May 20, 2013

RIPON, Wis. — Alliance is targeting on-premise and coin laundry markets, beginning at Clean Show

RIPON, Wis. — Alliance Laundry Systems is restaging its IPSO equipment brand for the North American market beginning at the Clean Show next month, American Laundry News has learned.

Alliance has already launched IPSO’s “Industrial by Design” platform to communicate that the equipment is engineered, tested and built for heavy-duty performance, says Gary Dixon, North American sales manager for IPSO.

“This renewed focus on North America represents the next step in IPSO’s evolution to a truly global brand,” Dixon says. “IPSO has been a premier OPL brand in Europe for more than 40 years, and is sold in 90 countries around the world; you cannot be a truly global brand though without a strong presence in the North American market.”

Alliance acquired IPSO in 2006 and has worked to incorporate key elements of its knowledge base and company identity into the IPSO operation in Belgium while also tapping into the brand’s 40 years of manufacturing experience there.

“We have arrived at a true unity of purpose and culture, which is another reason we thought the time was right to relaunch IPSO in the North American market.”

IPSO equipment continues to utilize advanced technology developed for the European market that saves energy and reduces water consumption and detergent use, Dixon says.

Its line of 2013 washer-extractors features patented water absorption verification technology not previously available in North America.

All IPSO washer-extractors sold in North America and throughout the world are manufactured at Alliance’s plant in Wevelgem, Belgium. IPSO tumblers are made at the company’s Wisconsin plant.

Alliance is targeting the on-premise and coin laundry markets with its IPSO brand.

“The Clean Show will be the first time we highlight the restaging of IPSO from the premium European OPL brand to a truly global brand for both OPL and vend,” Dixon says.

May 16, 2013

CHICAGO — Roughly 42% report they are seeking third-party accreditation or certification, or renewal

CHICAGO – The laundry administrators and managers who responded to this month’s American Laundry News Wire survey expressed little interest in having their facilities independently accredited or certified by third-party organizations, according to the survey data.

Just 8.3% of respondents reported that their textile services operation is accredited or certified in some way by an organization independent from their own. Another 8.3% said they were “not sure.” The remaining 83.3% reported having no such accreditation or certification.

Organizations such as the Healthcare Laundry Accreditation Council (HLAC) and the Textile Rental Services Association (TRSA) can certify laundry facilities as being in compliance with industry standards and protocols. Respondents who reported their facilities as accredited/certified said this standing came from HLAC and the Occupational Safety and Health Administration’s (OSHA) Voluntary Protection Programs (VPP).

Roughly 42% of respondents said that they are “currently seeking” to receive accreditation/certification, or to renew accreditation/certification, within the next year. The remaining 58.3% are not.

Approximately 18% of respondents believe that accreditation/certification offers their operation benefits that it would not otherwise receive, and another 18.2% are unsure. The remaining 63.6% don’t believe accreditation/certification offers benefits.

Do you think independent accreditation/certification of laundry facilities should be mandatory in the United States? Only 16.7% of respondents believe that it should, while 66.7% say no. The remaining 16.7% “don’t know” if accreditation/certification should be mandatory.

While the Wire survey presents a snapshot of readers’ viewpoints at a particular moment, it should not be considered scientific.

Subscribers to Wire e-mails—distributed twice weekly—are invited to take the industry survey anonymously online each month. All managers and administrators of institutional/OPL, cooperative, commercial and industrial laundries are encouraged to participate, as a greater number of responses will help to better define operator opinions and industry trends.

May 15, 2013

CHICAGO — Data compiled from more than 470 domestic and international healthcare and hospitality laundry facilities

CHICAGO — Having received numerous requests for newly revised information on this subject, I have reviewed the volumes of information obtained from both healthcare and hospitality laundry operations worldwide for 2010-2011.

I did my best to convert foreign cost to U.S. cost—both were changing rapidly as of December 2011—and discovered that our foreign counterparts were, in most segments, slightly more cost-efficient and, due to exchange rates, getting more production for the money simply due to the value of certain currencies, lower fringe benefit cost and higher degrees of automation. (I am pleased to report that this gap is closing rapidly.)

There could be numerous explanations, of course, but the primary reason was the vast difference in labor and fringe benefit cost in our country vis-à-vis other foreign locations, primarily those in Europe, Russia and the Far East.

The basis for this analysis was to determine benchmark alignments once various currencies were adjusted to match the U.S. dollar. Both higher and lower extremes in costing for each element were evaluated for accuracy. A group of independent accounting specialists who volunteered its time was utilized to draw the various conclusions reached in the report. Foreign laundry experts assisted in the translation of some information.

Throughout the process of validating accuracy of the data provided and drawing comparisons, the identity of each facility remained confidential. Each facility was simply referred to as a number or letter, depending on the type of operation: healthcare or hospitality. For those with a combination of tasks, every effort was made to categorize each element.

Every facility that supplied information has done so every year since this periodic review began.

2011 FORECAST ON TARGET?

As consultants and various levels of internal management continue to overly complicate laundry operational cost scenarios, as well as depicting systems that may not prove cost-effective, it is apparent that laundry and facility managers, as well as top executives with a renewed interest, require a cost benchmarking rule of thumb that will assist them in selling their operations, i.e. justifying new systems or a new facility, obtaining new customers and, probably most important, comparing variable cost that should influence decisions to continue in-house operations or examine outsourced management, operations, linen rental, transportation, etc.

I remain amazed that folks who seem to be knowledgeable simply complicate data in such a form that it becomes extremely difficult if not impossible to interpret. The same situation applies when reviewing opportunities to automate and modernize operations. It is apparent in some cases that new operations with new systems are not as cost-effective as planned, mostly due to a misunderstanding of previous cost and the industry’s promises to improve on the status quo.

Institutions, general contractors and A/E’s that hire consultants to review laundry facility operations should also continue to rely on internal expertise and experience, I believe. The institutions should also ensure that the consultants and experts selected are experienced in reviewing all applicable operational elements. A consultant with expertise in energy management, for example, may not be qualified to review laundry production or linen distribution.

It is quite apparent that large laundry and linen-rental consortiums that deal specifically with healthcare markets are becoming more competitive. As business tends to escalate, and based on recent information, cost seems to be leveling out to some degree, with the exception of the impact of high cotton cost and, most recently, fuel cost.

My previous forecast that total cost of operations may reach $1.10 per pound processed/delivered by 2013 seems right on target. The rising cost of healthcare insurance benefits enacted as a result of healthcare reform could dramatically increase the cost of operations and associated product and equipment purchases in 2014.

A review of approximately 473 healthcare and hospitality laundry facilities located in the United States and 23 foreign countries with operations that process a combined 276 million pounds annually with varying degrees of efficiency reveal the following benchmark costs (in U.S. dollars) that should be deemed most efficient on the average, even though most every facility demonstrated opportunities to reduce cost, especially in labor-sensitive areas.

Most important to note in this analysis were the plans to reduce labor and utilities cost related to washing, drying, conveyance, and flatwork feeding and finishing. These facilities also reported that major efforts were under way to reduce textile-replacement cost through standardization efforts and by examining best value over lowest cost for an item. It’s unfortunate that the federal government seems to continue to focus on lowest cost rather than the impact of overall cost.

Other major components under review seem to drive at lowering chemical cost by conducting actual comparisons and focusing on the customer service element that is so critical to this facet of the operation.

The variables between healthcare and hospitality cost were certainly interesting. Hospitality was higher on the average, which was expected, with the average variance being between 6 and 7 cents per pound processed. This was mostly attributed to the higher quality/cost of textiles acquired, which is significant.

PRODUCTION COST BENCHMARKS

Processing Cost: Direct labor costs, including fringe benefits (health insurance, retirement, etc.), which are applicable to the receipt, sorting, washing, drying, ironing, conveying and preparing of textiles for delivery within a laundry processing facility. — 18-23 cents per pound processed

Administrative Cost: Covers personnel in laundry and textile product management, secretarial, contracting administration, general foreman and nonproduction employees/housekeeping (includes fringe benefit costs, such as union dues, health insurance, etc.). On average, fringe benefit costs were running at 24-32% of actual salary cost (in other words, add that percentage to base salary cost). — 3-5 cents per pound processed and delivered

Maintenance and Repair Cost: Labor cost and materials associated with routine maintenance of applicable systems, including processing and ancillary support equipment, carts, etc. — 7-11 cents per pound processed and delivered

Equipment Depreciation: Divide equipment value by 15 years. — 4-6 cents per pound processed

Depreciation of Property and Applicable Property Taxes: Divide aggregate cost of land and building plus annual taxes by 75 years. — 3-5 cents per pound processed and delivered

General Supply Cost: Includes leasing of office equipment, office supplies, covers, pads, hangers, thread, wax, patches, buttons, etc. — 2-4 cents per pound processed

Chemical Supply Cost: Laundry chemicals, water treatment, etc. — 3-5 cents per pound processed

Utility Cost: Electrical, steam, gas, water, oil, sewer, refuse removal, and solar. — 8-10 cents per pound processed

SUBTOTAL: For a most efficient operation, Production Cost should be 48-69 cents per pound processed.

