Within DHL’s Hospital Logistics Service, Kanban methodology is used in Materials Management. Materials are stored in two identical and coloured bins in equal quantity (PAR Level) which are stored in front and back configuration in the same location.
Once the material from front bin is consumed, the empty front bin is taken out and back bin is pulled to front location.
The empty bin is moved to the top of the shelf (designated location). This empty bin in designated location provides visual sign and triggers replenishment activity.
Benefits of using Kanban methodology are:
- Visual signs for request for replenishment
- Faster collation of demand than checking individual bins
- Quick Gemba walk would give a heat map of the area
- Reduced probability of error as one doesn’t need to check each bin. Only bins in the designated location needs to be replenished. Bins are bar-coded which are scanned and confirmed so that only right SKU in right quantity (PAR level) can be replenished (built-in POKA-YOKE)
- Faster replenishment- Bins have set PAR level so there is no need to calculate the quantity to be replenished, count and replenish individual bins.
However, the downside is the PAR levels are fixed which gives no flexibility to change the replenishment amount. PAR levels are regularly analysed based on historic consumption and updated accordingly.