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Understanding
Process Mining
Motivation For Process Mining - 100% Variation Discovery
Aspirational Process
Simple, Quick,
Standardized
Perceived
Reality
Few Deviations,
Standardized, Repeatable
Everyday
Reality
Inefficient, Roadblocks, Entangled
Mess
“Built to handle the complexity and dynamism of the modern process environment.”
What is it?
Analyzing event data generated during the execution of a process to
obtain insights into processes in an objective manner.
Why care about it?
100% discovery of all variations taking place in the process
Dive into “Why” of an outcome, not just “What” the outcome is!
Motivation For Process Mining - “Why” Behind The Outcome
94%
56%
79%
‘On Time’ With No Deviations Activities Causing ‘On Time’ To Drop
With Impact Quantified
Why are we seeing the reduced ‘On Time Delivery’ outcome?
How Does It Work?
Using Event log data - Activity, Time Stamp, Case ID
More information, such as ‘Product
Category’, ‘Location’, ‘Resource
Name’, etc. can be added for
enhanced analysis
PO & Line (Case ID) Event Name (Activity) Timestamp
PO 3401_01 Create Purchase Order Item 2/1/18 2:53 PM
PO 3401_01 Vendor creates invoice 2/1/18 11:59 PM
PO 3401_01 Record Goods Receipt 6/3/18 7:44 AM
PO 3401_01 Record Invoice Receipt 6/3/18 8:53 AM
PO 3401_01 Clear Invoice 6/29/18 8:53 AM
PO 3543_02 Record Invoice Receipt 12/2/18 4:58 PM
PO 3543_02 Clear Invoice 8/3/18 1:21 PM
PO 3543_02 Create Purchase Order Item 8/1/18 8:21 AM
Specifically developed
algorithms aggregate these
logs to reconstruct the
process flows across your
whole organization as they
actually happened
Your IT systems record the above information as digital
footprints when you go about using them
Inhibitors of Process Mining
Data
Insufficient Data
Poor Quality of Data
Process
Executed infrequently
Highly non structured
Highly Automated
Very cognitive in nature
People
Unaware of Technology
Lack of Training
Avoiding Transparency
Business Cases - Discovery & Visualization
Visualize
The most common way your process flows aka the happy path.
Number of different paths (variants) that your process goes through.
How the real process compares to the SOP? Where does it differ? Why?
End-to-end Process flow by combining different IT systems.
Traditional Process Mapping
Expensive & Time Consuming
Subjective & Partial Insights
One Time Understanding
No Process Quantification Available
Process Mining Based Mapping
Data Driven & Automated Self Service
Objective & 100% Comprehensive Insights
Tracks Updates Continuously
Frequencies & Impact Quantified
Identify Problems in your process flow, not just outcome.
Analyze root causes based on process steps, time periods or case
attributes.
Quantify the Inefficiencies & Benefits to prioritize efforts.
Benchmark your process against different locations, departments,
acquisitions, and competitors.
Figure Out How To
Improve Service Levels & Cycle Time?
Optimize Working Capital?
Increase Customer Satisfaction & Provide uniform experience?
Reduce resource costs & operating risk?
Business Cases - Analysis & Improvement
Keep accountability objective by defining metrics
Create & Report on outcomes as well as Process Based KPIs.
Monitor pre-set parameters for breaches in KPIs to react quickly.
Estimate & Predict issues to warn users for proactive actions.
Become cognizant of
How the company is performing overtime on KPIs it cares about?
Which on-going cases are going to finish outside desired norms?
What activities create progress towards a desired metric?
Business Cases - KPI Monitoring & Prediction
Business Cases - RPA Potential
Get RPA Right
By Knowing 100% of your entire process.
Scout where automation will have the largest business significance.
Avoid pitfalls of choosing a task with many exceptions or errors.
Ensure It’s Working
Review the processing and decisions made by the robot early-on.
Track manual vs automated activities trend.
Monitor for & quantify expected outcome improvements.
Business Cases - Conformance & Compliance
Ideal vs Real Process Conformance
Model/Upload the ‘To-Be’ Process in BPMN.
Check for non-conformity by comparing discovered models against the
Ideal BPMN model.