TEXTILE DISTRIBUTION AND REPLACEMENT COST BENCHMARKS

Textile Distribution and Return Cost: Includes drivers, fees, tolls, leasing, fuel, vehicle maintenance/repair, linen room distribution (from cart assembly to end-user locations) labor and benefits, seamstress/repair/marking, uniform distribution, cart depreciation and replacement, and transportation to external customers. — 13-15 cents per pound processed (within this component, fuel cost was 4-5 cents per pound processed)

Textile Cost: Surgical, uniforms, general textiles, drapes and other textiles based on a seven-par maintenance value for healthcare or hospitality. — 17-21 cents per pound processed

SUBTOTAL: Textile Distribution and Replacement Costs should be 30-36 cents per pound processed and delivered.

TOTAL OPERATIONAL BENCHMARKS

The overall operational cost benchmark ranged in 2010-2011 from 78 cents to $1.05 per pound processed and delivered.

While the overall variance in cost ranges is certainly widespread, a manager must carefully and accurately calculate all costs associated with the actual operation—all are different.

A major failing on management’s part is the inability to calculate fringe-benefit cost and include it as part of the outcome. Calculating production cost while forgetting other costs simply raises additional questions. All costs depicted in this benchmark exercise are considered equally important; one without another would have painted an inaccurate picture.

If, for some reason, you think your costs are lower than the benchmark’s lowest range, I encourage you to re-examine and recalculate your numbers. More importantly, make sure you have included all costs so they parallel those listed in this report.

EXPECT COST INCREASES IN TEXTILE REPLACEMENT, TRANSPORTATION

As mentioned in my previous analysis, textile replacement cost and transportation cost for 2010-2011 did reflect marginal increases.

May 14, 2013

NEW ORLEANS — Plan for success, spend time wisely, and prioritize tasks

NEW ORLEANS — So much to learn. So many people to see. And so little time.

You’ll face that predicament here at the Clean Show next month, especially now that the show is one day shorter than previous events. You are not alone: Confronted with crowded aisles and hectic booths, attendees too often return home with no more than a confused mass of general impressions.

You can do better. Trade shows can be powerful tools for boosting business profits. The secret is to plan for success, spend time wisely and prioritize tasks.

How to? Read these tips from trade show experts:

TIP 1: SET YOUR GOALS

“Before arriving at the show, make a plan with specific ‘keeper’ ideas,” says Mina Bancroft, a management consultant in Palo Alto, Calif. “Then prioritize them.”

Include specific descriptions of what you want to find at the show. Here are some possibilities:

  • New items of merchandise
  • Line extensions in certain categories
  • Lower costs in existing lines
  • More reliable sources
  • Promotional goods

Select the best and list them in order of importance.

Next step: Translate your goals into an ‘A’ list of vendors to see. “Do some research on the show’s website to identify companies and booth numbers,” says Howard Friedman, a trade show consultant in suburban Los Angeles. “That will assure that you see the most important things.”

It’s also smart to draw up a ‘B’ list of goals, suggests Friedman. “While these items may not be ‘mission critical,’ they can help open your eyes to innovations and new ways to approach problems you may have.” Tackle secondary goals in the remaining time after completing your primary ones.

Bonus tip: Ask yourself, “What is the biggest problem I have in my business?” Write it down and take it to the show to get answers from exhibitors.

TIP 2: STRATEGIZE YOUR WALKING PATTERN

Once at the show, it’s tempting to spend the first hours performing a walk-through. That can be a mistake.

“The last thing you want to do is shop the floor as you shop a flea market, just walking down the aisles and looking at things,” says Peter LoCascio, a Salem, Ore.-based trade show consultant. The clock moves quickly. It’s easy to run out of time before you accomplish what you need to do, he adds. “Too many times, a couple of hours before the show closes, you’ll see people running through the aisles trying to get things done.”

Instead, use the show floor map to plot out your walking pattern so you can see the greatest number of vendors in the least time. Schedule a certain amount of time to each vendor on your “A” list. “You have to be disciplined and focused,” says LoCascio.

Bonus tip: Avoid duplication of effort by allocating tasks among other people from your company or organization who are attending the show.

TIP 3: TAKE CHARGE AT BOOTHS

Deal with booth personnel efficiently. Determine early whether they are willing and able to answer your questions. “When you go into a booth, there is no reason for you to waste your time,” says Bob Dallmeyer, a Los Angeles-based consultant. “Prepare some quick questions that pertain to your buying interests. If the booth people can’t answer those questions, then you have to smartly move on.”

Not all booth personnel are alike. “A well constructed booth has people at various levels,” says Bancroft. “One person will be at ‘in-depth’ level; others will be at beginning and intermediate levels.” No in-depth person at the booth? You need to decide if you have sufficient interest to ask for an appointment with the right person. That can be smarter than wasting your time talking with an individual who does not have the requisite knowledge.

An alternative is to obtain the name and contact information of a person to call after the show’s over. That can be a prudent step anyhow. “Exhibitors often fail to follow up trade show leads in a timely fashion for a multitude of reasons,” says LoCascio. If you are serious about learning more about a product or service, you may wish to obtain the name and number of the local sales person in your territory.

Bonus tip: Save time by stating, “I need to make a business decision,” as you enter each booth. Then state the nature of the decision and ask how the vendor’s products will help.

TIP 4: SCHEDULE APPOINTMENTS WISELY

Remember that ‘A’ list of vendors? Make sure you see them all by scheduling advance appointments, either before you leave for the show or when you arrive. “There’s nothing wrong with reaching out and saying, ‘I would like to meet with a specialist on Product X,’” says Friedman. “Engaging before the show is completely fine. That will make your time more productive. And the exhibitor will be delighted.”

Such appointments are important whether you are a current or prospective customer. “If you are already a customer, you will want to talk about innovations, new orders, or things that are upsetting you,” says Dallmeyer. “And if you are considering making a purchase, you will want exclusive time in the booth.”

Bonus tip: Map the show floor to identify the booth locations of your ‘A’ vendors. Clustering your appointments by location will reduce walking time.

TIP 5: TAKE NOTES EFFICIENTLY

Haphazard note taking can result in a confused mass of papers stashed on a shelf back home or in your office. That means you lose information critical to business success, including the names of key contacts.

Modern gadgets to the rescue! “We are seeing all kinds of new technologies to avoid the traditional business-card exchange,” says Doug Ducate, president of the Dallas-based Center for Exhibition Industry Research. “These include badge-swiping technologies that allow exhibitors to send information efficiently.”

Electronic brochures have, in many cases, replaced paper ones. “At some booths, you can use computers to send yourself information about what you have seen,” says Ducate. “Push a button and the information shows up on your smart phone and sits on your computer back at the office.”

“Old tech,” though, has its place. “Plenty of people still collect business cards and take notes on them,” says Friedman. “These can be great memory joggers to help connect the dots after the show.” A pack of business cards provides an easy reference for making follow-up calls.

Bonus tip: More attendees are entering information into iPads. Digital notes are efficient for later review, and also for passing along key insights to people who did not attend the show.

TIP 6: POW-WOW AT QUIET TIMES

Sometimes, product information is fairly simple to grasp. Other times, though, you may need to devote critical thinking time to technical details.

“When you go to a trade show, the individual who has paid for a booth is trying to sell you something that may be quite complex,” says Bancroft. “That means you must initiate a way to find out more about that item, and you can’t do that at the typical show floor, which is usually a chaos of noise and confusion.”

Solution? Schedule some “quiet time” to make rational decisions, suggests Bancroft. “Ask the booth sponsor to meet you for breakfast or lunch, where the quiet atmosphere allows you to go through the information you need to compare products.”

Bonus tip: Reduce travel time by scouting out a convenient venue for business talks before you meet exhibitors. Use the Internet, or locate coffee areas once you are at the show.

TIP 7: ALLOW FOR SERENDIPITY

Schedule your time, but leave some open space. One of a trade show’s strengths is a potential for ‘serendipity,’ or the discovery of unanticipated knowledge or connections. So, leave time for random encounters.

“Everyone at the show wants to discover new things and meet new people,” says Friedman. “That can be a productive situation: You may meet someone who does something similar to you but who is not a competitor. It can even happen in a lunch line. So, I encourage you to find the opportunity to say hello to people.”

Bonus tip: Allow yourself the chance for fortuitous discovery. After you complete your important work, schedule time to visit less-promising, lower-profile booths.

TIP 8: CHOOSE SEMINARS WISELY

What seminars should you attend? Reaching a decision can be difficult. Every hour you spend at a concurrent session, after all, is an hour off the show floor.

Even so, seminars are important to your bottom line. Their value is reflected in their growing presence. “We have found that 40% of today’s exhibit floor is devoted to concurrent sessions, up from 20% some years ago,” says Ducate. Why’s that? “People are looking to solve technical problems, and they will attend sessions that promise to do that.”

That comment suggests a solution to the seminar conundrum: Attend those that deal with topics of immediate concern to your business. Look at each seminar listing and ask: “Will the information in this seminar help me solve a specific problem?”

Bonus tip: Reach better decisions by calling seminar leaders before the show for more details about a prospective presentation.

TIP 9: SHARE THE WEALTH

Productive trade-show going is a learned skill. Pass along the talent to the next generation. “It’s good for a senior-level person to bring along a junior one,” says Friedman. “The senior person can make introductions and put products in the context of business initiatives. Relationships established at trade shows can be very helpful in the future.”

Sharing such knowledge can lay a foundation for the continuing profitability of your business. And it will help foster a habit of efficient trade show buying. “Time is money today,” says Dallmeyer. “You need to maximize what you do at every trade show.”

