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September 07, 2020

Process Mining Live- SPEAKER SPOTLIGHT : Advancing Your Digital Transformation with Process Mining

Courtesy of Molex's Anthony Huffman, below is a transcript of his speaking session on 'Advancing Your Digital Transformation with Process Mining' to Build a Thriving Enterprise that took place at BTOES Process Mining Live Virtual Conference.

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Session Information:

Advancing Your Digital Transformation with Process Mining

Introduction: Given today’s digital transformed world, new ways of working are shifting from physical to digital. This session will explore how your organization can make sense of the digital processes embedded within these newly established technologies using Process Mining.

Process Mining can not only uncover new ways to generate value by visualizing wasteful actions across your enterprise, but it can also act as a mechanism to incentivize and govern better practices. With thousands of end users, most organizations struggle to understand what is truly happening in their global technology platforms such as ERP, MES, and PLM.

It is time to lift the veil of these digital systems and uncover new levers to drive out waste in your organization.

Key Takeaways:

  • What Process Mining is and how it fits into an overarching Digital Transformation Vision
  • The Process Mining Vendor Landscape and current market trends
  • How Process Mining can uncover new insights to improve your operations
  • Why Process Mining is so important to incentivizing and governing better practices
  • Real life Process Mining use cases that have proven to show significant value
  • How to get started, the Process Mining framework

Session Transcript:

I think that first guest with us, is going to talk about advancing this transformation with process mining.

Anthony Hoffman is a Senior Operational Excellence Manager for .... Anthony, great to have you with us. Anthony has over 15 years of operations, excellence experience in the electronics, life sciences, and the aerospace manufacturing industries. He has expertise in the range of digital transformation technologist, and he is a recognized expert in operational excellence. He has improved operations in over 20 countries, establishing capabilities, sound on sound that on the Dana hair business system, and the Toyota Production System.

Anthony, it's a real pleasure to have you with us. Very much looking forward to your presentation today.

Well, thanks, Josey, first of all, thanks for all the participants, and good morning, good evening, good afternoon.

Depending on where you're calling from, sounds like we've got a global audience, I'm pretty used to now being on a remote call with global audiences, especially As we embark in this digital transformation of ours. Through cov at 19, like Josie said, it's, it's kinda forced her hand to be able to think outside the box to be able to come up with new ways of working.

one of those new ways of working is around process mining, and what that means to our organization.

So this presentation is going to give you guys a sense of what molex does with process mining.

It's also going to tie in what our digital transformation initiative is globally, and how process mining can help enable that.

I will caveat that, you know, my background is in Operations, Operations Excellence.

And so this presentation is going to be primarily focused, on the operations side, the business process side.

Screenshot - 2020-09-07T153058.626-1I'm sure there'll be lots of presentations to the rest of the week, that'll get into the, the technology, the details behind the technology. There's a lot of good vendors that are presenting that can go into much more granularity in detail that I can get to.

OK, so before I begin, let me give a context of whom all X is, because not everybody's familiar with ... and no, it's not that watch company called Rolex that were actually kind of behind the scenes for all electronics that are out there. They actually say you can't be five feet away from one of our devices.

Malik's is a global manufacturer of electronic components and solutions.

We have operations in over 23 countries, Manufacturing sites across the world, we have up to 80, depending on the acquisition status and where we're at.

We have about 13 supply chain hubs, and about 45,000 employees.

And so, we're a pretty broad organization, pretty wide organization.

We support almost every industry: medical, automotive, data, comme, consumer, And so we've got a pretty complex set of systems processes, and when we talk about process mining, we really see this as a game changer for us to know what's exactly happening out in our enterprise.

So, my agenda today, it's pretty straightforward.

I'm gonna give you an overview, what is process mining and what does it mean to mole acts?

Then how does it fit into our wider digital transformation vision and our strategy?

I'm gonna give you a sense for what vendors we've worked with. I'll give you a list of other vendors from Gartner. I'm going to focus in on the vendors that I have exposure and experience with. And it's not to say that these are preferred by any means, but it's something that I suggest you explore the landscape and figure out what works best for your organization.

I'm going to highlight some of the trends.

So, what is happening in industry, especially, with things like Cov at 19, Whereas, process mining going, and what can we be doing to stay ahead of the curve?

