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Laboratory Safety & Lab Efficiency

Laboratory Safety & Lab Efficiency

Kanban: What Is It And How Can It Help With Inventory Management of Lab Supplies?

Kanban, or the “Kanban system” is a planning method designed to manage workflow production at every stage to maximize efficiency, productivity, and ease of operation. Kanban systems use a categorized approach designed to reduce inefficiency and excess inventory in a move towards lean production.

What is Kanban?

If you’ve ever organized your weekly tasks by urgency and checked them off once they’re done, or listed your to-do’s on colored post-notes in your office - you’ve likely already applied the same principles that the Kanban method uses.

Kanban (看板) translates roughly to “signboard” or “visual sign” in Japanese, its origin language. Developed by Taiichi Ohno, a Toyota engineer, the Kanban system was used to improve manufacturing output at early Toyota factories. Employees would use physical signage to control each step of the production process, and these signs would indicate what was needed at each phase, and how much inventory needed to be replenished. The Kanban system evolved to become a particularly effective way to promote efficiency in production systems. As the technique became more widely used, it was adopted out of the automotive industry and implemented in places like software development, original equipment manufacturers, and supply industries.

The Kanban method relies on six core practices:

1: Visualization

2: Limiting Work-in-Progress (WIP)

3: Managing flow

4: Making policies explicit

5: Implementing feedback loops

6: Improving collaboratively / Evolving experimentally

The Kanban method can be implemented in lab supply inventory scheduling systems that notify companies to stock lab supplies only when they are needed in the production process. In the same way that a supermarket supplies its shelves to keep its inventory fresh and revolving as needed, the Kanban systems exist in places like lab supply industries with the same objective.

How can it help with Lean Medical Device and Electronics Manufacturing?

Kanban is similar to lean manufacturing in the way that they both reduce waste and optimize productivity. At its core, it seeks to cut down any extra time or product used to maximize efficiency. When supplying products for medical devices, the preciseness of the Kanban system minimizes waste and error. Lean manufacturing uses Kanban methods to signal when stock needs to be replenished on an as-used / as-needed basis. This allows for inventory levels to be kept as low as possible. The direct benefit to this for manufacturers working with products like medical devices or electronics is that it keeps inventory stock low, which reduces both costs and risks of product defectiveness. The longer a product sits in back stock, the more potential there is for that medical device or electronic equipment to become defective or out of commission. Also, too much inventory can increase storing costs and complicate production.

Advantages of Kanban Systems

Kanban is unique in that it consistently matches inventory with consumption. A supplier is signaled to produce when a product is consumed. Kanban’s minimalist-by-nature approach to low inventory allows companies to reduce their overall storage, which downsizes the cost of storing materials through their own expense as well as the cost of maintaining physical warehouse space.

The appeal of Kanban systems is that the methodology behind the practice can be executed in different ways and tailored to operations as needed. Any company can use one of the various Kanban methods to replenish inventory. For example, smaller scale lab supply operating companies can use the Kanban system on the production floor to replenish inventory stock by using signs, cards, or labeled bins to notify reorders for certain products. The Kanban system can also be applied through flow charts and graphics, where steps are divided laterally, and each order moves through the rows as it is completed to minimize bottlenecks in the production chain. For larger-scale operations, digital tracking systems can be modeled after Kanban methodology to manage the flow of large supply orders seamlessly.

How can using a Kanban system help with lab inventory replenishment?

Kanban systems are also highly effective when all components of the supply chain are communicating with each other. Using customer demand to determine the need for inventory and products rather than forecasts can save both time and money. In lab inventory replenishment, a company can use vendor-managed inventory (VMI) systems, where inventory needs are tracked closely and the supplier can be notified ahead of time so that the company does not lack stock. This process can be automated in a digital, Kanban-inspired system to manage the supply chain and signal restocking orders as inventory is depleted to ensure adequate stock is always available.

Inventory replenishment in labs and healthcare facilities can not afford for gaps in the production line or errors in supply. Healthcare and PPE companies working in Covid-19 response are a prime example of why proactive and timely management is paramount to a functional production process. PPE  and materials such as gloves, face shields, and swabs are essential to the day-to-day operations in places like Covid-19 testing sites. Streamlined and effective lab supply management allows for operations to happen seamlessly on the ground floor.

For over 40 years, Lab Pro Inc. has been committed to delivering the highest quality chemicals, lab supplies, laboratory equipment and cleanroom PPE apparel to medical device and electronic manufacturing laboratories worldwide. To learn more, visit the biggest Lab Supply showroom in California, or contact us online or at 888-452-2776.

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