KANBAN Solution

5page_img3b

Kanban – this Japanese word meaning “card” or “ticket” has been adapted by Business as a signaling system to trigger action. At HCSS, we implement inventory organization through a made-to-order 2-bin Kanban solution. How Kanban works:

  • Based on historical usage data, HCSS establishes initial PAR inventory levels to ensure stock for a given time period. Your PAR quantities are then placed into our high density storage units which are divided into two equally sized bins – Main and Backup.
  • As care-givers need supplies, they pull from the Main bin. Inventory techs review physical storage areas for empty Main bins and record them via handheld device. It’s a quick and easy way to spot what inventory is needed. As stock is replenished, Backup is moved first to Main, and then new supplies are placed in Backup.

Demand Signal

slide-11

A Kanban system is used as a demand signal that immediately propagates through the supply chain. This can be used to ensure that intermediate stocks held in the supply chain are better managed, usually smaller..