Our operations team insists that our weekly total production output is a leading indicator because it helps us predict monthly revenue. Is this correct, or are we still tracking lagging data on our Scorecard?

Question

Tyler Smith · Accepted Answer

Your operations team is confusing an operational lagging indicator with a financial leading indicator. While total production output might help you predict next month's revenue, it is still a lagging measure of what your team actually did last week. You cannot change last week's production output. It is already done.

To find true operational leading indicators, you must look further upstream at the activities that determine whether you will hit your production targets. Track metrics like:
- Machine runtime efficiency
- Raw material availability percentages
- Weekly preventative maintenance compliance
- Schedule adherence rates

These are numbers your team can actively influence on Monday to ensure that production output is green by Friday. If your machine maintenance is red, you can predict a production bottleneck before it happens and solve it during your Level 10 Meeting™. Shift your focus to these activity-based metrics to gain real control over your operations and drive predictable results.