Process mining explained by an example | Episode 1
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Transcript of Process mining explained by an example | Episode 1
Process mining explained by an example
The logistics process at SmartCoat Inc.
SmartCoat
Episode 1 (out of 8): introduction
process mining explained by an example
horsum
April ’16
2
Hi, I am Marie. I am the CEO of SmartCoat Inc.
Our company makes sure that your smartphone is
waterproof!
How do we do this? We put a nano-coating on your
smartphone. This water-resistant technology guards
smartphones from catastrophic damage caused by contact
with water and other liquids.
Marie
CEO
SmartCoat Inc.
SmartCoat
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April ’16
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Our customers are the big smartphone retailers:
Wallsmart, Phonemarket and Callhouse. They provide us
with the smartphones and we make them waterproof.
We do better than our competitors because of our high
quality and on-time delivery.
Marie
CEO
SmartCoat Inc.
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April ’16
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Our logistics process is quite simple.
We receive and check the uncoated smartphones. Next, we
coat and test them. And finally, we ship the coated
smartphones to our customers as planned.
All activities are registered in our ERP system.
Marie
CEO
SmartCoat Inc.
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Seven SmartCoaters are involved in the logistics process: 1 coater,
2 test engineers, 3 warehouse employees and myself.
Marie
CEO
SmartCoat Inc.
Arthur Tom Alix Elise Jerome Edward
Warehouse
assistant
Coater Test engineer Test engineer Warehouse
manager
Warehouse
assistant
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So…you told e that you ca a alyze a d ake recommendations for our logistics processes via process
mining and data analytics techniques just by looking at the
data i our ERP syste … Right?
Well… i that case I a happy to give you access to our ERP data. I am looking forward to seeing your analysis!
Marie
CEO
SmartCoat Inc.
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Oh, right... before you start, I also would like to give you some
extra information:
• Each smartphone has a unique serial number;
• We maintain fixed sales prices for our coating services, independent
from the smartphone brand (MePhone or Simsong);
• Wallsmart pays 10% more than Callhouse and Phonemarket for our
coating service because they ask us to do an additional waterproof test;
• We check all smartphones we receive from our customers. We check
whether they are both fully operational and not damaged. We return
the smartphones in case a smartphone fails one of these checks;
• Once a smartphone is coated, a cooldown period of 24 hours is required
before the tests can start;
• It is not allowed to have more than 4 smartphones in the testing room
at the same time;
• We have some process documentation on our current logistics process.
The documentation is shown on the following slides;
• All logistics activities have a certain cost price. I have included the cost
prices in a separate slide too.
Marie
CEO
SmartCoat Inc.
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April ’16
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Process documentation
RECEIVE
CHECK
STORE UNCOATED
PICK-TO-COAT
COAT
TEST
STORE COATED
SHIP
PICK-TO-SHIP
Process activity What? Who? Location?
Registration of quantities of delivered
smartphones.
Warehouseman Inbound area
Check smartphones. In case of problems,
then return to retailer.
Warehouseman Inbound area
Bring checked smartphones to warehouse
and securely store them.
Warehouseman Warehouse uncoated
Pick smartphone in warehouse based on coat
planning list and move them to coating room. Warehouseman Warehouse uncoated
Put a nano-coat on every smartphone. Coater Coating room
Test coated smartphones. In case of failure,
scrapping should be proposed and evaluated
by CEO.
Test engineer Testing room
Move coated and tested smartphones and
securely store them in warehouse.
Warehouseman Warehouse coated
Pick smartphone according to shipping list
and move them to outbound area.
Warehouseman Warehouse coated
Registration of quantities of shipped
smartphones.
Warehouseman Outbound area
Process documentation
You can find the original file here!
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April ’16
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Cost price documentation
Activity description Estimated cost price
RECEIVE UNCOATED € 0,50 per activity
CHECK OPERATION € 2,00 per activity
CHECK DAMAGE € 0,50 per activity
RETURN € 0,50 per activity
STORE UNCOATED € 0,10 per phone per 24 h
PICK-TO-COAT € 0,10 per activity
COATING € 20,00 per hour
TEST 1 € 0,75 per activity
TEST 2 € 0,25 per activity
TEST 3 € 2,50 per activity
PROPOSE SCRAPPING € 0,05 per activity
EVALUATE SCRAPPING € 0,05 per activity
STORE COATED € 0,10 per phone per 24 h
PICK-TO-SHIP € 0,10 per activity
SHIP COATED € 0,50 per activity
April ’16
11
Do you also want to know how and what we will
advice Marie, CEO of SmartCoat Inc., via process
mining and data analytics techniques?
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April ’16
12 www.horsum.be
Follow us over the coming weeks!
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April ’16
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Planning
April 7th, 2016
April 14th, 2016
April 21st, 2016
April 28th, 2016
May 5th, 2016
May 12th, 2016
May 19th, 2016
May 26th, 2016
Episode 1: introduction
Episode 2: process mining discovery
Episode 3: process deviations
Episode 4: benchmarking
Episode 5: bottlenecks
Episode 6: interactions
Episode 7: process costs
Episode 8: prediction and real-time
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April ’16
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www.horsum.be Or check our website!
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April ’16
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Contact us! Questions?
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April ’16
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Contact us!
Dennis Houthoofd Frederik Vervoort
T: +32 488 90 41 40
T: +32 473 91 05 80
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April ’16
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