Get conformance trends and top violating variations
Audit to Avoid Compliance Costs & Risks
Cover 100% of the cases speedily, without losing the entire picture
Highlight deviations from regulations, custom defined for your industry
Identify Segregation of Duties (SoD) conflicts / Enforce four eyes principle
Use Cases - Sales & Customer Service
Lead to Order
Order Processing
Know Your Customer
Customer Onboarding
Refunds Claims
Service Tickets
Customer Journey
Processes Example Goals
Boost Customer Satisfaction:
• Increase On-Time Delivery
• Faster Cycle Times
• Improved First Time Right
Optimize Costs:
• Quantify/Reduce Order Changes
• Automate Steps
• Increase Sales Efficiency
Higher Revenues:
• Improve Retention Rate
• Raise Customer Lifetime Value
• Better Conversion Rates
Use Cases - Finance
Example Goals
Accounts Receivable
Accounts Payable
Audit & Compliance
Payroll Processing
Financial Reporting
Optimize Working Capital
• Address Early Payments
• Immediate Invoicing
• Control Inventory
Reduce Spend
• Utilization of discounts
• Avoidance of late fees
• Automate Steps
Manage Risk & Compliance
• Ensure Segregation of Duties
• Avoid duplicate payments
• Increase Touchless Invoices
Processes
Use Cases - Procurement
Example Goals
Purchase to Pay
Accounts Payable
Invoice Processing
Purchase Requisition
Vendor Qualification
Increase Purchasing Productivity
• Reduce manual errors
• Automate 3 way match
• Reduce price changes
Optimize Spend
• Manage Long Tail Purchases
• Consolidate Sourcing
• Control Maverick Buying
Reduce Risk
• Automated Cross Confirmation Emails
• Supplier Monitoring
• Standardized Qualification Process
Processes
Use Cases - Production & Supply Chain
Example Goals
Order Fulfilment
Production Routing
Pick & Pack Process
Import/Export Process
Distribution & Shipment
Quality Management
Inventory Management
Processes
Improve Productivity:
• Reduce rework/change orders
• Enhance Operations Planning
• Improve OEE
• Harmonize Process Steps
• Accelerate Six Sigma Projects
Increase Competitiveness:
• Reduce Lead Time Between Steps
• Fix bottlenecks & Deviations
• Diminish Downtime/Waiting
• Better Service Levels
• Improve First Time Right

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Understanding Process Mining & Its Applications

  • 2. Motivation For Process Mining - 100% Variation Discovery Aspirational Process Simple, Quick, Standardized Perceived Reality Few Deviations, Standardized, Repeatable Everyday Reality Inefficient, Roadblocks, Entangled Mess “Built to handle the complexity and dynamism of the modern process environment.”
  • 3. What is it? Analyzing event data generated during the execution of a process to obtain insights into processes in an objective manner. Why care about it? 100% discovery of all variations taking place in the process Dive into “Why” of an outcome, not just “What” the outcome is!
  • 4. Motivation For Process Mining - “Why” Behind The Outcome 94% 56% 79% ‘On Time’ With No Deviations Activities Causing ‘On Time’ To Drop With Impact Quantified Why are we seeing the reduced ‘On Time Delivery’ outcome?
