Proposal of Formalized Service Level Agreements (SLAs) using Process Mining (Case Study in Logistic Company)

Audia, Desinta (2024) Proposal of Formalized Service Level Agreements (SLAs) using Process Mining (Case Study in Logistic Company). Masters thesis, INSTITUT TEKNOLOGI SEPULUH NOPEMBER.

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Abstract

Service Level Agreements (SLAs) define performance expectations
between providers and customers. In the logistics industry, where efficiency and
timely delivery are critical, SLAs play a crucial role in ensuring customer
satisfaction. However, X’s Limited Liability Company (LLC) does not yet have the
formalized SLAs. Consequently, the lack of formalized SLAs in X’s LLC has led
to late deliveries and inconsistencies in service delivery. This study addresses this
challenge using Process Mining (PM) to formalize SLAs. The event log is run with
the PM tool Apromore to reveal the actual processes involved in service delivery.
A further time perspective analysis is carried out to formalize SLAs to establish the
measurable KPIs such as “On-Time Delivery Rates” and “Order Cycle Time.” The
variant analysis is done by classifying the products category following Global
Product Classification (GPC). Then, a formalized SLA by segment is proposed,
offering clear, measurable, and attainable service level targets that align with the
company's operational capabilities and strategic objectives. Based on PM analysis,
mainly on the time perspective analysis, resulted the average case duration of each
segment. The food and beverage segment has an average case duration of 1.47 days;
the healthcare segment exhibits an average case duration of 1.71 days; the electrical
supplies segment shows an average case duration of 1.53 days; and the building
products segment has a significantly longer average case duration of 3.83 days.
Following this result, X’s LLC can measure their “on-time delivery rates” and
“order cycle time.” By formalizing SLAs based on these insights, the X’s LLC can
better manage expectations, optimize operations, and improve overall service
delivery. This research highlights the potential of PM to enhance SLA management
and establish the measurable KPIs in the logistics industry.

Item Type:	Thesis (Masters)
Uncontrolled Keywords:	Service Level Agreements (SLAs), Process Mining, Logistic, Apromore.
Subjects:	T Technology > T Technology (General) > T58.6 Management information systems
Divisions:	Interdisciplinary School of Management and Technology (SIMT) > 61101-Master of Technology Management (MMT)
Depositing User:	DESINTA AUDIA
Date Deposited:	01 Aug 2024 13:29
Last Modified:	01 Aug 2024 13:29
URI:	http://repository.its.ac.id/id/eprint/112143

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