And most importantly, as this third point here, I've developed this process mining framework, and really, it's a set of methodologies, an approach to how to deploy process mining most effectively.

And so I'm going to walk you through, step by step what that framework looks like. Give you a sense for how you can gather more insights into your continuous improvement initiatives with process mining.

I'm gonna give you some high level use cases, some things that ... has done, some things that I've seen out in the industry, or have been published.

And then I'm going to close up just for a quick recap.

So I actually put a one pager together for that framework to give you a sense for how you can incorporate that into your continuous improvement initiatives, then Josie. And I at the end, we're going to facilitate a Q&A session.

So I'm hoping this will be more of a dialog towards the end where I can get feedback from you, any questions that you have, I do have contact information at the end of this deck where you can follow me on LinkedIn or Twitter. I do post quite a bit of information on there, not only about process mining, but a wide array of digital transformation and operational excellence topics.

OK, so as Josie said, everybody's working on some type of digital transformation.

I think with covert 19 companies have just escalated that and accelerated their efforts, and so if you look across our landscape and ..., from ideation, all the way through customer support, there's a lot of data. There's a lot of information, we're connecting assets for connecting people, we're connecting systems, we're creating a digital thread of information.

Btog CTABut how do we really know what's happening? We make a lot of assumptions.

We make a lot of theory of what it should be, but how can we try to understand What is truly happening, and then identify that waste and eliminate it, using tools like process mining.

We see this as kind of an evolution of continuous improvement.

So, if you look at the maturity curves, or the S maturity, of certain programs, or methodologies, that to say, they've gone away, but I think they've evolved over time.

It started about 100 years ago at the Deming Cycle, so, Plan, Do Check Act.

And that evolve to TQM Moloch started their TQM journey maybe 20 years ago.

And, we've since implemented Lean six Sigma programs.

And so, Lean six Sigma has been around for 15 years.

We've kind of plateaued on our opportunities. We've started focusing on cost savings and getting point. Kaizen are very specific improvements in place. And we really needed to take a step back. And that's where we've evolved most recently to develop this operating system that, that is guided by this vision of Operational Excellence.

So, we now have the malik's operating system.

And that's really how do I use the tools that we've been accustomed to and have maturity in a more methodical way and an approach. And it's about three things. How do I run the business? How do I improve the business? And how do I transform the business?

And a set of ways of working behind all of those that'll make us more consistent, try to get to one mole X instead of each division doing their own thing or each plant doing their own thing.

So we've begun that journey, we've gone pretty far down the road and what we want to try to get to is this vision of Industry four.

And I feel like you need to have some of those foundations before you can jump into the technology space.

But our vision is around creating this Digital Twin and digital thread of information, enabling our operating system, making sure that we're using data to become more efficient, more effective. And so, we're somewhere in between, the operating system and industry for now.

I think a lot of companies I've talked to are in a similar state. I would challenge you to ask where you're at in today's world, and this may be a different set of tools. These were the ones that ... followed, but there's a lot of other systems and methodologies I could have put on here.

I think this is ever evolving, too.

So, once we have the data sets, and we're able to use data, I think from there, we'll, we'll just continue to evolve using more automation, AI, machine learning, three-d.

printing is something that's on our radar, and so, when we look at going from operating system to Industry 4, 1 of the key themes is how do we understand our opportunities? How do we know what's happening in the systems? How do we govern those systems? And that's really where our process mining comes into play.

We are, we actually partner with Deloitte Consulting and they performed an analysis. They call it a value stream analysis.

I like to think of it more as a, a handoff analysis, or a digital twin of, of a product development life cycle, and we, we took the most complex parts and some legacy parts that are more simple and we kind of bookmark them instead.

What are the opportunities in our digital landscape for reduction of waste, for efficiencies for improvement?

And so, this is just an example.

I can't share with you the actual results, but if you look on the left side here, what Deloitte was able to come up with is a map of all of our systems and it looked very similar to this where we've got lots of software.

We've got lots of programs, handoffs, e-mails, all of this information flow that is redundance rework and a lot of problems and error error prone situations.

And so, where we want to get to is try to streamline that, come up with more platform.

Technologies, come up with one way of working and be able to understand what that business process looks like. And to monitor and govern it moving forward.

And so, we're actually able to realized results associated with this.

