Par Versus Kanban: How To Handle Variable Utilization

The nice majority of hospitals in america handle hospital provides utilizing what is known as the “Par Stage” technique. One of many strengths of this technique, it’s claimed, is that it really works properly within the face of variable utilization. The precise utilization of a hospital provide merchandise is not like that of a producing half, in that the speed of use depends on the affected person want on the time, which is tough to regulate or forecast. A manufacturing unit can predict with good accuracy what number of widgets it should want, based mostly on a manufacturing plan and a Invoice of Materials. A hospital can definitely analyze historic utilization information, however can not management that pesky variable, the affected person, very properly. Defenders of the Par Stage technique due to this fact make the case that it’s the solely replenishment technique for the variable utilization setting. On this article I’ll describe how the Par Stage technique works, how the Par Stage technique might be changed utilizing a technique known as Kanban, and the way a Kanban system might be used correctly to reply to the admitted problem of excessive variability of utilization.

On the face of it the Par Stage technique makes good sense. The fundamental idea is to set a goal amount of a given merchandise that you simply wish to inventory on the place the place it’s used. A rule of thumb of, say, a two-day provide based mostly on common utilization, could be an inexpensive purpose when setting these goal or “par” portions. Because the provides are consumed, based mostly on precise want in the course of the day, the amount on hand will lower. The guts of the Par Stage technique is to have a provides handler evaluate the on-hand amount, and restock the objects which can be wanted to carry the overall amount again “as much as par”. If the merchandise is consumed extra shortly than traditional, having a provides handler evaluate the stock day by day will assist to make sure that the merchandise shouldn’t be depleted fully. The important thing to the success of the Par Stage technique within the face of unsure utilization is to verify stocking ranges regularly, normally as soon as a day.

The Kanban system, talked about above instead, is the fabric replenishment technique utilized by main manufacturing corporations world wide, together with the Toyota Motor Company. It’s much like the Par Stage technique in {that a} goal stage of fabric is calculated, based mostly on common utilization and a sure variety of days of utilization. On this sense the strategies are nearly equivalent. The distinction is within the technique for refilling objects which have been used. As an alternative of bodily wanting and counting day-after-day, the Kanban technique units up a sign (the literal which means of the phrase Kanban) for replenishment that eliminates completely the necessity for counting or assessing stock portions. That is completed in quite a lot of methods, with the most typical one being to divide the merchandise amount into two, and sign for replenishment when the primary amount has been used up. Particulars of how a Kanban system works are available elsewhere, and the tactic is well-known, so I needn’t repeat it right here. The advantages in comparison with the Par Stage technique are substantial, together with a discount within the variety of resupply journeys, the elimination of counting, a possible discount in general stock ranges, and a discount in provide shortages.

The main target of this text, nonetheless, is on one crucial difficulty: what occurs when the precise utilization of an merchandise exceeds the deliberate utilization? How do the Par and Kanban methods reply to unplanned consumption? In any case, if utilization had been recognized with complete certainty forward of time, there could be no excuse for ever operating out of an merchandise. Is day by day checking and counting the one different obtainable to hospitals? Let’s examine the 2 strategies.

The Par Stage Methodology. A provides handler will go to a provides stocking space day by day, with a clip-board or hand-held machine, and assess the present stocking stage of every merchandise. Objects that must be “introduced as much as par” can be famous, and this stuff can be refilled on a subsequent journey, normally later the identical day. If in the course of the day an merchandise is consumed at a charge increased than deliberate, such that the whole provide is consumed in a day, the merchandise steadiness will both go to zero, or somebody might want to notify the fabric division and an expedited supply will must be completed. The intention is that it will occur sometimes, and {that a} day by day verify can be enough to cowl variability of utilization.

The Kanban Methodology. Underneath a Kanban system the provides handler doesn’t rely or assess merchandise portions in any respect. Because the preliminary provide amount is consumed and depleted (the “major amount”), the nurse or tech will create a sign by putting a reorder card in a set field, elevating a flag indicator, putting the empty container in a set spot, or posting another type of easy sign. The provides handler merely responds to the sign, and refills a typical amount each time. Whereas the provision is being refilled, nurses and techs can be consuming the second amount of the merchandise. No time is wasted eyeballing or counting provides, and as soon as an everyday replenishment cycle is ready up there is no such thing as a want for a separate journey to the stocking space to judge what is required. Kanban playing cards or bins could be picked up as part of the routine replenishment journey, or what is known as the “milk run”.

If provides are used extra shortly than deliberate, due to a brief emergency or another motive, they may must be replenished extra shortly than deliberate, as with the Par Stage technique. The distinction is that this: beneath a Kanban system you’ll arrange a routine replenishment cycle (the milk run) that can be extra frequent than the Par Stage cycle. Whereas the Par Stage frequency is usually one cycle per shift or one cycle per day, the Kanban system will plan to ship twice per shift, or much more regularly. This turns into doable with out including to your provides handler headcount as a result of no counting is required. The milk run cycle entails choosing up Kanban playing cards (or not even that if the Kanban system is automated), choosing normal portions from a “grocery store” or Central Shops, and delivering these full Kanban portions to the proper stocking areas. This course of is many instances extra environment friendly than the everyday Par Stage course of, and can allow a provides handler to double or triple the variety of replenishment journeys that he/she is ready to full kanban meetings.

How does this assist in responding to variable demand? Let’s clarify. If the milk run cycle is 4 hours, and also you do three milk runs a day, and the Kanban amount represents a two-day provide based mostly on common utilization, the precise utilization would want to exceed the common by 600% earlier than we might must be involved about operating out fully. Whereas the milk run technique is not going to assure that you’ll by no means ever run out of a provide, the possibilities of doing so are distant. The manpower to help this technique might be lower than you’ve got at this time, since you’re doing no counting journeys, no counting, and no choosing of variable portions.

Let’s undergo this once more, so that you’re 100% clear concerning the instance above. Should you eat a given provide at a median two-day charge, you’ll obtain a sign to refill a Kanban amount each two days or twentyfour working hours. Should you eat the provision at double the deliberate charge, you’ll obtain the sign after solely in the future, or twelve working hours. Should you eat the provision at 4 instances the common utilization, you’ll obtain a replenishment sign in six hours. Lastly, in the event you eat the provision at six instances the conventional charge, you’ll obtain the replenishment sign in 4 hours, equal to your replenishment cycle. Your provides handler and milk run cycle ought to be capable of deal with that with out expediting or operating out. After all, on this instance in the event you eat the provision quicker than 600% of your common consumption charge, you do run the chance of operating out. Kanban shouldn’t be magic.

The winner on this comparability of Par Stage versus Kanban on the problem of responsiveness to variable utilization is: Kanban. As we’ve got seen, the important thing to responsiveness to vary is a short replenishment cycle, and the Par Stage system is just too labor intensive to allow a excessive variety of replenishment cycles with out blowing your materials management finances by way of the roof. Kanban, on the opposite hand, requires no counting, standardizes the replenishment portions, eliminates the very undesirable follow of “eyeballing” provides portions, and permits the next variety of replenishment cycles with out driving up materials dealing with price.