In hospitals and industry, stockouts and overstocks are frequent. This is due to the fact that every product may be counted in order to ascertain inventory, either no inventory system is used or the PAR program. In stead of PAR it is a great opportunity to improve inventory management by using a 2-Bin kanban system.
Kanban is a visual tool that plays an important role in Lean Manufacturing, often in conjunction with Just in Time - JIT. The word Kanban itself means 'visual' ('kan') and 'sign' ('ban') and it is a well-established signaling system widely used in the manufacturing industry. By using cards or signs to indicate when specific needs, such as parts, are required on the shop floor, the Kanban principle provides a simple yet highly efficient system for large organizations to work with (Pull orientation). This simplicity is the key to its success. Although there are different types of Kanban, the fundamental principle remains the same: receiving a Kanban signal always triggers an entity to take action, produce or supply. The ultimate goal of the Kanban system is to reduce intermediate stocks in the chain.
Healthcare supply chain
Since inventory and supply chain management account for a sizeable portion of the hospital's budget( We have seen up to 1/ 3), efficient hospital supply rooms are crucial. The daily operations of hospital personnel are heavily reliant on supply rooms, so increasing staff efficiency may enhance hospital operations as a whole. We underastand from the projects we executed that nurses spend a lot of time looking around for items that aren't there or just taking supplies from the supply rooms in the adjacent ward (that runs out od stock itself).