Using process mining to measure the expected costs of business processes

Bo Hsiao, Lihchyun Shu, Michal Young, Hsueh Ching Yang

Research output: Chapter in Book/Report/Conference proceedingConference contribution

Abstract

Process mining is a means to extract hidden information from the event logs accumulated by the information systems that drive increasingly complex business processes, potentially improving their manageability. Traditional process mining is used mainly to extract a useful description of how an enterprise's processes actually work (as versus how they are documented to work), usually presented in the form of a flowchart. To the best of our best knowledge, previous process mining techniques have not used available information on duration and frequency of portions of a business process. We propose a method that combines process mining with Bayes' Theorem to augment a mined model with probabilities information. This additional information increases the value of the mined model and can be used not only in making predictions, but also in making decisions. Together with activity-based costing that assigns some cost to each activity in a process, our process mining technique can measure the expected costs of different stages in the process to support improvement of the underlying processes. We apply our approach to a chip probing process of a semiconductor firm in Taiwan. Our results confirm that the proposed approach could improve company decisions regarding their internal supply chain management.

Original languageEnglish
Title of host publicationPacific Asia Conference on Information Systems, PACIS 2016 - Proceedings
PublisherPacific Asia Conference on Information Systems
ISBN (Electronic)9789860491029
Publication statusPublished - 2016 Jan 1
Event20th Pacific Asia Conference on Information Systems, PACIS 2016 - Chiayi, Taiwan
Duration: 2016 Jun 272016 Jul 1

Publication series

NamePacific Asia Conference on Information Systems, PACIS 2016 - Proceedings

Other

Other20th Pacific Asia Conference on Information Systems, PACIS 2016
CountryTaiwan
CityChiayi
Period16-06-2716-07-01

All Science Journal Classification (ASJC) codes

  • Information Systems

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