Key Performance Indicators

[LinenMaster]

Charles,

I copied your original message below.

Agreed that there would be a battery of reports which use any
combination of data elements.
What some of the owner / operators were asking about or rather looking
for - were what are the KPIs and how they should be used.

Anybody can use any formula as you noted; but there should be some
kind of base standard that all variants of the report originate from.

For example - in accounting,there are GAAP rules on how financial
reports are compiled and what elements make the reporting standard.
That whole EBITA thing that got Enron and World Comm into trouble is a
classic example.

In the laundry industry, we see managers brag about how high the POH
is. But on review, one person reports a 82 (based on a generic
formula) while some else reports a POH of 115 - but they used
estimated weight and actual production floor time (which does happen).

Which is a good or bad POH, and how could I tell?

Hence the idea of have normalized / standardized reporting methods.
Laundries can choose to use them or not.

At least when someone talks about POH, they could say,"My POH is 82
using the TRSA method or the UTSA method..."


Regards,

Scott Sloan


There are several metrics that laundries use. Production Efficiency
metrics can include Pounds per Operator Hour, Pounds per Labor
Dollar,
Revenue Dollar per Pound Produced, Revenue dollar per Labor Hour, and
Job or Task Efficiencies (these would be grouped into departmental
efficiencies and into an overall plant efficiency). There are
Utility
efficiencies which can include Gas (Therms or BTU's per Lb produced
or
100 lbs produced), Water (Gal per Lb produced) (water compared with
the
sewer outflow meter to determine evaporative losses) (water into the
building compared with water through the plant to look at domestic
consumption) (water into the water softener vs water out of the water
softener to look at regeneration water consumed), Electricity (KW-
HR's
per Lb produced or 100 lbs produced).

I don't think that TRSA will be able to set a defined standard of
metrics for laundries because what each laundry chooses to use for
their
measurements and what is meaningful to them is really up to them. We
just have to know the available methods and have the ability to take
the
raw data and refine it into these various pieces of information that
a
laundry could conceivably use.


r/
Charles Hawkins