Showing posts with label Process Mining. Show all posts
Showing posts with label Process Mining. Show all posts

Sunday, November 8, 2009

Process Mining, Knowledge Creation, Ontologies and Frameworks

Can these capabilities be used for a better understanding of ERPs?

This article discusses how these “capabilities” can be combined to facilitate the use of ERPs.

Overview

Process mining allows the reverse engineering of event logs into workflows that describe how a process behaves. Traditional process mining techniques are based on syntax. Typically process mining requires; a unique process id, event names and types, date and time and user names.

Most ERPs are not suited to this kind of analysis. They are either without any accessible process id or a reliable audit trail. However, applications running on the IBM i (previously AS400 or iSeries) have a journaling capability that can provide an answer to this problem.

Using semantic knowledge allows us to extend the process mining capability and explore other disciplines. ERPs are rich in knowledge and meaning. There are structures that are known to IT users but often not well understood by the business. One of the issues that business users have with ERPs is their complexity. An objective must be to introduce greater clarity and simplicity to the ERP.

Capabilities such as the use of ontologies and standard frameworks (APQC PCF) create the structure that allows semantic process mining and the creation of new knowledge.

These capabilities allow an organisation to ask new questions;
How is SAP Purchasing different to other ERPs?
What capabilities does SAP have compared to other ERPs?

Knowledge Creation

One of the difficulties in creating new knowledge is the conversion of tacit knowledge to explicit knowledge. Tacit knowledge is about know-how. It involves mental models. The sort of knowledge that organisation find hard to document and share within an organisation. This is true of application systems such as an ERP.

For example, every ERP has a Purchasing module that allows the organisation to purchase materials and manage relationships with vendors. There may be a set of applications that form a process called “Process Purchase Orders”. However this knowledge may not be readily available to business users. One way to resolve this is by building ontologies. This will allow the creation of explicit knowledge that can be shared and understood throughout the organisation.

AQPC Process Classification Framework

“Created in collaboration with expert and practitioner panels in 1992 and updated annually, APQC's Process Classification FrameworkSM (PCF) is a globally recognized business process model that defines activities and processes across 12 enterprise-level operating and management categories.” (APQC)

The PCF is also a good benchmark to make sure you haven’t missed anything when reviewing an ERP. Any process that is discovered should exist by a similar name in the PCF. See reference for PCF details.

Ontologies

The basis of semantic business process mining is the ontology. Ontologies can represent applications, organisation or business objects.

There are two main benefits in using this kind of ontology. Firstly, workflows are created the mid level descriptors (Change Purchase Order etc) can be used rather than the codes. Secondly, like processes are grouped in one place so that business users can see the applications capabilities.

Conclusion

These capabilities are useful on their own but are much more powerful when used together. If the goal is knowledge creation, process mining provides new information that is organised through frameworks and ontologies. If the goal is business process management, process mining provides discovery, the ontologies provide clarity and structure and the frameworks provide a checklist and a standard.




References
http://www.ip-super.org/
http://www.infor.com/
http://www.sap.com/australia/index.epx
The Knowledge Creating Company; Nonaka; Takeuchi, OUP 1995

Sunday, August 9, 2009

Semantic Process Mining and SAP on the IBM i (AS400 iSeries)

Background

Process Mining allows for the reverse engineering of business processes. By the creation of domain specific ontologies that support the mined data, greater meaning can be revealed using semantics concepts. Process Mining tools like ProM allow for the creation of these application ontologies and their subsequent analysis.

Issues

Most modern ERP applications are large and complex. SAP is no exception. Thousands of transaction codes are linked to activities, roles, components and applications through various types of documentation. To complicate this further the link between transaction codes and activities is not always a one to one relationship.

Methodology

This paper will discuss how this structure can be made be available in a machine readable format that will both simplify and clarify this structure for SAP users. A top down approach is used.

Examples will demonstrate how process mining tools can provide concise analytical data based on this ontology. Using a semantic process mining tool (ProM) both performance and conformance data can be extracted.

Ontologies provide a way to structure SAP’s ERP. The SAP documentation uses the following terms; Application, Module, Component, Role, Activity and Task to group the various entities in SAP. The Ontology described here will use those terms in the same way, as well as adding an extra term called Process, which is based on the APQC Process Classification Framework.

This is not an exhaustive list of all components in the MM module. A subset of the 400+ concepts in Materials Management is used here. A high level view of the complete ontology is attached. It is not legible due to size but it gives an idea of the scale and structure of the ontology (Fig 8).(Note that ontologies can be created for any organisational structure, product codes, or practical business object.)

SAP Application Architecture

The name of the ontology (Fig 1) is “SAP_Application_Architecture”. The selected SAP defined application name is “Logistics”. The module name used in this example is “Materials Management”.



Fig 1

The components of the Materials Management module are; MM_Inventory_Management, MM_Invoice_Verification, MM_Purchasing and MM_Service as seen below in (Fig 2).


Fig 2

The component MM_Purchasing is further split into its process groups in Fig 3 below.

The process descriptions (right hand side) are from the APQC Process Classification Framework. This framework provides a standardized naming convention as well as a way of grouping similar roles.


Fig 3

In the next step the process “Manage Contracts” will be split into its individual SAP defined roles.

Fig 4 shows the SAP defined roles for “Manage Contracts”.


Fig 4

Fig 5 shows the next step; activities and transactions for “Process Contracts”.


Fig 5


Examples

The question is (apart from having a complete hierarchy of components, processes, roles, activity and tasks) what is the benefit of semantic process mining? Here are two illustrations.

Performance Metrics in Ontologies

Fig 6 ‘Visualize performance metrics in ontologies’ gives a visual representation of the mined data using the discovered ontology. Also provided is an analysis of the time and frequency of each task SAP task summarized at each level of the ontology.


Fig 6

Semantic LTL Checker

From a conformance perspective, Linear Temporal Logic (LTL) is an important tool of process mining. The user can ask the question show instances where "activity A eventually executed"?

The result will be two lists of instances; one where activity A is executed and one where it is not. You can click on the individual instances in either list and review their details.

In this example we have selected the activity Process Purchase Orders. The LTL inquiry will select all the sub concepts of this activity in its search.

It will select (Create) ME21N and (Change) ME22N as it “knows” they are part of the ontology. There is an extensive range of inquiries possible through the use of the drop down menu.


Fig 7

In both these examples ‘abstractions’ have been used to simplify and illustrate.

Fig 8 - Complete MM Ontology



This is illegible in A4 but is produced to show structure and size. A pdf is available on request.


References & Links


http://prom.win.tue.nl/tools/prom/
http://www.apqc.org/portal/apqc/ksn?paf_gear_id=contentgearhome&paf_dm=full&pageselect=detail&docid=152203
http://www.ebookspdf.com/computers/2004/sap-mm-material-management-manual/