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As an employee, manager and custodian of the system, My goal has been to outline
key factors to consider when evaluating the cost effectiveness of processing (washing
& dry cleaning ) uniform in house or to outsource this facility. The decision to avail
outsourcing laundry & Dry cleaning functions requires a lot of research. There are
many advantages and disadvantages that require brainstorming as to whether
outsourcing is necessary for the organization or whether the idea is just the result of
trend. On the brighter side an outsourcing laundry function is the answer to the
need for clean cloths in less time, less cost and less effort, however market
intelligence information and data reveals that On-premise laundry is more
economical and ensured a ready supply of textiles (uniform) when needed. Apart
from carefully studying the whole document one must consider critical aspects
provided in last page which form basis of any decision.
Description Details
1. Water.
We are consuming 6000 Gallon ( approx. ) per day to perform washing function. If
LIEDA water supply is available then the cost of water per month would be
Rs.15,600/- ( 6000 X 0.10 paisa X 26 ), But in case of water tanker supply is using
then this cost will be increased 160% and amount will be Rs.40,000/-
2. Fuel.
An essential cost to be borne by the whole operation is the cost of electricity and Gas.
The monthly fuel expenses are estimated for laundry section is Rs.25,000/- & Rs.
5,000/= respectively. Moreover, these utilities are not metered separately and as a
result, it is impossible to monitor their actual cost in relation to the laundry.
3. Capital Cost.
Another essential cost for running laundry & Dry cleaning is capital cost i.e
Machinery and equipment. The monthly cost is Rs. ( Total amount / life
expectancy in year /12 ).
Operational Cost
Labour Cost
Salary & Wages ………..………………………….
64,401
Overtime Amount…………………………………
8,800
BESSI Amount………..……………………………
3,864
EOBI Amount………..……………………………
3,864
Lunch & Tea expense ( @ Rs.99 x 26 x 5 )………