So, if you look at what we've been able to identify, it's about 40% of our activities within our product life cycle translates to non value added waste.

And so across our landscape, that's about a thousand engineers.

And that's that's a lot of people's time and a lot of effort and energy.

And so not only is it an impact to our business and our profitability but we also consider the impact to our customer.

You can imagine being our customer and having to deal with that spider web of information flow and problems associated with it. It can't create a good environment for them.

And most importantly, so we're a part of a wider organization that has a vision and a guiding principle around self actualization for our employees.

And so, for us, this is really about helping our employees work on the things that matter most, Work on the things that they want to work on, as opposed to doing these transactional, Very simple tasks that may be non value added. And they know they're non value added. We want to be competitive. We want people to feel like they're making a difference in their, in their jobs, and their opportunities that they have in front of them.

21
So we want to do more of this.

Unfortunately, these two parts, it took hundreds of hours to put together this information. This was before we had process mining capability. So, we had to review e-mails. We had a talk with people, there are thousands of people interviewed, and we have over 550,000 SKUs, finished good SKUs.

So, there's no way that we can scale this, and understand, not only that, but it's also just a snapshot in time, and we can't really see what's happening. So, how did we do this enterprise wide, and have this, this capability, to be able to uncover these opportunities sustain and govern them?

That's where process mining comes in.

So, what does process meaning? to me? It's really two parts. It's a digital twin of that transactional process.

It's also a way to decompose the process, simplify it, understand what's happening, and then recomposed it to a designed future state.

So what do you want it to be used process mining to help design that, and then uncover what needs to happen?

And so, in today's world, a lot of companies are faced with these challenges on the left here.

A lot of companies assume what the processes are. They make assumptions that people are actually following a set of standards or work instructions.

Typically, we had to pull together a workshop in the past of all of the business units and divisions to understand what's happening today.

So we would map out the process through a current state future state, and tried to just rely on people's expertise and trust their, their ability to go back and implement that future state. And so we really didn't have a mechanism to prove that out and to really audited.

It's also just a snapshot of time. So that's where process mining comes in, is you can do this on an iterative basis. You can do a real-time.

Don't really manage and control those business processes, risks and opportunities for improvement, or where estimates. So this may have come from anecdotal experiences, or may come from examples, but it really doesn't tell us what's happening today and what are all the opportunities over the past six months, let's say.

So, where we want to get to, is with process mining, being able to do the audits. So to review the process, to get real data, and see what's happening, those opportunities for improvement should be able to jump out. So, are we doing things incorrectly? Did we added steps in certain parts of our enterprise, or they're missing steps or skip steps? And that could be a risk to some of our regulatory environments.

That's what process mining sense does for us.

So, where does it fit in our wider digital transformation vision? So, again, we've partnered with Deloitte Consulting.

They have this concept of a Digital Supply Network, and so it's developing this digital core and thread of information across all of our functions, from ideation, all the way through customer support.

And so we see us building this data, lake building this digital thread, and then overlaying process mining to control those business processes to be able to come up with ways to monitor and measure performance of those business processes, as well as conformance to those processes. So it's a pretty powerful tool.

You know, when we presented process mining to our C suite, it was the best thing since sliced bread that they loved the idea. They loved the concept that was kind of a aha for us. And we jumped on. And so, there's, there's a lot of value here where I would say early in the process. But we've done some pretty good work to, to build momentum and to keep this going.

Not unlike other companies that are out there. So, if you look at this, this back in June, I'm sure this has changed with especially covert 19.

But the trajectory of organizations going from process improvement to actually supporting digital transformation initiatives. And making this the mechanism to automate and to understand where automation makes the most sense, is really where people are evolving. You'll see a lot more companies using this capability. I think we're just scratching the surface on what it could do for us here at ..., and other companies are in a similar spot.

So, again, this is a list of vendors. I just put this in here to let you guys know there's a lot of alternatives, a lot of options out there. We use aloneness and unfamiliar with .... So we have some engagements underway.

And there's also an open source platform. It's called prom.

You can download it. I've downloaded it, where you ingest data from sap, from any of your platform systems. And it's free, and it's a great opportunity to train some people on your team, to be familiar with the tool and what it can do for you. So I recommend downloading that.

All right, so now, I'm going to jump into the framework, And this is really the meat of the presentation.

