Activity analysis is the examination of the process steps within a selected area of an organization. This analysis determines the following items:
- Which process steps are being executed
- Which personnel are involved with each step
- The amount of time required to complete each step
- The amount of resources consumed by each step
- Which process steps should be measured and which measurements to use
- The value produced by each step
This analysis can then be used to improve the efficiency and effectiveness of operations. This can be accomplished in many ways, such as with the use of automation, the complete replacement of existing processes, outsourcing to lower-cost regions, merging processes, breaking apart processes, and so forth.