With respect to the current subject matter of productivity and its maximization, the fact is that, productivity is what makes a business grow and lucrative. Before I proceed with the discourse it is highly pertinent that I define the key term of the discourse which is productivity:
“Productivity is a measure relating a quantity or quality of output to the inputs required to produce it. Often means labor productivity, which is can be measured by quantity of output per time spent or numbers employed. Could be measured in, for example, U.S. dollars per hour.” (Economics)
Now coming to the topic of productivity in the context of the topic at hand, it is quite clear that an increase in labor output on an hourly basis is labor productivity. What are the determinants of Labor productivity, they are as follow:
* The level of technology that is prevailing in the Company and the industry on relative basis. If the concerned company has a higher level of technology than its competitors. Also the technological level is at par or above industrial standards then obviously labor productivity will increase.
* The capital expenditure per capita by the company. If the company’s physical capital, equipment is up to date it is a direct function of labor productivity. However if he equipment is derelict or not up to date then this will have a significant material decline on productivity as a whole, assuming all else equal.
* Capacity Utilization, this is also another pertinent determinant of labor productivity as a whole, this is a percentage of how much of the company’s plant, property and equipment is being utilized by the labor. Also what is the capacity of labor and the capital are being utilized for production and manufacturing. The higher this figures the higher the labor productivity holding all else equal.
These are the main determinants of labor productivity, that are of profound consideration whenever we talk or think about labor productivity. Understanding these determinants helps us understand that what exactly enhances or lowers labor productivity in the context of manufacturing and non farming g businesses in the U.S.
After falling in the first half of the year, American labor productivity (output per hour) was 2.3% higher in the third quarter of 2011 than in the same period a year earlier. This was the fastest quarterly rise in 18 months. Manufacturing productivity in that quarter rose by 2.9% compared with a year earlier. America’s productivity growth has been more robust than most other rich countries’—a feat many ascribe to its flexible labor market and a culture of enterprise. (Economist, 2011)
Being a concerned party in this matter as in the manager who is responsible for jacking up productivity, by at least 5%, I believe the re-engineering analysis can help a lot. In this case the re-engineering is better than the lean analysis approach. The reasons for my preference of the former over the latter are as follows:
* Hard-pressed workers are feeling grouchy: workforce surveys report record levels of job dissatisfaction. Many firms have been “starving the organization to see how it can do with a lower cost structure,” says Carsten Stendevad of Citigroup, a bank. Unless the economy picks up, he predicts that productivity growth will slow in 2012. (Economist, 2011)
* The current economic conditions, as in the slow recovery phase prevailing ion the
US, is convincing enough that most companies do not have the wisdom or the cash required to upgrade their capital and equipment for most part, as a result all the existing brains and brawn must be merged for optimal level of output.
* As a result the forms have become more cost efficient and they have gravitated towards their own levels of optimal output given the current level of output on an individual and industrial level across the board in manufacturing these days in mainstream America.
* Also the fact that automation at some companies of manufacturing and/or nonfarm nature and origin, has helped a lot with enhancement in labor productivity. As a whole, it is also an observed phenomenon that automation of the assembly line and the manufacturing process makes the employees more productive, and their output per hour tends to increase. That is why I believe that automation is a subset of re engineering that is a very robust and practical solution to dwindling or falling labor productivity.
* Lastly the labor learning curve is also another aspect of the re engineering paradigm, that I subscribe to under this paradigm. The learning curve of the labor must be reshaped and it must be raised. The only way that is possible is by giving the labor new and improved equipment and up to date knowledge, so that they can be made to enhance their productivity parse.
Therefore at the end of the case study of the product (Plasti-brack), I can easily conclude that the reengineering process of the labor learning curve, the available tools and methods at the disposal of the labor. Also the introduction of enhanced production techniques must be introduced to the labor. Also the labor must be brought into the incentive based pay, and also the labor units who are underperforming they must be laid of immediately because the company’s productivity and profitability can take a hit if the company does not enhance labor productivity. Assuming the current economic and industrial level and trends that are prevailing in the United Sates these days, this is how I have interpreted the topic and the modus operandi of enhancing the output by at least 5% of the product.

REFERENCES
* About.com, (2012), Definition of Labor Productivity, obtained from http://economics.about.com/od/economicsglossary/g/productivity.htm
* The Economist.com, (2011), Hard Times lean firms, obtained from http://www.economist.com/node/21542211