PJM6135 HW3
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Group3Presentation1.pptx
BOMBARDIER
Enterprise Recourses Planning (ERP) Implementation
PJM 6135 Group 3
(Siqi Kang, Jingran Xu, Yuanzhe Li, Yishuang Huang, Seongwoo Park)
Who is Bombardier?
Bombardier’s legendary founder, Joseph-Armand Bombardier is credited with building one of the world’s first snowmobiles in 1935. Today, Bombardier is a multinational designer and manufacturer of business jets and rail with annual revenues of more than $16B USD. Bombardier is the third largest commercial jet producer behind Boeing and Airbus, the world’s leader in regional aircraft production, and boasts the widest range of business jets in the marketplace. Bombardier’s continued growth and diversification was propelled by major acquisitions of various military, business jet, and aerospace businesses throughout the 1990s.
Bombardier employs a workforce of approx. 70,000 and is organized into four core product and service lines: (1) business aircraft (2) regional aircraft (3) amphibious aircraft and (4) defense services. Including complimentary services such as aircraft charters, fractional ownership and leasing of business jets, aircraft maintenance, and pilot and maintenance training programs and curriculums.
While Boeing and Airbus focus primarily on large commercial jets (i.e. capacity of 110 – 400), Bombardier’s bread and butter is regional aircraft that seat less than 100 passengers and business jets. Bombardier has gone through a major restructure and streamlining initiative in recent years with major divestments across their portfolio to set a renewed focus on their corporate aviation/private jet business, officially selling their stake in the A220 (C Series) program to Airbus and their Transportation business to Alstom in recent months.
Project Sponsor and Organization Background
Project Background
Business Challenges in Bombardier after Aquicisition (Bombardier Manufacturing System; MACPAC Platform)
Inheriting the data, processes, and systems of each company acquired.
Communicating with each other ineffectively by using old systems
Sharing data between manufacturing facilities is difficult
Suffering labour mobility because skills for operate information systems were not transferable.
Increasing more cost of information systems ownership
Facing low visibiity of inventory and lacking of integration
The BMIS Project
The first project launched to realize a wider ERP strategy and a vision of an integrated organization (One Company).
Supporting Bombardier Aerospace’s oeperation
Foucing on the following processes: manufacturing, procurement, finance, and the engineering data.
As I mentioned before, Bombardier has expanded by various acquisitions and has increased its profolio. However, because of growing too fast, this company confronts many business challenges
Benefits to sponsor organization
Realizing a better Enterprise Resource Planning (ERP) strategy and faster forming “One Company”.
Saving of $1.171 billion.
One time reduction in material inventory of $219 million.
Reduce clerical tasks by Bombardier Aerospace’s employees.
Restructuring of the procurement function. Including reduced product cost of $22 million per year and reductions in procurement overhead of $7.1 million per year.
Easier data cleaning.
Easier tracking manufacturing status.
Easier for users to use and communicate.
Project objectives
Form the “one company” organizational strategy.
Conduct more market share and becomes more competitive.
Becomes more profitable by reducing inventory.
Solving inside problem (genrated by acquiring different companies).
Major deliverables and sub-deliverables
Major deliverables：
Creating a vision
Formation of a BMIS project team.
Creating a blueprint
Progressive implementation
Restructuring of the procurement function
Major deliverables：
Data management
Integration testing
Preparing the users
System Opreation
Performance evaluation
Project Closure
sub-deliverables
•Sponsorship
•Change of leadership
•User preparation and training
•Project management
Quality requirements/ Project Budget
Quality requirements
Support Bombardier Aerospace’s operations
Support Manufacturing process
Support Procurement process
Support Finance
Overall Budget: $363 million
This system was intended to support Company’s
operations; it should focus on the processes that support manufacturing, procurement, finance and
the engineering data required to support these processes.
The amount budgeted to implement the project is $363 million
Summary schedule
In 2000, the first implementation at Bombardier Aerospace was discontinued during mid-project after spending $130 Million.
In 2001, the initiation of establishing the need for a new integrated manufacturing system.
Oct, 2001, Projet charter for the Bombardier Manufaturing Information System (BMIS) was authorized by senior project mananger.
In 2002, Change requests (Methods and Engineering function’s software supplier) were authorized.
April 2003, Reorganization of Procurement.
January 2004, Completion of new procurement functionalities delayed to March
March 2004, Completion of new procurement functionalities delayed to June
June 2004, Completion of new procurement functionalities.
December 2005, two additional programs were included in the scope of the project
By 2005, the project teams were able to use the valuable skills and expertise
By 2005, the trainers had gained experienced and their credibility with the users was good.
Minitap Chart: Pareto Chart
Three Main Causes that May Affect the Quality of ERP Implementation:
Uncler Requirements
Lack of User Involvement
Poor Planning
Minitap Chart: Clustered Chart
THANK YOU!
Q&A?
