Certified Maintenance & Reliability Professional (CMRP) Practice Exam

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What do lagging KPIs indicate?

  1. They predict future performance

  2. They are the results of a past process

  3. They are proactive measures of success

  4. They do not impact current operations

The correct answer is: They are the results of a past process

Lagging KPIs, or Key Performance Indicators, are metrics that reflect the outcomes of processes and activities that have already taken place. These indicators are often used to assess how well an organization has performed over a specific period based on historical data. Since they measure results after events have occurred, they provide insight into the effectiveness of previous strategies and decisions, helping to identify areas for improvement. For instance, financial indicators such as net profit margin or total sales revenue are examples of lagging KPIs. They reveal how successfully an organization has performed in the past but do not indicate what will happen in the future or how initiatives may impact current operations. Understanding lagging KPIs is crucial for evaluating past performance to inform future tactics and strategies.