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Glidewell Dental Laboratory

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					                                              Microsoft Dynamics
                                              Customer Solution Case Study




                                              Dental Laboratory Eliminates Manual Payroll
                                              Inefficiencies with Integrated Solution




Overview                                      “Once we implemented the HR and Payroll modules
Country or Region: United States
Industry: Life sciences—Medical devices
                                              for Microsoft Dynamics GP, we were able to instantly
                                              redeploy 80 percent of our payroll department
Customer Profile
Glidewell Laboratories serves more than
                                              employees from processing tasks to financial
10,000 dental offices across the United       planning and analysis.”
States with high-quality restorative and
                                              Glenn Sasaki, CFO, Glidewell Laboratories
cosmetic dental products, and employs
2,500 staff in four states.
                                              Glidewell Laboratories is well known in dental offices for its high-
Business Situation                            quality bridges, crowns, dentures, and other dental products. The
Because the company’s Sage Abra payroll
solution could not accommodate                company relies on a piecework compensation model for 1,500
Glidewell’s complex payroll requirements,     technicians, but could not accommodate that complexity in its Sage
employees compiled weekly reports by
hand, which required additional levels of     Abra payroll software. Glidewell replaced Sage Abra with Microsoft
quality control and additional staff.         Dynamics® GP to tie together and automate its payroll and financial
Solution                                      accounting processes. Microsoft® Gold Certified Partner
With help from Microsoft® Gold Certified      Systematica helped Glidewell implement an integrated solution so
Partner Systematica, Glidewell
implemented an integrated payroll, human      that all employee time and production information is captured and
resources, and financial management           processed digitally, saving more than half a million dollars annually
solution based on Microsoft Dynamics® GP.
                                              and providing managers with deeper insight into labor and
Benefits                                      production costs. In addition, the company will be able to provide
 More than half a million dollars annually
  in savings                                  employees with self-service access to benefits and paycheck
 Better-informed decision making             information online.
 Greater employee satisfaction
 Reduced payroll processing from three
  days to one day
“From a human                                Situation                                         company’s payroll department spent an
                                             More than 10,000 dentist offices across the       inordinate amount of time collecting
resources                                    United States trust Glidewell Laboratories to     timesheet information from the 1,500
administrator’s point of                     provide high-quality restorative and cosmetic     technicians and 1,000 other employees, and
                                             dental products, such as bridges, crowns,         then calculating pay based on their individual
view, I appreciate how                       and dentures. Established in 1970, Glidewell      locations and circumstances.
Microsoft Dynamics GP                        has risen to the top of the dental laboratory
                                             industry by employing state-of-the-art            The Sage Abra system that Glidewell used for
tracks an employee’s                         technology and an incentive-based                 payroll processing was too inflexible to
entire history with the                      compensation model whereby more than              account for the idiosyncrasies of the
                                             1,500 manufacturing technicians are paid for      piecework compensation model and different
company, from their                          the quantity and quality of their work.           state minimum-pay requirements. Instead,
application on through                       Altogether, Glidewell employs 2,500               payroll department employees compiled
                                             employees in California, Nevada, Arizona,         information and performed the complex
their career at                              Florida, Costa Rica, and Mexico.                  calculations in a spreadsheet maintained
Glidewell.”                                                                                    outside of the payroll system. When they were
                                             Although the piecework approach to                finished calculating information, payroll
Stephenie Goddard, Vice President of Human   compensation helps Glidewell provide high-        employees converted the spreadsheet into
Resources, Glidewell Laboratories            quality products at good value, it creates an     specially prepared tables and uploaded the
                                             extremely complicated payroll model. The          data into the payroll system.
                                             company calculates technicians’ pay based
                                             on the quality and quantity of pieces finished.   “Our payroll department manually entered
                                             In addition, because technicians work from        timesheet information and reports from our
    Glidewell employs 1,500                  different states and in three countries, they     production system into a massive
    technicians who manufacture              are subject to varying requirements for           spreadsheet that had hundreds of tabs,” says
    high-quality dental products.            minimum pay as well as local taxes. The           Stephenie Goddard, Vice President of Human
                                                                                               Resources at Glidewell. “This was done every
                                                                                               week for 2,500 employees.”

                                                                                               Glidewell wanted to automate its payroll
                                                                                               process—including time spent compiling
                                                                                               information and resolving errors—and
                                                                                               eliminate the waste caused by manual data
                                                                                               entry and calculations. In addition, the
                                                                                               company needed greater flexibility from its
                                                                                               payroll system to more easily account for
                                                                                               labor regulations in different states where
                                                                                               Glidewell employs technicians. Sage Abra
                                                                                               also limited how Glidewell could account for
                                                                                               mixed pay rates in the same pay period—this
                                                                                               meant that payroll employees had to
                                                                                               manually calculate pay for employees who
                                                                                               took paid vacation and worked during the
                                                                                               same week.

