A top challenge in the manufacturing industry is the shortage of skilled labor, which impedes productivity and increases risks as well as overall operational costs.

Despite this, small business manufacturers need skilled labor that can work under heavily regulated compliance rules such as Food and Drug Administration (FDA) and Occupational Safety and Health Administration (OSHA). Failing to comply with these regulations can lead to lawsuits, heavy fines and other penalties.

To meet the sheer volume of state and federal regulations, manufacturers need a learning management system (LMS) that automates employee training. The right LMS tool can help you create e-learning courses, videos, or custom content that employees can access at any time, from any location.

However, finding the right tool isn't always easy. Knowing which features you need and fully realizing the benefits of these features will help you purchase the right software for your small manufacturing business. To help you out, we have created this guide on the features, types and benefits of LMS software for manufacturing businesses.

Here's what we'll cover:

What Is Learning Management System for Manufacturing?

Common Features of Learning Management System for Manufacturing

What Type of Buyer Are You?

Benefits of Learning Management System for Manufacturing

Key Considerations

What Is Learning Management System for Manufacturing?

For manufacturing businesses, the LMS can automate the process of training employees on the factory floor as well as those employees who interact with customers every day. The software lets you create and assign e-learning materials as well as track and report the status of courses.

LMS for manufacturing businesses helps you do the following:

• Create customized training modules for each employee. You can also assign training programs to an employee, team or for a role.

• Add or update training programs on safety, compliance regulations etc.

• Use analytics to measure the success of your training programs.

• Access e-learning courses on any kind of device—desktop, mobile, tablet etc.

• Reduce the cost of creating courses and managing employee training programs.

The proficiency testing feature in Industrial & Manufacturing LMS (Source)

Common Features of Learning Management System for Manufacturing

In this section, we cover the key software features that a buyer should be aware of before they purchase a solution. Most small manufacturing companies will need some (or all) of these features in their LMS:

What Type of Buyer Are You?

As you begin shortlisting your options for an LMS tool, you need to understand the type of buyer you are. This will help you better analyze your requirements and prioritizing software features into "must-have" and "optional."

This section breaks down the most common buyer types. We've identified the following two main types of buyers for this software:

Small manufacturers: These buyers often have low budgets and few IT resources. They need cost-effective LMS tools that are easy to implement and offer basic features such as course authoring, progress tracking and compliance/certification management. Alternatively, you can also check out some of the free and open source LMS tools.

Multi-location manufacturers: These buyers have to train employees spread across various international locations, which adds to the complex requirements from the LMS. These manufacturers need a tool with multi-language support, tracking feature for multiple facilities and customization option based on the location.

Managing multiple learners on a single LMS requires constant and frequent upgrades. Therefore, the LMS provider you choose should be able to update the tool without hindering the learning of existing users.

Benefits of Learning Management System for Manufacturing

As most LMS tools are flexible and available on a variety of platforms/media, they offer several benefits. Below, we've listed the top benefits for small manufacturing businesses:

Lower training costs: An LMS eliminates the need for expensive training events and any travel time to training venues. Also, trainers are able to simultaneously teach employees in multiple locations and reuse training materials, saving money and avoiding material wastage.

Personalized training: Most LMS tools allow you to tweak the programs as per employee needs based on the role and tasks. For instance, branching scenario allow learners to use critical thinking and respond in realistic situations. This helps them test their skills using different approaches in a virtual risk environment.

Customized learning: Trainers can modify the course material to make it more effective and engaging. For instance, you can add multimedia content (images, videos etc.) to the text in an e-learning course. Learners can also choose the type of content material (text or video) to suit their learning style.

Key Considerations

The software selection process requires you to consider many factors so that you make the right choice. For instance, the solution you chose may have all the relevant features, but it might lack the option to integrate with your HR system.

Here are a few key factors that should influence your purchase decision:

• Ensure that the LMS software you choose offers all the “must-have" features you need now, and may need in the future, based on the demands of, and trends in, the industry.

• Opt for free trials and demos to understand how an LMS works. Based on your experience and feedback, shortlist a few tools that best suit your requirements. Most LMS tools offer free trial periods of 14 to 30 days.

• Choose an LMS tool that fits your budget and is scalable as your business grows. This will help you prepare for future growth and ensure that the software lets you add new users, when needed. Check for hidden costs or fees before you purchase a solution.