Mahendrawathi Er

MATERIAL MOVEMENT ANALYSIS FOR WAREHOUSE BUSINESS PROCESS IMPROVEMENT WITH PROCESS MINING: A CASE STUDY

Process mining is a technique to model and analyze business process based on traces of activities performed and stored in the database of any information systems being operated by the company i.e. event logs. This paper aims to add literature on the implementation of process mining in warehouse management process. First, extraction of all related activities from LTAK and LTAP tables of SAP Warehouse Management module is conducted. The event log are processed with Heuristic Miner Algorithm in PROM. The output of the mining is the actual business process model. The analysis of the output discover deviation from the standard procedure set by the company with the presence of additional activities and nonstandard flow of materials. The bottleneck analysis shows that the material spent a long time in the high rack and transferred between high racks. The average lead time from material receipt until issued is slightly higher than the target set the company. Further analysis of the issues revealed root-cause of the problems which are insufficient warehouse related capacity such as forklift, racks and staffs to serve incoming materials. Finally, recommendations are provided to deal with the warehouse management issues facing the case companies.

Analysis of production planning in a global manufacturing company with process mining

Purpose n n n n nThe purpose of this paper is to present the result of using process mining to model the production planning (PP) process of a manufacturing company that is supported by enterprise resource planning (ERP) systems. n n n n nDesign/methodology/approach n n n n nThis paper uses event logs obtained from the case company’s ERP database. The steps for this research are planning process mining implementation, extraction and construction of event log, discovering process model with Heuristic Miner and analysis. n n n n nFindings n n n n nProcess model obtained from process mining shows how the PP is actually conducted. It shows the loop in materials requirement planning and create plan order process. Furthermore, the occurrences of changing plan order date and production line indicate the schedule instability in the case company. Further analysis of the material management (MM) event log shows the implication of production plan changes on MM. Continuous change in the plan affects material allocation priority and may result in a mismatch between production needs and the materials available. n n n n nResearch limitations/implications n n n n nThe study is only conducted in a single and specific case. Therefore, even though the findings provide good insight, the use of solitary case study does not imply a general result applied to other cases. Hence, there is a need to conduct similar studies on various cases so that a more generic conclusion can be drawn. n n n n nPractical implications n n n n nThe result provides insights into how the current company’s policy of adjusting the production plan to accommodate changing demand impacts their operation. It can help the company to consider a better balance between flexibility and efficiency to improve their process. n n n n nOriginality/value n n n n nThe paper demonstrates the use of process mining to capture the real progression of PP based on the data stored in the company’s ERP database, which give an insight into how a real company conducts their PP process, the implication of schedule instability on MM and production. The novelty of this research lies in the use of process mining to attest to the schedule nervousness issue at a process level.

THE SERVICE QUALITY OF INDONESIA’S LOGISTICS SERVICE PROVIDER IN PREPARATION FOR ASEAN ECONOMIC COMMUNITY

Logistics Service Providers (LSPs) in Indonesia will play an increasingly nsignificant part in the ASEAN Economic Community (AEC). To prepare nfor the single market place at the end of 2015, Indonesia LSPs need to understand ntheir existing situation and how they can improve their performance. The nstudy follows a prior research on Thai LSPs and thus the same questionnaire nwas distributed to Indonesia LSPs and users. The SERVQUAL method was utilized nto identify the gaps between the LSPs and users. It was found that neither nIndonesia LSPs nor Thai LSPs can perform their service to meet with their customers’ nexpectation over the service delivered. The LSPs must improve their nperformance to satisfy their customers, which will directly drive product flows nand eventually help them gain benefits from AEC.