Houston Petroleum Valve Company

Data-Mining Project

Mohammad H. Monakes

Sam Houston State University

Spring 2005

Objectives

Categorize customers based on their annual purchase.

Determine and measure manpower for current business continuation.

Identify and recommend adjustments or realignments of the companies resources to improve, and optimize the customer services.

Provide planning to execute adjustments to current departments and management teams.

Data

Based on management recommendations, a complete set of 2003 annual sales will be use for analysis and mining.

– There were no application upgrade in 2003.– No major change in services.– There were no major gain of loss of customer accounts in

2003.– There were limited loss or gain of employees.

Summaries of the Collection

A total of around 20,000 records were collected from the data repository.

Total Sales = 12 Million $ Total Cost of Goods Sold = 8.4 Million $ Total Customers = 1,023 Total Sales People = 42 Total Employees in Customer Service, Sales

and Accounting departments = 85

Data Cleansing

Three methods of cleansing were done on the data.– Attribute-oriented Induction, removal and

generalization of attributes.– Removal of weakly related attributes.– Removal of invalid tuples.

Data Generalization

Attributes were grouped to calculate required summary of Sale, Quantity and Profit.– By Customer– By Region– By Sales Person

Data Warehouse

DW consists of five dimension and one fact table created in a star schema.– Sales table (fact table)– Customer table– Salesperson table– Time table– Item table– Location table

Measurements

Monday, May 02, 2005

Page 3

CSC 544 Data Mining - Measurements Hierarchy Mohammad H. Monakes

Location

Item

CustomerTime

Salesman

State

Product Group

Zip

Item

City

Year

Salesman

Quarter

Customer

Star Schema

Fact Table

IKEY_ItemLKEY_LocationTKEY_TimeCKEY_CustomerSKEY_SalesmanSalesCost

Item Table

Item_KeyDescriptionItem_Type

Customer Table

Customer_KeyCustomer-Name

Location Table

Location_KeyCityStateZip

Time Table

Time_KeyYearQuarter

Salesman Table

Salesman_KeySalesman-Name

Data Mining Reports

Accumulated sales. Accumulated of % increase Sales and Cost

of Goods. Accumulated of % increase orders by

customers

Accumulated Annual Sales

Customer Total Sales

CST_1 $1,632,729.00

CST_2 $1,404,368.00

CST_3 $1,392,640.00

CST_4 $1,360,800.00

CST_5 $1,146,312.00

CST_6 $1,009,885.00

CST_7 $970,704.00

CST_8 $736,060.00

CST_9 $691,405.55

CST_10 $686,551.56

CST_11 $585,225.00

Accumulated Annual Sales graph

Sales

$0.00

$200,000.00

$400,000.00

$600,000.00

$800,000.00

$1,000,000.00

$1,200,000.00

$1,400,000.00

$1,600,000.00

$1,800,000.00

1 94 187 280 373 466 559 652 745 838 931 1024

Sales

Customer Accumulated % Sales % of the total Company Sales

Customer Sales Acc % Cost Acc %

CKEY-1689-Customer 2.30% 2.65%

CKEY-1640-Customer 4.28% 4.72%

CKEY-1788-Customer 6.24% 6.94%

CKEY-1882-Customer 8.16% 9.25%

CKEY-1551-Customer 9.78% 10.75%

CKEY-1882-Customer 11.20% 12.38%

CKEY-1751-Customer 12.57% 13.64%

CKEY-1751-Customer 13.61% 14.88%

CKEY-2052-Customer 14.58% 16.04%

CKEY-2052-Customer 15.55% 17.19%

CKEY-1252-Customer 16.37% 18.14%

CKEY-1913-Customer 17.19% 18.57%

CKEY-1565-Customer 17.92% 19.41%

Customer Accumulated % Sales % of the total Company Sales

Sales Acc %

Cost Acc %

$ Sales and Cost by Customer

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%

1 101 201 301 401 501 601 701 801 901 1001

Customer

Sales Acc %

Cost Acc %

Customer Accumulated Orders

Customers Orders Acc Order % to total

CKEY-1689-Customer 315 315 2.38%

CKEY-1640-Customer 204 519 3.92%

CKEY-1788-Customer 177 696 5.26%

CKEY-1882-Customer 174 870 6.57%

CKEY-1551-Customer 166 1036 7.83%

CKEY-1882-Customer 142 1178 8.90%

CKEY-1751-Customer 138 1316 9.94%

CKEY-1751-Customer 138 1454 10.99%

Orders processed by CS

0.00%

10.00%

20.00%

30.00%

40.00%

50.00%

60.00%

70.00%

80.00%

90.00%

100.00%

% of Customers

Order%

Customer%

Conclusion

About %50 of sales is from 100 customers (around %10).

Around %80 or sales orders are processes for top 300 of customers (around %30).

5 salespersons from 42 are responsible for the top %10 customers.