Bombardier Case

Problem/Issue Statement

The problem in this case with Bombardier is that they have acquired different businesses and they have become a “Silo Organization” that has systems that are working inefficiently and they are not communicating with one another. This was causing problems within the different lines of business especially with inventory management. The current legacy systems that they do have in place are not able to meet the current demands they have in manufacturing and they need to look for better options.

Because of inefficiencies and problems, Bombardier was looking to implement an extensive Enterprise-Resource Planning (ERP) system in order to realize their strategic vision of improving visibility and also reducing cost in inventory in some of its branches, including their manufacturing divisions.

In previous years, Bombardier wanted to implement an ERP and they scrapped it after spending $130 on the project and it was discontinued because they were focusing the implementation on inappropriate business process, an outdated company vision, and a weak sponsorship model and insufficient involvement of internal employees. In order to change this and to successfully implement the ERP this time, Bombardier would need prepare the users and focus on change management and leadership.

Bombardier was able to create with the help of consultants the Bombardier Manufacturing Information Systems that would be using SAP. Bombardier was able to test out BMIS at its Mirabel location and found its success and also noticed similar success at its Saint-Laurent location. Bombardier wants to implement this BMIS at the rest of its locations and have it be used by its more than 27,000 employees.

Situation Assessment

In assessing the problem that Bombardier is facing the common theme throughout is the lack of communication in the implementation of the program having a large scale ERP system like BMIS would be very beneficial for the company in costs and also in operations. Inventory would be able to be reduced and it would focus on an amount on-hands rather than how much it cost to purchase. Also, since there are many parts of the business with its amount of branches and locations, Bombardier would be able to have everything in sync. Unfortunately, in years past, the company spent millions of a failed rollout because of communication errors. There were too many consultants, internal employees were not involved, and senior leaders had their own ideas of what should be done. With this new rollout, Bombardier focused on the employees and making sure everyone was on the same page.

Bombardier needed to focus on training its users because the last time involved very little in training and preparation. Even though this was an extensive undertaking, it was necessary so the company did not rehash some its previous problems.  For instance in the Mirabel rollout, 29 power users delivered 102 training sessions to approximately 1,400 users.

Along with communication and training Bombardier finally needed to have a clear vision that they could stick with. In the previous roll-out their vision was antiquated and did not mesh with what was being implemented. Moving forward, this new vision needed to be well-defined and agreed upon by senior leadership and also the rest of its staff.

Recommendation/Presentation

In this case I would make sure that the successes of the Mirabel location were highlighted. For instance, the improved communication and training. Show this against the failed rollout to highlight why this BMIS ERP is needed. Showing costs is also important factor in this, especially with inventory. The company has many parts of its business and manufacturing is very important. With manufacturing comes inventory and by controlling this number the company can have more leverage and capital. The company has been able to grow because of its acquisitions, they cannot maintain their acquisitions with their current legacy systems. By switching over the company can continue to be successful. Charts showing the costs savings and also a flow chart of the previous rollout and current proposed rollout would be beneficial in supporting the claims.