In manufacturing, it is critical to have complete architectural oversight of your process management; this can be achieved through the utilization of process mining.
In our last blog, we discussed how some deeply embedded challenges are blocking even some of the most innovative manufacturers from success. From a plethora of applications, siloed systems and a lack of standards, the industry is hard-pressed to gain visibility of its processes.
Luckily, there are some best practices that can unblock these challenges and help you to create an optimized value chain; practice number one (which we discussed last time) is enabling global efficiencies from process alignment, appropriation and monitoring.
Here is best practice number two below, along with some more actual use cases to guide you:
- Smart, highly integrated and maximizing value.
Process mining enables you to quickly and precisely understand and correlate process execution and resulting value; expected outcomes are:
- Better supply and demand chain execution: Understand supply and demand more clearly
- Faster M&A value realization: Compare executed value-chain processes from acquisition with your corporate standards to identify duplicate functions and shared-value areas
- Improved regional and business unit synergies: Compare process execution among regions and business units, identify differences and simulate adoption of processes in different areas
Use Case 1: A Global electronics and appliances leader was losing market share to smaller, more agile competitors. Why? A lack of process simplicity and transparency was holding back its success and it complicated compliance issues. More than 60 exception codes made for some complex metrics and analysis. This lack of transparency caused the organization to blame people and not the problems. But, by illuminating supply-chain bottlenecks – all the way to customer delivery – and establishing better reporting, this organization was able to create customer-focused, standardized and simplified processes. This led to a 25% profit margin increase and a 94% decrease in go-to-market model complexity. It also prompted a 95% plus OTIF increase and enabled a full audit trail.
Use Case 2: A European-based medical-product manufacturer was seeing a number of its divisions contributing to sales-processing KPI shortfalls. Continuous improvement initiatives were impossible to identify, let alone design and meet. With a customer-specific process-mining solution, editable process-oriented KPIs are now available for monthly reporting. A comprehensive dashboard allows for sales process and information management. Support for detecting operation disruption permits process-chain optimization.
The company’s EVP said: The dashboard is a game-changer. With process-oriented KPIs, we’re making proactive decisions based on actionable insight.”
Use Case 3: A European lavatory, hygiene equipment and textile manufacturer, wanted to measure and analyze completed SAP® processes in order to identify and reach optimized potential. But limitations in its order-to-cash process and time estimates restricted the company’s ability to make vital efficiency improvements. A new easy-to-manage solution allows the manufacturer to research completed processes within SAP environments, resulting in reliable data optimization, up-to-date measurement and graphical analysis of process instances based on location and SKUs. The solution controls several thousand process instances as well as associated reporting. This organization decreased processing time by 17% and increased customer satisfaction.
A senior project manager at said: “This solution delivers SAP process efficiency gains in the form of speed-of-light production, services and payments.”
Our next blog will discuss best practice number three: Full lifecycle process management.