What is Laundry PPOH and Why Does it Matter?
Pounds per operating hour (PPOH) is a critical laundry KPI that measures the efficiency of processing capacity within given timeframes.
If you're a runner, your key metric might be average pace. If you're a baseball player, maybe it's your ERA (or ERA+, if you're analytically inclined), WHIP or slugging percentage. If you're a parent, maybe it's time spent during your children's bedtime routine or their screen time.
In the world of laundry, PPOH is the big number, the one that everybody monitors.
Why is PPOH such a big laundry KPI?
For facility managers and operations directors, improving PPOH directly translates to enhanced
profitability, reduced operational costs, and increased competitive advantage.
And who doesn't want that?
But, just like anything else, improvement starts with acknowledging the principles of the issue — in this case, understanding PPOH and why it's important — and then taking steps to make it better, at first by establishing a baseline of consistent monitoring of your operations and data collection.
Whether you're a runner, a baseball player or a tired parent, going back to the basics is never a bad strategy.
Understanding the multifaceted approaches to boost your PPOH can transform a subpar operation into an industry standard bearer of efficiency and productivity.
With that, let's review a few strategies to help boost that laundry KPI that everybody in the industry talks about all the time: PPOH.
Equipment Optimization and Modernization
You need the right tools to succeed.
The foundation of superior PPOH lies in equipment performance. Older washing machines and dryers often operate at suboptimal speeds and capacities, creating bottlenecks that limit overall throughput.
- Investing in high-speed extraction washers can significantly reduce moisture content in fabrics, subsequently decreasing drying times and accelerating the entire process cycle.
- Meanwhile, modern tunnel washers can also transform your operation by offering continuous processing capabilities, meaning substantially higher volumes compared to traditional batch systems. These systems can process 2,000 to 6,000 pounds per hour, depending on configuration, dramatically improving PPOH metrics when properly implemented.
- Automated material handling systems further enhance efficiency by eliminating manual transportation delays between processing stages. Conveyor systems, automated sorting equipment, and robotic folding machines reduce labor dependency while maintaining consistent processing speeds throughout operational hours.
Workflow Process Engineering
Now, you might be thinking, "I don't have the budget for a massive equipment upgrade rollout right now!"
That's fair ... luckily, there are a number of other things you can do to improve PPOH without shelling out a hefty sum of cash for equipment upgrades.
Here are a few ways to improve PPOH as it related to your processes:
- Strategic workflow redesign can yield immediate PPOH improvements without substantial capital investment. Implementing lean manufacturing principles helps identify and eliminate non-value-added activities that consume time without contributing to productive output.
- Creating dedicated processing lanes for different fabric types prevents cross-contamination delays and allows specialized treatment protocols that optimize cycle times for specific materials. Heavy-duty items like towels and linens can follow accelerated wash cycles, while delicate garments receive appropriate gentler treatment without slowing down the entire operation.
- Batch sizing optimization ensures maximum machine utilization while preventing overloading that could compromise cleaning quality or damage equipment. Establishing standardized batch weights and compositions creates predictable processing times that facilitate better scheduling and capacity planning.
Advanced Scheduling and Labor Management
Every second an employee isn't actively working on something — in some cases, through no fault of their own — is a drag on PPOH.
- Sophisticated scheduling systems can dramatically improve PPOH by minimizing idle equipment time and optimizing human resource allocation. Implementing predictive scheduling based on historical demand patterns allows operations to anticipate peak periods and adjust staffing levels accordingly. Just like the baseball analogy mentioned earlier, a commercial laundry environment is just like a sports team in that sometimes it's just about putting your players (employees) in the right places to succeed at the right time.
- Cross-training employees across multiple processing stages creates operational flexibility that prevents bottlenecks when individual team members are unavailable. (If we're going back to the baseball diamond, think about utility players who can play multiple positions.) Skilled operators who can efficiently manage washing, drying, and finishing processes maintain consistent throughput rates regardless of staffing fluctuations.
