How To Use Process Mining to Identify Critical Process Performance Indicators

How To Use Process Mining to Identify Critical Process Performance Indicators

In order for any business to successfully sustain itself in a dynamic and volatile market, it is absolutely essential to evaluate the performance of a business from time to time. Key Performance Indicators (KPI) & Process performance indicators (PPI) are two vital tools to gauge the overall performance of a business and its processes.

Process Performance Indicators (PPIs) with target values that must be met within a particular time frame can be used to provide performance standards for business processes.


What are Process Performance Indicators?

To put it simply, Process Performance Indicators are computerized metrics that assess the operational success of process-oriented businesses. The emphasis here is on operations and automated process performance evaluation. PPIs provide a drilled-down insight on specific processes as opposed to Key Performance Indicators that present a comprehensive overview of how the business is performing.

These tools usually accommodate process-driven companies, which recognize business processes as the foundation of their existence and prioritize process performance as a method of achieving competitiveness.

While Key performance indicators help guide strategic goals and provide daily insight into an organization's overall health to decision-makers, PPIs are more precise. They target a single process over a set period of time and deliver verifiable data.


How do PPIs impact business processes?

Whatever path you take, keep in mind that monitoring your processes and keeping track of the following PPIs are crucial first steps toward making critical improvements to your business processes.

Using Process mining tools or techniques for your business projects can help figure out which processes need help and which are already running well. Learn how process mining acts as a catalyst for highlighting the most important PPI for your business:

Unlike KPIs, Process Performance Indicators focus more on acquiring insight into process efficiency, process quality, and process effectiveness, as well as time. For example, the time it takes to finish invoicing can be used as a process time indicator. Improved cash flow will result from faster invoicing, which has an obvious financial impact. The procedure, on the other hand, is timed from the time an invoice is issued until the time it is paid. Process mining tools can then be used to pinpoint delays and redundant tasks while implementing automation where required.


Efficiency

Dividing the amount of time taken to produce a product (value added time) by the total time taken for the process from start to finish (throughput time) helps determine the efficiency of a process.

Time spent on waiting for raw materials, production delays, and machine downtime are all factored into throughput time.

This statistic is meant to provide you a clearer understanding of how much waste is involved in each production run, so you may use process mining tools to dig deeper and locate and decrease it.


Effectiveness of processes is another important PPI, as it helps tap into three important aspects:

  1. How often your process runs to success
  2. What is the quality of performance being achieved
  3. What is the frequency of failure rates
  4. What are the rework rates and how often do they occur?

In this regard, process mining can help you create an as-is model and compare it with the to-be model, which then identifies deviations in the process and addresses the above three aspects in a transparent manner with utmost clarity. This can further help increase performance quality, reduce time and enhance decision making!

Traceability of compliance issues becomes easier when a tool like process mining is employed, as it can help give you a complete and comprehensive overview of business processes, that can further help learn if your company is compliant with the government regulations while also deriving at the percentage of non-conforming products being produced. You can acquire insight into possible causes for poor output and begin to improve this statistic by keeping an eye on it and the procedures that contribute to it.

PPIs are a direct effect of the output of a process. PPIs are operational in nature and are formed by a massive volume of data, necessitating automation. A process map's foundation is made up of time-stamped event logs from various IT systems. Process mining is instrumental in applying automation to unnecessary tasks and processing large amounts of data in real-time to get an accurate depiction of what it actually takes for a particular process to produce a set finished product.

Process Performance Indicators help cover a narrower but more detailed view of how processes work. By understanding and enhancing these processes through the right usage of Process Mining Tools, your business can improve the quality of processes and output. Tracing these inefficiencies and acquiring drill-down specifications of how to tackle the respective hindrances in the process can invariably help your business achieve an upper hand over other competitors and allows for expansion and growth opportunities!

Author : Re-vive