[DSC Europe 24] Nataliia Vasileva - Evaluating the Worth of Implementation: Insights from Process Mining Projects
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Learn how to evaluate the potential impact and value of implementation projects within your organization. Discover methods to predict benefits and measure success through real-world examples from process mining. Explore best and worst practices for measuring and communicating value effectively.
[DSC Europe 24] Nataliia Vasileva - Evaluating the Worth of Implementation: Insights from Process Mining Projects
- 1. EVALUATING THE WORTH OF IMPLEMENTATION: INSIGHTS FROM PROCESS MINING PROJECTS NATALIIA VASILEVA, SENIOR PI CONSULTANT, T1A
- 2. INTRODUCTION NATALIIA VASILEVA SENIOR PI CONSULTANT IT-CONSULTING COMPANY DATA & AI,CRM,CLM, PROCESS MINING & RPA MA ECONOMICS, MSU INTERN AT SALES DEPARTMENT, BACARDI 4 YEARS SYSTEM ANALYST, IT CONSULTING COMPANY 1.5 YEAR CREATING BETTER PROCESSES FOR EVERYONE, T1A
- 3. WHY TO THINK ABOUT VALUE? IMPLEMENTATION VIEW. CHANGE MANAGEMENT VIEW. Success measured in attitude towards change and the sustainability of the change (changed behavior at scale, changed mindsets and culture). You can judge success mostly at the time of project closure. Success measured in sticking to timeline and budget and ”going live”. Success is measured throughput the journey (pre-post implementation) and is continuous process. src:https://academy.celonis.com/
- 4. WHAT IS PROCESS MINING? Get event logs from source systems: extract digital footprints of process steps and participants’ actions. Discover real process structure. Analyze and improve. Update automatically. A data-driven approach to discover, monitor, and improve real processes by extracting knowledge from event logs.
- 5. WHAT IS PROCESS MINING? Provides a clear, objective, and fact-based view of how processes are executed. VS How things really are How things should be
- 6. VALUE ASSESSMENT USE CASE: ORDER PICKING PROJECT Large retail company operating in multiple countries sought to optimize their order picking process. Background Process overview 20 582 picking orders per month WMS source system 1 148 pickers per month articles per order 82 25% picking orders with suboptimal routes Correct route Suboptimal route
- 7. 2,1 Root cause Impact per year 25% orders with suboptimal routes 15% Article shortage Process improvement 2,1 ◉ Automatically raise refill priority when a picker reports a product shortage. Increase the number of storage units for high-demand articles with high refill rate. Investigate prioritization system for refill process: ◉ Automatically elevate refill priority for most popular articles. Implement refill monitoring process and automated forecasting. Our recommendations VALUE ASSESSMENT USE CASE: ORDER PICKING PROJECT FTE or 121K €
- 8. HOW TO MEASURE VALUE? ◉ ⇡ Assembly Speed Labor cost savings → per hour saved ◉ ⇡ Order Volume Additional revenue → from increased throughput KPI Examples: ◉ Assembly Speed: Time taken to complete a task or process ◉ Order Volume: Number of orders processed within a given timeframe Impact Measurement Examples: Identify Key Process Metrics relevant to your business Translate process improvements into monetary value
- 9. HOW TO MEASURE VALUE? ORDER PICKING PROJECT Savings Per Year = FTE cost per hour × Hours saved per month × 12 For any automation projects, calculate the resources saved and convert those savings into financial impact. Hours saved per month = (23K expected # of suboptimal routes – 20K # of suboptimal routes) * 5 min = 252 hours Savings Per Year = 40 * 252 * 12 = 121k EUR per year FTE cost per hour = ~ 40 EUR per hour
- 10. VALUE FOCUSED APPROACH VALUE ESTIMATION VALUE REALIZATION VALUE RECOGNTION
- 11. WHAT IS VALUE? PRODUCTIVITY DIRECT CASH WORKING CAPITAL Recurrent effects around Typically achieved through Typically measured in ◉ Bottom line savings ◉ Top line sales increase ◉ Reduced cost ◉ Utilization of benefits ◉ Increased sales ◉ Efficiency gains (reduction of working hours) ◉ FTE savings ◉ Reduced throughput times ◉ Increased automation ◉ Reduced cost of operations ◉ Early cash collection ◉ Utilization of payment targets ◉ Increased insights into operations ◉ Consolidating detailed process data ◉ Combining multiple systems FTE % of business in scope src:https://academy.celonis.com/ TRANSPARENCY
- 12. BEST PRACTICES MAKE YOUR SOLUTION BUSINESS RELEVANT ◎ What value does it drive? ◎ How much value will the specific use case you're implementing bring? ◎ How does it serve the corporate strategy? USER ADOPTION= KEY TO BUSINESS VALUE => COMMUNICATE ◎ Create communication plan ◎ Celebrate success MONITOR & REPORT VALUE
- 13. ANTI-PATTERNS FOCUSING SOLELY ON TECHNICAL METRICS WITHOUT CONSIDERING BUSINESS IMPACT MISSING CURRENT BUSINESS CONTEXT OVERPROMISING
- 14. THANK YOU. EVERY SUCCESS STORY IS A TALE OF CONSTANT ADAPTION, REVISION, AND CHANGE – RICHARD BRANSON
Editor's Notes
- #7: FTE = 3147orders * 5min/ 60 min * 12 months/ 1500 working hours per year COST = 2,1 FTE * 700k fte cost per year Refill tasks are created at priority 2 and can only be manually changed to priority 1 by an employee when an urgent storage unit refill is required.