- Performance-based incentive systems encourage employees to maintain high productivity standards while ensuring quality requirements are met. Establishing clear PPOH targets and providing regular feedback helps create a culture of continuous improvement throughout the organization. This is a big way managers can help drive PPOH. You can read how one Spindle customer used an incentives program as a tool to drive productivity.
Technology Integration and Data Analytics
Modern commercial laundries benefit tremendously from integrated management systems that provide real-time visibility into operational performance. (That very idea, plus the collection of various "islands" of data in plants, eventually led to the founding of Spindle in 2007.)
These platforms track individual machine utilization rates, cycle times, and throughput metrics, enabling managers to identify improvement opportunities quickly.
- Predictive maintenance programs prevent unexpected equipment failures that can severely impact PPOH. By monitoring machine performance indicators and scheduling proactive maintenance, operations avoid costly downtime that disrupts processing schedules and reduces overall efficiency.
- RFID tracking systems enhance inventory management and customer service while providing detailed data about processing times for different item categories. This information enables continuous refinement of operational procedures and helps identify specific areas where PPOH improvements are most achievable.
In a nutshell, there is a vast treasure trove of data points in a laundry plant, almost all of which in some way feed into PPOH.
From proper inventory management to making sure your equipment is in tip-top shape, data and technology can help you stage the working environment you need to hit the PPOH laundry KPI.
Quality Management and Customer Relationships
Implementing robust quality control measures actually improves PPOH by reducing rework requirements. When items are processed correctly the first time, operations avoid the time-consuming reprocessing that diminishes overall hourly productivity.
For many commercial laundries, they're targeting rewash rates below 3%. When rewash rates climb, efficiency drops. If anything, an excessively high rewash rate is like a blaring warning siren indicating your processes need improvement.
- Standardizing chemical formulations and treatment protocols ensures consistent results while optimizing cycle times. Proper chemical management reduces excessive rinse cycles and prevents fabric damage that requires additional handling time.
- On the customer service side, building strong customer relationships that emphasize realistic delivery expectations allows operations to optimize processing schedules without compromising service quality. Customers who understand operational constraints are more likely to accept delivery schedules that align with peak efficiency periods.
Continuous Monitoring and Improvement
It's time for the full circle moment.
Earlier in this article, we noted the importance of starting the road to improvement by understand PPOH as a laundry KPI and then taking steps to improve, the first of which is monitoring data trends coming out of your operations.
We can't emphasize this enough: it's never to late to start monitoring.
With that said, every day you don't monitor is a day lost that you can't recover, a day's worth of data that will never be archived in your historical data repositories and you won't be able to see it in any long-term trend analysis.
Establishing regular PPOH monitoring protocols enables quick identification of performance trends and potential issues. Daily, weekly, and monthly reporting systems provide the data foundation necessary for making informed operational decisions.
Regular benchmarking against industry standards and competitor performance helps identify areas where additional improvements are possible. Understanding market expectations ensures that PPOH targets remain both challenging and achievable. For example, earlier we mentioned many laundries target a rewash rate of no more than 3%. With that said, that can change by industry. Whatever your laundry's situation may be, having a target to work toward is a key step toward making it happen.
In some ways, PPOH is a lot like life: PPOH improvement is an ongoing process rather than a one-time initiative. You've got to put in the work over time. That means consistently seeking new technologies, processes, and strategies that enhance operational efficiency while maintaining service excellence.
But if you do those things and commit to learning and implementing new things for the sake of your laundry?
You're looking at a long run of happy and healthy years ahead for your laundry, with a steadily rising PPOH as proof.
With that said, a rising PPOH is an end goal, not a process: like life, it's about the journey. You've got do things, big and small (including but not limited to the suggestions listed above), along the way to make it happen.
By doing those things, you're not just paving the way for a healthier PPOH: you're building a stronger, healthier version of your laundry.
Want to learn more about how you can improve this vital laundry KPI in your plant? Schedule a demo to see how you can do it with Spindle.