May 13, 2013

INWOOD, N.Y. — Cody Milch is new OPL Plus product manager, following lead of founder Bernard Milch and CEO Neal Milch

INWOOD, N.Y. — Cody Milch recently joined Laundrylux® as OPL Plus product manager, making him the third generation of the Milch family to work in the industry.

cody milch“I am delighted that Cody has joined the company,” says CEO Neal Milch, “and particularly pleased that we have initiated entry of the third generation into the commercial laundry business following myself and our founder Bernard Milch. Cody’s sister, Julia, may be joining, too, after completing her MBA.”

Cody Milch is playing a key role in Laundrylux’s PLUS business development. The company will “revolutionize the industry” when it introduces PLUS technology and new Generation 7 Wascomat and Electrolux coin models at the Clean Show next month in New Orleans, Neal Milch says.

“Laundrylux is a unique platform for the distribution, marketing, technical support, and financing of commercial products throughout North America,” says Cody Milch. “There is no independent company of comparable scope and strength like Laundrylux anywhere in the world. The major investments we have made in state-of-the-art ERP systems, professional sales training, greatly expanded sales staff, distributor development, and innovative technology are paying off — and I want to be an integral part of this long-term success story.”

Cody Milch will focus on the OPL market, which is experiencing what Laundrylux calls “rapid growth” under the leadership of Kim Shady, senior vice president of OPL and National Accounts.

“I’m delighted to have ‘the boss’ son’ on my team,” Shady says. “This is a wonderful endorsement of our strategy and our commitment to deploy whatever resources are necessary to drive high growth rates in OPL.

“I have no doubt that Cody, who has already run his own successful business for two years, will make an invaluable contribution to Laundrylux and the industry in the years ahead.”

May 9, 2013

NEW ORLEANS — Hotel reservation, show preregistration deadlines fast approaching

NEW ORLEANS — The Ernest N. Morial Convention Center will host the world’s premier textile care expo for a fifth time when the 2013 Clean Show—officially the World Educational Congress for Laundering and Drycleaning—arrives on Thursday, June 20, for a three-day stay through Saturday, June 22.

It will mark the first time since 1981 that the Clean Show has been scheduled for three days instead of four, reflecting a “more concise and efficient” format designed to give exhibitors and attendees alike a better value for their investment, according to the Clean Executive Committee.

The Clean Show has been convening every other year since 1977 to present new technology, educational sessions and networking opportunities to all segments of the dry cleaning, laundry and textile care industry. This year’s event is expected to draw 10,000 trade attendees, according to Riddle & Associates, the show’s longtime manager.

“I am constantly asked why should I come to the Clean Show or why should I exhibit,” says John Riddle, president of Riddle & Associates. “There are many reasons. You will see the newest equipment, learn about new services, see working demonstrations and have access to outstanding industry education.

“In today’s world of electronic communication, it is nice to have the opportunity to communicate with someone eye-to-eye, face-to-face and talk with them about industry issues. It’s a great chance to renew old friendships and make new ones. These are just several reasons I think making this trip is worth the time, effort and money. We encourage you to ‘Be There’ and take advantage of this opportunity.”

Approximately 400 companies and organizations are scheduled to be represented on the exhibit floor, covering roughly 200,000 net square feet. It’s possible that more exhibitors will be added in the final weeks leading up to the event.

The exhibits will open following a brief 10 a.m. ceremony on Thursday, June 20 (distributors are granted exclusive access from 8 to 10). Exhibits will open at 9 a.m. on subsequent days, and they will close each show day at 5 p.m.

Some of the Clean 2013 sponsors, as well as several other industry associations, will offer approximately 40 hours of education over the show’s three-day schedule. Most of the seminars will occur in on-site meeting rooms between 8 and 10 a.m. daily, but in a change this year, some sessions have been scheduled for each afternoon on the exhibit floor itself.

The Clean Show has released a new, free mobile app for Apple iOS- and Android-based smartphones that offers features such as locating exhibitors, planning a personalized show itinerary, and connecting with others via social media. The free app can be downloaded from an individual’s device in the App Store or Market, and is fully integrated with the Clean Show website, and with LinkedIn and Twitter.

“In the age of technology, offering a smartphone app just makes sense,” says John Riddle. “We want our attendees and exhibitors to be able to stay connected before, during, and after the show and be able to do it while on the go.”

Attendees who do not have a smartphone can still maximize their time at the show by using CleanShow.com’s “My Itinerary” feature. Visitors can store in a personalized “Briefcase” their schedule of educational sessions and booths they wish to visit, as well as print out their “Itinerary” to bring with them.

Another show change is the relaxation of certain rules regarding the convening of affiliate groups during trade show hours. In the past, meetings were restricted to hours outside education and exhibit hours, but now exhibiting companies and industry associations can schedule their sales, distributor or group meetings during educational sessions or between the hours of noon and 2 p.m.

Attendees can easily register for the Clean Show online at its website for the discounted rate of $99 a person through May 31 (on-site registration will be $149 per person). All registrations can be made with credit card, check or money order.

Registration hours at the convention center will be 1-5 p.m. June 19, 7 a.m. to 4:30 p.m. June 20, 7:30 a.m. to 4:30 p.m. June 21, and 7:30 a.m. to 4 p.m. June 22.

Reservations for official Clean Show hotels can be made on the show’s website until May 17 (special show rates are available only through the Clean Show Housing Bureau).

Complimentary shuttle buses will transport attendees between official hotels and the convention center mornings and afternoons during the show.

The Clean Show is sponsored by five industry associations: Association for Linen Management, Coin Laundry Association, Drycleaning & Laundry Institute, Textile Care Allied Trades Association, and the Textile Rental Services Association of America.

May 8, 2013

WINTER HAVEN, Fla. — Ten questions to ask before process begins, and while ongoing

WINTER HAVEN, Fla. — When looking to renovate an existing laundry or building a brand-new facility, there are many questions to ask before the process begins and while the process is ongoing.

David Chadsey, the managing director for Laundry-Consulting.com, addressed the issue during a recent webinar, 10 Things You Should Know Before Building or Renovating a Laundry, sponsored by the Association for Linen Management.

While Chadsey focused on 10 questions to ask, he emphasized that for each application, there may be more than or fewer than 10 items, and that the list is not intended to all inclusive.

6. OPERATIONAL METRICS

The sixth point in Chadsey’s 10-point plan is for a project team to anticipate key operational metrics. Focus on the actual figures for the cost of labor, utilities and maintenance. These are extremely important aspects of running a laundry, he says. There should be project goals for each, and everything needs to be in writing.

“Projected goals for operational costs should be in writing,” Chadsey says, “and be confirmed by the consultant, the laundry manager, and the equipment vendors.”

The figures will also help with return-on-investment projections for the finance member of the team.

7. AUTOMATION AND YOU

“Automation will be more popular as labor costs continue to increase,” Chadsey says.

A polling question asked during the webinar indicated that 89% of participants would be open to upgrade if they were supported by strong ROI research, while 11% were all about the upgrades. Chadsey theorized that the 11% had seen first-hand the advantages of automated upgrades.

He did enter a note of caution at this point: “Just because they build it, it doesn’t mean it’s right for your operation.”

During the planning process for a new or renovated laundry, consider automation options for soil sorting, soil rail (there are multiple levels of automation for this step), wash aisle, dryer loading/unloading, clean rail, dry fold, flatwork-finishing options, material-handling options, and product tracking.

For soil sorting, a number of automated options are already available, from inexpensive systems to those that will cost millions, but all will have a positive impact on ROI. There are also multiple levels of automation when it comes to sorting rails.

Wash-aisle options have become more popular in the last decade, Chadsey says. Tunnel washers are better in most instances, the automation is better, they load better, process better, and include a number of options on the back side, he says.

Product tracking is the hottest thing, he says. RFID (radio-frequency identification) can help an operation not only track items within the plant, it can also track items in other locations, such as a customer’s storage areas. As long as a sensor is placed in the area, the RFID chips can be read anytime, anywhere. This offers another advantage in customer support, offering something the customer can’t get anywhere else.

His advice? Go through all the options before you start.

8. FINANCIAL BALANCE

The project team, the owners and the managerial staff for a renovated laundry, as well as for a new facility, will need to understand the relationship between capital costs, operational costs and automation costs. Most people will understand that spending more money on automation upfront will translate into lower operational costs down the road.

Keep in mind that upfront costs will probably be higher than anticipated. And that if the finance member of the team says the projected costs are too high, some adjustments will need to be made, Chadsey says.

Initial interest in automation oftentimes is abandoned as project capital costs are formally evaluated.

“You have to understand what that automation is going to do for you, and you also have to understand that if you’re doing a full plant, if you take part of that automation out, that is going to affect the operation,” Chadsey says.

He advises double-checking the operational metrics to gain a great understanding of what is going to happen going forward with the project.

9, TRANSITIONS

A timeline with contingency plans is essential for transitioning an operation from old to new.

Break down the timeline into days, and specify what will happen on what day. Have a contingency plan in place before everything starts, so you know what’s going to happen if a step is not completed on time and how the project will catch up.

Plan for production to be affected during the transition period. Will the water supply or electricity be cut off for a time? Will workers be in the way of other workers, blocking ingress and egress from a particular area? Work it out and understand what is going to be affected and what measures will be effective in minimizing the chaos.

At the end of a project, everyone is usually in a hurry to finish up and get production started, Chadsey says. “You have to have time to train operators and engineering, and you may want to build in a soft start date.” Plan for the transition, he says.