                                                                                               In addition, the company wanted to integrate
                                                                                               its payroll system with Microsoft Dynamics®
                                                                                  payroll requirements, including accounting for
                                                                                  the employment laws in the states that we
                                                                                  operate in,” says Goddard. “Now, time and
                                                                                  production information is captured digitally
                                                                                  and flows through the company from the
                                                                                  timecard and production systems, to payroll,
                                                                                  and to accounting. It has dramatically
                                                                                  increased efficiencies in our payroll
                                                                                  department and enabled our management to
                                                                                  get a real-time view of our operations.”

                                                                                  Integrated System for Payroll
                                                                                  Keeping in mind its goal of eliminating waste,
                                                                                  Glidewell worked with Systematica to plan a
                                                                                  more efficient paperless process for tracking
                                                                                  employee production and time worked.
                                                                                  Systematica assisted with the installation of a
                                                                                  new timecard system that ensures more
                                                                                  accurate information through biometric
                                                                                  identification. Instead of producing paper
Glidewell dramatically            GP, which Glidewell used for financial          forms like the old system, the new timecard
streamlined its payroll process   management. “It’s very important for us to      system automatically routes information to
with Microsoft Dynamics GP.       have good communication between our             managers for approval. Once approved, the
                                  payroll and accounting departments. When        data moves into the payroll system through
                                  we calculated departmental profit and loss      an integration solution from Scribe Software.
                                  statements, for example, we needed to make
                                  sure that all the costs associated with         Systematica configured Microsoft Dynamics
                                  transferred employees would move with           GP to calculate compensation for Glidewell
                                  them,” says Goddard.                            technicians based on the quality and quantity
                                                                                  of units produced and time worked. In
                                  Solution                                        addition, Systematica added payroll rules to
                                  After considering its options, including        automatically handle overtime calculations,
                                  building customizations and integrations to     various state employment laws, and mixed
                                  its existing Sage Abra system, Glidewell        pay-rate calculations. Because Glidewell now
                                  decided to add the Advanced Payroll and         handles payroll and accounting in the same
                                  Advanced Human Resources modules to its         system, the payroll department can post
                                  implementation of Microsoft Dynamics GP.        payroll and accruals immediately for review
                                  Working with Microsoft® Gold Certified          by the accounting department. This
                                  Partner Systematica, Glidewell estimated that   eliminates potential misallocation of costs
                                  the new integrated system would reduce          across departments when employees transfer
                                  inefficiencies, leading to more than half a     and provides management with a real-time
                                  million dollars in savings in the first year    view of the impact of payroll on the
                                  alone.                                          company’s financials.

                                  “With help from Systematica, we were able to    Glidewell takes advantage of the flexibility in
                                  configure Microsoft Dynamics GP to account      the new payroll solution to cater to employee
                                  for our unique compensation model and           requests. “Sage Abra did not let us disburse
                                             payments to multiple employee bank               and production costs than ever before,” says
                                             accounts, but now we can do that with payroll    Goddard.
                                             in Microsoft Dynamics GP,” says Goddard.
                                             “Even though it’s a small detail from our end,   Benefits
                                             it means a lot to some of our employees who      Glidewell aims to transform the dental
                                             want to put money into an education fund, for    laboratory industry, and now the company
                                             example.”                                        has the systems in place to optimize its
                                                                                              innovative piecework compensation model.
                                             Employee Self-Service                            With Microsoft Dynamics GP bridging payroll,
                                             Glidewell is implementing a portal based on      human resources, and financial accounting,
                                             Microsoft Office SharePoint® Server where        Glidewell improves insight into business
                                             employees can go to view their benefit           performance, the efficiency of its business
                                             details, print paystubs, and submit forms for    processes, and employee satisfaction. In
                                             time-off requests and departmental transfers.    addition, by adopting a more flexible and
                                             Managers can also submit pay changes             integrated payroll system, Glidewell saves
                                             through the same portal. By moving these         more than half a million dollars in payroll
                                             processes online, Glidewell human resources      processing annually and can assign its payroll
                                             staff can spend more of their time helping       department to more strategic tasks.
“We’ve transformed our                       employees and managers with more complex

payroll department from                      issues. “Employee self-service will make us
                                             much more strategic in how we operate,”
                                                                                              “Once we implemented the HR and Payroll
                                                                                              modules for Microsoft Dynamics GP, we were
data-entry workers into                      says Goddard. Glidewell will use the portal to   able to instantly redeploy 80 percent of our

