Kwang Dong Pharm Implementing ERP

Kwang Dong PharmImplementing ERP

MIS Term Presentation

20031076 Kim, Younga20041141 Park, Hyejin20041231 Kim, Kyungdoc20041245 Kim, Kyungtae

Group 3

2. What is ERP?

1. Company Overview

MIS Term Presentation Group 3. Kwang Dong Pharm

3. ERP Implementation

4. Discussion

Contents

Contents

MIS Term Presentation Group 3. Kwang Dong Pharm

CompanyIntroduction

What isERP?

ERPImplementation

Overview

Management Strategy

Discussion

MIS Term Presentation Group 3. Kwang Dong Pharm

Overview

Kwang Dong Pharmaceutical Co., LTDKwang Dong Pharmaceutical Co., LTD ..Leading Human Healthcare IndustryLeading Human Healthcare Industry

Establishment: 1963. 10. 6

Capital Fund: 52.4 Billion Won

Brand: Kwang-Dong Tang, Woo Hwang Chung Shim Won, Vita 500

Revenue: 216 Billion Won (2005. 12, Ranking 11th)Vision

Super First-Class Pharmaceutical Company Leading Human Healthcare Industry

CompanyIntroduction

What isERP?

ERPImplement-a

tionDiscussion

MIS Term Presentation Group 3. Kwang Dong Pharm

Management Strategy

UpgradingManagement

System

CompanyCulture

Innovation

Business StructureLevel-up

StrengtheningR&D Power

EstablishNew Management

Basis

StrengtheningCore Competence

Vision; Early realization

- Strengthening key business- Developing new business

- Computation System- Education System- Process and Policy

- Manager and talented person- Organization

Making an image of

- Aggressive R&D Investment

CompanyIntroduction

What isERP?

ERPImplement-a

tion

ERP

Discussion

2006; Ranking 10th

MIS Term Presentation Group 3. Kwang Dong Pharm

CompanyIntroduction

What isERP?

ERPImplementation

What is ERP?

Contents

Discussion

MIS Term Presentation Group 3. Kwang Dong Pharm

What is ERP? CompanyIntroduction

What isERP?

ERPImplement-a

tion

Definition

Integrated cross-functional software that reengineers basic process of a company to improve its efficiency, agility, and profitability

Benefits

- Quality and Efficiency

- Cost reduction

- Decision Support

- Enterprise Agility

Diagram

UsefulInformation

Discussion

MIS Term Presentation Group 3. Kwang Dong Pharm

What isERP?

ERPImplementation

Procedure

Features

Improvement in Process

Improvement in Profit

CompanyIntroduction

Contents

Discussion

MIS Term Presentation Group 3. Kwang Dong Pharm

ProcedureCompany

IntroductionWhat is

ERP?

ERPImplement-a

tion

Advance Preparation Perform ERP Project Open & Support

- Consulting

- Task Force Team for Advance preparations

- ERP Package evaluation & selection

- Definite a scope of ERP

- Task Force Team for ERP Project

- Process Analysis and To-be Plan

- System embodiment

- Testing

- Education for users

- System OPEN(2004. 1)

- Stabilization & Additional development

- Support basic operations

- Planning Further development

Discussion

2002. 03 2003. 02 2004. 01 2004. 03

FeaturesCompany

IntroductionWhat is

ERP?

ERPImplement-a

tion

MIS Term Presentation Group 3. Kwang Dong Pharm

Discussion

- Big Bang Method

- Connected with important task

- Considering Pharmaceutical features

- Early Realization

- Deal with PL Law

- Changes in closing a job

Distinctive features of Kwang Dong Pharm ERP

Kwang Dong PharmKwang Dong Pharm

Competitive advantage in Management

Mega Major Sub

Business 6 23

Production 4 9

Material 9 31

Purchase 7 17

Distribution 2 3

Personnel 7 16

Salary 8 16

Accounting 19 50

Management 5 11

Total: 9 67 176

Mega Major Sub

Marketing 2 5

Business 4 17

Production 5 26

Material 2 8

Purchase 1 8

Distribution 2 4

Finan&Accnt 4 21

Management 6 45

Total: 8 26 134

Through AS-IS analysis, found used processes standardized as TO-BE plan

Improvement in Process (1/2)

CompanyIntroduction

What isERP?

ERPImplement-a

tion

AS - IS TO - BE

MIS Term Presentation Group 3. Kwang Dong Pharm

Discussion

CompanyIntroduction

What isERP?

ERPImplement-a

tion

- Maintain # of employees

- Improved Job skill

1. Capability improvement

Improvement in Process (2/2)

MIS Term Presentation Group 3. Kwang Dong Pharm

Discussion

- Closing Accounting

D+45 →D+7

- Business handling:

Job closing concept

2. Productivity improvement

- Integrate all data and control

on real time

3. Transparency improvement

Construct main project as system

- Business User convenience

- Production Process innovation

- Accounting Integrate modules

4. Process improvement

ERP Effect- Convert to higher

value-added business

- Fair evaluation

919

2,160

248 273 351

60 69 62 77 73

1,872

1,341

1,049

396377

0

500

1,000

1,500

2,000

2,500

End of 2001 End of 2002 End of 2003 End of 2004 End of 2005

CompanyIntroduction

What isERP?

ERPImplement-a

tionImprovement in Profit

MIS Term Presentation Group 3. Kwang Dong Pharm

Discussion

Revenue (Hundred Million Won)

# of Employee (Operation)

# of Manager (Head office & operation)

Efficient Operation and creative work be possible due to increased productivity of managing personnel

ERP Opened !!

MIS Term Presentation Group 3. Kwang Dong Pharm

What isERP?

ERPImplementation Discussion

Success Factor

CompanyIntroduction

Contents

Conclusion

Feel Sympathy

- ’02 Result of consulting

Regulation & Process

- Simplification & standardization

Continuing Education

- Changing mind

Exhaustive Projectpreparation

- Organizing ERP TFT

- Enough AS-IS analysis

- Draw problems

CompanyIntroduction

What isERP?Success Factor

MIS Term Presentation Group 3. Kwang Dong Pharm

ERPImplement-a

tionDiscussion

ERP TFT

- Taking full charge of ERP

Continuous TFT

- TFT for various project

It was Successful !

!

Technical approachTechnical approach

People/organizationapproach

People/organizationapproach Strategic

approach

Strategic approach

Discussion

Important Factors for ERP

CompanyIntroduction

What isERP?

ERPImplement-a

tionDiscussion

Inter-relationship

Successful Implementation !!

MIS Term Presentation Group 3. Kwang Dong Pharm

Q & A

Thank you !