Activity Analysis

Activity Analysis is used to analyse a process by breaking it down into its main activities.

Time, volume and cost are assigned to activities to identify what is driving the process. It also helps identify areas to target for improvement, enabling the benefit from each prospective improvement to be assessed.

An Activity Analysis consists of four generic iterative steps:

Assemble activity data
Assign costs to data
Analyse the data
Action upon the information

You don’t need complex, time consuming questionnaires to complete these steps. Sit people down and ask them about the process, its steps, volumes, problems & the time requirements. Use the system to confirm the volumes if possible

This presentation outlines the basics of undertaking an activity (or profitability) analysis.