10 Ways to Decrease Cost Per Sample in Your Laboratory
There are several ways to reduce the cost per sample in a throughput laboratory. In this article, we examine some of the easier ways to reduce your sample. Investing the time into being smarter and leaner can have great outcomes for your labware, giving it a competitive edge to scale into the future.
Increase sample numbers with existing resources
Capitalise on fixed costs such as wages and rent. Look at ways to increase your sample numbers to optimise the laboratory process. Your throughput process can be underutilised directly resulting in a high cost per sample. Boosting sample throughput can pressurise your resources and consequently lower the cost per sample. The biggest contributor in this lever is employer wages as it more likely pays a similar rate if staff are working at 50% capacity or 90% capacity. Rent is also a fixed cost, optimising your space won’t necessarily increase the rent per square metre, unless this is increased also.
Increase staff output through efficiencies & workflow
Assess all workflows and processes within your laboratory space. Are there clear lines of flow? Are there cross-hairs in your spaghetti diagram? These are most likely inefficiencies that directly result in slowing your process down. Look at how you can optimise your internal space to ensure it is best utilised to reduce waste such as motion. Perform time and motion studies before and after a process to see how averages can be reduced. This will have a direct effect on the reduction of cost per sample.
Reduce the cost of rent or facility
The current rent of your footprint is generally a fixed cost, whether you are running at 50% capacity or 100% capacity. Negotiate with your landlord to see if these costs can be reduced. Look at a long-term lease agreement to assist with the reduction of the lease. Look at the relocation of your facility to a more economical location to assist with the reduction of cost per square metre. Keep in mind your client’s geographic while considering the geography of current employees.
Decrease the average cost of inventory
Consider a strategic partnership with companies who will assist you with your purpose. Run a tender with your current consumable list considering items of utmost importance such as average delivery time, speed of service and cost of goods. Provide average annual volumes to suppliers so they can assist with economies of scale. Consider a valet store that a supplier can manage to assist you with a reduction of internal resources. Keep table on you P and L periodically to ensure your cost targets are being met.
Decrease laboratory footprint
Is your laboratory too big? Are you underutilising areas of your laboratory that could be handed back in view of a reduction in rent? A footprint that is too big can also lead to unnecessary motion of staff resulting in waste. Look at downgrading laboratory size if it is substantially underutilised. Laboratory staff may not always be happy with this concept, but it can have some direct results on cost per sample.
Decrease number of employees
This is a sensitive topic. Do you have any staff that are not being fully utilised? Is every staff member contributing to your purpose? Can staff be decreased through divisions of labour and economies of scale? Look at every staff member and how they contribute to the purpose of the laboratory. Are they adding or subtracting to your throughput? Can the role be automated to increase accuracy and speed?
Invest in automation
Look for automation opportunities in your industry. What process can you automate with technology to increase speed and accuracy? Network with other leading laboratory groups in your industry and look at how they are investing in automation to leverage reduction of cost per sample. Think outside your nation. Ideas can come from many parts of the world. Look at leading countries in automation and consider trade shows and automation exhibitions to assist with the stimulation of ideas.
Leverage your economic denominator
Identify and leverage your economic denominator. What is your number? Is it the right number? Can this number be improved over two or more set periods? Can your number be publicised into multiple laboratories to assist with competitive leveraging of efficiencies? Understand your number and use it to gain a competitive edge in your industry through the reduction of cost per sample.
Publicise your KPI scoreboards
Visual management is powerful. Does your staff know if you are winning or losing? Would they be interested in how your other labs are staking up against them? Publicise your output with actual and targets to provide a benchmark. Healthy competition between laboratories is a great way to leverage outcomes. Reward laboratory teams on results based on the reduction of cost per sample. Live dashboards and visual dashboards are a great way to get employees to buy-in to your purpose and program.
Consider the division of labour
Divisions of labour is a powerful lever that can greatly assist with the reduction of cost per sample and is applicable to economies of scale. Large and successful third party laboratory providers use divisions of labour to optimise the workflow of samples rather than staff. A common term in the industry is “Sample is King” How can you get a sample through in the quickest possible time without jeopardising the accuracy of the test method? Looking at your process in divisions is an intelligent method to reduce cost per sample.
