INNOVATION with ERP KORAIL

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INNOVATION with ERP- KORAIL

• MIS Presentation
• Group 1
• IMEM 20021268 ???
• IMEN 20021062 ???
• IMEN 20031059 ???
• CHE 20041273 ???

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Contents
1. Korail
2. Backgrounds of starting ERP
3. ERP in Korail (KOVIS)
4. Implementation of ERP
5. Current status
6. CONCLUSION
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KORAIL I

• History of 105 years
• Total asset of 18,000,000,000,000 won (18
  trillion won)
• Beginning of KTX operation in 2004
• 3,089 train services per year
• Established as ????? in the Ministry of
  Transportation
• ??? ? KORAIL(??????) the year of 2005

? The volume of traffic Profit
? Unit of traffic million man(ton) killometer
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KORAIL II- What went wrong

• Symbol of RED TAPE
• Criticism towards the Bureaucracy of KORAIL
• Opening of KTX, Less competitive compared to
  vehicle transportation
• Increase in deficit, bad management index

? Management Innovation is needed!!!
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Backgrounds of starting ERP
Rail management innovation ERP system
Development of ERP system that is fitting to the
organization of Korail, environment of KTX and
e-business for the goal of first class
competitive company
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ERP

• ERP Enterprise Resource Planning
• Definition
• a system designed to integrate all data
  processes of an organization into a unified
  system
• Uses multiple components of computer software and
  hardware to achieve the integration
• A unified database is developed to accommodate
  data storage for various system modules

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ERP in Korail (KOVIS)

• Facility Management as the basis
• (railway/equipment/electronics)

ESS (Employee Self Service) helps empower users
delivering the information, tools, and services
they need to do their jobs and focus on business
results. It includes functions such as time
management payment administration skills/appraisal
s maintenance corporate learning personal
information management
SEM (Strategic Enterprise Management) delivers
end-to-end ERP software capabilities to support
the entire performance management life cycle,
including consolidated financial
reporting planning, budgeting and
forecasting corporate performance management and
scorecards risk management
PM (Plant Maintenance)
MA (Management Accounting) provides valuation
and recording of financial data as the basis for
all cost- and revenue-related reporting. It
provides functions such as profit center
accounting project accounting investment
management
FA (Financial Accounting) supports the valuation
and reporting of inventory according to different
regulations. It provides functions such as bank
accounting fixed asset accounting contract
accounting
CM (Cost Management) allows these companies to
streamline the processes associated with
estimating costs and preparing quotations,
allowing the acceleration of turnaround time for
bids.  In addition, it allows companies to
identify appropriate resources, and commit them
to the most promising business opportunities. 
MM (Materials Management) provides means to
ensure that the user has the right product, in
the right place, at the right quantity and price,
and reduces working capital by monitoring raw and
packaging stocks on a continuous basis
PM (Plant Maintenance) SAP R/3 equipment
solution for railroad cars, facility and
electrical supplies Integrates current systems
such as KTX-OIS, KTX-RCM, IRIS
4 main domains PM-EQM (Equipment Master) PM-WOC
(Work Order Control) PM-PRM (Preventive
Maintenance) PM-PMIS (Plant Maintenance IS)
AM (Asset Management) supports preventive and
predictive maintenance, maintenance cost
budgeting, maintenance execution, and
work-clearance management.
SEM
AM
CM
ESS
MM
MA
FA
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Implementation of ERP

• Selection of LG CNS with SAP
• Workshop for executives
• Presentation meetings and training sessions for
  employees
• Pilot program
• Installation in SEM and HR

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Progress Diagram
Phase 1
Phase 2
Phase 3

• Confirmation of the results in stage 1 after
  necessary adjustments
• More detailed and specific examination of ERP
  functions and processes
• Check connection with other programs developed
  to supplement functions that ERP does not provide

• An integrated test in connection with other
  information systems and external systems
• An integrated test on exceptions that could arise
  and on the total business operation

• Test on the general functions that ERP provides
• Test on the actual performance through test
  scenarios

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Employee Reaction

• High level of resistance
• ERP thought to be a means of restructuring
• Conservative labor union refuse to use the new
  system
• Old generation of employees unfamiliar with new
  technology feel uncomfortable with the new system

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Solution

• Successful change management
• continuous effort to help users feel the
  necessity and convenience of ERP
• inducing active participation from users
• ERP specialists available for users with
  adaptation problems

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Future Direction

• In 2007 June 11, Korail made an official
  statement that their 2 year long implementation
  process of ERP has resulted in a success
• Rather than being aggressive, will need the
  voluntary participation from users in order for
  ERP to work successfully

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IMEN381 Management Information System
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