10. PROJECT SUCCESS

Chadsey, in his last step, reiterated that 10 steps may not be all that is needed in any given project. Some will take fewer steps, others will require many more than 10.

To complete a project successfully, members of the team—the project coordinator and the consultant, in particular—will need to consider what can give during a project and what can’t. Is there leeway in the budget? Is time a major consideration? Is there built-in time for the facility to be inactive in order to work out the glitches in the process or equipment? Will the transition and training be a major issue?

Chadsey is confident that these 10 steps will help you complete a project successfully and start operations off on the right foot.

May 7, 2013

WINTER HAVEN, Fla. — Ten questions to ask before process begins, and while ongoing

WINTER HAVEN, Fla. — When looking to renovate an existing laundry or building a brand-new facility, there are many questions to ask before the process begins and while the process is ongoing.

David Chadsey, the managing director for Laundry-Consulting.com, addressed the issue during a recent webinar, 10 Things You Should Know Before Building or Renovating a Laundry, sponsored by the Association for Linen Management.

While Chadsey focused on 10 questions to ask, he emphasized that for each application, there may be more than or fewer than 10 items, and that the list is not intended to all inclusive.

1. WHAT AND HOW MUCH

Chadsey’s first question focused on what a laundry needs to process and how much needs to be processed.

“This is the first thing you need to evaluate,” he says. Best practices are based on volume and classification and will differ depending on the type of laundry facility you are working with.

“When calculating what and how much, we want to confirm the volume and then we want to estimate for projected growth,” Chadsey says. “If you’re building or renovating, obviously you don’t want to build just for today.”

Look down the road; what are the possibilities that might be in store for the facility?

Chadsey suggests looking at what equipment you have and want, and perhaps allowing the facility’s plans to contain contingencies for expanding square footage sometime in the future.

Another suggestion is to evaluate the capacity per each process path, whether it’s dry fold, flatwork, wash aisle or finishing line. Take a look at manual labor and automation, and what may change in the future. You can design a finishing line, for instance, more effectively if you know it’s only going to handle hospital sheets.

Always allow for flexibility in a project. If the projected production is to be maintained, laundry managers must look at the ebb and flow of a plant as the linen moves through, as well as the times of day and the days of the week. If a change occurs, whether it be in equipment or in processes, the laundry must be flexible enough to handle the change.

2. SELECT A PROJECT TEAM

As a way to maintain checks and balances during the building process, and to be sure that everything is covered and the project is moving forward, select a well-balanced team to oversee the project.

Such a large-budget undertaking will typically require a project coordinator— usually a member of the organization behind the project—and an outside consultant, one to help the team navigate the process, will be hired. Other members of the team are typically the laundry manager, contractors, the architect and engineer, and there may be more than one engineer, equipment vendors, plant engineering staff, human resources, and a person who will speak for those financing the project.

The project coordinator needs to understand the work scope of all members of this team, as well as their responsibilities, Chadsey says.

3. INDUSTRY PRACTICES

Before the building progresses too far, it is best to identify best practices for the particular type of operation intended for the renovated or new facility.

“Processing 20,000 pounds of linens for healthcare is different than processing 20,000 pounds of hospitality linens, especially on the finishing side,” Chadsey says. And processing industrial textiles is certainly different than processing table linens.

He suggests talking about automation, different types of wash wheels, as well as volume considerations before too much time, money and energy has been expended on the project.

4. CAPITAL REQUIREMENTS

Any building project involves considerable amounts of money, Chadsey says.

While people most often consider equipment to be the major expenditure for a laundry operation, it may be true only for some renovation projects. If the laundry is brand-new or the facility will be undergoing a major redesign, often the planning and design stages can be a major budget item, as well as the construction costs.

Consider these factors:

  • Planning and Design
  • Construction
  • Utility Upgrades and Connections — Will the new facility require more electricity, higher water consumption, greater sewer capacity?
  • Equipment
  • Impact Fees — Depending on the locale, these fees can be significant, Chadsey says. Consider the fees that will be charged by the municipality for the facility, for new connections to water lines and sewer, or for other utilities. One project on which Chadsey worked encountered impact fees in excess of $1 million, he says.
  • Downtime Processing — During renovation, is a plant going to experience downtime? A project team must look at how the operation’s processing will be completed during building or renovation, and plan for that downtime.
  • Transition and Training — If a new plant is being built to replace an older facility, a project team must consider how operations, equipment, personnel and support staff/equipment will be moved from the old facility to the new. In the case of a renovation, how does management propose to work around and then integrate a new line or new room of the facility? And after the transition is complete, production numbers will be lower as the staff is trained and learns new equipment, procedures and systems. Staffing issues may include the need to downsize.

5. FOOTPRINT REQUIREMENTS

One of the major considerations for both a new build and a renovation is the facility’s footprint. If you are currently operating a laundry, you probably will have a general idea of the space required for current needs. But what happens if you want to expand? Chadsey has a production area formula that he picked up along the way during his 28 years in the industry, and while he can’t remember where he found the formula, he thanks those who came up with it.

“I use 5 square feet times pounds processed per hour. Plus soiled and clean staging, plus the mechanical room,” he says.

The staging area or areas encompass the space needed to process incoming soiled linen, as well as processing and storing clean linen after it comes off the process lines.

“An on-premise laundry may require a relatively small staging area,” he says. “If you’re a shared hospital laundry with a large number of trucks coming in each day, or if linen goes to a certain customer and that customer can only pick up three days a week, then staging requirements can be significant.”

Green initiatives are another consideration, he says. Take new innovations in water-reuse equipment, for instance, which may take more space.

The formula example that Chadsey provided during the webinar was:

A laundry processes 10 million pounds per year for 312 days per year (that’s 32,000 pounds processed per day). Divide that figure by the number of hours the facility is operating each day—in this case, 12 hours—and you have 2,700 pounds of linen being processed each hour. Multiply that figure by five and you arrive at a total of 13,500 square feet required for production.

For this example, Chadsey used 2,500 square feet for both the staging areas and the mechanical room, making the facility’s total size 18,500 square feet.

Check back tomorrow for part 2, including operational metrics, automation, transitioning, and more!

May 6, 2013

RICHMOND, Va. — Western State Design lands $7.8 million equipment contract

RICHMOND, Va. — Sylvia Small, production leader at the Hunter Holmes McGuire VA Medical Center (VAMC), knows laundry. She has, for the last 25 years, led a team of almost 40 employees responsible for washing, drying, folding and sorting linens and other items for the VAMC and other community partners.

The U.S. Department of Veterans Affairs reports that it has contracted with Western State Design, Hayward, Calif., for new laundry equipment for the medical center. The $7.8 million contract will provide a steamless system—the latest in design and first of its kind for a VA medical center—resulting in a more efficient, and energy-saving laundry, the VA says.

The Richmond VAMC on-premise laundry stays busy serving the medical center, Hampton VAMC, Ft. Lee, Fayetteville VAMC, Camp Perry, Ft. Eustis, and Langley Air Force Base. The new equipment will greatly enhance the laundry’s capacity and offer the medical center and community partners the opportunity for additional services, the VA says.

More than 4 million pounds of laundry is processed annually through the Richmond facility. Equipment has been maintained but as newer technologies became available, renovations became necessary.

Small has seen the increase in community partners utilizing the VAMC’s laundry service since starting there in 1987 and says she is looking forward to the new equipment. The features are expected to be installed, tested and in use by this fall.

“Our team is looking forward to the new laundry equipment that will allow us to produce even more,” she says.

May 2, 2013

ROANOKE, Va. — Knowing how to schedule work through machine is key to maximizing productivity

ROANOKE, Va. — This month’s column addresses fine-tuning a tunnel washer system to get maximum productivity. I have never seen a tunnel washer system that had enough dryers to prevent the tunnel from going into hold while it waits for an available dryer. I have seen many a tunnel washer operation that, with proper scheduling of the work, can eliminate the need for the tunnel going into a hold cycle.

The key to maximizing tunnel washer productivity is in knowing how to schedule work through the machine.

To begin, gather this information:

  1. Number of loads to be washed per day of each type of linen
  2. Drying time for each type of load
  3. Hourly requirement of the production side for each item
  4. Inventory level for each type of load (to ascertain need to push through in case of low inventory)
  5. The number of available dryers
  6. Cycle time for the tunnel washer

In my laundry, I have broken my loads down into three categories: No-dry loads (sheets sent directly to the ironers), short-dry loads (patient gowns, pillowcases, bath towels, bath blankets, washcloths), and long-dry loads (thermal blankets, incontinent pads). By developing a scheduling system that follows a set pattern, I can keep all the workstations busy and maximize use of the tunnel washer capacity.

To start improving your tunnel washer capacity, you need a good starting point. Before making any changes, accurately determine, over the course of at least one week, how many loads per hour you are getting through your washer. Compare that figure to the theoretical capacity. For example, a tunnel washer operating on a 2-minute cycle can produce up to 30 loads per hour. A tunnel washer operating on a 2 1/2 minute cycle can produce 24 loads per hour. Chances are, yours is not operating at its theoretical capacity.

A quick review of the problems causing you to not meet maximum capacity will most likely confirm that the problem is lack of dryer capacity. If other problems are discovered—tunnel going into hold for low temperature, or a low water level—these should be corrected before you move forward with a productivity improvement program.

