Operational Analysis: Explained

What is it, how to calculate it, formula, why it's important

Are you an entrepreneur who wants to make better business decisions? Do you wonder how to keep your business running smoothly without hiccups? Well, you are in the right place. I am here to help you understand operational analysis.

What is operational analysis? This term refers to the process of examining and optimizing all the processes that make your business run.

The Benefits of Operational Analysis

The purpose of operational analysis is to identify areas that need improvement and to improve the efficiency of your business processes.

Operational analysis provides many benefits such as improving productivity, reducing costs, improving customer service, improving employee satisfaction, and maximizing profit.

The Steps of Operational Analysis

Now that we know the benefits of operational analysis, let's dive into the steps needed to perform this process.

Step 1: Identify the objective

The first step in operational analysis is to identify the objective. What do you want to improve? Is it productivity, customer service, or cost reduction? Once you have identified your objective, you can move on to the next step

Step 2: Define the scope

The second step is to define the scope. What processes are you going to analyze? Are you going to analyze all the processes or just some of them? Defining the scope helps you to focus your efforts and resources.

Step 3: Collect data

The third step is to collect data. You need to collect information about the processes you want to analyze. This data can be collected from various sources such as interviews, surveys, and existing documents.

Step 4: Analyze data

The fourth step is to analyze the data. You need to identify patterns, trends, and anomalies in the data. This analysis helps you to identify areas that need improvement.

Step 5: Develop recommendations

The fifth step is to develop recommendations based on your analysis. These recommendations should be actionable and should help you achieve your objective.

Step 6: Implement recommendations

The final step is to implement the recommendations. This involves making changes to the processes you analyzed. It is important to monitor the impact of these changes to ensure they are achieving the desired results.

Operational Analysis Tools

There are various tools that you can use to perform operational analysis. One of the most commonly used tools is the process flowchart. This tool helps you to visualize the processes and identify areas that need improvement. Other tools include Pareto charts, cause and effect diagrams, and control charts.


Operational analysis is a critical process that can help you improve your business processes and increase efficiency. By following the steps outlined in this article, you can perform operational analysis effectively. Remember, the objective is to identify areas that need improvement and implement changes that will help you achieve your goals.

So what are you waiting for? Go ahead and analyze your business processes and take your business to the next level!

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