Process Mining

Process Mining

What is it?

Process mining is a way to analyze the processes that happen within a company by looking at the data generated by its systems and applications. It involves using algorithms and statistical analysis to find patterns and inefficiencies in the way work is done.

By doing this, process mining helps companies understand how they can work more efficiently and make improvements that save time and money. Essentially, it's a way to "look under the hood" of a business and see how everything works together.

Important terms

Activity: An activity in process mining is a specific task that needs to be done as part of a larger process. For example, creating a sales order, approving a sales order, cancelling a sales order etc.
Case: In process mining, a case is a specific example of a business process with a case id that can be studied to understand how the process works. Think of a case as a single example of a process, like a specific sales order created for a customer with a sales order number (case id)
Event: In process mining, an event is a particular activity that happens in a case at a particular time. For example, an event is creation of sales order (which is the activity) with sales order number SO123 (which is the case id) created on 09/Dec/2022 12:00:00 (which is the timestamp)

Example:

Here one combination of caseid + activity name + timestamp is an event.

Data Models in Process Mining

In process mining you require one mandatory data model which is called as an activity or an event data model that is combined with one or more case attribute model to build the final analysis.

Example

Red highlighted columns are mandatory

Process Variation

In process mining, process variation refers to the natural differences or deviations that occur in a business process as it is executed. Every process has some degree of variation due to factors such as differences in the way tasks are performed or the presence of unexpected events.

Process variation can be analyzed using process mining techniques to identify areas where a process could be improved. By understanding the sources of variation in a process, companies can identify opportunities to standardize and optimize the process, reduce errors and delays, and improve overall performance.

There are several types of process variation, including:

  1. Expected Variation: This type of variation is a normal part of the business process and is accounted for in the process design. For example, different customers may have slightly different requirements, resulting in variations in how the process is executed.
  2. Unexpected Variation: This type of variation occurs when unexpected events happen during the process execution, such as a system failure or a delay caused by external factors. Unexpected variation can be a source of inefficiency and may require process redesign to accommodate.
  3. Non-conformance Variation: This type of variation occurs when the process is not being followed as designed. Non-conformance variation can result from mistakes made by employees, deviations from standard procedures, or other factors that cause the process to deviate from its intended path.

By understanding the different types of process variation and their causes, companies can use process mining to identify opportunities to improve their processes and reduce inefficiencies.

Example:

Illustration of proces variation in procure to pay process

Skills / Team required to run a process mining project

Process Mining Technical Approach

Table of Contents
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