Materials management LEAN techniques

From HMCwiki

The following materials management LEAN techniques can help to substantially improve quality and cost. Overall it is important to create a LEAN materials management system with continuous flow, minimum but safe inventory levels, and one that automatically pulls needed supplies to the patient or end user with minimal delays.

[edit]

LEAN approaches

1. Map the materials management value streams. Identify total time, and value added time. Walk through and carefully observe all your processes. Then create continuous flow as much as possible eliminating delays and non-value added time and steps.

2. Consider Kanban supply replacement signals when possible. This may be a dual bin system. When one bin is empty, that’s the signal to refill based on the accompanying bin card. This can also be implemented electronically. Kanban cards are also a possibility.

3. Too many materials management departments don’t track inventory turns accurately enough and frequently enough. Be sure to achieve an acceptable benchmark like 12 to 20 turns a year. Identify the turns by area with their individual targets. Some best performers are achieving 24 inventory turns per year, and one can learn from them.

4. Create an materials management balanced scorecard to regularly monitor key indicators. These should include volume, productivity, financial, and quality measures. Be sure to include your patient and user satisfaction measures and your defect rates. When these indicators are in control, one can monitor less often.

5. Implement an improvement action plan with goals, target dates, and responsibilities.

6. Reduce duplication among redundant inventories. Identify all the duplications in inventory first.

7. Use smaller replenishment lots, and create a more continuous flow from suppliers to user departments.

8. Whenever possible have supplies bypass intermediate areas like SPD and go direct from suppliers or the main warehouse directly to the user.

9. Eliminate all forms of waste i.e.:

over production
incorrect utilization of staff
defects and rework
waits and delays, reduce total transportation as much as possible
reduce any unnecessary motions of individuals and equipment
reduce excess inventory
reduce excessive processing steps
any other non-value added activities for the final patient/customer

10. Form a performance improvement team of front line staff and key stakeholders to meet regularly to identify and implement positive changes. Study Kaizen improvement methods.

11. Create a visual work place where you can see all items as well as all the work being done.

12.Implement shelving that clearly shows the user when a supply is low. The size of the shelf bin would match the PAR level or make the reorder point clearly visible. Again consider a two bin system.

13. Improve all processes before proceeding with automation. Do a clear ROI analysis on any materials management automation or capital improvements.

14. Document all processes in a standard form. Even consider ISO 9000 type documentation. Clearly define/document standard work processes, and then do them in the way that you have documented. Verify that all employees know how to easily access these standard policies and procedures. Audit your compliance to the standard procedures.

15. Publish an materials management quick reference manual to identify where to get a particular item, etc. Distribute it to users.

[edit]

References and resources

These techniques were provided courtesy of Bob Chalice, who has more than 25 years experience in the healthcare operations environment and is the author of Rising Healthcare Costs Using Toyota Lean Production Methods.