Houston Petroleum Valve Company Data-Mining Project Mohammad H. Monakes Sam Houston State University Spring 2005.

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Presentation transcript:

Houston Petroleum Valve Company Data-Mining Project Mohammad H. Monakes Sam Houston State University Spring 2005

Objectives Categorize customers based on their annual purchase. Determine and measure manpower for current business continuation. Identify and recommend adjustments or realignments of the companies resources to improve, and optimize the customer services. Provide planning to execute adjustments to current departments and management teams.

Data Based on management recommendations, a complete set of 2003 annual sales will be use for analysis and mining. – There were no application upgrade in – No major change in services. – There were no major gain of loss of customer accounts in – There were limited loss or gain of employees.

Summaries of the Collection A total of around 20,000 records were collected from the data repository. Total Sales = 12 Million $ Total Cost of Goods Sold = 8.4 Million $ Total Customers = 1,023 Total Sales People = 42 Total Employees in Customer Service, Sales and Accounting departments = 85

Data Cleansing Three methods of cleansing were done on the data. – Attribute-oriented Induction, removal and generalization of attributes. – Removal of weakly related attributes. – Removal of invalid tuples.

Data Generalization Attributes were grouped to calculate required summary of Sale, Quantity and Profit. – By Customer – By Region – By Sales Person

Data Warehouse DW consists of five dimension and one fact table created in a star schema. – Sales table (fact table) – Customer table – Salesperson table – Time table – Item table – Location table

Measurements

Star Schema

Data Mining Reports Accumulated sales. Accumulated of % increase Sales and Cost of Goods. Accumulated of % increase orders by customers

Accumulated Annual Sales CustomerTotal Sales CST_1$1,632, CST_2$1,404, CST_3$1,392, CST_4$1,360, CST_5$1,146, CST_6$1,009, CST_7$970, CST_8$736, CST_9$691, CST_10$686, CST_11$585,225.00

Accumulated Annual Sales graph

Customer Accumulated % Sales % of the total Company Sales CustomerSales Acc %Cost Acc % CKEY-1689-Customer2.30%2.65% CKEY-1640-Customer4.28%4.72% CKEY-1788-Customer6.24%6.94% CKEY-1882-Customer8.16%9.25% CKEY-1551-Customer9.78%10.75% CKEY-1882-Customer11.20%12.38% CKEY-1751-Customer12.57%13.64% CKEY-1751-Customer13.61%14.88% CKEY-2052-Customer14.58%16.04% CKEY-2052-Customer15.55%17.19% CKEY-1252-Customer16.37%18.14% CKEY-1913-Customer17.19%18.57% CKEY-1565-Customer17.92%19.41%

Customer Accumulated % Sales % of the total Company Sales

$ Sales and Cost by Customer

Customer Accumulated Orders CustomersOrdersAcc Order% to total CKEY-1689-Customer % CKEY-1640-Customer % CKEY-1788-Customer % CKEY-1882-Customer % CKEY-1551-Customer % CKEY-1882-Customer % CKEY-1751-Customer % CKEY-1751-Customer %

Orders processed by CS

Conclusion About %50 of sales is from 100 customers (around %10). Around %80 or sales orders are processes for top 300 of customers (around %30). 5 salespersons from 42 are responsible for the top %10 customers.