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

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April ’16

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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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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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April ’16

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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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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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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

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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

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Follow us over the coming weeks!

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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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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

E: dennis.houthoofd@horsum.be

T: +32 473 91 05 80

E: frederik.vervoort@horsum.be

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April ’16

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