needs to commit resources to the project through all phases of implementation.  This includes financial support, management support and end user support. Bombardier has shown a commitment to this project, however it should maintain this commitment until completion.

5)     Gain executive and organizational commitment

In order for the goals and objectives to be clearly communicated to the organization, executives and top management need to support the ERP system. Management should hold ramp up/roll out meetings to address the benefits of the system and why the company is choosing to implement it.  In addition, this will foster a positive attitude toward changing to an ERP system since people are inherently adverse to change. The was seen at the Saint-Laurent location which positively helped implementation.

6)     Plan early

Bombardier should prepare a detailed plan outlining the implementation plan and timeline for each location.  By pinpointing particular steps and addressing when and how they will be done will take the guess work out during the critical implementation phase. As seen in the first two roll outs, business personnel did not communicate in a timely manner to employees regarding training sessions. In addition, timing of implementation to consider the business functions it is affecting.  For example, implementing the new financial/accounting system in the fourth quarter is not the best decision.  

7)     Invest in training

Since employee roles and responsibilities can be affected by the ERP, training should concentrate on business workflows and how these changes affect job roles and the people who do the work. In addition, highly qualified trainers/consultants should be readily available to train and support users on the daily use of the system including addressing issues that may occur.  A detailed training program should also be established and adhered to.

8)     Change management/business transformation plan

Bombardier should prepare a business transformation plan. This includes identifying roles and responsibilities that will change when the ERP is implemented. Employees need to be introduces to new processes and job roles over a period of time so they have time to adjust. As seen in Bombardier, the planners and buyers did not have ample time to adjust which negatively affected the implementation and caused resistance to the ERP system.

Evaluation of Alternatives

When evaluating the eight key requirements for the best practices framework, it is important to analyze which option covers all of most of the main problem, symptoms and decision criteria. The best practices framework helps the implementation process by planning early, enhances the communication between management, project team and employees and addresses the lack of commitment by the business personnel.  In addition, these eight key requirements give the project team and management a road map of all the moving parts involved in the implementation process.  Bombardier should review and analyze these eight requirements and make additional or revisions as they see fit.   

Bombardier needs to be realistic in choosing the key requirements that are incorporates into the best practices framework. Eight best practice requirements have been identified, now Bombardier should review them and see which fit their needs. These best practices should be incorporates at the third location's implementation and all subsequent locations.

      Recommendation

After reviewing the issues Bombardier experienced at the first two locations, it is clear that the company needs to incorporate a best practices framework.  My recommendation is to use some or all of the key requirements identified above.  By using a best practices framework, Bombardier will not only improve on the technical implementation but it will also address the negative feelings held by employees.  The framework will generate commitment from management which in turn will help communicate the positive changes to employees. Bombardier also needs to set clear goals and objectives and communicate them to the entire business.  This will help employees understand why the BMIS is being implemented.  Bombardier should also plan early for the roll out at each location including proper notification, training schedules, and provide a detailed plan of how/when implementation will occur.  Bombardier’s business personnel should plan accordingly and change roles and responsibilities prior to implementation.  This will alleviate employee frustration and distress.  Training should be provided to all employees before, during and after implementation.  The project team should prepare a detailed training plan for each location, including the training schedules, contact information and materials. 

Presentation

      If I were presenting as a consultant to the class, I would state that I have been commissioned to identify some of the Best Practice frameworks that exist and could be applied to Bombardier.  I would discuss how each key requirement can be used during the BMIS implementation process. 

      I would detail the main problem and issues faced during implementation.  I would also address the decisions criteria and the needs of the company.  I would discuss the eight Best Practices requirements identified.   

     Visual aids to be used in presentation:

o   PowerPoint presentation for the major issues/symptoms occurring during implementation locations;

o   Decision criteria for the best practices framework; and

o   How the best practice requirements can be incorporated in Bombardier.

I would “sell” the eight key requirements to Bombardier by stressing the importance of adopting a best practice framework.  The company needs a detailed plan that provides solutions to the main problem and symptoms.  All of the key requirements can be applied to company and will aid in improving the implementation of the BMIS system.  Since the implementation process is already improving,  by addressing the rest of the symptoms will create a seamless transition not only for the project team but for the business personnel and employees.