Process Mining for Manufacturers
in Learning | PAFnow

How to fix broken supply chains

Process Mining for Manufacturers

If the pandemic has taught us anything it’s that what we take for granted is actually very fragile. In the business world, we see this very clearly in supply chains struggling with shortages of both materials and labor, the chaos in which goods and vehicles are stuck around the world, and a huge “tail” of consequential problems.

However, these problems, like so many others that have become apparent over the past two years, are not new. Rather, they have intensified to the point where they can no longer be ignored.

In terms of supply chain management in manufacturing, the problems can be broken down as follows:

  • Reactive measures instead of active planning and management
  • Rigid and therefore vulnerable supply chains instead of flexible solutions
  • Lack of visibility into metrics such as lead times, supplier performance, or warehouse capacity, or more specifically, the reasons behind these numbers

In addition, manufacturers face challenges in areas such as inventory management, O2C and P2P processes, warranty management, product development, or demand management. The resulting chaos when too many of these processes break down has been evident for close to a year now.

The good news is that transparency is very easy to achieve and can help tremendously to streamline manufacturing processes. This enables stakeholders to create an agile supply chain and react immediately to KPIs to avoid problems, rather than just cleaning up after them.

The key to transparency lies in Process Mining.

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Process Mining for Manufacturers

Process Mining has in fact been around for a while, but those who were not considering this technology so far, are now looking at it as a solution to a variety of business process challenges.

How does it work?
Process Mining uses data from the enterprise system to create an accurate as-is view of the business process. In other words, it provides full visibility for every step along the way, for supply chains, but also for any other process. This visualization can then be analyzed in a dynamic, data driven way, to get to the bottom of performance issues.

For manufacturers this means that Process Mining allows them to:

  • gain full visibility into their processes
  • pinpoint bottlenecks and their root causes
  • compare vendors, plants etc.
  • get an accurate view of seasonal changes
  • spot long lead times, payment processing issues and other conformance or compliance violations

Armed with this knowledge, manufacturers are able to tackle the immediate problem of broken supply chains on the one hand, and on the other, proactively build resilient and flexible processes for the long term to dramatically improve the overall performance of the business. Depending on the business and its needs, stakeholders can, for instance, optimize inventory management, increase first-time-right and on-time delivery rates, reduce incorrect deliveries, prioritize bottlenecks and deal with them as soon as they occur, in relation to order volume and value, streamline processes and react immediately to changes so that inefficiencies do not emerge in the first place.

Process Mining is thus a crucial component in resolving current supply shortages and preventing future bottlenecks.

Get started with Process Mining today!

Learn more about Process Mining >> Watch our 'What is Process Mining' video on YouTube

Find out how to combine Power BI and Process Mining » Download our free PAFnow Process Mining Visual.