Really, for any technology, it's it's not about the technology, It's about people, process, then technology, for us.

And so, what we've put together is this framework. It's not unlike a domain framework or a plan do check act framework, but we felt there needs to be a methodology to use this capability, or this technology, so that we can make sure it's consistently used and used in the most effective manner.

So it's made up of these five parts. So, the first part is define so, similar to domain you want to map out your current state.

I recommend using a PSYPACT tool or some type of value stream analysis. You want to identify those opportunities for improvement. So, talk with people. Understand where you've got gaps that will help you at least get to the first layer of information.

Then you go through the system of mapping out the process, using process mining to understand the flow, the information that's happening.

Screenshot (4)I would start at a high level, and then work your way into the details once you understand which business processes you want to mine.

The second second step here is aligning, so this is about establishing a capability leader.

So who's responsible for that business process for the organization around that process, and then the actual standard work and the governance for it?

Design. So this is put together a center of excellence. Usually it's cross functional, usually it's cross divisional or across business unit. So you get everybody's point of view on what the desired state should be. I would start with a benchmark. So start with some somebody that's done this well within your organization or outside of your organization, and then do a fit gap. I wouldn't just put a blank sheet of paper on the wall and start from there. I would try to map out what that good state looks like, and then do what if scenario.

Improve. So again, use the tools that are available to you. We'd like to use RPA to help support that.

And then finally, control. So, how do you monitor and govern? How do you measure KPIs? Develop specific personas on who monitors and measures what.

And so, I'm going to walk you through what this looks like at a high level and then give you an example of where Malek says deployed this.

So, again and the Define phase you want to take this high level view first.

And, we typically will use the PSYPACT analysis to say, here are the transactions from this supplier or this could be a process internally. And then we want to understand, what is that process?

What are the major processes within you know, getting something from the input state to the output, then identifying what are the platform technologies. So, if you look on the bottom here, you know, we spend a lot of time in ERP systems, but there are a lot of other systems that we want to try to evaluate our product life cycle, management system or manufacturing execution system.

And how these all interrelate and create value for us is really the concept here. Where are the opportunities? And where do we need to start?

Our process mining efforts once you're able to identify that. And I'll take the example of procure to pay pay to pay invoice.

This is the mapping process. So these are some screenshots from ..., not to say that this is a preferred vendor, but I liked the way that they've been able to visualize this, to make it simple for people to follow. I think that's one.

No competitive advantage you'll see out there in the landscape is if you can make it simple for the process owner, for the executive team, is going to buy off on the the business case and the justification, the better.

So this is, you know, an example of the customer journey and the procure to pay.

You can see it from a step by step and the customer journey with people and real-life examples or you can see it from a flowchart and a swim lane approach.

You want to try to take a look at all of your processes, and then narrow down where you want to focus, because, otherwise, you're going to do this everywhere, and you might not be hitting the biggest opportunities.

From there, you start mapping out, using the process mining tool. What does that current state look like across your entire enterprise?

So, you wanted to start mapping. what do people do today? Start asking questions like these. How can we improve lead times?

What's the difference between regions? What is our America North America region do versus our Asia region, for instance?

This is really about discovery, so understanding what's happening, where are the opportunities, identifying even the ways that we can automate? So, it may be a non value added task, but it's necessary. So, that's ripe for automation, for robotic process automation or whatever it may be. So, it's used in a sense to identify which tools to use and how to use them.

I think this is probably the most important part of the process and the framework know a lot of companies that they'll skip over this accountabilities piece, Who in the business owns this process.

So who's going to be responsible for monitoring for measuring for governing, for being the no?

Being the go no-go on any changes or customizations needed this position Should be pretty high up in the organization, and should have a team of experts across business units, across divisions, to support them in their decision making process.

I think what tools like sap, ERP Systems, or MIS systems, PLM systems.

It's it's quick to assign responsibility to IT and say IT ANSYS or Onset. It's really got to come from the business and the business needs to monitor and measure, and make sure that we're effective in these processes.

So, I would spend enough time here, make sure that those decision rights are documented, and, and they have clear accountability, and there's some incentive to do this for them. Otherwise, it's, it's, it's going to be difficult to implement improvements and sustain those gains in the long run.