business analysts.”                          improve employee communications. “We
                                             used to print important announcements and
                                                                                              payroll department employees from
                                                                                              processing tasks to financial planning and
Stephenie Goddard, Vice President of Human   include them with employees’ paper               analysis,” says Glenn Sasaki, CFO at
Resources, Glidewell Laboratories            paystubs, but now we can offer much more         Glidewell. “By automating piece-pay
                                             detailed information online, and in Spanish,     computations, we also reduced the number
                                             Chinese, Vietnamese, and Korean,” says           of days required to process weekly payroll
                                             Goddard.                                         from three days to a little more than one
                                                                                              day.”
                                             Daily View of Production and Labor
                                             With integrated production, timekeeping,         More Than Half a Million
                                             payroll, and financial management systems,       Dollars Annually in Savings
                                             Glidewell managers can analyze production        By automating payroll, Glidewell saves more
                                             and labor data more frequently and in more       than half a million dollars each year. “Our
                                             detail. Previously, the payroll department       technicians check in with biometric
                                             provided static reports every week—and then      identification and scan their finished pieces
                                             only at a very high level. Systematica set up    into the production system, so the data is
                                             dynamic reports that pull the latest             captured automatically,” says Goddard.
                                             information from Microsoft Dynamics GP so
                                             that managers can easily conduct as-needed       Glidewell will save an additional U.S.$30,000
                                             analysis for entire departments,                 annually by moving the distribution of
                                             subdepartments, individual employees, types      paystubs, technician compensation reports,
                                             of employees, or product types. “We were         and various human resources forms to its
                                             able to mirror our organizational structure in   online employee self-service portal,
                                             the payroll and financial system so that         dramatically streamlining workflows in the
                                             managers could dig much deeper into labor
human resources department and reducing           their daily piece-rate,” says Goddard. “And,
the amount of paperwork.                          when we implemented Microsoft Dynamics
                                                  GP for our payroll process, we uncovered
Glidewell was also able to reallocate 80          some slight inconsistencies in our work shift
percent of its payroll department employees       and benefit accrual policies across
to more strategic tasks, essentially boosting     departments that were difficult to see
the return on investment of the new system        before.”
by the cost of employing the redeployed
payroll staff. “We’ve transformed our payroll     Employees also will have improved access to
department from data-entry workers into           benefits information and human resources
business analysts,” says Goddard. “It’s soft      through the online portal. Similarly, the
cost savings as opposed to hard cost savings,     interface for Microsoft Dynamics GP makes it
but it’s still very significant nonetheless       easier for human resources staff to view
because we are adding much more value to          employee profiles by consolidating that
the company.”                                     information in one place. Says Goddard,
                                                  “From a human resources administrator’s
Better-Informed Decision Making                   point of view, I appreciate how Microsoft
Equipped with real-time information into labor    Dynamics GP tracks an employee’s entire
and production, departmental and human            history with the company, from their
resources managers at Glidewell can make          application on through their career at
better decisions about how to best deploy         Glidewell.”
their employees. “The human resources
department is now much better positioned to
help management with their strategic hiring
needs,” says Goddard. “We have the insight
to discuss with them about possibly
transferring people from another department
instead of recruiting from outside, for
example.”

The integrated payroll and financial
accounting system enables managers to
analyze departmental profit and loss so that
they can take any necessary corrective
actions sooner. For example, employee
overtime is highlighted so that managers can
identify and prevent potential cost overruns.

Greater Employee Satisfaction
Glidewell now offers an even more
transparent process to its technicians who
are paid on a piecework basis; this helps
Glidewell treat its employees fairly across the
company. “With our new automated payroll
system, employees have more information
regarding their compensation because they
can run reports on a daily basis and calculate
For More Information                                            Microsoft Dynamics
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For more information about Glidewell                            and technologies, increasing the productivity
Laboratories products and services, call                        and effectiveness of your business, and
(800) 854-7256 or visit the Web site at:                        helping you drive business success.
www.glidewelldental.com
                                                                For more information about Microsoft
For more information about Systematica                          Dynamics, go to:
Inc. products and services, call (562) 366-                     www.microsoft.com/dynamics
0827 or visit the Web site at:
www.systematicainc.com




                                                                 Software and Services                           Partners
                                                                  Microsoft Dynamics                             Systematica Inc.
                                                                   − Microsoft Dynamics GP                        Integrity Data
                                                                  Microsoft Office                               Greenshades Software
                                                                   − Microsoft Office SharePoint Server           Binary Stream Software
                                                                                                                  Scribe Software


This case study is for informational purposes only. MICROSOFT
MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS
SUMMARY.

Document published May 2009

				
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