Knowledgebase

Understanding Laundry Economics Print

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Where the money goes.

WHAT TO CALCULATE

Cost per kilogram or per item processed.

WHAT TO INCLUDE

Water Power Detergent and chemicals Labour Equipment depreciation and maintenance Packaging Rent Losses and rework

WHY WATER AND POWER DOMINATE

Washing and drying consume both heavily.

WHAT DRYING COSTS

More than washing, in energy terms.

WHAT THAT IMPLIES

Anything reducing drying time reduces cost substantially.

WHAT REDUCES IT

Higher extraction speed before drying Correct load sizes Well-maintained machines Adequate ventilation

WHY EXTRACTION MATTERS MOST

Water removed mechanically costs far less than water removed by heat.

WHAT TO ESTABLISH

That machines extract properly.

WHAT LABOUR CONSUMES

Sorting Loading and unloading Finishing and pressing Folding and packing Handling and administration

WHY FINISHING DOMINATES LABOUR

It is manual and it cannot be avoided.

WHAT TO MEASURE

Items processed per person per day.

WHAT TO ESTABLISH

Break-even volume.

WHY UTILISATION MATTERS

Machines and premises cost the same whether they run or not.

WHAT TO TRACK

Volume by day Cost per item Rework and damage Turnaround time

WHAT TO REVIEW

Cost per item, when water, power or chemical prices move.


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