Process MiningImplementation History at MMC NornickelMetal and Mining summit, September 2019

Karaseva Maria, Holod Ilona

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«NORNICKEL» is a leader in the Metal & Mining industry in Russiaand in the World

Ni Pd Pt

Rh Cu +

№1 in the world in the production of refined nickel

№1 in the world in the production of palladium

№4 in the world in the production of platinum

№4 in the world in the production of rhodium

№11 in the world for coppermining

№11 The company also produces gold, silver, iridium, selenium,

ruthenium.

1 Implementation of SAP ERPIn July 2016, the SAP ERP system was put into commercial operation.

2The idea of analyzing business processes AS ISAs you use the system to the Chief AccountantPJSC MMC Norilsk Nickel came up with the idea of the needsee what really happens in the system, whetherongoing processes targeted, and are there any bottlenecksin current processes.

3 SAP Process Mining by CelonisColleagues from SAP CIS have proposed a solution that allows you to restore business processes from the system without the need for preliminary drawing of a formal model. Process Mining algorithms reconstruct and visualize as is processes from the system logs. Any system can be a source of information. For standard SAP ERP processes, there are customized extractors for uploading data. A question arose about the possibilities of the system working with customized solutions. It was decided to develop a prototype system based on Norilsk Nickel data for the P2P process in an organizational volume of 2 BU.

Process Mining at Nornickel

Users use business systems (such as SAP) to execute business

processes (such as purchasing materials)

During the execution of processes,so-called digital footprints (What’s done? Who did it? At what exact time?)

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3Process Mining algorithms reconstruct and visualize how

these processes are from data. Processes become 100% transparent.

1 Number of copies Duration in days

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1. Process Detection: “What Really Happens?”

2. Conformity check: "Are processes running as planned?"

3. Performance Analysis: “What are the bottlenecks in the process?”

4. Prediction: “Will the order be delayed or not?”

5. Process optimization: "What are the options for improving the process?"

6. Other …

What is in-depth process analysis?

System prototypedeveloped in 2.5 months

To develop a prototype it took:

1 ServerThe server was deployed in a virtual machine

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LicensesA license agreement was signed

MatchingAn agreement was made on the uploading of data with PFS and IS

Upload and download dataBasic staff, based on the instructions provided, downloaded logs from the system and uploaded to the Celonis application server

System prototype development

Demonstration20 demonstrations of the prototype of the System were conducted for colleagues from the Economic Department, the Department of Documentation Support and Organizational Development, IT Department, Finantial Department, Investment Department, Maintaince Department, the Department of Industrial Assets, as well as for colleagues from Kolskaya MMC and ZF.

FeedbackThe greatest interest in the demonstration was caused by:• visualized process as is - spaghetti,• drill-down for any transaction• loading employees.

Where are we now?

At the moment, the company has a Process Mining system in the OPE, the process is being analyzed. The organizational process of the project includes the maintenance business process.

System prototype demonstration

Define process boundaries

Set up data upload

Verify dataConduct process analysis and identify optimization zones

Formulate recommendations for process optimization

Design reports formonitoring optimization zones

The main objectives of the project

Reduce equipment downtime

Effects predicted at the start of the project

Reduction in stock

Labor cost reduction

Analysis ResultsReduce equipment downtime

Reduction in stock

Labor cost reduction

Overtime reduction

Potential economic effect based on the analysis of the maintenanceand repair process

What does the process look like?

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Approach to analysis

The main areas of process analysis using Process Mining are:• analysis of deviations from the regulatory process• search for redundant steps in the process• search for cycles in the process

Analysis of deviations from the regulatory processThe system has a built-in tool to detect deviations of the AS IS process from the TO BE process (ARIS)

How to analyze the process?

Initial Process Analysis Results

12 This is the process of canceled orders

The main objectives of the project

2 Solution Architecture

3 Politics4Data model

1Process boundaries

Our experience

Using the experience to analyze Master Data Management processes

Analyzing Master Data Management processes:

Identification of bottlenecks in processes

Secure MDM SLA

Analysis of deviations and finding out the reasons

Comparison of expert / curator / user statistics

Definition of duplicate functions (looping)

Business process optimization

To be continues …