Screenshot - 2020-09-07T153058.626-1OK, so once you have an owner, that's really on that owner to set up the Center of Excellence to design what it looks like, and I would use internal and external expertise for this.

You want to, again, try to understand what everybody does in the organization, and then what is out there from a benchmark perspective. So, who does, as well, an industry who does as well in world, and might not even be in your industry.

Design that, and then find out why we're different. And try to close those gaps. If you do a whiteboard and come up with something on your own and we found that it takes too much time, and, and you're trying to overcomplicate something that, that somebody has already solved.

Once you have that design, you can start doing doing predictive modeling. So you can do some what if scenarios. What if planning? Tradeoff evaluation. We also look at what should we outsource?

Is this a, a competency of ours, or is this an opportunity to outsource? Those are the types of things you want to consider.

When you go to improve, use your toolkit. So I talked about the maturity and evolution of continuous improvement. Those don't go away. Those are still at your disposal. But you want to try to focus those efforts and to be able to support these types of transformations and this initiative's. It's going to be key to have clear standard work and understanding of how to implement standard work as you build out these new business processes. To onboard people to make sure people are following the processes appropriately.

It's also, again, a great opportunity for RPA.

I've seen a lot of companies, shotgun approach to RPA. So they just give the tool out to everybody in a wide audience. This is how we can hone in and say where do we need to automate because it's, it's something that that is required, but we feel like it's, it's consistent. It's, it's something that a lot of people do, big opportunity. Let's automate that, as opposed to just automating everything for the sake of automation.

Then, finally, here, just monitoring and governing.

So, these two slides, or screenshots, rather, I think, do a good job of presenting how to monitor. So, you want to monitor the conformance of that process. So, I would run a snapshot on a routine basis to say what's happening. So, we now have a new design, a new business process. Use, process mining to make sure it's following up, and that's really onus of that capability leader to, to understand what's happening out in the in the wider enterprise.

You can also use KPIs.

So, key performance indicators to measure how the process is performing, so what's your cycle times? Where are the outliers? What's different by region by user, even? And so, it gives you a sense for where do you need to improve? Think of it like an electronic process map of, you know, opportunities that you're trying to go after.

This also helps with making sure that you're verifying effectiveness of processes, in some cases, to the level of validation. So you can use this tool for instance, in the med device industry to validate processes that people are following that, that it's effective and it's working.

And it's also a good way to to audit So you can do snapshot audits, you can share this information with multiple people in the organization and key stakeholders.

So the impacts, there's a lot of information out there.

I liked what Selina said put together it's really around making things more efficient, doing it right the first time, so understanding what good looks like and making sure people are following that.

Reducing expenses, so, I'll talk a little bit about what KPIs we measure and how to, how to get the buy in, and the support for it.

Risks, so, obviously, you can identify if people are skipping steps or adding steps, that may be a risk to your organization.

If you look at the S four migration. So, you know, almost every company is going through this process or will be going through this process at some point.

And, so, for us, we need to establish process mining as a mechanism to, to make sure that we're following a standard business process as we migrate from ECC to S four, and then reduce complexity. So, you're ultimately trying to get to one way of working. That's streamlined and efficient and that doesn't require an army to manage.

Some key examples here and value proposition, so I like the one from Siemens so they were able to eliminate 10 million different manual tasks and those were non value added and it was a $15 million annual savings. So there's, there's a lot of transactions happening in your system. You'd be surprised when you uncover. And there's a lot of aha. That's when you start doing these, these types of assessments of how many millions of times people do something.

And so that translates to a pretty big savings more. Importantly, it frees up people to work on more important things. So it's not just about reducing headcount, It's about freeing up resources to work on more valuable activities.

The other one here around, perfecting, PEO process of Vodafone was able to improve their PO process from 73%. First time yield to 87%. So errors went way down. It's a, it's a good way to, to make sure that people are following a process that is standard. That is a reduction of errors and opportunities for those errors.

OK, so what does Molex done?

I can only give you so much details because this this there's a lot of information in here, but we have one enterprise wide sap platform.

It's our ECC environment, our ERP system, and we made the assumption, you know, procure to pay. It's pretty straightforward.

Everybody's been trained, their standard operating procedures, It should be pretty consistent.

When we mapped it across our global enterprise, we found 900 versions of it.

