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Erp Implementation at Bombardier

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Submitted By jayshree
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This case talks how ERP system was implemented at Bombardier. It takes us through the roller coaster journey with regards to logistical, tactical and personnel challenges faced by the company in order to achieve cost savings and better efficiency. Prior to ERP, Bombardier’s aerospace division had several bottlenecks with respect to inventory management and lack of integration between its legacy systems. As a strategic move, after a failure of an earlier ERP project, a new project called BMIS was envisioned.
Highlights of BMIS project:
• Vision: Functional councils of Methods, quality, Work and material planning, procurement created for role and direction determination.
• Team: Best employees from various functions along with BTS (Business transformation services) with an employee to consultant ratio of 10:1.
• Implementation strategy: Progressive and phased approach, beginning with Mirabel plant near Montréal.
• Procurement function restructure: improvement of inventory visibility and anticipated substantial savings in product costs($ 22 million) and procurement overhead($7.1 million)
• First Rollout challenges: lack of documentation, system functionality, substandard training material, tight training schedules and lack of role clarity during training.
• Go Live: Power users and super users supported the move initially. Later on, if support staff was not able to resolve issues, the legacy systems were used to conduct business.
• Stabilization: The project did not disrupt production schedules and the company delivered one more plane than planned during the period. There was overall saving of $ 1.2 billion. Procurement functions changed even though lots of others were de-scoped.
• Next milestones: Two additional programs were implemented eventually with better rate of success at

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