Reducing Lead Times with Process Mining

Reducing lead times is an important success factor in many companies. Short lead times mean both faster responsiveness and lower inventory costs, reduced capital commitment, and better planability along the entire value chain. At the same time, optimisation often proves more complex than expected: processes are rarely linear, but are characterized by repetitions, deviations, and media breaks. This lack of transparency makes it difficult to identify causes of delays and implement suitable measures.

Process Mining provides a solution here: The technology makes it possible to objectively map real process flows based on digital traces and thus make weaknesses visible that often remain hidden in day-to-day business. For companies, the method offers an intuitive way to sustainably reduce lead times.

Fundamentals of Reducing Lead Times

Lead time describes the time span that a process takes from start to completion. For example, in manufacturing, it measures the time that a production process requires from order receipt to goods dispatch.

As a rule, lead time consists of the following time components:

Transport time: Time required for the physical or digital transport of a process or product between process steps.
Idle time: Time during which a process is not being worked on and is waiting for further processing – for example, in a warehouse, inbox, or digital workflow.
Setup time: Time for preparing a process or machine before actual processing begins.
Processing time: Active time during which a process is actually carried out or further processed.
Control time: Time for inspections, approvals, or quality assurance measures.
Waiting time: Time that passes due to missing information, resources, or decisions.

The more precisely the individual time components are recorded, the more specifically bottlenecks can be identified and lead times reduced. However, precise quantification is usually difficult because reliable data sources are missing or only aggregated key figures are available. Process Mining solves this dilemma by capturing the actual timestamps of all process steps based on digital traces in IT systems, thus enabling a data-based, complete analysis of the various time components.

Optimizing Lead Times with Process Mining – How It Works

Process Mining is a data-based analysis method that makes real process flows visible based on digital traces. These traces or event logs are automatically generated in IT systems and contain information about process steps, their temporal sequence, and involved resources. Process Mining tools evaluate this data, link it to a complete process model, and thus reveal where processes run as planned and where delays, detours, or bottlenecks occur.

Process Mining creates the foundation for sustainably reducing lead times. The technology makes it possible to systematically identify temporal bottlenecks. It shows where long idle times exist between individual process steps, recurring waiting phases during approvals, or loop-like process variants with unnecessary repetitions. Using historical data, it can also be determined how stable or volatile individual processes are. The gained transparency allows targeted intervention at the levers that have the greatest impact on lead time.

Process Mining is particularly effective when processes run across multiple systems, as is the case in logistics or production, for example. Process Mining in logistics brings this scattered data together and thus creates a solid foundation for sustainable process improvements. The same applies to Process Mining in production.

Reducing Lead Times – Methods for Optimisation

Reducing lead times requires a systematic approach based on a well-founded analysis of existing processes. With insights from Process Mining, targeted optimisation measures can be derived and implemented. We present the most important measures for reducing lead time.

Elimination of idle times: Idle times occur when processes remain unnecessarily long between two processing steps. Process Mining shows where these time losses occur, quantifies their extent, and uncovers systematic delays between certain process steps.
Optimisation of approval and decision processes: Many processes are slowed down by delayed approvals or manual inspections. Process Mining reveals how long individual processes wait for approvals, where bottlenecks exist in the approval flow, and how strongly these affect the overall lead time.
Standardization of process variants: Different processing paths for the same or similar processes often lead to inefficiencies. Process Mining uncovers all existing process variants and enables a systematic comparison regarding their lead times. Due to the possibility of standardization, Process Mining offers considerable potential in dealing with consumer goods.
Automation of manual work steps: Manual, recurring activities are often time-intensive and error-prone. Process Mining identifies process steps with high automation potential by analyzing their frequency, degree of standardization, and error susceptibility.
Resource optimisation: Bottlenecks in personnel or machines extend waiting times. Process Mining analyzes resource utilization across the entire process and precisely identifies where and when resource bottlenecks occur.
Continuous process monitoring: Reducing lead times in the long term requires continuous monitoring. Process Mining offers the possibility of real-time monitoring of process performance, so that deviations can be detected early and countermeasures can be initiated.

Why It's Worth Reducing Lead Times

Reducing lead times directly affects operational performance. It strengthens competitiveness, improves customer satisfaction, and creates new scope in daily operations.

Reduced capital commitment: Shorter lead times mean less bound capital in the form of inventory, semi-finished products, and work in progress. This improves liquidity and enables alternative investments in value-creating activities.
Increased productivity: The elimination of waiting times and non-value-adding activities leads to higher productivity of existing resources. Employees and equipment can process more orders in the same time.
Improved delivery reliability: With shorter and more stable lead times, reliability in meeting delivery dates increases. This reduces rush orders, special shifts, and expensive express transports.
Lower inventory levels: Shorter lead times enable a reduction of safety stock and intermediate storage, which reduces storage costs and the risk of aging and value losses.
Increased flexibility: Reducing lead times means being able to react faster to customer requirements, market changes, or supply chain disruptions.

Reducing Lead Times – with Process Mining from Process.Science

The introduction of Process Mining is unnecessarily complicated in many companies. Conventional solutions often require months of preparation and extensive training. As a result, many companies shy away from implementation or projects get bogged down.

At Process.Science, we make it easy for you. Our Process Mining tools dock directly to your existing Business Intelligence environment. You simply continue working in the familiar, trusted interface. Implementation takes place with minimal effort but quickly delivers usable results. Your data also stays where it belongs – in your company. With our Process Mining solutions, you focus on what matters: understanding your processes, reducing lead times, and increasing your efficiency.