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KORAIL CaseGroup 6. Park Yong Jin, Park Hyung Soon, Oh Geun Ha

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About Korail

Introduction of ERP in Korail

Component of ERP

Effect of ERP

Future Direction

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passenger

freight totalKTX

Great train ex-

press

Normal train

Traffic(million

people*km)10,981 8,038 14,008 9,452 x

Revenue(billion won)

1,139 477 565 329 2,511

Unified the communicational name, Korail in 2007

3306 train service per day

Traffic & Revenue of Korail in 2010

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Year Net profit

2006 (-) 526 billion won

2007 133 billion won

2008 514 billion won

2009 649 billion won

2010 380.billion won

The total asset is 19812 billion won in 2010

Net profit of Korail

Surplus

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1. 6 sigma

2. Precise cost structure

3. Transparency of money manage-ment and the innovation of work process

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Component of ERP

ERP

PM FA MM ESS EH&S DMS

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ERP

PM FA MM ESS EH&S DMS

Plant MaintenanceSap PM module – Basic information, Maintenance repair

Preventive maintenance, Analysis informa-tion

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ERP

PM FA MM ESS EH&S DMS

Financial AccountingSynchronized with MMRapid decision-making by lead time cut

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ERP

PM FA MM ESS EH&S DMS

Materials ManagementSupervise flow of inventoryReduce procuring time and inventory volume, obtain good quality

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ERP

PM FA MM ESS EH&S DMS

Employee Self ServiceIntegrated personnel management system of ERPESS realization

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ERP

PM FA MM ESSEH&

SDMS

Environmental Health & SafetyAnalyze dangerousness of operating systemPrepare for environmental regulation by collecting informa-tion about pollution

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ERP

PM FA MM ESS EH&S DMS

Document Management SystemIntegrate plan and document management of all fieldIncrease utilization of documentIncrease effectiveness of managing and maintaining work

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1. Net profitNeeds several years for accumulation of data

2. Evaluation of Management

Year Ranking

2006 13

2007 12

2008 3

Year Net profit

2006 (-) 526 billion won

2007 133 billion won

2008 514 billion won

2009 649 billion won

2010 380.billion won

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Conservativeness to change

Knowledge

Information

System

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Red

Tape

Melting Pot Of

Hierarchy

Structure

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