A labor management system (LMS) is a software solution designed to help organizations effectively manage their workforce. LMS solutions typically include tools for tracking employee time and attendance, scheduling and assigning work, managing labor costs, and reporting on labor-related metrics.
An LMS can help organizations optimize their workforce by automating many of the administrative tasks associated with managing employees. This can lead to increased productivity, reduced labor costs, and improved compliance with labor regulations.
Some common features of an LMS include:
- Time and attendance tracking: This feature allows employees to clock in and out of work through a physical time clock or an online system.
- Scheduling: This feature allows managers to create employee schedules based on business needs and employee availability.
- Labor cost tracking: This feature allows managers to track labor costs and ensure they are staying within budget.
- Performance management: This feature allows managers to track employee performance and provide feedback and coaching to improve performance.
- Compliance management: This feature helps organizations ensure compliance with labor laws and regulations, such as minimum wage and overtime requirements.
Overall, an LMS can help organizations improve workforce management, reduce labor costs, and improve compliance with labor regulations.
A labor management system is a supply chain execution (SCE) solution that calculates a task’s expected time, provides real-time feedback and measures and reports effectiveness. It is important to note that this is a people-based program, not merely an IT project. An LMS is geared toward determining the preferred work methods (PWM) in a warehouse, which describe how to conduct the steps to complete processes or standard operating procedures (SOP). The SOP is the “what,” while a PWM is the “how.” PWM are not meant to replace SOP.
In the creation of an LMS, past company performance and metrics are reviewed and expectations are established to form a baseline. An LMS is easy to implement and quick to provide a baseline of reporting; however, baselines can be extremely sensitive to seasonality (e.g., a high-volume peak season skews monthly averages throughout the rest of the year). An LMS does also not account for process improvement changes and cannot hold workers accountable.
An LMS provides an overview of an organization’s labor productivity planning and reporting. The planning capabilities of an LMS allow organizations to decide workforce requirements for a project requiring a certain amount of labor to be performed within a certain timeframe. Labor productivity planning capabilities allow an organization to analyze and report the productivity levels of groups, individuals, and facilities against predefined performance standards.