Table Of Content

Digital Transformation of Rail Transportation System From : Sumit Chakraborty BEE (Jadavpur University), Fellow (MIS,IIM Calcutta) Version 1, Date : 15.8.2010 Sequence • Audience : R&D and innovation cell of Railways, CRIS, Academic communities, IRCTC, Ministry of Railways; • Research methodology : Literature survey, Case studies analysis, Summer training as a part of graduate engineering course, Summer project on mobile commerce, Experience of frequent rail travels, Critical observations and open feedback ; • Digital Transformation : What is it? • Information System (IS) Schema : – Business objectives and IT portfolio – Constraints • Information Technology (IT) Schema – Application : Decision support system (DSS), Transaction processing system (TPS), Enterprise resource planning (ERP), Supply chain management (SCM), Knowledge management system (KMS), Business intelligence (BI), Geographical information system (GIS); – Networking : Mobile commerce, SCADA, RFID, Global positioning system, – Computing : Service oriented computing , Artificial intelligence – Data : RDBMS, Data warehousing, analytics, performance scorecard, – Security : Authentication, authorization, correct identification, privacy audit, fairness and correctness of computation, rational information sharing – Enterprise application integration (EAI) • Information Management (IM ) Schema – Critical success factors – Financial Investment roadmap for IT Portfolio optimization • Conclusion : Corporate social responsibilities • References : (1) International conference proceedings on electrical and information technologies for rail transportation,China; (2) M. Fitzgerald, Eight steps to digital transformation, MIT Sloan Management Review. PART 1 : Digital Transformation • What is digital transformation ? ( see appendix) • Digital transformation does not mean downsizing; it actually demands the fundamental rethinking and radical redesign of different systems and processes for dramatic improvement of business performance, quality of service and effective enterprise resource planning and capacity utilization through efficient and intelligent application of modern information and communication technology and management skills. • Digital transformation is closely associated with an intelligent design of information system schema, information technology schema and information management schema. • Railways must require an optimal portfolio of intelligent information and communication systems to ensure high quality of services (QoS) in various functions. • Business objectives : – Improved quality of service (QoS) – Fast and correct transaction processing – Efficient management of resources (5M : Man, Machine, Materials, Method and Money) – Fast decision making in adaptive situation – Improved accuracy in decision making ( e.g. intelligent scheduling, coordination) – Discovery of hidden intelligence from large pool of data – Support knowledge creation, storage, transfer and application in an enterprise – Support office automation and workflow control – Effective asset management, cost control, revenue management, strategic pricing and supply chain management – Corporate social responsibilities….. • Constraints :Time, Cost, Resources (e.g. 5M : man ,machine, material, method, money), Skill, Regulatory compliance, Production capacity, Old and obsolete technology, Malicious and irrational business practice, Policy paralysis, Administrative failure…. • Enterprise application integration is a critical success factor of digital transformation. Part 2: IT Portfolio for Rail Transportation DSS ERP / TPS BI KMS RFID, GPS, GIS MM, FI-CO, HR, PP, Business Train scheduling Maintenance, APS, Simulation performance system SD scorecard Case based SCM : SCADA system Analytics and data reasoning (CBR) SCOR, DCOR, visualization CCOR Innovation & Knowledge Train information Data and web creation system / driver SRM mining support system Storage ( digital library, CoE) Rail infrastructure PLM Data warehousing information Knowledge system transfer (collaborative web platform) Rail security & Project safety system management Knowledge application Decision Support System (DSS) • Application schema is basically an optimal mix of different types of enterprise solutions. • A DSS is an interactive, flexible and adaptable computer based information system specially developed for supporting the solution of a problem for improved decision making. The problem may be structured, semi- structured or unstructured. • It uses data, provides easy user interface and can provide decision (cid:373)aker(cid:859)s own insights. In addition, a DSS may use interactive models and may include a knowledge component. • DSS is composed of five major subsystems / components: • Data management subsystem • Model based management system • Knowledge based management system • User interface subsystem • User • Scope analysis : – Train scheduling system / Time table • Exception management – Time delay adjustment – Resilient enterprise ,Natural calamities ( e.g. rain fall, snowfall, fog and mist in winter, cyclone) – Railway driver advice system for effective driver train interaction, optimal speed profile, conflict detection and resolution – Advanced monitoring and rail operation performance analytics – SCADA system • Research directions for digital transformation – How to use ERP system for complex decision making? – How to use BI system for strategy formulation and policy making? Case 1: DSS for Rail Transportation Provide support for Semi/Non Structured Provide data access, analyze problems Support for managers at using modeling tool different level Ease of construction by end Support for groups and users individuals DSS