ltat.05.015 business process mining
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LTAT.05.015
Business Process Mining
Lecture 2: Process Performance Measurement and Dashboards
Marlon Dumas
Professor of Information Systems @ University of Tartu
Co-founder @ Apromore
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Course Outline
2
Introduction
Process performance measurement & dashboards
Process mining
• Automated process discovery
• Conformance checking
• Performance mining
• Variant analysis
Simulation and “what-if” process mining
Data extraction & preparation for process mining
Predictive process monitoring
Business case analysis & project management for process mining
Trends: prescriptive monitoring, causal process mining, robotic process mining
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Process performance
If you had to choose between two services, you would typically choose the one that is:
•Faster
•Cheaper
•Better
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Process performance
Process performance
Time
CostQuality
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Processing time
Waiting time
Cycle time
Time measures
5
Time taken by
value-adding
activities
Time between start
and completion of a
process instance
Time taken by non-
value-adding
activities
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Processing Time
Cycle Time
Cycle Time
Efficiency (CTE)
Cycle time efficiency
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Processing cost
Cost of waste
Per-Instance
Cost
Cost measures
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Cost of value-
adding activities Cost of a process
instance
Cost of non-value-
adding activities
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Material cost
• Cost of tangible or intangible resources used per process instance
Resource cost
• Cost of person-hours employed per process instance
Typical components of cost
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Time spent per
resource on process
work
Time available
per resource for
process work
Resource utilization
Resource utilization
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Resource utilization = 60%
on average resources are idle 40% of their
allocated time
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Resource utilization Waiting
time
Resource utilization vs. waiting time
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Typically, when resource utilization > 90%
Waiting time increases steeply
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Product quality
• Defect rate
Delivery quality
• On-time delivery rate
• Cycle time variance
Customer satisfaction
• Customer feedback score
• Net Promoter Score (NPS)
Quality
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•Measuring demand (for the process)• Case arrival rate (written λ): number of new cases created per time unit
• An alternative measure is the case inter-arrival time (the average time between two new consecutive cases)
• Example: number of new purchase orders created per day
•Measuring workload• Work-in-Process: (average) number of cases that are active, meaning that
have started but not completed
• Example: number of purchase orders that have been received and not yet fulfilled
Other process performance measures
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•Little’s law is a fundamental law of systems that involve jobs waiting for resources (like business processes).
• It relates demand, workload and cycle time
WIP = ·CT
•WIP = work in process
• = arrival rate (number of new cases per time unit)
•CT = cycle time
•Example: if we receive 10 customer claims per hour and it takes us 2 hours to solve a claim, then the number of claims that are “pending” is 10 x 2 = 20 unresolved claims.
Little’s law
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For each performance measure, define targets
ST30 > 99%
For each objective, identify variable(s) and aggregation method performance measure
Variable: customer served in < 30 min.
Aggregation method: percentageMeasure: ST30 = % of customers
served in < 30 min.
For each process, formulate process performance objectives
Customer should be served always in a timely manner
Define organizational objectives and KPIs (Balanced Scorecard)
Improve customer loyalty (returning customers) by 10%
Identifying process performance measures
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Financial Customer
Internal business process
Innovation & learning
Balanced scorecard
15
Cost
measuresQuality & time
measures
Quality & time
measures
Technology
leadership,
Staff satisfaction
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Supply Chain Operations Reference Model (SCOR)
• Performance measures for supply chain management processes
American Productivity and Quality Council (APQC)
• Performance measures and benchmarks for processes in the Process Classification Framework (PCF)
IT Infrastructure Library (ITIL)
• Performance measures for IT service management processes
Process performance reference models
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Performance Dashboards
Process Mining
Database
Enterprise
System
Event log
Event stream
Business Process Monitoring
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ProcessDashboards
Operationaldashboards
(runtime)
Tactical dashboards(historical)
Strategic dashboards(historical)
Types of process dashboards
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Operational process dashboards
•Aimed at process workers & operational managers
•Emphasis on monitoring (detect-and-respond), e.g.:- Work-in-progress
- Problematic cases – e.g. overdue/at-risk cases
- Resource load
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•Aimed at process owners / managers
•Emphasis on analysis and management• E.g. detecting bottlenecks
•Typical process performance indicators• Cycle times
• Error rates
• Resource utilization
Tactical dashboards
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Tactical Performance Dashboard @ Australian Insurer
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•Aimed at executives & managers
•Emphasis on linking process performance to strategic objectives
Strategic dashboards
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Manage
Unplanned
Outages
Manage
Emergencies &
Disasters
Manage Work
Programming &
Resourcing
Manage
Procurement
Customer
Satisfaction0.5 0.55 - 0.2
Customer
Complaint0.6 - - 0.5
Customer
Feedback0.4 - - 0.8
Connection Less
Than Agreed Time0.3 0.6 0.7 -
Key Performance
Process
Strategic Performance Dashboard @ Australian Utilities Provider
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Process: Manage Emergencies & Disasters
Process: Manage Procurement
Process: Manage Unplanned Outages
Overall Process Performance
Financial PeopleCustomer
Excellence
Operational
Excellence
Risk
Management
Health
& Safety
Customer
Satisfaction
Customer
Complaint
Customer
Rating (%)
Customer
Loyalty Index
Average Time
Spent on Plan
1st Layer
Key Result
Area
2nd Layer
Key Performance
Satisfied
Customer Index
Market
Share (%)
3rd & 4th Layer
Process Performance
Measures
0.65
0.6 0.7
0.7 0.6 0.8
0.4 0.8
0.5 0.4 0.5 0.8 0.4
0.54
0.58
0.67
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Designing Process Performance Dashboard
25
Identify a user or users and define a clear question or set of questions that users will answer with this question
Identify the type of dashboard elements based on the insights required to answer the question
Identify a type of visualization (e.g. type of chart) for the element
Determine x-axis (independent variable): longitudinal time), cross-sectional (attribute)
Determine y-axis (dependent variable): performance measure or attribute and the aggregation function
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Process performance dashboard elements
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Indicator: Card displaying a process performance measure
• Example: cycle time (average, median, max, min, etc.)
Trend chart: A longitudinal performance chart that traces a performance measure over time
• Chart displaying the number of active cases (WIP) over time
Performance distribution chart: A histogram displaying the performance of the process across different components
• Histogram of total effort (total processing time) spent per resource
Cross-sectional chart: A chart that traces a performance measure across different segments (e.g. business units, countries, activity, etc.)
• Chart displaying the cycle time of the process per country
Detailed Tables
• Tables providing detailed performance statistics per case, per activity, etc.
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Operational-Tactical – Business Activity Monitoring (BAM)
• Axway AMPLIFY
• VITRIA Operational Process Intelligence
• Oracle BAM
• SAP Operational Process Intelligence (OPI)
• webMethods Optimize for Process
Tactical
• Business Intelligence (BI) tools: PowerBI, Qlikview, Tableau…
• Process Mining (dashboard modules): Apromore, Celonis, QPR, …
Strategic Level – Balanced Scorecard tools
• BSC Designer Online, Quickscore, Sisense, etc.
5
Tools for performance dashboarding
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Performance dashboards in Apromore
Quick Demo
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