How the trend and gap formulas are calculated ?

[Former Member]

Hi,

We are using SSM 7.5 SP05 and trying to understand the trend and Gap formulas using the following formulas:

1. Expenses-Score : BI_EXPENSES_TARDEV = BI_EXPENSES_ACT%BI_EXPENSES_TAR

2. Expenses-Trend: BI_EXPENSES_TRD = MOVING2(BI_EXPENSES_ACT, 1, 2)

3.Expenses-Gap Performance : BI_EXPENSES_TRDDEV =

(BI_EXPENSES_TARDEV u2013MOVING2(BI_EXPENSES_TARDEV,1,2)) %ABS(MOVING2(BI_EXPENSES_TARDEV,1,2))

We understand the score is calculated by actual as percent of target.

If someone could explain how the trend and gap are calculated and the terminology, it would be very helpful.

Thanks

Amir

Edited by: amir herrmann on Apr 13, 2010 7:25 AM

[Former Member · Accepted solution]

Hi Amir ,

Firstly , all these three measures are calculated variables. These are dependant on the actual and target values.

Trend is calculated as the moving average of the Actuals . By moving average we mean that the values of the previous 2 months are taken and averaged .

The Gap performance is calculated as the "deviation" of the Score. Hence we use the value of the Score to calculate the gap performance. The present Score minus the average score for the previous 2 months as a percent of the average score for the previous 2 months.

I will further research into these terms and provide a more detailed explanation.

Hope this helps

Vijay

[Former Member]

Hi Vijay,

Thank you for your detailed and helpful answer.

When you write previous 2 month, I guess you mean 2 periods (we can also measure quarters and years).

Amir

[Former Member]

Hi Amir ,

What you mentioned is correct. I am so sorry for my assumption. What I meant is the last two time periods. The second number in the formula within the brackets Eg (xxx , 1, 2) , indicates the number of the time periods taken into consideration.

Hope this helps ,

Vijay

[Former Member]

thank you!