Tuesday, July 10, 2012

Info 563 Case Preparation: Bombardier ERP


Problem/Issue Statement

-          Because Bombardier strategy of growth by acquisition, inherited data, processes, and system for each individual company became a problem
o   Systems did not communicate with each other effectively
o   Difficult to share data between manufacturing facilities
o   Labour mobility suffered due to the fact that the skills required to operate information system were not transferable between facilities
o   Cost of information systems ownership was multiplied by the number of systems maintained

-          Several problems related to the operation of the Aerospace division
o   Process delays
o   Sequential activities
o   Low inventory turns
o   Supplier proliferation and price inconsistency
o   Multiple bills of material
o   Low visibility of inventory and lack of integration between its legacy systems*

Situation Assessments

-          Bombardier’s Bombardier Manufacturing System based on the MACPAC platform has not evolved to cope with the changes the business had undergone and with the challenges it was now facing.
o   Struggled to cope with increasing inter-site dependencies
o   Persistent pressures on costs
o   Rapid introduction of new products
o   Greater need for integration with business partners

-          Criteria
o   Cost
o   Integrated organization in which employees would seamlessly share common data across sites and products using a single set of unified systems and processes
o   Focusing the implementation on appropriate business processes
o   Fresh ideas and planning for the companies vision
o   A strong sponsorship model and sufficient involvement of internal employees
o   Preparing the users, making sure that they have the required tools and skills to pursue any project.
o   Delivery and support must perform flawlessly
o   Business side put forward the required effort

List of Plausible Alternative Courses of Action

ERP (The BMIS Project)
-          A first ERP implementation at Bombardier Aerospace was discontinued mid project
o   It did not meet the criteria of the company

-          BMIS was the first project launched to realize a wider ERP strategy and a vision of an integrated organization
o   Budget to implement the BMIS across all facilities was $363 million
o   Support 9,500 users over seven sites
o   Development required 400 people
o   SAP enterprise system was selected
o   Result in savings of 1.171 billion
o   One-time reduction in material inventory of $219 million


Recommendation

Quality and Logical Recommendation
-          I believe going  with ERP strategy is the best option

o   Budgeting the right price and working with right people to make the right ERP system is the best way to handle a large scale business process that could handle company like Bombardier.
o   My logical and quality recommendation is to go with ERP system and this process will cover all the criteria Bombardier want to improve on.

1 comment:

  1. Bombardier ERP is applied in organization in which employees would seamlessly share common data across sites and products using a single set of unified systems and processes.
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    ReplyDelete