What’s Bus. Ops. Analysis?

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Business Operations Analysis (BOA) examines whether a company’s operating structure is in line with its business plan. The analysis assesses each level of the business structure and suggests changes to improve efficiency and productivity. Companies can conduct the analysis in-house or hire an independent analyst.

Business Operations Analysis (BOA) is a strategy designed to determine whether the overall operating structure of a company is in harmony with the business plan adopted and supported by the company. The idea behind this type of analysis is to determine whether the operation is actually organized in accordance with the terms of the business plan and helps the company achieve its objectives. In order to manage this process, the analysis will examine each level or layer in the business structure, compare the function and organization of those levels with the content of the business plan, and confirm or deny that those functions are indeed relevant to the plan. It is not uncommon for the analysis to also include suggestions on how to change the operation to better conform to the business plan.

Conducting an analysis of business operations requires an in-depth look at how society is organized and how goods and services are produced. In the broadest possible application, the analysis will address all aspects of the operation, starting with the ordering of production materials, through management and supervision functions, and on to the layout and efficiency of the production floor. Aspects such as order processing, shipping and delivery, and the accounting process on the backend can also be subject to scrutiny. It is also possible to conduct a limited business operations analysis that focuses on specific areas of the operation, with an eye to determining compliance of those specific functions with the business plan.

From time to time there are several benefits to carrying out a business operations analysis. Looking closely at how various aspects of the operation can often lead to ideas on how to improve the overall structure of the company by eliminating unnecessary positions, creating new positions when there is a need, and even identifying small changes in the production organization plan to increase the efficiency and productivity. Since many companies have to adapt to changing market conditions over the years, conducting this type of analysis at least on an annual basis can often provide food for thought on how to make changes now in anticipation of what is expected to happen in the market in the near future.

Companies may choose to conduct an analysis of business operations in-house, by hiring a business analyst who monitors and evaluates operations on an ongoing basis and provides a comprehensive analysis on a regular basis. An alternative is to engage the services of an independent analyst, who may approach the task outside the company’s culture. With either option, taking the time to engage in this type of analysis can help keep the company on track and ultimately strengthen the operation, increasing the chances that the company will stay in business long-term.




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