1. KORAIL Case Group 6. Park Yong Jin, Park Hyung Soon, Oh Geun Ha 1

2. Contents 2 About Korail Introduction of ERP in Korail Component of ERP Effect of ERP Future Direction

3. About Korail 3 passenger freighttotal KTX Great trai n express Normal tr ain Traffic (million people* km) 10,9818,03814,0089,452x Revenue (billion won) 1,1394775653292,511 Unified the communicational name, Korail in 2007 3306 train service per day Traffic & Revenue of Korail in 2010

4. About Korail 4 YearNet profit 2006(-) 526 billion won 2007133 billion won 2008514 billion won 2009649 billion won 2010380.billion won The total asset is 19812 billion won in 2010 Net profit of Korail Surplus

5. 1.6 sigma 2.Precise cost structure 3.Transparency of money management and the innovation of work process Introduction of ERP in Korail 5

6. Component of ERP 6 ERP PMFAMMESSEH&SDMS

7. Component of ERP 7 ERP PMFAMMESSEH&SDMS Plant Maintenance Sap PM module – Basic information, Maintenance repair Preventive maintenance, Analysis information

8. Component of ERP 8 ERP PMFAMMESSEH&SDMS Financial Accounting Synchronized with MM Rapid decision-making by lead time cut

9. Component of ERP 9 ERP PMFAMMESSEH&SDMS Materials Management Supervise flow of inventory Reduce procuring time and inventory volume, obtain good quality

10. Component of ERP 10 ERP PMFAMMESSEH&SDMS Employee Self Service Integrated personnel management system of ERP ESS realization

11. Component of ERP 11 ERP PMFAMMESSEH&SDMS Environmental Health & Safety Analyze dangerousness of operating system Prepare for environmental regulation by collecting information about pollution

12. Component of ERP 12 ERP PMFAMMESSEH&SDMS Document Management System Integrate plan and document management of all field Increase utilization of document Increase effectiveness of managing and maintaining work

13. Effect of ERP 13 1.Net profit Needs several years for accumulation of data 2. Evaluation of Management YearRanking 200613 200712 20083 YearNet profit 2006(-) 526 billion won 2007133 billion won 2008514 billion won 2009649 billion won 2010380.billion won

14. Future Direction 14 Conservativeness to change Knowledge Information System

15. Future Direction 15 Red Tape Melting Pot Of Hierarchy Structure

16. Question 16