KLEMS: The Production Input Framework
KLEMS is a framework for describing production processes in terms of five input categories:
- Kapital (capital equipment, buildings, machinery)
- Labor (human work, skills, time)
- Energy (power, fuel, utilities)
- Materials (raw materials, components, supplies)
- Services (purchased services, outsourced functions)
NAICS uses KLEMS as the basis for its “production-oriented” classification. Establishments using similar combinations of these inputs get grouped together, regardless of what they produce.
The framework is useful beyond industry classification. Any process can be described in KLEMS terms, making it a common language for comparing operations that look different on the surface. A hospital and a hotel both have high labor and services intensity. A refinery and a data center both have high capital and energy intensity.
When mapping processes for automation or transformation analysis, KLEMS provides a structured way to understand what actually goes into production before asking what comes out.