  • 5. How Does It Work? Using Event log data - Activity, Time Stamp, Case ID More information, such as ‘Product Category’, ‘Location’, ‘Resource Name’, etc. can be added for enhanced analysis PO & Line (Case ID) Event Name (Activity) Timestamp PO 3401_01 Create Purchase Order Item 2/1/18 2:53 PM PO 3401_01 Vendor creates invoice 2/1/18 11:59 PM PO 3401_01 Record Goods Receipt 6/3/18 7:44 AM PO 3401_01 Record Invoice Receipt 6/3/18 8:53 AM PO 3401_01 Clear Invoice 6/29/18 8:53 AM PO 3543_02 Record Invoice Receipt 12/2/18 4:58 PM PO 3543_02 Clear Invoice 8/3/18 1:21 PM PO 3543_02 Create Purchase Order Item 8/1/18 8:21 AM Specifically developed algorithms aggregate these logs to reconstruct the process flows across your whole organization as they actually happened Your IT systems record the above information as digital footprints when you go about using them
  • 6. Inhibitors of Process Mining Data Insufficient Data Poor Quality of Data Process Executed infrequently Highly non structured Highly Automated Very cognitive in nature People Unaware of Technology Lack of Training Avoiding Transparency
  • 7. Business Cases - Discovery & Visualization Visualize The most common way your process flows aka the happy path. Number of different paths (variants) that your process goes through. How the real process compares to the SOP? Where does it differ? Why? End-to-end Process flow by combining different IT systems. Traditional Process Mapping Expensive & Time Consuming Subjective & Partial Insights One Time Understanding No Process Quantification Available Process Mining Based Mapping Data Driven & Automated Self Service Objective & 100% Comprehensive Insights Tracks Updates Continuously Frequencies & Impact Quantified
  • 8. Identify Problems in your process flow, not just outcome. Analyze root causes based on process steps, time periods or case attributes. Quantify the Inefficiencies & Benefits to prioritize efforts. Benchmark your process against different locations, departments, acquisitions, and competitors. Figure Out How To Improve Service Levels & Cycle Time? Optimize Working Capital? Increase Customer Satisfaction & Provide uniform experience? Reduce resource costs & operating risk? Business Cases - Analysis & Improvement
  • 9. Keep accountability objective by defining metrics Create & Report on outcomes as well as Process Based KPIs. Monitor pre-set parameters for breaches in KPIs to react quickly. Estimate & Predict issues to warn users for proactive actions. Become cognizant of How the company is performing overtime on KPIs it cares about? Which on-going cases are going to finish outside desired norms? What activities create progress towards a desired metric? Business Cases - KPI Monitoring & Prediction
  • 10. Business Cases - RPA Potential Get RPA Right By Knowing 100% of your entire process. Scout where automation will have the largest business significance. Avoid pitfalls of choosing a task with many exceptions or errors. Ensure It’s Working Review the processing and decisions made by the robot early-on. Track manual vs automated activities trend. Monitor for & quantify expected outcome improvements.
  • 11. Business Cases - Conformance & Compliance Ideal vs Real Process Conformance Model/Upload the ‘To-Be’ Process in BPMN. Check for non-conformity by comparing discovered models against the Ideal BPMN model. Get conformance trends and top violating variations Audit to Avoid Compliance Costs & Risks Cover 100% of the cases speedily, without losing the entire picture Highlight deviations from regulations, custom defined for your industry Identify Segregation of Duties (SoD) conflicts / Enforce four eyes principle
  • 12. Use Cases - Sales & Customer Service Lead to Order Order Processing Know Your Customer Customer Onboarding Refunds Claims Service Tickets Customer Journey Processes Example Goals Boost Customer Satisfaction: • Increase On-Time Delivery • Faster Cycle Times • Improved First Time Right Optimize Costs: • Quantify/Reduce Order Changes • Automate Steps • Increase Sales Efficiency Higher Revenues: • Improve Retention Rate • Raise Customer Lifetime Value • Better Conversion Rates
  • 13. Use Cases - Finance Example Goals Accounts Receivable Accounts Payable Audit & Compliance Payroll Processing Financial Reporting Optimize Working Capital • Address Early Payments • Immediate Invoicing • Control Inventory Reduce Spend • Utilization of discounts • Avoidance of late fees • Automate Steps Manage Risk & Compliance • Ensure Segregation of Duties • Avoid duplicate payments • Increase Touchless Invoices Processes
  • 14. Use Cases - Procurement Example Goals Purchase to Pay Accounts Payable Invoice Processing Purchase Requisition Vendor Qualification Increase Purchasing Productivity • Reduce manual errors • Automate 3 way match • Reduce price changes Optimize Spend • Manage Long Tail Purchases • Consolidate Sourcing • Control Maverick Buying Reduce Risk • Automated Cross Confirmation Emails • Supplier Monitoring • Standardized Qualification Process Processes
  • 15. Use Cases - Production & Supply Chain Example Goals Order Fulfilment Production Routing Pick & Pack Process Import/Export Process Distribution & Shipment Quality Management Inventory Management Processes Improve Productivity: • Reduce rework/change orders • Enhance Operations Planning • Improve OEE • Harmonize Process Steps • Accelerate Six Sigma Projects Increase Competitiveness: • Reduce Lead Time Between Steps • Fix bottlenecks & Deviations • Diminish Downtime/Waiting • Better Service Levels • Improve First Time Right