kanban - riverside medical center · 2017-09-06 · kanban card. •kanban cards should be labeled...

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Kanban for Inventory Management

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Page 1: Kanban - Riverside Medical Center · 2017-09-06 · Kanban card. •Kanban cards should be labeled with: item name, number to restock, when to restock, and the location of more. Sample

Kanbanfor Inventory

Management

Page 2: Kanban - Riverside Medical Center · 2017-09-06 · Kanban card. •Kanban cards should be labeled with: item name, number to restock, when to restock, and the location of more. Sample

Objectives

After completing this training, the learner will

be able to:

• Understand how to use Kanban to manage

inventory and inventory replenishment

• Know what is needed to begin a Kanban

program in their department

Page 3: Kanban - Riverside Medical Center · 2017-09-06 · Kanban card. •Kanban cards should be labeled with: item name, number to restock, when to restock, and the location of more. Sample

What is Kanban?

Kanban is the Japanese word for

signal. The Kanban system is a

method for managing inventory.

Page 4: Kanban - Riverside Medical Center · 2017-09-06 · Kanban card. •Kanban cards should be labeled with: item name, number to restock, when to restock, and the location of more. Sample

What is Kanban?

Kanban is a just-in-time

pull system where items

are replenished at the rate

they are consumed. It is

low-tech and highly visual.

Page 5: Kanban - Riverside Medical Center · 2017-09-06 · Kanban card. •Kanban cards should be labeled with: item name, number to restock, when to restock, and the location of more. Sample

Why Kanban?• Prevents carrying excessive inventory

• Prevents stockouts/emergency stock

orders

• Forces stock rotation to reduce inventory

expiration

• Requires less effort to manage inventory

• Creates standardization

Page 6: Kanban - Riverside Medical Center · 2017-09-06 · Kanban card. •Kanban cards should be labeled with: item name, number to restock, when to restock, and the location of more. Sample

Kanban vs. Par Level

Let’s compare the Kanban

method of inventory

management to the

traditional Par level method

in a short exercise.

Page 7: Kanban - Riverside Medical Center · 2017-09-06 · Kanban card. •Kanban cards should be labeled with: item name, number to restock, when to restock, and the location of more. Sample

Kanban vs. Par Level

Did you see differences

between the two methods?

Which method appeared to

have the most benefits?

Page 8: Kanban - Riverside Medical Center · 2017-09-06 · Kanban card. •Kanban cards should be labeled with: item name, number to restock, when to restock, and the location of more. Sample

Kanban = signal

• The signal in this system is a

Kanban card.

•Kanban cards should be labeled

with: item name, number to

restock, when to restock, and the

location of more

Page 9: Kanban - Riverside Medical Center · 2017-09-06 · Kanban card. •Kanban cards should be labeled with: item name, number to restock, when to restock, and the location of more. Sample

Sample Kanban Cards

Page 10: Kanban - Riverside Medical Center · 2017-09-06 · Kanban card. •Kanban cards should be labeled with: item name, number to restock, when to restock, and the location of more. Sample

Kanban System

Page 11: Kanban - Riverside Medical Center · 2017-09-06 · Kanban card. •Kanban cards should be labeled with: item name, number to restock, when to restock, and the location of more. Sample

Lab Storeroom

To

be

ord

ere

d

On

Ord

er

Page 12: Kanban - Riverside Medical Center · 2017-09-06 · Kanban card. •Kanban cards should be labeled with: item name, number to restock, when to restock, and the location of more. Sample

2-Bin System

Page 13: Kanban - Riverside Medical Center · 2017-09-06 · Kanban card. •Kanban cards should be labeled with: item name, number to restock, when to restock, and the location of more. Sample

2-Bin System

Empty bins are

placed on top of shelf

Kanban cards are

placed in pocket

Page 14: Kanban - Riverside Medical Center · 2017-09-06 · Kanban card. •Kanban cards should be labeled with: item name, number to restock, when to restock, and the location of more. Sample

2-Bin vs. Kanban Card

2-Bin System

• More error-proof

(small cards can be

lost or moved out of

place)

Kanban Card System

• Uses less space

• Costs less to

implement

Page 15: Kanban - Riverside Medical Center · 2017-09-06 · Kanban card. •Kanban cards should be labeled with: item name, number to restock, when to restock, and the location of more. Sample

Data needed to start

using a Kanban system:

•Number/type of items in inventory

•Consumption rate – how many are

used in a day/week/etc.

•Replenishment Timeframe – how

long does it take to get more stock

Page 16: Kanban - Riverside Medical Center · 2017-09-06 · Kanban card. •Kanban cards should be labeled with: item name, number to restock, when to restock, and the location of more. Sample

Data is entered into an Excel

template, which is then used to

generate Kanban cards and bin

labels.

Page 17: Kanban - Riverside Medical Center · 2017-09-06 · Kanban card. •Kanban cards should be labeled with: item name, number to restock, when to restock, and the location of more. Sample

Information Found in Riverside

Storeroom Supply Catalog

Page 18: Kanban - Riverside Medical Center · 2017-09-06 · Kanban card. •Kanban cards should be labeled with: item name, number to restock, when to restock, and the location of more. Sample

Restock Math

Page 19: Kanban - Riverside Medical Center · 2017-09-06 · Kanban card. •Kanban cards should be labeled with: item name, number to restock, when to restock, and the location of more. Sample

When

implementing

Kanban, use

5S to help

organize stock.

Page 20: Kanban - Riverside Medical Center · 2017-09-06 · Kanban card. •Kanban cards should be labeled with: item name, number to restock, when to restock, and the location of more. Sample

5S Workplace Organization

• Sort = dispose of unneeded/expired stock

• Straighten = organize by use, things that are used most often should be at waist or eye-level

• Shine = light cleaning

• Standardize = choose the best layout and label workspace

• Sustain = audit to ensure organization is being maintained

Page 21: Kanban - Riverside Medical Center · 2017-09-06 · Kanban card. •Kanban cards should be labeled with: item name, number to restock, when to restock, and the location of more. Sample

Use the

PDCA cycle

to adjust

your system

as use

begins.

Page 22: Kanban - Riverside Medical Center · 2017-09-06 · Kanban card. •Kanban cards should be labeled with: item name, number to restock, when to restock, and the location of more. Sample

Kanban Roll-Out Plan

Gather Information – Item Name, Ordering Details, Usage Data

Create Kanban Cards, Determine Where to Use Bins vs. Cards

5S and Organize the Location

Audit and Adjust

Page 23: Kanban - Riverside Medical Center · 2017-09-06 · Kanban card. •Kanban cards should be labeled with: item name, number to restock, when to restock, and the location of more. Sample

If you have any questions or

would like to learn more

about Lean at Riverside, feel

free to contact me:Sara Meyer

Lean Educator

[email protected]

(815)935-7256 x6392