bombardier case
Bombardier Case Preparation
Bombardier is a successful company in the transportation industry. Bombardier has two divisions; The Aerospace and Transportation divisions.
Bombardier Aerospace is the third largest designer and manufacturer of commercial aircraft in the world, and one of the leading producers of regional aircraft. The company encountered some challenges because of the company’s growth strategy by acquisition.
The main problem was communication problems among systems which were different for each acquired company because Bombardier Aerospace became a “textbook silo organization” after acquiring with other companies. Addition to this problem, low visibility of inventory and lack of integration between its legacy systems was also important problem to the company.
Symptoms of the problem were process delays, sequential activities, low inventory turns, supplier proliferation and price inconsistency, and multiple Bills of Material (BOM).
The company found a solution for this problem that changing Bombardier Manufacturing System (BMS) which was the group of IT applications to support manufacturing activities to an Enterprise Resource Planning (ERP) system.
· First ERP Implementation: After $130million spent, first ERP implementation discontinued mid-project in 2000. Failure of this attempt:
•Focusing the implementation on inappropriate business processes
•An outdated company vision
•A weak sponsorship model
•Insufficient involvement of internal employees.
•Employing too many consultants who having a limited knowledge of the business to assist in the project.
· Second ERP Implementation (BMIS) Project: In 2001, a group of senior managers authored a project for the BMIS in order to establish a new integrated manufacturing system. BMIS was the first project to realize a wider ERP strategy and a vision of an integrated organization, one company. It would support Bombardier Aerospace’s
Bombardier is a successful company in the transportation industry. Bombardier has two divisions; The Aerospace and Transportation divisions.
Bombardier Aerospace is the third largest designer and manufacturer of commercial aircraft in the world, and one of the leading producers of regional aircraft. The company encountered some challenges because of the company’s growth strategy by acquisition.
The main problem was communication problems among systems which were different for each acquired company because Bombardier Aerospace became a “textbook silo organization” after acquiring with other companies. Addition to this problem, low visibility of inventory and lack of integration between its legacy systems was also important problem to the company.
Symptoms of the problem were process delays, sequential activities, low inventory turns, supplier proliferation and price inconsistency, and multiple Bills of Material (BOM).
The company found a solution for this problem that changing Bombardier Manufacturing System (BMS) which was the group of IT applications to support manufacturing activities to an Enterprise Resource Planning (ERP) system.
· First ERP Implementation: After $130million spent, first ERP implementation discontinued mid-project in 2000. Failure of this attempt:
•Focusing the implementation on inappropriate business processes
•An outdated company vision
•A weak sponsorship model
•Insufficient involvement of internal employees.
•Employing too many consultants who having a limited knowledge of the business to assist in the project.
· Second ERP Implementation (BMIS) Project: In 2001, a group of senior managers authored a project for the BMIS in order to establish a new integrated manufacturing system. BMIS was the first project to realize a wider ERP strategy and a vision of an integrated organization, one company. It would support Bombardier Aerospace’s