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Kanban for Hospitals

The Kanban System Kanban is the Japanese term for Just in Time Replenishment. This is a visual tool to refill inventory when and only when needed. As the refill is done only when necessary, there is no excess or shortage. As a result, inventory is always kept lean. Kanban System and Health Care Industry The kanban system has been used successfully since 1940 in various manufacturing industries, and super markets. It is a common sight to see long racks where bakery items [...]

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How Kanban is Re-Inventing VMI

A few decades ago, the idea of Vendor Managed Inventory was very popular. It was a new, innovative way of managing inventory where the supplier held the product until it was used. The customer benefited because they could maintain a constant inventory and were in a better position to negotiate. The supplier benefited too, since they were guaranteed business with the customer. It soon became apparent that VMI came with massive risks to both parties. From the customer’s perspective, [...]

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Electronic Kanban (E-Kanban)

What is Kanban? Kanban is a Just in Time (JIT) concept where orders for more inventory are sent only when current inventory is empty or low. In practice, the customer has two bins of the required product. When one bin is empty or running low, its sent to the supplier for restocking while the other bin is used. What are the Benefits of Kanban? Unlike a traditional forecast based MRP system which is prone to both shortages and excesses, the Kanban system [...]

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Electronic Kanban Process Explained

Kanban Kanban is the Just in Time (JIT) concept where two bin signals are used to control inventory consumption and avoid excess inventory buildup. Inventory is replenished only after consumption. This is a controlled process of inventory management using Pull rather than push. Kanban two bin system Normally, Kanban process is very successful for suppliers located at a nearby distance.  Setting up Kanban Process Card Setup Process Items and suppliers selected for Kanban will have fixed quantity redemption. This is called card size. For example, [...]

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Why E-Kanban is Replacing ROP (Reorder Level Planning)

ROP Planning Man stock recording Many of the ERP Systems use MRP based planning. One of the most popular method of planning is Re-Order Level planning also called ROP Planning. In this method, for each item, a minimum stock level will be set in the system. When the actual on hand inventory reaches this minimum level, or goes below this level, this item will be marked as ready to order. Next time when MRP runs, a purchase order will be generated. This [...]

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Electronic Kanban Process Explained

Kanban Kanban is the Just in Time (JIT) concept where two bin signals are used to control inventory consumption and avoid excess inventory buildup. Inventory is replenished only after consumption. This is a controlled process of inventory management using Pull rather than push. Kanban two bin system Normally, Kanban process is very successful for suppliers located at a nearby distance.Setting up Kanban Process Card Setup Process Items and suppliers selected for Kanban will have fixed quantity redemption. This is called card size. For example, [...]

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Electronic Kanban (E-Kanban). How Does it Work?

Kanban Two Bin E-Kanban System   Kanban is a Just in Time (JIT) manufacturing system introduced by Japanese manufacturing companies to optimize inventory management. The basic principle of Kanban is that “Produce or Order only what is needed and when it is needed” Closed Loop System Kanban is a closed loop system that uses consumption based replenishment instead of forecast based replenishment. Inventory control is achieved by using bin system. Material is stocked in bins and each bin represents one Kanban card. When the [...]

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