Sensitivity Analysis (also known as a “what if” analysis) is an analytical technique that tries to determine the outcome of changes to the parameters of or the activities in a process. This is a measure of the sensitivity of something to a given change.
It measures the hypothetical impact of different types of change (such as capacity, financial issues) on the overall process, workflow, or activity, and it is useful for determining how a change may impact the operation. It is also known as “what if analysis” and is used to support decision‐making or the development of recommendations for decision‐makers based on changing certain variables in the analytical model.
Also called hypothesis testing, the goal is to test the measurable outcomes of performance (e.g. time, cost) from different ways to achieve desired objectives.
Read more on Business Process Analysis
- Definition of Process Analysis
- Best practices to analyze and improve your business process.
- Process mapping and analysis techniques: 3 business improvement methods.
- Process Bottleneck Analysis: Answer these 4 questions.
- Business process analysis methodology