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Bombardier Acquisition Strategy Summary

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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. Bombardier made the late decision to use SAP’s Workbench. Before utilizing Workbench, HMS software had been mandated. Workbench served the same purpose as the HMS software, but Bombardier believed Workbench provided enough incremental productivity to warrant the change. After implementing the ERP system, a number of processes were still receiving trouble. The financial processes were not implemented and managers were not using the reporting function. There were also problems with automating the fax of purchase orders. The emphasis placed on inventory can be seen as the problem for the imbalanced …show more content…

The primary goal of the system was to improve the visibility and reduce the value of inventory held by Bombardier. Another goal was reducing the amount of clerical errors. Bombardier accomplished this through the automation of its processes. Users did not have many ways to measure their contribution the realization of the objectives. Some KPIs were developed but were not used often. The only measure mentioned that could have been tracked was reducing inventory cycle times. The plant manager stated that he wanted to wait to understand the system better before trying to track KPIs. Bombardier’s operations were not substantially disrupted, due to the phased implementation. Bombardier’s ERP implementation yielded positive inventory management and financial performance, but the system could have been improved if training was better and all processes were

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