Lagers take longer to ferment than ales do. Ideally, you would do a diacetyl rest when fermentation is approximately 75% complete. A diacetyl rest is nothing more than allowing the fermenting beer to warm up to room temperature for 3-4 days...it gives the yeast a chance to consume the diacetyl that was created during fermentation. At any rate, a general rule of thumb is to let a lager ferment for 10 days, then diacetyl rest for 3-4 days. I personally transfer to secondary at this point but others don't transfer at all. Then cool to lager temps (32-40 degrees F) and leave it for 4-6 weeks. Then you would bottle or keg as normal... as you can see, lagering takes a lot more time than ales. As far as gravity readings... absolutely that is the best way to brew any beer, but it really depends on how exact you want to be. I personally don't even bother until I transfer to secondary.