Innovation mindset case studies – Process mining – Document the process 1
© 2020 Ernst & Young Foundation (US). All Rights Reserved.
SCORE No XXXXXXXXXX201US_11
Innovation mindset
Process mining
Document the process
Overview
To successfully use process mining, professionals must first understand the business process. A common
way to understand business processes is to document the process using techniques like flowcharting. To
uild flowcharts, professionals often rely on instruction manuals — which describe typical business
practices — or on interviews with those involved in the business process.
Professionals use the flowcharts they create to identify and gather relevant information stored in the
company’s databases. With that data and the appropriate process mining software, professionals can
create process mining visualizations, which illustrate how the company’s transactions actually flow within
their business processes. Comparing process mining visualizations with business process documentation
provides valuable insights — professionals can see how the company actually processes transactions
elative to what the company has documented or says it does.
Order-to-cash process at BW Fishing Inc.
BW Fishing Inc. (BWF) sells fishing supplies mainly to other businesses across the country. The company
has grown steadily over the last 10 years. BWF found a niche in taking orders and immediately fulfilling
them around the clock. BWF’s customers work at unusual hours and it has been able to build loyalty with
its “always open” mantra. This practice, along with competitive pricing, has allowed BWF to build a loyal
network of customers.
BWF processes most sales digitally; yet, employees still perform a valuable role in the process. The sales
process at BWF involves employees working in four different roles: sales clerks, sales managers,
inventory clerks and accounting clerks. There are multiple employees who function in each of these roles,
and all employees in a role can perform the activities related to their role. Because the process is highly
digitized, it is common to have many different employees perform the tasks related to one transaction.
The process begins when BWF receives an order from a customer via phone or online. For a phone
order, the sales clerk enters the customer information into the computer system and then the system
automatically creates a purchase order and logs the information in the sales database. For an online
order, the customer’s information is digitally captured in the computer system, then the system
automatically creates a purchase order and logs the information in the sales database. Most of BWF’s
customers are businesses, so it does not collect payment at the time of the order. Instead, BWF bills them
after the customer receives the inventory they have ordered.
The sales clerk reviews the order and determines whether the customer’s credit should be approved by
the sales manager to make the sale. The credit approval process requires judgment. All sales more than
$3,000 must be approved by the manager. Sales less than this threshold may require approval,
depending on the sales clerk’s judgment.
If the order needs sales manager approval, the sales clerk digitally sends the order to the sales manager.
The sales manager reviews information in the sales database and uses their professional judgment to
Innovation mindset case studies – Process mining – Document the process 2
© 2020 Ernst & Young Foundation (US). All Rights Reserved.
SCORE No XXXXXXXXXX201US_11
decide if the customer’s credit is sufficient. If the customer does not have sufficient credit, the sales
manager updates the digital purchase order to show that the order is rejected (which is logged in the
sales database). The sales manager then notifies the customer that the credit is not approved and the
process is ended.
If the customer’s credit is approved, the sales manager digitally signs the purchase order in the sales
database. The system then creates a digital picking ticket. If the customer did not need credit approval,
the system automatically creates the digital picking ticket upon the approval of the sales clerk. Once the
picking ticket is created, the sales database is automatically updated.
Inventory clerks in the warehouse receive notification of the digital picking ticket and use the digital
picking ticket to pick and package the inventory. The inventory clerks open the digital bill of lading and
print a copy of the digital bill of lading and packing slip, which are included with the inventory sent to the
customer. The inventory clerk digitally signs off that they performed the task. If the warehouse does not
have all of the ordered inventory, the company ships the goods it does have and the system creates a
new digital picking ticket for the non-shipped items. The company then fills the new digital picking ticket
once the inventory is in stock.
Once the inventory clerk has finished entering their information into the sales database, the system
automatically creates a digital sales invoice. An accounting clerk reviews the digital sales invoice for
completeness and accuracy by comparing the sales invoice to the purchase order and the picking ticket.
If the information does not match, the accounting clerk notifies the sales manager, who investigates and
co
ects the problem. If the sales invoice is accurate and complete, the accounting clerk digitally signs
that the review is complete. The system automatically sends the customer the approved sales invoice via
email.
The process continues when the customer pays for their order. Customers can make an electronic
payment (automated clearinghouse or wire transfer) or pay with a check. When the customer pays with a
check, two accounting clerks open the mail and immediately endorse the check as “for deposit only” and
then enter the check details and the information from the remittance advice into a digital cash receipts
pre-list, which is stored in the sales database. Two clerks open the mail together to prevent one clerk
from misappropriating assets, creating a kiting scheme or other fraudulent activities. If the customer pays
electronically, the system automatically enters the information into the sales database. The accounting
clerks also scan any remittance information, which is stored in the sales database, and the physical
emittance document is shredded. Scanning and shredding are noted in the database when they are
completed.
All endorsed checks are sent to the sales manager. The sales manager prints a deposit slip and takes the
deposit slip and endorsed checks to the bank on the same day the cash is received.
Daily, the bank sends an email acknowledging all deposits for the day. The sales clerks verify that the
ank deposit amount (excluding electronic deposits) matches the amount on the cash pre-list. If it does,
the sales clerk adds their digital signature that they reviewed the match. If it does not, the sales clerk
immediately notifies the controller for further investigation and follow-up.
Innovation mindset case studies – Process mining – Document the process 3
© 2020 Ernst & Young Foundation (US). All Rights Reserved.
SCORE No XXXXXXXXXX201US_11
Required
► Create a flowchart that documents the order-to-cash process for BWF. Your flowchart should identify
the activities performed and the role that performs each activity. You should produce a pdf file that
contains your final flowchart.
– As a hint, create a different column for sales clerks, sales managers, accounting clerks and the
computer system. Treating the computer system as a distinct “person” makes it easier to diagram
the process.
– In selecting a suitable program for creating your flowchart, you can use a general program like
Microsoft Excel or Microsoft Word, or a dedicated flowcharting program like Lucidchart
(https:
www.lucidchart.com/pages/) or Microsoft Visio (https:
products.office.com/en-
us/visio/flowchart-software).
– While there are many standard flowcharting symbols, some programs use variations. Check with
your instructor to use the flowcharting symbols that are prefe
ed for the assignment.
https:
www.lucidchart.com/pages
https:
products.office.com/en-us/visio/flowchart-software
https:
products.office.com/en-us/visio/flowchart-software
Flow Chart Assignment
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