1. At the start of the case, describe what conditions made an ERP implementation desirable for Bombardier Aerospace. After reading the case study, there were many conditions which I think made the ERP implementation desirable for Bombardier Aerospace. As quoted in the case study by a senior project manager that ‘Organization has become a textbook silo organization’ because of its acquisition strategy. This particular quote is one of the desirable reasons as whenever Bombardier Aerospace acquired any company they adopted the data, process and the systems of each company and hence it was just like a textbook silo. The cost of information system ownership increased due to the increased number of systems. There were process delays, sequential …show more content…
2. Bombardier did several things well to help ensure the success of its ERP implementation. In particular, the case discusses “creating a vision,” the project team, and “creating a blueprint.” What does each of these things mean in terms of successfully implementing an ERP system and how did Bombardier Aerospace address these issues. In the case of “Creating a vision” , Vice President of the company created a vision ‘One Company’ where he meant to integrate organization where the employees would share common data using single set of combined systems and processes. In terms of successfully implementing an ERP system, all the functions i.e. Methods, Quality, Production, Work and Material Planning and Procurement needed to identify their key performance indicators required to run the business and the skills required for the function to realize their proposed vision. A need to reduce the clerical task and paperwork and increase analytical focus was emerged and also to align the outputs of the visioning process with the overall project vision to address this issue the Bombardier Aerospace, vice president of the operations and the Project Sponsor participated in the road shows and the presentation where the employees were explained the implementation of the BMIS and their effects in their everyday working lives. Everyone was included i.e. all levels of the management were included while passing
NIBCO is a pipe and valve manufacturing company headquartered in Indiana with ten plants and three distribution centers. NIBCO wanted their business processes to be strategically improved in order for their manufacturing facilities and distribution centers to meet their customer’s requirements (Brown, DeHayes, Hoffer, Martin, & Perkins, 2012). There were multiple systems being utilized within NIBCO and none of the systems had the ability to communicate with each other which created duplicative and wasteful resource efforts. NIBCO’s decision to implement an ERP system was to improve their information systems. Beutler (as cited in Brown et al., 2012) stated that the consulting group reported to NIBCO “to look at integration as a major
2.The ERP solution increases the efficiency and decreases the costs. It also provides reliable information and the processing of information is very quicker so that, it can reduce the paperwork burden. The ERP is very flexible it can in any business environment. At the same time it’s so expensive to implement the ERP and also to replace it. Because of that, the negotiating power of suppliers is increased.
Kumar, P. (2010). Successful implementation of ERP in a large organization International journal of engineering science and technology. Vol. 2(7), 3218-3224. Retrieved from http://www.ijest.info/docs/IJEST10-02-07-151.pdf
As a result of its acquisition strategy, Bombardier had a “textbook silo organization.” Bombardier’s strategy was to develop an ERP system to cross these functional boundaries. A high-level cross-functional scenario was developed. Five functional councils were established: methods, quality, production, work and material planning, and procurement. These functional departments established their own scenarios, and the leaders of each function met to integrate these scenarios.
The organization has evolved through multiple Merger & Acquisitions (M&A) and operates in a silo architecture phase. Bombardier’s facilities employ disjointed processes and consequently switching from one to the other is not an easy task. It was particularly a major issue when Bombardier would acquire a company and retain its existing IT
ERP implementation is unlikely experience that any company will have. It has to be planned prepared and stimulated from the entire stakeholder otherwise it will sunk the millions of dollar and it drain the companies market. In case of Nestle USA, it confronted a lot of difficulties due to improper implementation plan yet be able to recover as a successful project. Many organisations have gone through the similar situation that there are plenty of lesson to be learned. We can conclude that ERP implementation needs big consideration on business requirement, business process reengineering, stakeholder’s involvement, hardware and software and other units.
Most of the information that was used to compose this paper was taken from prior ERP articles, online reference tools, and ERP books.
The problem presented by Joseph-Armand Bombardier is the upcoming third round of ERP implementation in his organization. Even though a big improvement over the efficiency and success of execution between the first ERP round (Mirabel plant) and second round (Saint-Laurent plant), there is still room for improvement.
"The effects of Hansen's ERP technology changes on both production and non-production functions of the business, and how the production and non-production effects are related to each other"
In order to survive in this competitive business world, every business must produce or provide not only a better product or service, they must also provide better customer service, minimize their production costs and overhead costs, have a more efficient management system, a highly reliable infrastructure…the list is endless. Many of these can be achieved through a customized enterprise resource planning system (ERP). ERPs serve as “one comprehensive database to house all of [the company’s] corporate information” so that “when you enter new information in one place, the system automatically updates related information.” However, if these systems are not implemented correctly with the necessary change in management of people and technology
ERP builds the level of correspondence in the association in this manner prompting better proficiency of the work. It additionally expands profitability, which wouldn 't have been conceivable with a non-ERP firm where every one of the divisions utilizes their own PC framework and keeps up their own particular database, which is not open to different offices. Yet, with ERP every one of the offices can work in concordance with each other. Today manager 's undertaking is made parcel simpler with the presentation of ERP programming. There is low chance of any error in an association where ERP is introduced. For administrators it empowers abnormal state basic leadership capacity, which they can make easily, and more clarity. It likewise enhances the client experience and keeps up great association with the clients.
This white paper discusses the 6 Key Decision Drivers that you should consider as you evaluate ERP software products. These 6 criteria are: • Functionality • Technology • Software Vendor • Implementation Vendor • Support & Maintenance • Total Cost of Ownership If you ask the right questions of software vendors you will collect the right information to make an informed decision when selecting an ERP solution. The software should provide you with more than a basic functional fit, it should provide a strategic advantage to drive efficiency and expand your business. You are buying a tool that you can use to support the business functions of your company and
The objective of the aforementioned piece was to carry out a process of analysis, valuation and discovery of potential risks linked with the post-implementation of ERP. The writers conducted this observational and factual quest using a perceptible path. They facilitated and implemented an inferential research design that stood on a review of cross-inspection queries for 118 major bodies to introspect the prospective liabilities of ERP post-implementation. Nonetheless, some impediments should be taken into account. This
Anderson (2014) said “ERP implementations rarely fail in formulation; however, they frequently fail in implementation.” It does not in with just purchasing an ERP system. A well designed implementation plan is the company’s ticket to success. A well designed implementation plan addresses all potential bottlenecks like execution problems such as lack of training, attitude and participation of the entire workforce from leaders to staff, and member selection for the whole ERP project implementation team. An ERP project is
First ERP Failure (Hershey): There are many organizations which were successful in the implementation of ERP’s but there are also ERP implementations which were a disastrous failures. Firstly let us know about few of such organizations. The most famous company Hershey’s, one among the top fortune 500 companies was once hit by the ERP failure in the year 1999.The Hershey Foods Corporation was founded by Milton Hershey in year 1894 . Hershey’s had approached three vendors SAP AG, Siebel Systems and Manugistics for implementing the ERP system. Few of the modules were implemented in January 1999, remaining modules were due on April 1999 [3]. Unfortunately it was delayed and was moved on to be implemented in July 1999 which had overlapped with the year’s busiest time when huge orders were received for Christmas and Halloween. To complete the implementation on a faster notion Hershey decided on following Big Bang implementation in which several modules were implemented parallel. This implementation was failed miserably due to lack of order management and fulfillment, even though Hershey had finished the product and