MTR Corporation on Track for Higher Efficiency with
Oracle Enterprise Asset Management
Hong Kong, May 22, 2007 - Hong Kong's leading metro operator MTR Corporation (HKEX 066) has turned to Oracle Applications to enable the company to optimize operational effectiveness and improve asset utilization and performance to bring more value for the operator's customers.
MTR Corporation's Enterprise Asset Management System (EAMS), which went live on January 22 this year, runs on the Oracle E-Business Suite. The EAMS will help MTR Corporation improve its management of more than US$13 billion worth of assets, including core railway infrastructure, rolling stock, stations, and plant. It will provide MTR Corporation with an end-to-end view ofits asset lifecycle, enabling more stringent cost control, better asset management, improved efficiency, and lower business risk.
MTR Corporation owns and operates the mass transit railway system in Hong Kong. Its network spans over 91 route-kilometres with 53 stations and 5 depots. MTR is recognized as one of the world's best railways for reliability, customer service, and cost efficiency. The organization spends up to HK$2 billion a year on asset renewal and maintenance.
"Oracle offered an integrated application technology stack which enabled us to link procurement, inventory, project costing, and budgeting and financial planning," said Andrew McCusker, Operations Director, MTR Corporation. "This will give us greater insight into and better control over every activity related to asset management."
McCusker added that the EAMS will help improve MTR's service performance.
"More efficient asset management will ensure we can provide secure and highly reliable services to the 2.5 million people who ride on our trains every day. The system will not only help us minimize the number of service disruptions, but also allow us to achieve savings in asset management costs," McCusker said.
MTR Corporation's EAMS is based on Oracle Enterprise Asset Management, a software application that helps organizations create asset management strategies, smooth coordination of production and maintenance schedules, and comply with environmental, health, safety, and quality standards. It is widely used by asset-intensive companies in a wide range of sectors, including China-based power generation company Huadian Power International Corp. Ltd., power distribution company North China Grid Company Limited, leading Chinese automotive manufacturer ChangAn Auto Co. Ltd., Korean steel conglomerate POSCO, and Hutchison Port Holdings in Holland and Korea.
MTR Corporation designed the EAMS to meet the stringent requirements of the Publicly Available Specification (PAS) 55-1, laid down by the British Standards Institute (BSI) with input from industries that rely on strong asset management to run their businesses. The specification provides guidelines for best-practice asset management.
MTR Corporation engaged Oracle Global Certified Advantage Partner IBM Global Business Services to develop an Enterprise Asset Management Solution Roadmap and to complete a study to validate the foundation of its EAMS framework. Improvements on information retention and reporting were also incorporated into the final system design.
Oracle Applications Support Team provided advice and technical assistance during the implementation, which was managed by IBM.
"Oracle Applications Support Services played a valuable role in ensuring we met project deadlines and budgets," said Daniel Lai, Head of Information Technology, MTR Corporation. "The team, comprising global and local experts, provided solutions to the issues we encountered. We were impressed with their attention to detail. By leveraging the built-in integration capabilities across the Oracle E-Business Suite, we can mitigate the risk and costs associated with maintaining disparate systems and future software upgrade issues."
In addition to Oracle Enterprise Asset Management, MTR Corporation has deployed key modules from the Oracle E-Business Suite as part of the EAMS, including Oracle Purchasing, Oracle iProcurement, Oracle Inventory Optimization, and Oracle Project Costing. The applications are integrated with the organization's existing financial management system, which is based on a range of Oracle financial applications. As all applications are built on a unified information architecture, the organization can benefit from continuous real-time function and information flow for asset management.
"MTR Corporation is an important customer for Oracle in the transportation industry and we are proud to contribute to the success of its EAMS project," said Aldous Wong, Vice President, Applications, Oracle Greater China. "The implementation demonstrated the strong partnership among MTR Corporation, IBM, and Oracle in deploying a large-scale, business-critical system on time and within budget. With Oracle Enterprise Asset Management deployed, we are confident that the new system will enable immediate cost and operational benefits to MTR Corporation," said Wong.
About MTR Corporation
MTR Corporation is a publicly listed company in Hong Kong engaged in the construction and operation of Hong Kong's mass transit railway system integrated with development of properties and new communities along its railway lines. MTR Corporation employs the best of practices in the performance and delivery of its services and is dedicated to leadership in enterprise management and in maintaining the vitality of Hong Kong business. For more information, visit www.mtr.com.hk.
About Oracle
Oracle (NASDAQ GS: ORCL) is the world's largest enterprise software company. For more information about Oracle, please visit our Web site at www.oracle.com/hk
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