Meeting the Needs of DSOs in the Lab

"If you don't have a way to scale, you will have difficulty being competitive. If you're not fully immersed in digital technology today, you have no shot. You can't work with a DSO," said Joshua Polansky, owner of Niche Dental Studio in Voorhees, NJ.

DSOs require a more structured approach and have measurable performance goals, whereas the independent lab is typically "managed according to the whims of the owner(s)," said Bob Yenkner, owner of Practical Process Improvement in East Hampton, Connecticut.

One of the biggest challenges in any laboratory is ensuring a smooth and efficient workflow, according to Yenkner. Many traditional labs still operate with inefficiencies due to poor layout, outdated processes, and excessive technician movement. Addressing these issues is critical to increasing productivity and reducing turnaround time.

Technician movement in labs is often a significant contributor to non-value-added time. With each unnecessary step or action, a technician takes time away from productive work. To address this, labs should start by assessing the flow of people and products within the lab. This can be done by observing daily operations and documenting every instance of technician movement that doesn't directly contribute to the final product.

Once this data is collected, the lab can work on reconfiguring the workspace to minimize these unnecessary movements. Yenkner suggests the following:

• Remove unused equipment from prime workspace areas:Labs may accumulate equipment not used regularly over time. Removing this equipment from high-traffic areas allows technicians to access tools and materials more efficiently.

• Combine sequential steps into one workspace:Combining multiple steps in a production process into a single workstation can reduce the need for technicians to move between different areas of the lab. This saves time and reduces the likelihood of errors during handoffs.

• Remove non-structural walls or barriers:In some cases, the physical layout of the lab may create unnecessary barriers. Removing non-structural walls or partitions can open the workspace and improve flow.

Another critical aspect of improving lab efficiency is cross-training employees to perform multiple tasks. In many labs, technicians are highly specialized, performing only one or two steps in the production process. While specialization can lead to expertise in certain areas, it creates bottlenecks when specific technicians are unavailable or overloaded.

With the rapid pace of technological advancements, labs that fail to adopt digital tools will need help to compete, especially as DSOs and independent dental practices increasingly prioritize speed, quality, and efficiency. "The objective is to get the product out the door, touched by a technician as little as possible," said Yenkner.

He noted that traditional dental labs rely heavily on manual processes, such as hand-crafted crowns and bridges requiring highly skilled technicians. While these techniques can produce high-quality results, they are time-consuming, labor-intensive, and difficult to scale. Additionally, the rising costs of labor and materials make it increasingly challenging for traditional labs to remain profitable.

With tools like digital scanners, CAD/CAM (computer-aided design/computer-aided manufacturing) systems, and 3D printers, labs can produce dental prosthetics with incredible speed and precision than ever before. "Younger employees who understand the technology can really level the playing field. Digital technology has had a massive impact on our industry, both for high-end and lower-end labs," said Polansky.

Yenkner laid out several wins of embracing digital technology.

1. Increased Output per Employee: Digital tools significantly increase the number of products a single technician can produce. For example, a CAD/CAM system can automate the design and manufacturing of crowns and bridges, allowing technicians to focus on quality control and finishing rather than manual production.

2. Improved Accuracy and Con-sistency: One of the main benefits of digital technology is the ability to produce products with high accuracy and consistency. Scanning technology, for instance, captures precise measurements of a patient's teeth, reducing the likelihood of errors and the need for costly remakes. This improves patient satisfaction and reduces waste and rework costs for the lab.

3. Reduced Turnaround Time: Traditional dental labs often have longer turnaround times due to the manual nature of their work. With digital technology, labs can significantly reduce production times. For instance, a digital impression can be sent to the lab immediately after being taken by the dentist, allowing the lab to begin production almost instantly. Similarly, 3D printing enables the rapid production of prosthetics, often in a fraction of the time it would take using traditional methods.

4. Lower Labor Costs: By automating many of the labor-intensive processes involved in dental production, digital technology allows labs to reduce their reliance on skilled technicians. While there will always be a need for trained technicians, digital tools enable labs to do more with fewer people, helping to offset rising labor costs.

5. Scalability: As DSOs grow and demand more from their lab partners, the ability to scale operations becomes increasingly essential. Digital technology enables labs to increase output without a corresponding increase in labor or overhead costs. This scalability is critical for labs looking to work with large DSOs or expand their operations.

"In a way, the DSO landscape creates a clear divide between high-quality labs and lower-cost operations. The middle market is being squeezed out. If a lab can't scale, it's very difficult to stay competitive. It sounds harsh, but if you aren't fully immersed in digital technology today, you don't stand a chance," said Polansky.

While the benefits of digital technology are clear, there are also challenges that labs must overcome in the transition to digital workflows. One of the biggest challenges is the initial investment in digital equipment, noted Yenkner. High-quality scanners, CAD/CAM systems, and 3D printers can be expensive, and many smaller labs may need help to justify the upfront costs.

Yenkner noted that transitioning to digital workflows requires a significant shift in mindset and training. Lab owners and technicians who are used to traditional methods may resist change, particularly if unfamiliar with the new technology. Training is essential to ensure staff members are comfortable using digital tools and understand how to integrate them into their daily workflows.

Finally, while digital technology can improve efficiency, it also introduces new challenges in terms of maintenance and support, he said. Digital equipment requires regular maintenance to ensure it functions correctly, and labs may need to invest in additional support staff to handle any technical issues.

While efficiency and technology are critical, the foundation of any successful lab lies in its relationships with clients. Whether working with independent dental practices or large DSOs, labs must prioritize relationship-building, trust, and communication to win and retain business.

Winning DSO business comes down to three things, according to Yenkner. The first is building trust. Dentists like a "throat to choke" when there is a problem, he said. The second is quality. "Getting it right the first time puts any lab in good standing," he added. And, lastly, value. Labs often put too much emphasis on price when trying to win business. A solid sales presentation that is value-based is key.

Value includes the quality of the products produced and the level of service provided. For example, labs that offer fast turnaround times, reliable communication, and excellent customer service will likely build solid and lasting relationships with DSOs.

As DSOs continue to grow, labs must find ways to scale their operations to meet increased demand while maintaining high quality and service levels. Scaling a lab is not just about increasing production capacity - it also requires management, organization, and business strategy changes.

Many traditional labs are managed from the top down, with decision-making and technical knowledge concentrated in the hands of a few key individuals. While this approach may work for smaller operations, it can become a bottleneck as the lab grows, noted Yenkner. To scale effectively, labs must adopt a more decentralized management structure that empowers employees at all levels to make decisions and contribute to the business's success.

 "Train people to be decision-makers instead of coming to the few leaders for a decision. Spreading knowledge and authority provides stability and sustainability to the business," said Yenkner. This may involve creating more clearly defined roles within the lab, implementing better systems for tracking and managing workflows, and investing in training programs to ensure that all employees have the skills they need to succeed.

By investing in the right digital tools, labs can increase their production capacity without a corresponding increase in labor costs. Additionally, technology can help labs manage the complexities of working with larger clients by providing better systems for tracking orders, managing inventory, and ensuring quality control.

"It's not a matter of good or bad-it's more like adapt or die. If you don't adapt, it will catch up with you eventually," said Polansky. Whether you're going for high production or high quality, you must use technology in today's marketplace.