So when we saw that number, it kind of gave us an aha that this is a big opportunity.

A big, big way to reduce our overhead or our waste in the system.

21And so it gave us a good business case to go through this framework and go through the next steps.

We identified what needed to be improved, what needs to be reduced. We then assigned an owner. Again, this is probably the most important part. So, a person now owns Procure to Pay for ..., and they have decision rights on how that process is deployed, and how we design it.

We then did some simulation and benchmarking. So what it should be, some what if scenarios, for different regions, depending on their specific needs.

We deployed tools to eliminate waste, to get rid of processes, to automate in some examples. And then one unique thing, is, we've actually implemented ways where vendors can self-service. And you can do this on the customer side, as well.

So, why are we doing this activity when a vendor would be more than willing to, to participate in our value chain, and be able to create more value that way?

And then, finally, you know, the governance, and what are the KPIs you want to measure? How do we keep this going, and sustain these gains long term?

These are just some snapshots for use aloneness for this engagement.

We looked across 2018, and we had one point two million purchase orders placed out of that two point one million items. So you think of all the transactions behind that 900 versions of it.

We map those out, and this is what it look like. So you would think it's pretty straightforward to create a purchase order, get the acknowledgement, write an invoice, close out the record.

But there were all of these. These changes, and the light blue lines in the light blue circles indicate the ones that are infrequent, but but our waste and they happen. And if you think of the lead time ramifications of all these additional steps because it's a lot of back and forth.

It's a lot of e-mails, a lot of, no communications that are not needed and wasteful.

So, we're early days in the improvement process, but we've been able to get from 113 days down to 98 days in our KPIs. So being able to reduce the lead time, as well as the number of steps. So going from 11 steps, the 3.5 steps is a pretty big jump and that's that's been able to free up people.

You think of procure to pay professionals no, we're hiring people that, that should be good at negotiation, should be good at vendor management, making sure that, you know, we're managing our categories and our spend appropriately. So they're spending all their time doing these transactions.

We're obviously not not getting the full benefit. And there's no way we're getting them to self actualization of what they want to do, what they desire to do.

So these aren't our actual improvements, but these are some KPIs to consider when we consider these KPIs as we deploy.

So you want to measure your manual versus automated tasks, So you should see manual tasks go down, and your automated tests go up.

So this is saying, we need to automate these tasks, we only have a few that, have been, all of, these can be automated, let's deploy RPA resources And then reduce and use continuous improvement tools to get rid of all those manual steps.

A headcount so ideal headcount this isn't the goal to reduce the headcount, but again, it's about freeing up these people, to be more category managers and to work on more valuable activities, So we can reduce the amount of transactional, headcount needed, and focus on more strategic, long-term headcount investments.

The number of IT systems. So it's a great way to look at your landscape and say we don't need these software tools. They don't create value. We can sunset. We can go to a platform and incorporate them. That's a great way to understand your entire landscape.

And then the processing, time and frequency.

So you should not only reduce the processing time and be able to do this faster, but you should do it more frequent, which will drive more. Excellent. So if you think of procure to pay, we want to have more frequent, lower lot size orders. We want to do it more streamlined. We want to get inventory in and out of our system. If you're taken forever to order something, you're gonna instinctively order a lot more, and so there's all these side ramifications of these business processes you need to consider.

Then on the bottom here, most importantly, you know, freeing up these people to work on things that they truly want to do to get closer to that vision of self actualization.

All right. So that's a lot of information. I just want to give you a sense for, you know, a one page document you can use. By no means is this perfect, but this is what I would recommend, at least as a starting point. So start by defining, understanding that current state and your opportunities, Get a business case put together for your executive team that will free up a resource to become a capability leader.

So who needs to lead this and put a team underneath them so that they have the expertise to make good decisions.

Design, that design should come from internal and external benchmarks and then do a fit gap based on your needs.

Improve is about using continuous improvement tools, following a methodology to improve that automation, where necessary, Outsource or unnecessary, and then control. So, this capability owner should have a set of KPIs, not only to measure and monitor the performance and the value you've created, but also the conformance.

So, the, the following of that standard process should be monitored so that we don't stray.

All right.

So, with that, some key takeaways, hopefully, that you've got out of this, is how this fits in with digital transformation, how process mining can help enable digital transformation.