supports decision maker, Support to interdependent or DSS not replace it. sequential decisions Improves effectiveness of DM Support DM process: Not efficiency intelligence, design, and choice Interactive, User friendly and Support variety of decision graphic capabilities style & processes Adaptive, reactive and flexible over time Enterprise Resource Planning System • Enterprise Resource Planning (ERP) is a cross-functional enterprise backbone that integrates and automates many internal business processes and information systems within the sales and distribution, production, logistics, accounting and human resource functions of a company. • Evolution of information system : MRP  MRPII  ERP • Major ERP Modules : – Financial ( FI-CO) – Human resource (HR) – Maintenance – Materials management (MM) – Sales & distribution (SD) – Production planning (PP) • Extended ERP systems : – SCM – APS – CRM and BI – SRM – PLM • ERP Capabilities : Strategic decision making, Transaction processing, Knowledge management, Supply chain management, Project management, Operations management, Human resource management, Financial accounting and cost control, Sales & Marketing management, Business performance management, Electronic business / E-commerce, E-governance, Process and workflow automation • Benefits : Organization-wide business processes, flexible, configurable organizational structure, Can be implemented in modules, global capabilities, multiple industries, multi-currency support, local language support • Limitations : Version upgradation problems Case 2.1 : ERP Maintenance Module • Maintenance objects : Identify critical objects for effective service contracts. – Trains ( e.g. mechanical, electrical and electronics system) – Railway tracks and civil infrastructure ( e.g. bridges, over bridges, sub-ways) – Rail stations and platforms – Information system (e.g. computing, data, application, security, networking schema) – Communication system (e.g. Rail signaling system, wireless system, ) • Deploy web enabled ERP Maintenance Module for following functions : – Maintenance scheduling for periodic and preventive maintenance – Service contracts management ( e.g. vendor control, selection, evaluation) – Verification engineering • System reliability testing, • E(cid:374)gi(cid:374)e(cid:859)s efficiency • Quality of painting • Technical fault and service fault, analysis based on case based reasoning • Quality circle formation, adoption of Taguchi technique – Workflow management – Efficient workplace management – Spare parts management : demand planning, inventory control, sourcing , quality control and reverse logistics , invoice processing , spend analysis – Human resources management :. performance evaluation, training • Use of modern technology, method and tools for the improvement of productivity and quality of maintenance. • Define and announce the railways security and safety policy to the workforce and the public intelligently. • Disaster management cell formation Case 2.2 : ERP HR System • Scope analysis : Web enabled ERP HR system can be effectively used for human resource management through HR master data schema, transaction processing , web e-mail and intelligent analytics. – Human resource planning • Job design, • Organization structure modeling – HR strategy and policy formulation • Pay package • Incentive • Allowance • Reward ( e.g. performance based bonus) • Provident fund • Pension – Efficient talent acquisition : Interview scheduling, selection, testing and recruitment – Talent retention : Career growth planning – HR Development : Training , research and innovation – Personal administration • Time management • Leave management • Salary processing • Performance management, promotion and reward distribution, 360 degree feedback; • Retirement planning – Outsourcing : Contracts negotiation with service providers – Employee relationship management : Trade unions, negotiation, corporate culture and communication; • Research direction : – Adopt best HR practice, – Control malicious practice, power play and politics. Case 2.3 : ERP FI-CO Module • The basic objective of FICO system is to optimize revenue and profit and strategic cost control through efficient receivables and payables management for a complex supply chain, intelligent asset management and rational investment. • The main reporting purpose for FI is external legal reporting to external authorities. • The main reporting purpose of CO is internal managerial reporting. There are many integration points between FI and CO modules. • The critical task of FICO module is to generate correct financial statements such as B/S and P/L statements periodically. • FICO system can generate various types of business intelligence reports such as profitability analysis based on multiple criteria. • FICO system can adopt various types of accounting practices such as cost element a/c, cost center a/c, profit center a/c, internal order a/c, asset a/c and consolidated a/c. • There are different strategies of cost accounting such as actual cost a/c, standard cost a/c, absorption costing, marginal costing, direct and contribution margin a/c, period a/c and cost-of-sales accounting. • Scope analysis • Project planning and monitoring • Resource allocation • Infrastructure development in terms of new trains and new network connectivity in rural India and remote zone; rail hospitals and rail academies. • General ledger • Accounts payable • Accounts receivables • Financial supply chain management • Cost element accounting • Cost center accounting • Internal order accounting • Profit center accounting • Profitability analysis • Investment management Expected benefits :  Improve revenue and profit  Strategic cost control 