Labor Management System

What Does Labor Management System Mean?

A labor management system (LMS) is comprised of enterprise tools that help businesses better plan their daily work and processes for better delivery of products and services. These tools are intended to facilitate "labor productivity reporting" and to help analyze units of labor and units of time to enable tracking of changes.


Techopedia Explains Labor Management System

Labor management system tools can come in many different packages. Typically, they offer metric-based tools for streamlining work and business processes. Another typical feature of LMS tools is the ability to analyze and implement training solutions. For example, using LMS to set better training schedules can allow for higher productivity in some industrial environments.
LMS tools can measure things like inventory, use of equipment and movement within a business facility. All of these data points are put together to allow businesses to micromanage labor.

One issue with LMS is cost. With so many other tech tools available to businesses, and so many other demands on corporate budgets, LMS tools can seem unaffordable because they may require a lot of upfront investment. However, some companies have greatly benefited from using these tools to identify productivity bottlenecks and eliminate them. As vendor services continue to evolve, the use of LMS may be one way for businesses to upgrade systems, to keep a competitive edge and to make business more efficient.


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Margaret Rouse

Margaret is an award-winning technical writer and teacher known for her ability to explain complex technical subjects to a non-technical business audience. Over the past twenty years, her IT definitions have been published by Que in an encyclopedia of technology terms and cited in articles by the New York Times, Time Magazine, USA Today, ZDNet, PC Magazine, and Discovery Magazine. She joined Techopedia in 2011. Margaret's idea of a fun day is helping IT and business professionals learn to speak each other’s highly specialized languages.