What the vendor landscape is, what the market trends are, And so, in here, you can find a lot more information. I'm sure you'll see a lot of presentations from vendors today, and through the remainder of the week. So, I recommend you do your research.

How you can never uncover new insights and improve. So, this is another toolkit within your continuous improvement toolkit.

And why it's important to set up that, that clear ownership, and incentivize that person to make good decisions, and govern that business process.

We've got some use cases that show significant value. We've got a lot of momentum. We have a funnel of other processes we want to look at. And so, it's a pretty exciting capability.

We've built this framework to be able to have a clear methodology and approach to it. So we don't just go after shiny objects. We actually realize the benefits and results from it. And I think all of that combined is really what's been able to transform our business.

So with that, you know, if you feel like you didn't see something that you want to get more information on, feel free to follow me on LinkedIn, Twitter.

I've got a lot of information, not only on process mining, but other digital enabling capabilities, as well as operational excellence. So feel free to reach out and with that, I'll hand it back over to you, Josie.

Fantastic. Fantastic. Anthony, great presentation. Great overview and the specific examples on how process mining can be applied in the, in the in the in the context of an organization that has so many things going on. one of the questions that came right from the beginning, when you're when you're talking about the organism ... and you're talking about the company and its operations is, was about identifying the right opportunities. So, tell us a little bit about you know, in this space are so many opportunities where you could, you know, use process mining. How do you go about identifying the ones that are perceived to create the most value?

Yeah, I think you want to try to understand where that value proposition using the PSYPACT And kind of a heat map.

But I think if you want to get started in process mining, it probably makes more sense to go to a process that's a part of a system, meaning it's part of a quality system, it's part of a finance system.

It already has an owner that already has a, an audit mechanism.

That's something that's been documented and reviewed on a routine basis that will help you get started, because those are fairly easy to map and mine and understand the opportunities from there, You know, I would then start looking at the value proposition in sidebar.

Very good, and another question that came in several people pose this question, By the way, for those of you in the audience, keep us asking the questions, and as I scan through them, I find common themes, and I'll, I'll relate to Anthony. But, one of the other questions that came up, is that, what type of IT support and infrastructure you need to have in place for these things to be effective?

Yeah, So IT is a big part of this. It's really a support function I see. But you're going to need people that are well versed. Especially if you look at automation and RPA, and ways of mining information data. We've actually hired some data scientists to help support this.

And then, we're just now getting into data architecture space. So, we've got an IT organization getting stood up that's looking at our whole landscape of all of our platforms and how we can create data lakes and data flow. The pipelines of information behind that data. All of those are key considerations as you go into the Improve phase.

If you start with just, you want to understand current state and you want understanding opportunities, I would lean on the vendors, they have the expertise, They can do that. When you start getting into improved phase, you're going to need to get the right expertise to improve.

That's good. That's good to know.

Selene, Dean has a question on how long it took you to extract the data and normalize it so that salon is still can can, can use it for process mining. So that initial extraction of the data normalization of the data so that you can then use the process mining tool. How long to tell us a little bit about that process? Yeah, so from start to finish, I was actually surprised by the lead time. It actually only took a few weeks to get all of that information.

All of it ingested into salone us into our process mining views that we wanted to see into all those screenshots that I showed you.

I think we had a leg up because we have one instance of sap in the ECC environment. Other organizations that might have multiple ERP systems and different tools that people are using may take a little bit longer.

Very good. I have a question here, a dual question, one is from William Fuller, the other one from ..., they ask questions related to organizational dynamics. And maybe you want to take one at a time here, but first of all, William was focused on the difficulties that you may have experienced in identifying and assigning the process owners with decision rights. And I'm not sure if you actually did that, or if it was the other way around, sound from your presentation. That you actually look for opportunities where ownership already existed, and then you leverage that. But tell us a little bit about the importance of ownership and 34 and the citizen rights for for this applications.

Yeah, we actually had it both ways.

So there were some defined business processes within finance that they had a clear owner, people understood that person owned it it's been well communicated And then for things like procure to pay, we had to find somebody, you know, there wasn't a clear owner of who owns procure to pay across the organization, and so we went to all the division leads and said, This is pretty important for us to standardize and to understand. So I think you see a lot of companies shifting from traditional silos to more of these capability owners of a business process.

