Actually the way the govenment does this is to measure the labor hours it
took to make comparable quantity of goods from quarter to quarter. The data
collection and compilation is complex but they know how many hours it took
to build an Ford f150  last quarter and this quarter and the percent delta
is the productivity increase or decrease. The flaw is that the hours could
have been reduced due to better quality so less rework, innovation to reduce
labor, or reducing labor by automation process and reducing people. It is a
good measure of competitivness but not really a measure of worker
productivity. It is a bit mislabled but for lack of a better measure it's
what they use. The thought is that if fewer hours were worked  to produce
the same amount of goods we must be getting more productive.
----- Original Message -----
From: "Dan R. Johnson" <[log in to unmask]>
To: <[log in to unmask]>
Sent: Tuesday, May 07, 2002 2:55 PM
Subject: Re: [TN] Productivity Way Up


> Earl,
> Kathy has it right you can make the numbers do whatever you want. And you
> don't get the venture capital guys to help you buy out the company if you
> paint a gloomy picture.  This could be what the feds are trying to do,
> publish some reports to get the market moving. Most of our customers are
> buying replenishment quantities only, nothing for expansion, maybe a
little
> R&D. When the board members start approving capital expenditures and
> infrastructure expansion our business will pick up, they won't do that
> without a warm fuzzy the recovery is just around the corner. I hope the DC
> propaganda machine works, I'd love to get back to full salary. (We stopped
> staffing cuts before we were crippled, the trade off was an across the
board
> pay cut.)
>
> If I knew what the "next" thing was I could afford a summer place in BF
> Montana. (I'll still spend the winters down south)
> Dan
>
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