Activity Analysis: Identifying and Assessing Value Content The heart of process value analysis is activity analysis. Activity analysis is the process of identifying, describing, and evaluating the activities an organization performs. Activity analysis should produce four (1) what activities are performed, (2) how man people perform the activities, (3) the time and resources required to perform the ities, and (4) an assessment of the value of the activities to the organization, including a recommendation to select and keep only those that add value. Steps 1-3 have been described in Chapter 4. Those steps were critical for assigning costs. Step 4, determining the value-added content of activities, is concerned with cost reduction rather than cost assignment. Thus, this may be considered the most important part of activity analysis. Activities can be classified as value-added or non-value-added