Certified Maintenance & Reliability Professional (CMRP) Practice Exam

True or False: Lagging indicators serve as the basis for future planning.

1. True

2. False

3. Only sometimes based on context

4. They do not provide any actionable insight

The correct answer is: False

Lagging indicators are typically results of past performance and can provide valuable insights into what has happened in the past, but they do not serve as the most effective basis for future planning. These indicators are reflective of outcomes that have already occurred, such as maintenance costs, downtime, or production output, and thus, they lack the forward-looking aspect that would be necessary for effective strategic planning. In contrast, leading indicators are more relevant for future planning as they can signal upcoming performance trends based on current activities and conditions. By focusing on leading indicators, organizations can adapt their strategies proactively to improve future outcomes. While lagging indicators can offer context for future decisions, relying solely on them would not provide the proactive approach needed to achieve continuous improvement and reliability in maintenance practices. Hence, stating that lagging indicators serve as the basis for future planning is inaccurate.