CHICAGO — The American Society of Quality (ASQ) defines benchmarking as the process of measuring products, services and processes against those of organizations known to be leaders in one or more aspects of their operations.
“Understanding how to find, analyze and apply this data can be a game-changer for improving your operation’s processes and efficiencies,” says W. Kirby Wagg, a senior business adviser with Performance Matters out of Sarasota, Florida, who spent 45 years at Wagg’s Linen & Uniform and is a member of the American Laundry News Panel of Experts.
USING THE DATA
How can I make use of the data to improve my operations processes and efficiencies?
Cliff Beiser, principle of Champions Touch, a consulting service in Kissimmee, Florida, answers, “First, you must know the peak efficiency of your laundry—how much can be produced per hour if all the machines are working and well-trained operators are placed at each station to produce optimal flow of laundry through the operation.
“(Formulas) for peak efficiency using a tunnel with a 110-pound batch (have been) published in American Laundry News. You can apply the same principles with any set of equipment.
“After you know the peak efficiency of your operation it is time to find your largest pain point. For (one) laundry ... there were three areas of flow interruption.
“The largest and least costly to fix was sorting. In this case, additional conveyor belts were purchased, and two aisles were added. In fact, this reduced the need for one sorter, and they were placed on the ironer which solved the second process interruption.
“Collecting and using data, at its core, is about trying to reach peak efficiency and smooth flow. When we improve, the result leads to less turnover of key employees and opportunities to reward outstanding performers.
“Secondly, center your improvement on improving the quality of the linen, terry and employees. My experience managing and consulting has produced rough PPOH numbers outlined in the following list of PPOH, equipment configuration and size of operation. These are averages provided to illustrate the range of results.
- 60 PPOH, Small Washers and Dryers (manual folding with pole), Small Hotel or Resort
- 100 PPOH, No Tunnel—but folders, ironer, wrapper, Large Hotel or Resort
- 180, PPOH, Tunnel operation with Clips for Sheets (no drying), Multiple Resort Hotels
“In conclusion, remember two fun and instructive quotes on data and the analysis of data. First, ‘Intuition is thinking that you know without knowing why you do’ (unknown). My favorite is ‘Big data isn’t about bits, it’s about talent’ (Douglas Merrill).”
“Benchmarking information is used to analyze and better understand data by comparing your own performance, processes and practices against industry standards,” says Sarah Brobeck, president and CEO of the Association for Linen Management (ALM). “This highlights where the company is excelling or lagging relative to industry standards.
“By understanding the differences between your data and the benchmarking data, you can determine the reasons behind gaps.”
She goes on to say this understanding involves exploring underlying causes, such as inefficiencies, outdated practices or resource allocation.
Based on the analysis, laundry operators can create strategies to address underperforming areas or further leverage strengths. This can include process improvements, adopting best practices, reallocating resources or introducing new technologies.
The real value of benchmarking data lies in how you use it to drive improvements, Wagg says. His suggestions include:
- Set Realistic Goals: Use your benchmarking data to set achievable targets. If your labor cost per pound is higher than the industry average, set a goal to reduce it by a certain percentage over the next quarter.
- Implement Best Practices: Identify what top-performing operations are doing differently. Whether it’s adopting new technologies, optimizing workflows, or enhancing employee training, there are always lessons to be learned from the best in the business. I have always maintained a great relationship with my peers and draw upon that.
- Monitor Progress: Establish a regular review process to track your progress against benchmarks. This will help you stay on course and adjust as needed. Simple Excel spreadsheets have always worked great for me.
- Continuous Improvement: Benchmarking is not a one-time exercise but an ongoing process. Regularly updating your benchmarks and your strategies ensures that your operation remains competitive and efficient.
“P&Ls (profit and loss statements) are where I like to start,” shares Michael Dodge, continuous improvement manager for CITY Healthcare in Minnesota. “These benchmarks are called revenue-based benchmarking metrics.
“Look at expenses that make up the highest percentages of our revenue and analyze if these percentages are in line with our benchmarking numbers. Labor expense is usually the first, or highest, expense.
“Communication is the key that opens the door to improvement. What is the other laundry doing differently than you are?”
FINISHING TOUCHES
Benchmarking data is a powerful tool for any industrial laundry operation, Wagg concludes.
“By knowing where to find the data, how to analyze it, and how to apply it, you can significantly improve your processes and efficiency,” he says.
“Start by integrating benchmarking into your regular review processes and watch as your operation reaps the rewards.”
“Benchmarking is not a one-time activity, but a continual process,” Brobeck stresses.
“You must regularly monitor progress, update benchmarks and adjust strategies to ensure continuous improvement and maintain competitiveness.”
Missed Parts 1 and 2? Click HERE for ideas to find laundry operation information. And click HERE for next steps to analyze and understand gathered data.
Have a question or comment? E-mail our editor Matt Poe at [email protected].