To improve your tunnel productivity, you need to be able to pick and choose which linen items are going into the machine. This may require that your soil-sort area start work 30 to 60 minutes before your tunnel washer. Based on your original research into the types of loads you are washing, and their respective dry times, make a first attempt at developing a tunnel loading schedule. Use this schedule for several days and compare the results with your baseline productivity. Expect to make some changes as you learn what mix of linen works well and what mix of linen does not.

In my plant, I can easily maximize my tunnel output for an hour or two by running a majority of sheets through the tunnel that bypass the dryers and go directly to the ironers. But by doing so, dryers are not utilized and various areas of the laundry run out of linen. My goal is to maximize dryer use and tunnel washer output. Each laundry operates with different equipment and a different linen mix so there is no universal loading system that works for all occasions or circumstances.

By monitoring the loads per hour in your tunnel, and tracking the utilization of your dryers, you should be able to develop a highly workable loading system within a month. The improvements made from this effort, even if small, will have a major impact on your operation over the course of a year.

May 1, 2013

CHARLOTTESVILLE, Va. — Key strategies and considerations for business owners ready to develop and grow their company

CHARLOTTESVILLE, Va. — Running a business can be a daunting responsibility, and perhaps at the core of this duty is strategizing the company’s move toward growth.

david bernsteinDavid Bernstein, senior vice president at Turn-Key Industrial Engineering Services, recently presented an Association for Linen Management (ALM) webinar titled Growing Your Business, during which he laid out key strategies and considerations for business owners ready to develop and grow their company.

Bernstein’s strategy first calls for owners to think of “SMART” goal setting: to be Specific about their company’s goals; set Measurable, Attainable and Relevant goals; and create a Time frame for accomplishing those goals.

“If you say [you] want to increase [your] business, you need to start thinking about what business is it that [you] want to increase,” says Bernstein. “What is it exactly that you want to do [and] what do you want to accomplish? And then make it measurable.”

Think of establishing key performance indicators that will not only enable owners to track the company’s progress, but also in an objective manner. Goals should ultimately be attainable by the company.

“A lot of times [owners] will really shoot very far into the stratosphere,” he says. “When you challenge your team […] are you giving them a goal that is attainable or have you given them a stretch goal? Make sure that you’re realistic with them about it.”

“Everyone thinks that they can do many things and add a lot to their plate,” he added. “But at a certain point, you start adding so much that you’re not doing anything very well.”

Another factor is determining whether a company has the physical means to sustain growth.

A clear understanding of the company’s production model, staffing requirements and equipment purchase projections are the key factors Bernstein pointed out when owners take stock of their capacity analysis.

“Make sure that you can […] live up to the promises that you’ve made to your customers […] while making sure that you’ve got the right amount of people [and] equipment [and that] you’re still caring for the equipment and the people in the way that they need to be.”

Regarding acquiring new equipment to boost capacity, Bernstein advises laundry owners to consider the various industries that many laundries service, and whether their company has the means to provide that service.

For example, if a hospitality laundry owner wants to start processing food and beverage goods, Bernstein suggests that they might look into purchasing a sorting and counting system to process smaller garments.

“If you’re strictly one or the other, moving to the one that you’re not can be quite an adjustment on your people and your process,” he says.

Taking on more accounts is one strategy to take to grow business. Another avenue Bernstein spoke about was the possibility of starting a direct sales/ancillary services department.

He cites several industrial, food and beverage, hospitality and healthcare laundries selling restroom services and cleaning supplies as part of their product line to existing customers.

“If you’re not offering these kinds of services, your competitors will,” he advises.

What strategies can owners take to develop and form new relationships with prospective customers? Bernstein admits that making cold calls can be a frightening ordeal, but there are other approaches owners can take.

A former customer, for example, may have become dissatisfied with your service. Consider calling them and addressing how your company has improved upon that specific service or product.

He also suggests using referrals, which allows barriers to come down because of the familiarity between contacts.

In addition to working with colleagues in scouting for new business, Bernstein suggests partnering with others in the industry who sell complementary products.

But no matter what approach business owners take, Bernstein recommends owners go out themselves and “make periodic visits” to customers.

“Remind them why they bought from you […] Remind them what you promised and that you delivered,” he says.

“It never hurts to ask them, ‘What could we do better?’ You may learn something,” he adds.

Bernstein suggests investing in services such as a customer relationship management (CRM) system—Zoho and Salesforce.com are examples—that will help employees organize, manage and automate a company’s business.

He also suggests the use of marketing automation software like Marketo.com or Constant Contact to keep in touch with customers on a digital scope, as well as prospect research tools like Hoovers and Manta to help owners learn more about prospective customers in their market.

With this foundation in place, according to Bernstein, business owners can begin to reach their growth objectives.

“These are the things that you need to be doing if you’re looking at growing your business and improving your sales.”

April 30, 2013

WASHINGTON — Regular retail gas price expected to top off at $3.69 per gallon in May

WASHINGTON — Drivers can expect to see regular gasoline retail prices averaging $3.63 per gallon during the summer driving season, according to projections released earlier this month in the U.S. Energy Information Administration’s (EIA) April Short-Term Energy Outlook.

The projected monthly average price of regular retail gasoline will continue to fall through the April-September driving season, topping off at $3.69 per gallon in May to $3.57 per gallon in September.

The EIA also expects this projection to be reflected on upcoming yearly averages: $3.56 per gallon in 2013, $3.39 per gallon in 2014.

Meanwhile, the Brent crude oil spot price will average $108 per barrel in 2013, $101 per barrel in 2014, the EIA forecasts. This price rose to $119 per barrel in early February, up from last year’s $112 per-barrel average.

The projected discount of West Texas Intermediate (WTI) crude oil to Brent is forecast to average $14 per barrel in 2013, $9 per barrel in 2014. The EIA attributes this drop to planned new pipeline capacity lowering the cost of moving mid-continent crude oil to the Gulf Coast refining centers.

Natural gas working inventories ended March at an estimated 1.69 trillion cubic feet (Tcf), about 0.79 Tcf below last year’s level, and 0.41 Tcf below the five-year average (2008-2012).

EIA expects the Henry Hub natural gas spot price, which averaged $2.75 per million British thermal units (MMBtu) in 2012, will average $3.52 per MMBtu in 2013, $3.60 per MMBtu in 2014.

April 29, 2013

NAUGATUCK, Conn. — U.S. company to promote Belgium manufacturer’s full product range

NAUGATUCK, Conn. — Lavatec Inc. has become affiliated with Belgium-based manufacturer Lapauw and is now the headquarters for Lapauw of America, according to Bruce Burmann, vice president of sales for Lavatec Inc.

Lavatec Inc. provides Lapauw with a “major hub for the sales and service of its machines in the U.S. market as well as South America, Central America and Canada,” he says.

The agreement, which was established in close cooperation with Goudkuil Laundry Machinery (which acquired Lavatec Inc. in 2011), brings Lapauw in as a “main investor,” Burmann adds.

Lavatec Inc.’s sales network will promote the complete Lapauw product range, which includes flatwork ironers, feeders, folders, washer-extractors and tunnel finishers.

Lapauw is seeking to further enhance its after-sales service in the American market. Lavatec Inc.’s technicians will receive extensive training on Lapauw machines. A local service unit will not only enable the continuance of service toward existing and new Lapauw customers, Burmann says, it will enable the enhancement of service in terms of local spare parts stock and availability of engineers.

Lavatec Inc. technicians will also be called upon to start up Lapauw installations in the American market.

“With Lavatec Inc., Lapauw immediately has over 42,000 square feet of manufacturing space at their disposal, which fits in perfectly with its close-to-the-market manufacturing strategy,” Burmann says.

April 25, 2013

CHICAGO — Tracking and counting the flow of goods improves productivity and inventory control

CHICAGO — Those who manage laundry/linen services or textile rental firms find that tracking and counting the goods streaming in and out of their plants improves productivity and inventory control.

Yes, washing, drying and finishing goods for an end-user or client is only part of a professional launderer’s job. Keeping track of the linen, garments or mats flowing into and out of their facility is just as important.

So, how does a laundry go about tackling that task in the most efficient way possible?

RFID SYSTEMS

Radio-frequency identification, or RFID, first used for item tracking and access-control applications, made its way into the textile service industry in the 1990s. Key components of an RFID system generally include a tag or chip (packaged into a rugged plastic casing specially designed to withstand harsh industrial laundry processes), an antenna connected to a reader, and a reader connected to a software system that collects and manages the data collected. The tag or chip is affixed to a garment or linen in some fashion.

“Such devices come in many forms and sizes, from small wires and tags to tiny chips,” says Ecolab’s Jim Mitchell, who discussed linen tracking while a member of the American Laundry News Panel of Experts. “Using these devices to track linen flow is becoming commonplace, especially with more expensive linens such as uniforms, bed linens and silks.

“Although some laundries use RFID tags or chips for inventorying, sorting and tracking of all linens, having these devices applied to common linens such as sheets and terry may not be practical or economical in your operation.”

RFID technology is constantly improving, according to Mitchell, and devices on the market are smaller, more cost-effective and offer greater resistance to adverse cleaning elements.

There are many instances of organizations using RFID tracking to better maintain their inventories. For example, Four Winds Casinos recently selected InvoTech’s RFID Multi-Property Uniform Tracking System to centrally consolidate uniform inventory, tracking and purchases for all of its properties to reduce labor and purchasing costs.

