Leading and lagging indicators
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A short topic paper on getting Leading and Lagging indicators out of Maximo. I use PM Compliance in my example. I don’t go into detail to the field level but I do point in general directions and provide some suggestions.
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3. Solution Scope
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This infographic is intended to illustrate the level of detail used to prepare a thorough scope statement that illustrates the breadth the requirements to cover. Detailed requirement analysis conducted once the project has been approved will resolve the depth of the requirement statements.
The illustrated examples were developed in a three week requirements and scoping sprint, one week preparation, two day workshop and one week write up.
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- 1. Lagging and Leading indicators in Maximo When we implement Maximo we are always focused on usable information returned from the system. We often hear the term “leading and lagging indicators.” These can be tricky because typically software analysts and developers do not speak the language of maintainers and much gets lost in translation. Let us first make sure we’re all on the same page as leading and lagging indicators can be confusing. The leading indicators roll up to the lagging indicators. Or the lagging indicators are a result of the leading indicators. Hmmm, the leading indicators tell you what your lagging indicator will be. Lagging indicators tell you how you did and leading indicators tell you how you are doing. Confused yet? We see lagging indicators all of the time. They are typically on every client’s Key Performance Indicator (KPI) or Report list. Rarely do you see leading indicators however. Total this, total that, roll-up of these, and so on. Companies always want the end result but do not always ask to see their current statuses. Here’s an example: Company A wants to report their PM compliance and Company B wants to manage their PM compliance. Here is how they go about it differently. Company A just needs to use a lagging indicator such as PM Compliance. PM Compliance tells you how you did. (Total Number of PMs Scheduled /Total Number of PMs completed) over a given period of time. This is great information, but this information alone cannot tell you anything about how to improve or how you are doing during the next report cycle. There is no actionable data. Company B will use PM Compliance as an indicator as well. PM Compliance is the industry standard report card. As we mentioned, PM Compliance is a lagging indicator. So what are the leading indicators? What actionable information can we see that will let us know how to impact the result of the lagging indicator? There are four simple factors typically impacting everyone’s ability to maintain their PM schedule which includes time requirements of the PMs, technician availability, equipment availability, and inventory availability. There may be more but these are what I have found to be the most common. (Total Estimated Duration for total number of PMs Scheduled) (Total available labor hours) (Total Estimated Duration for total number of PMs Scheduled / Total available labor hours) (Total Number of PMs Scheduled in an Awaiting Access Status)
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