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"BLA in BPM" Application of Measurement & Verification in Business Process Management

By Cyrus Eslamian posted 03-07-2016 08:59

  

While taking the CMVP (Certified Measurement & Verification Professional) course last year in Arlington, I was introduced to the foundation of measurement and verification in retrofit projects. The essence of the course was to learn to measure baseline energy consumption of a building/unit and verify savings once brand new appliances are installed in the facility. On the course agenda, there is

On the course agenda, there is the section called BLA (Baseline Adjustment) which puts emphasis on equality of the nature of before and after measurement condition. In other words, to be able to have an apple to apple comparison between before and after situation, there is a crucial need for adjusting operating conditions.  For example, if an old boiler's energy consumption was measured in the Summer and new boiler is measured in the Winter, since weather situation has changed, performance will change and an adjustment is needed. The way it is done is through conduction regression modelling which is not the scope of this article. 

Moving on to Business Process Management world, in which I have been exposed recently, I have noticed a key connection between my takeaway from CMVP seminar and BPM methodologies; that is the relationship between BLA and KPI. Assessment and Performance Analysis are two elements of The 9 Steps To Success. Looking closer, Assessment is the baseline and Performance Analysis is the post measurement putting in CMVP terminology. Key Performance Indicator(KPI) is used in Performance Analysis.

Here are some examples of BLA in KPI:

"New Customer Acquisition" is a KPI in Marketing & Sales; to better analyze the performance in this scenario, we will need to consider what factors affect the KPI evaluation; e.i. was the sales agent same person? If not, then the result will be skewed and give the false indication and, therefore, a BLA is necessary.

 "Performance" is a KPI in Manufacturing; Performance is defined as:

Total Count/ Target Count

BLA check: In a case of human involvement in the process, do all workers have the same level of expertise? How about inventory level? Number of workers?

"Inventory Levels" is considered to be a KPI in Supply Chain Management.

BLA check: Was the performance analysis done in same sales season? Some products sales are varying from season to season (winter coat)

#CMVP #BPM #BLA #M&V #BusinessProcessManagement #KPI #BalancedScorecard

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