Four Winds use the InvoTech system coupled with a White Conveyors system to automatically deliver uniforms to employees’ hands. InvoTech centrally tracks uniform use, controls inventories, monitors laundry cycles, and consolidates purchasing for more than 10,000 uniforms.

“We now have an accurate combined uniform inventory count for all properties on one database and can purchase in larger numbers to benefit from higher-volume buys,” says Jennifer Lasiewicz, Four Winds Casinos’ vice president of hotel operations.

Four Winds launders its own uniforms and uses an RFID drop-chute reader to record when staff returns soiled items.

“It reads each uniform’s RFID chip as the garment is dropped,” Lasiewicz says. “We do not manually count every piece the staff returns to our laundry. With a large number of employees, that would take a long time. InvoTech monitors uniforms coming and going at all properties, and we maintain a central bulk inventory at Four Winds New Buffalo to simplify our operation.”

Some hotels are even using RFID technology to deter theft. They are sewing tags into pricey linens such as towels, bathrobes and high-thread-count sheets. When a tag is read by a strategically placed RFID reader, a system instantly alerts staff that an item is in danger of being pilfered.

A Hawaii hotel which introduced the technology a couple of years ago claimed to have reduced theft of its pool towels from 4,000 a month to just 750, saving $16,000 in replacement costs monthly.

BAR-CODE LABELING

Bar coding is a more mature, simpler technology than RFID. Such a system can provide a launderer with information about each individual item, including when it was last turned in, how many times it has been processed, and when it was originally issued. Bar codes are generally thought to be less expensive than RFID tags.

But bar-code labeling has some limitations. It requires line of sight, which RFID does not in most cases. RFID systems can read multiple tags simultaneously, while bar codes are read one at a time. Many RFID tags are read/write, while a bar code is read-only. And most fixed RFID readers don’t require human involvement to collect data, while most bar-code scanners require a human to operate them.

Some large plants apply a bar-code label as well as an RFID tag, so if something prevents the RFID tag from being read, the bar code serves as a backup.

Regardless of how one goes about tracking their textiles, gathering the information is just the first step. Then one has to decide what the data means and then put it to use it in their operation.

 “Item tracking with RFID chips, bar codes, electronic route accounting, etc., are all important opportunities to help you control your merchandise,” says American Dawn’s Steve Kallenbach, a former member of the American Laundry News Panel of Experts. “However, if you don’t have good reconciliation processes, any of these systems will only allow you to know what’s missing!”

April 24, 2013

SANTA BARBARA, Calif. — Agreement is for two Cottage hospitals in Santa Barbara and Goleta, Calif., and for Santa Ynez Hospital in Santa Ynez, Calif.

SANTA BARBARA, Calif. — Cottage Health System, described as the single not-for-profit provider of acute hospital care in the greater Santa Barbara area, has renewed its longtime contract with Mission Linen Supply, the linen supply company reports.

Under the agreement, Mission Linen will continue to launder all patient linens for three Cottage Acute Care facilities, as well as provide kitchen products, lab coats, floor care products and uniforms for 10 additional labs, clinics and dietary accounts.

The agreement with Mission Linen is for two Cottage hospitals in Santa Barbara and Goleta, Calif., and for Santa Ynez Hospital in Santa Ynez, Calif.

The decision to renew the contract with Mission was made after a review of options in the area, according to Afshin Fatholahi, vice president of support services at Cottage Health System.

“Our relationship with Mission Linen Supply goes back to 2008 and has grown due to Mission’s ability and flexibility to meet our needs and requirements,” Fatholahi says. “We believe it’s important to keep our business within the community and support a local business in Santa Barbara which offers economical advantages for the community at large. It’s a win-win situation.”

The contract with Cottage Hospital will be serviced by Mission Linen plants in Santa Barbara and Santa Maria, Calif.

April 23, 2013

ATLANTA — Locating exhibitors, planning personalized itinerary, connecting via social media among its features

ATLANTA — The Clean Show has released a new, free mobile app for Apple iOS- and Android-based smartphones that offers features such as locating exhibitors, planning a personalized show itinerary, and connecting with others via social media.

The free app can be downloaded from an individual’s device in the App Store or Market.

The June 20-22 event is expected to draw an estimated 10,000 laundry and dry cleaning industry attendees to New Orleans.

“In the age of technology, offering a smartphone app just makes sense,” says John Riddle, president of Riddle & Associates, the Clean Show’s management company. “We want our attendees and exhibitors to be able to stay connected before, during, and after the show and be able to do it while on the go.”

The app designed by event marketing and software company a2z Inc. is fully integrated with the Clean Show website, and with LinkedIn and Twitter.

Attendees who do not have a smartphone can still maximize their time at Clean 2013 by using the show website’s “My Itinerary” feature. Visitors can store in a personalized “Briefcase” their schedule of educational sessions and booths they wish to visit, as well as print out their “Itinerary” to bring with them.

Formally the World Educational Congress for Laundering and Drycleaning, the Clean Show is sponsored jointly by five national industry associations.

April 22, 2013

NORTH BERGEN, N.J. — Prestige Industries LLC, dba Prestige, faces nine repeat or serious safety and health violations: OSHA

NORTH BERGEN, N.J. — The U.S. Department of Labor’s Occupational Safety and Health Administration (OSHA) has cited Prestige Industries LLC, doing business as Prestige, for safety violations found at its commercial laundry facility in North Bergen.

A complaint initiated OSHA’s October 2012 investigation and resulted in $219,000 in proposed penalties.

The agency identified four repeat violations, carrying a $185,500 penalty, based on the company’s alleged failure to protect workers from unguarded machinery, establish a lockout/tagout program and procedures for controlling energy sources, and provide energy control training for workers who perform maintenance on machines.

A repeat violation is issued when an employer previously has been cited for the same or a similar violation of a standard, regulation, rule or order at any other facility in federal enforcement states within the last five years. The same violations were cited in 2012 following a worker’s death after being caught in an unguarded machine at the company’s Bayshore, N.Y., facility, OSHA says.

The agency also noted five serious violations, with a $33,500 penalty, that were due to alleged electrical hazards; an inadequate confined-space program and failure to identify permit-required confined spaces; and no hazard communication program, training and material safety data sheets.

OSHA says a serious citation is issued when there is substantial probability that death or serious physical harm could result from a hazard about which the employer knew or should have known.

“The safety hazards present at this facility pose serious risks to workers and must be immediately corrected,” says Kris Hoffman, director of OSHA’s Parsippany Area Office. “OSHA will continue to hold employers legally accountable when they fail to provide safe workplaces.”

Prestige, based in Jersey City, has 15 business days from receipt of the citations to comply, request an informal conference with the OSHA area director, or contest the citations and proposed penalties before the independent Occupational Safety and Health Review Commission.

The citations can be viewed here.

April 18, 2013

IRVINE, Calif. — Company started in 1932 with founder trading in Model A for used truck for uniform laundry service

IRVINE, Calif. — This month, Prudential Overall Supply is celebrating more than 80 years of service in supplying industrial, healthcare, hospitality and corporate apparel.

Prudential Overall Supply arose from humble beginnings in 1932, when founder John D. Clark first traded in his Model A Ford Sports Roadster for a used truck to use in his new uniform laundry service. His commitment to high-quality service allowed the young company to grow even amidst the thick of the Great Depression. During World War II, Prudential began its garment rental service.

By the late 1970s and into the 1980s, it expanded out of California and grew to more than $35 million in revenue. In the 1990s, Prudential’s cleanroom services went nationwide and the company reached more than $100 million in revenue.

Today, Prudential Overall Supply is very much a 21st century company. The success of its PrudentialUniforms.com website has helped it reach an even larger customer base that exceeds 25,000. Prudential’s nearly 1,500 employees utilize state-of-the-art industrial laundering and cleanroom garment processing equipment, which serves workwear needs from foodservice uniforms to flame-resistant clothing and more.

Prudential also rents and maintains non-apparel facility-image products, such as floor mats, cleaning items, and restaurant reusables and wipes.

April 17, 2013

CHICAGO — Input from hotel/motel/resort laundry and chemicals supply sectors

Hotel/Motel/Resort Laundry: Charles Loelius, The Pierre New York, New York, N.Y.

charles loeliusAbraham Lincoln once said, “You can’t do business from an empty wagon.” Nothing has a greater impact on a laundry’s sales, service, operation, and reputation than an inadequate circulating linen inventory.

The lack of a sufficient amount of linen in circulation necessitates operating the plant longer hours than would otherwise be necessary. Labor, maintenance and utility costs increase, while both efficiency and morale plummet. Operating costs increase without the benefit of added revenue.

Laundering the linen more frequently than would otherwise be necessary shortens its life, resulting in higher depletion and additional replenishment cost.

Equally important, insufficient circulating linen results in decreased fill rates. The inability to provide complete orders negatively impacts both revenue and customer confidence.

The first step in managing circulating linen inventory is to recognize that linen loss will occur. The next step is to ascertain where this loss is prone to occur, and develop policies and programs to prevent unnecessary depletion.

How linen is processed, distributed, utilized, returned and monitored will have a direct bearing on both linen loss and replenishment costs.

Planned losses, such as discards and rag-outs, are the result of quality control programs. Planned depletion, along with a corresponding linen replenishment program, is necessary to maintain a viable circulating linen inventory.

At my hotel, I budget annual rooms linen replacement cost at $2.50 per occupied room; annual food-and-beverage linen replacement cost is budgeted at 20 cents per cover.

Consequently, I am able to completely turn over the circulating linen inventory every three years.