And so we sold that, that concept and that idea, And we actually pulled somebody from the business out, and we made this statement, Our CEO made the statement that if you pull this person out and it doesn't hurt your business, you pick the wrong person.

And so you want to have somebody that has influence, that's an advocate of the process of the tools, and that can facilitate and co-ordinate so that we can get the voice of the business incorporated into that design. It's a pretty high level role.

And it's, it's kinda revolutionary for us and a new way of thinking about an org chart.

Very good, very good. It was interesting, a lot of people picked up on the fact that you discuss small X and the culture in this kind of goal for self actualization, which is a pretty lofty goal, you know. Good for him. Maslow's hierarchy of needs, the highest possible level you can have. Finding your purpose, leaving the purpose for the work that you do. Tell us a little bit about how, how and this comes from Kelly and she asks about what is the cultural challenge you had to overcome if any, in adopted process, mining, how? You alluded a bit to this, but how does that align with this higher goal of self actualization?

Yeah, so I think the adoption piece, it's going to be difficult when you go to deploy the new standard business process. So you might have people within the organization and say, this is my job, this is what I do. You're telling me to do something different, maybe more steps, less steps. People don't like to be told to change, They'd like to be a part of the change.

And so we've actually brought in, or an organization, change management team that helps us communicate.

We've done a lot of kind of day in the life of videos of what those new business processes look like, just get it out there, getting communicated, and then reach out for input into that design. So that it doesn't feel like they're being changed their part of the change. That's been a big driver for us. And then this is one of the technologies that, when we presented to the C suite, to get buy in and investment, this is one of the few that I've seen where they said, wow, this is crazy. This is impactful, a lot of the other ones we had to educate. And we had to go through demos, are bringing vendors, and, and this funded just jumped out at us as this is something we need to do or we're going to fall behind.

Anthony, thank you so much for sharing this fantastic journey. I know that you're kind of in the beginning here. There's much more to come, and we look forward to catching up later and seeing how this, how this has evolved and great presentation, grading sites. Very thankful for you to share your expertise and wisdom with us today.

Screenshot (4)Well, thank you, Joseph.

You made this easier for me, so look forward to hearing from other people. Again, feel free to reach out to me. I got by LinkedIn, and Twitter feed here. I'll be more than happy to answer any questions that you had that you couldn't answer.

Thank you Anthony. Alright, thanks a lot. Thicker.

All right, ladies and gentlemen, this finalize our first segment. Excellent presentation by Anthony, what's happening? Really ... real practical applications of the technology. Our next session will come from Genpact and Jam packed is going to discuss how they're transforming their procurement with digital and how process mining has unlocked value in their procurement processes. So we're going to have the Chief Procurement Officer for ... and Scott van Valkenburgh, Please, the Vice President of Global Alliances Leader at the top of the hour with us, sharing their experience at genpact. Thank you for your call, for your engagement. I've seen lots of questions coming in. This is exactly what we're looking for. Your questions were not answered. Go onto LinkedIn, You know, Lookup under my name, post your question there, will have speakers coming in and provide answers on those.

But, see you at the top of the hour with genpact and their transfer summation on using Process Mining.

Thank you.

 

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About the Author

more (3)-1Anthony Huffman,
Senior Operational Excellence Manager,
Molex, LLc.

Anthony (Tony) Huffman has over 15 years of operations leadership experience in the electronic solutions, life sciences, and aerospace industries. He has expertise in a range of digital transformation technologies and is a recognized expert in strategy deployment, quality systems, risk management, and EBITDA driven operational excellence. Tony has worked closely with operations leaders across 20 countries, establishing capabilities founded on Koch Industries, Market Based Management®, Danaher Business System, and Toyota Production System. Tony has led hundreds of operational excellence and strategy development events all over the world, including leading c-suite level members. Tony is driven to build and grow organizations, markets, and margins.

He holds a Bachelor's degree in Industrial and Manufacturing Systems Engineering from Iowa State University and a Master’s degree in Business Administration from Northern Illinois University. He is certified in Operational Excellence, Six Sigma, and Leadership. Tony sits on the Board Advisory Team for the University of Illinois at Chicago; Supply Chain and Logistics Center, and Enterprise Digitalization; Digital Transformation for Manufacturing.

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