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.