There are two types of linen depletion: actual and artificial. Actual loss represents a permanent depletion in circulating linen (the linen is not retrievable). This loss is the result of discard, abuse and theft, either deliberate or inadvertent. Artificial loss represents linen that, while not accessible to circulating inventory, is still retrievable. This loss is caused by linen being overstocked at the end-user location, which results in an under-utilized inventory.

In linen rental operations, overstocking at the customer not only renders linen inaccessible, it precludes generating additional rental revenue via “turning” the linen.

Conducting physical inventories on a regular basis will provide the information needed to determine if the amount of linen in circulation is sufficient for the operation. Physical inventories also help in the planning of future purchases, and are essential in determining linen loss.

Due to storage limitations typical at a Manhattan hotel, it is necessary to employ the practice of just-in-time ordering. Ordering less linen more often reduces the space needed for storage, but increases the reliance on accurate physical inventories. Like the carpenter’s credo of “measure twice cut once,” proper linen procurement relies on conducting exact physical inventories.

Conducting precise physical inventories will also serve as the basis for determining unexplained linen loss. This loss can be determined through this formula: Prior inventory – discards + linen injections – current inventory = unexplained loss.

Conducting physical inventories at the customer’s premises is a daunting task, but is necessary to properly gauge both linen loss and linen utilization. Complete inventories should be conducted at least annually. Salient information can also be gleaned from “informal” inventories, shelf counts, and linen abuse “spot checks” that can be conducted as part of sales, service, and goodwill calls.

Linen loss and abuse charges, as well as linen utilization fees, when implemented and enforced, can aid in reducing both actual and artificial linen losses.

There is the caveat, however, that enforcing these type charges, even if contractually stipulated, may result in strained relations with the customer.

Regardless of the laundry operation type, it is crucial to involve, educate and monitor the end-users, in properly controlling the linen at their disposal.

Chemicals Supply: Philip L. Bodner, Metro-Chem, Kearny, N.J.

One of the main challenges in purchasing new textiles is taking extra care to know exactly what it is you are being sold.

We are in a time of exciting new textiles and innovative, high-performance, high-quality fabrics, yet we are also in an era of low-cost outsourcing from places around the globe offering seemingly value-priced purchasing options that sometimes don’t perform to our standards and expectations.

philip bodnerProcessing of “commercial level” quality textiles or an innovative new fabric is usually easy enough to accomplish. As always, make your purchasing considerations based on colors, sizes and fabric types. When placing your first order with a vendor, make sure to ask for a printed copy of the manufacturer’s laundering and processing recommendations.

Get all the info that’s available and then the correct laundering and finishing of these textiles becomes a matter of putting the manufacturer’s recommendations together with you and your trusted vendor’s experience to arrive at the correct processing routines. When handled properly, the mid- to higher-quality imported or domestic textile will stay in usable condition longer and will offer a good return on investment through its extended service life.

If you are buying large quantities of any textiles, or if you’re buying something new to your operation (or even trying to get a bargain), do two things to save yourself some potential grief. First, ask your distributor salesperson to let you speak to some customers who have purchased the same goods to get direct feedback on performance. Secondly, have an adequate quantity of sample products sent in advance to test-wash and finish to get a leg up on what to expect.

As far as how much linen inventory is enough, answers vary for each operation’s actual needs. One thing is sure: the same budgetary constraints we suffer today, the ones that send people bargain shopping, also tend to lead to inadequate par levels. This lack of linen—I call it “LoL”—can often leave a trail of major inefficiencies cascading down the line.

Both the planned and un-planned consequences of LoL are no laughing matter when they start costing you money. It starts the clock ticking on an investment that will surely wear out before it should. It’s just like wearing the same pair of shoes every day instead of alternating among a few pairs throughout the week. At the end of some shortened period of time, you will be reordering new replacement linens and those pesky invoices will start to play tag with accounts payable.

LoL also puts stress on everyone involved in your laundry or the laundry that provides your linen service. This can lead to processing shortcuts that can affect quality in laundering and finishing because nobody can take the time to do it right. Today’s soil is also today’s or tomorrow’s clean linens, so just get out of the way! We see this “hurry and scurry” approach played out over and over in many laundry operations.

LoL flies in the face of “green” initiatives. It’s carbon-intensive to burn all of that diesel fuel the linen service uses to drive back and forth seven days a week with the linen you absolutely have to have now. By adding par, you solve this, and may even put yourself in a better negotiating position when the next service contract is written. Your provider now only has to come rolling out to see your loading dock four times a week, which is a win-win situation for all except the oil companies.

Finally, it’s the unplanned consequences always lurking around that can and will affect you in not-so-pleasant ways. You have probably experienced some of these seat-clenching moments already.

Do you agree that laundry equipment never breaks, the delivery trucks always start in winter, it never snows, and everyone else’s workers always show up in force when needed just like yours do? If you don’t, then you’re a realist, and having that one or two extra par on hand in case of emergency is your buffer when reality hits. This option sure beats watching your employees stand around waiting for miracle linen to appear. Besides, the guests usually don’t stay humorous for long without clean sheets.

Having more par available keeps the goods looking better and lasting longer. More par means less stress and more time to get things done right. More par is more green. More par gives you breathing room when the best plans go awry. And we can all agree that having one less thing to worry about is always a good thing.

April 16, 2013

CHICAGO — Input from healthcare laundry, uniforms/workwear manufacturing and equipment/supply distribution sectors

Healthcare Laundry: Judy Murphy, RN, BSN, CLLM, RLLD, North Mississippi Medical Center, Tupelo, Miss.

judy murphyIn a healthcare setting, the challenge of taking a physical inventory can be overwhelming. One must enlist the help of clinical staff and/or the customer to count linen, especially in surgery, critical care, and isolation or restricted areas. Developing a relationship with that end-user and working together to stress the importance of linen in the care of their patients increases the likelihood of success and provides an avenue for honest feedback that can be used for performance improvement.

Timing of the inventory process is critical. One must work with those involved to determine the date, time, etc. Asking overwhelmed employees to add more work to their already busy schedules can set the project up for failure. Working together will allow the team to forecast any “snags” or concerns and to make plans to address them. The manager will also have their buy-in up front.

Linen is somewhat a “moving” target. The process of supplying linen to our customers has several ongoing steps that are difficult to halt while the inventory count is being done. To complicate this further, linen is kept in multiple areas throughout the customer’s facility/unit, so establishing a starting and ending point can be a challenge. Recognizing and addressing any challenges up front will contribute significantly to the success of the inventory process.

In a market with decreasing reimbursements, increased production/process issues, dwindling capital funding, etc., maintaining an adequate budget for linens can pose a problem. History has shown that we continue to “expect to do more with less.”

The laundry manager faces an uphill battle in justifying the need for an adequate linen purchase/replacement budget. It is imperative that he/she has accurate data to forecast needs, and that planning is in place to address any increases or decreases in customer demands. This effort will assist the manager in decreasing the frequency of rush/panic orders and resulting increased delivery costs, thereby resulting in an overall savings opportunity.

The manager must seek every opportunity to keep costs at a minimum while maintaining an adequate number of linen par (turns) so that ample supply is available for the customer’s demands.

Too little linen results in shortages to customers (may result in hoarding), increased linen processing, decreased linen life, decreased customer satisfaction, increased stress on laundry personnel (must “hurry through” the processing steps), inefficient use of equipment and staff time, increased chemical costs, etc.

Too much linen can result in a decreased return on investment, storage issues, linen degradation, as well as possible contamination with lint, dust, or insect infestation.

Software that provides the manager with an actual daily/weekly/monthly/annual usage figure can be used to identify overages and shortages, which can be addressed with appropriate par-level adjustments. These figures should be reviewed with the customer and any changes determined together so that they won’t come as a surprise to anyone.

Though zero loss would be ideal, it is unrealistic. Even if proper processes are in place, and the security and utilization of linen is appropriate, the laundry manager must still take into consideration other variables, including type of operation (healthcare, hospitality, correctional), region of the country/world you’re serving, type of chemistry used, etc. In addition, each linen item will have a different loss rate.

There are benchmarks available that can be used for comparison. I recommend the manager check with his or her linen supplier, in that these vendors are excellent resources of information. One such source states that benchmarks can range from an overall linen replacement average of 78% (this would be considered “best practice”) to 113%.

This “stretch” goal is achievable. The manager must concentrate on driving consistent, accurate, and focused efforts to purchase, process, and inventory linen utilizing a team approach that involves those who have a vested interest.

Uniforms/Workwear Manufacturing: Scott Delin, Superior Uniform Group, Seminole, Fla.

When it comes to inventory control and securing textiles in today’s business environment, suppliers and laundries walk a fine line on a daily basis. As market conditions continue to change and become more competitive, it is important to maintain strong partnerships and solid communication with offshore manufacturing partners.

scott delinSourcing, delivery times, and inventory control are impacted by power outages in plants, cotton shortages, rise in freight costs, and other unknown variables. In order to deal with many unknowns that can and will have a direct impact upon our ability to meet our customers’ demands, the implementation of “programs” has become an excellent way to efficiently and cost-effectively mitigate these challenges.

With a formal program, production can be forecast in a smarter way and supports the just-in-time inventory control principle.

Because of today’s competitive market environment, it is essential that inventory be available when our customers need it. When our inventory cannot fulfill our customers’ needs, we “open the door” and create opportunities for our competition.

Customer loyalty can no longer be taken for granted. Customers want to deal with suppliers and laundries that have product when they need it so they can service their clients or end-users as needed.

Not having adequate inventory can be detrimental to long-term business relationships and have a direct impact on the growth of your business. Insufficient inventory can damage a customer’s faith in his or her vendor and supplier to deliver goods when needed.

Equipment/Supply Distribution: Bill Bell, Steiner-Atlantic Corp., Miami, Fla.

Par: This word has many uses in the English language. For part-time golfers like me, this is a number we strive for. In the real world, it is used to establish inventory management and safety levels.

For many hotel operators, a par level of 3 has been a minimum and 4 has been a plus. In today’s economy, every extra dollar is being put to use in all aspects of operations. Just-in-time inventory has become more of a normal procedure than stocked inventory. Linen replacement averages 5-6% annually.

bill bellUnder the just-in-time philosophy, OPLs must monitor inventory on a monthly or quarterly basis. Processes and procedures must be implemented to keep this percentage as low as possible. It is suggested that each station have a linen processing area with containers for each classification for linen type (mixed linen, torn linen and stained linen). Training all associates in the classification separation to be collected is important to the laundry’s success.

Working with your chemical provider to set up an aggressive, comprehensive stain formula in treating stained linen can help reduce or at least keep your linen replacement levels at 5-6%. A reclamation program to monitor and track discarded linen items will help with getting your correct items for inventory.

Benchmarking with other laundries—sharing problems or success stories—is a great idea. Different locations may face different challenges. For example, a laundry in Orlando, Fla., has to deal with suntan lotion stains, while a laundry in Boise, Idaho, may not have this problem.

Linen “misconduct” is another inventory issue. Washcloths, pool towels, robes, hospital blankets, and patient gowns tend to leave with the guest or patient. Educating nurses, housekeeping employees, patients and hotel customers is the most efficient way to control inventory being misplaced. There is not a foolproof way to control theft, but by pulling together we may deter the end-users from making poor choices.

In the end, without proper inventory control, the guest or patient experience is not going to be favorable. Consumers expect clean linen, and sometimes extra linen, at their disposal. It all leads back to saving par.

Check back tomorrow for the conclusion!

April 15, 2013

HOUSTON — Provided design-build installation for utility relocations and infrastructure upgrades

HOUSTON — ARCO/Murray National Construction Co. has completed the renovation of a healthcare laundry facility for the local Veterans Affairs Medical Center, the design-build firm reports.

The Oakbrook Terrace, Ill.-based company provided design-build installation for the 14,000-square-foot facility’s utility relocations and upgraded infrastructure, which included the removal and installation of laundry equipment, as well as the demolition of existing utilities servicing the equipment.

The crew was able to modify existing utility systems without interrupting hospital operations through a technique called “hot tapping,” coordinating the shutdown of certain utilities while connecting to existing piping still in use.

New equipment included a seven-module tunnel washer, four dryers and a spreader/feeder/stacker assembly. New concrete pads, drain trenches and HVAC ductwork were installed to service the equipment.

Access openings to the basement were also reworked to accommodate transport of large equipment to and from the facility.

Work was completed solely on mid-floor levels to avoid disruptions to the functioning hospital.

Mike Gaw was project manager and Elliot Mata project executive for ARCO/Murray.

April 12, 2013

DALLAS — Announcement comes as company celebrates 65 years of industry service

Updated April 30, 2013:

DALLAS — Industrial laundry equipment manufacturer Kannegiesser USA celebrated the 65th anniversary of parent company Herbert Kannegiesser GmbH with a special dinner here Thursday night, during which it was announced that Kannegiesser USA President Michael Dreher will retire June 1 and Executive Vice President Phil Hart will assume that role.

Hart joined Grand Prairie, Texas-based Kannegiesser USA in 2004 as vice president of marketing, bringing with him more than a decade of industry and product experience. He was promoted to executive vice president in early 2012.

Dreher, who served as president for 13 years, will retain an advisory role that involves marketing the Kannegiesser brand in the Americas.

Kannegiesser GmbH President and CEO Martin Kannegiesser says both Dreher and Hart have demonstrated abilities in combining leadership and teamwork.

The two men thanked the staff and Kannegiesser for their support in making the U.S. market the company's third largest behind France and Germany.

Kannegiesser USA is planning to display several products new to the United States at the upcoming Clean Show.

April 11, 2013

CHICAGO — Seminars on linen loss, healthcare regs, service contracts, and certification programs garnering most pre-show interest

CHICAGO — More than 70% of respondents to this month’s American Laundry News Wire survey say they are OK with the Clean Show’s shortened three-day schedule this year, compared to the remaining 29.4% who are “indifferent about this change.”

One respondent proposed that the biennial convention be held “every five years,” but with a longer schedule. “Have mandatory attendance by all members, companies and organizations,” the respondent writes. “Have it for a full five-day week with...golf tournaments planned and social events for all in the evenings.”

In fact, a good number of respondents answered that the biggest factor in favor of visiting New Orleans for Clean was the “networking and socializing” opportunities (23.5%), while 11.8% favored the “exhibits of equipment and supplies.” Equal shares of 5.9% pointed to “educational sessions” and “combining business and pleasure.” The most popular response, however, was “all of the above” (52.9%).

The Association for Linen Management (ALM) and the Textile Rental Services Association (TRSA) are among the organizations hosting educational sessions during the June 20-22 show. Among ALM’s scheduled offerings, Reducing the Loss of Patient Linen and Scrubs and Standards and Regulations Affecting the Healthcare Laundry and Linen Industry have drawn the most pre-show interest among respondents. As for planned TRSA sessions, Textile Services Contracts and Negotiations and TRSA Clean Green and Hygienically Clean Certification Programs: Quantifying Your Commitment to Cleanliness and Sustainability are most anticipated.

More than one-third (35.3%) of those surveyed say they are planning to attend Clean, while 17.6% remain unsure. The remaining 47% aren’t planning to attend, with cost playing an important factor for some.

Among respondents who are not attending, about 45% “can’t afford the cost,” 27.3% “can’t spare the time,” and 27.3% said they “made other plans.”

“Employers do not give the time to attend seminars or trade shows,” writes one respondent. “We have to use vacation time to attend. In the past, employers would pay for employees to attend. Now, it comes out of our own pocket.”

While American Laundry News’ Wire survey presents a snapshot of the audience’s viewpoints at a particular moment, it should not be considered scientific. Subscribers to Wire e-mails—distributed twice weekly—are invited to participate in an industry survey each month. The survey is conducted online via a partner website, and is developed so it can be completed in less than 10 minutes.

All managers and administrators of institutional/OPL, cooperative, commercial and industrial laundries are encouraged to participate, as a greater number of responses will help to better define operator opinions and industry trends.

April 10, 2013

ALEXANDRIA, Va. — Entry-level wages in TRSA member companies’ laundry operations grew faster in 2012 than pay for Americans as whole: Report

ALEXANDRIA, Va. — Wages for entry-level positions in TRSA (Textile Rental Services Association) member companies’ laundry operations grew faster in 2012 than pay for Americans as a whole, ranging from 1.5% for lesser-skilled positions like folding, ironing and hangering to 4.3% for more complex tasks like load-building and pressing, according to the TRSA 2012 Plant Employee Compensation Report.

Hourly pay across the spectrum of U.S. jobs increased less than 1% (0.89%) from fourth quarter 2011 to the same time in 2012. Thus, entry-level laundry positions’ median wage growth was almost twice to five times the national average. The higher-skilled segment of this group of laundry and dry cleaning roles has outpaced the workforce as a whole in this metric since 2009, according to the federal Bureau of Labor Statistics’ (BLS’) most recent data compilations.

Thirty-seven companies reported their wage and benefit practices to TRSA for the report; roughly one-third were healthcare laundry specialists, one-third were equally divided between food/beverage/hospitality and industrial uniform specialists, and the remaining one-third were mixed.

Laundry production workers who had worked in the industry for one to four years earned the highest median wage from linen specialists: $10.40 to $11.70 per hour varying with job complexity. Mixed plants had the lowest such pay ($7.75 to $9.14).

The TRSA 2012 Plant Employee Compensation Report also reflected the importance to the industry of recruiting outstanding route service personnel and ensuring customer satisfaction. Hourly base rates for such personnel with one to four years experience ranged from $13.25 to $17.49. This compares favorably with the economy-wide average of $13.22 for driver sales personnel. With incentives, the range for such TRSA drivers rises to $18 to $23.21.

Laundry production workers (roughly 40% of them) receive incentives as well; those in the 1- to 4-year experience range had overall median compensation ranging from $8.45 to $11.95.

TRSA produces the Plant Employee Compensation Report to enable association members to benchmark their pay and benefits practices, and covers the range of strategies deployed by textile service companies to take care of their people. The survey enables industry operators to compare their practices with operations similar to theirs in line of business, number of locations and sales volume.

For each position in each classification of company, an average salary or wage is listed with incentive potential and the number of companies in the survey offering such incentives. Various approaches to providing fringes are described, such as percentage of premium paid by employer, deductible and co-pay amounts, and 401(k) matching.

Copies of the TRSA 2012 Plant Employee Compensation Report are free to participating TRSA members; non-participating members and participating non-members receive a discount; others pay full price.

Package pricing is available with the TRSA 2012 Industry Performance Report, another benchmarking tool. Visit the TRSA store to learn more about the association’s reports.