Out of some crazy stroke of genius, a guy thought that if he could see his inventory, he would have a better idea of what he has and be able to manage it. When Toyota industrial engineer Taiichi Ohno set out to improve Toyota‘s manufacturing systems, inventory management was a priority. Ohno sought out intelligence from an industry almost solely based on inventory management - the grocery store. He discovered that grocery stores did not have stockpiles of inventory but rather reordered products based on customer demand. He brought this management concept to Toyota and implemented a system called JIT or ‘just-in-time’ inventory management. Order what you need when you need it. JIT set the ground rules for the Toyota Production System which became the basis of what is now Lean Manufacturing. A “Kanban” system is the best inventory management technique used in industries all over the world - including dental practices.
The word Kanban comes from the Japanese word meaning “billboard or signboard”. Kanban is a workflow management method for defining, managing and improving systems. The philosophy behind a Kanban is to help you visualize your work, maximize efficiency and improve continuously.
You are probably already practicing Kanban on some level already and don’t even realize it! Take your practice daily schedule for example. You do have a paperless one, I hope. Even if it is paper, it’s visual, right? In 90% of the practices I work with, the schedule is displayed in every operatory. What does it tell you? It tells you who is coming in, who they are scheduled to see, what time to expect them to arrive, what time to expect them to leave the operatory and what treatment will be provided. It’s a visual workflow management tool - Kanban. Can you imagine managing your day without a practice schedule? So, how can you manage your inventory without a Kanban?
Would you agree that it is much easier to manage something if you can see it? So, move past your schedule and let’s talk inventory. Dental supplies kept behind doors, inside drawers, cabinets and closets make it very difficult to manage inventory. It is also impossible to manage inventory inside a box. The first step in creating a Kanban system is visual inventory and restocking. The solution is to get everything into something you can see all the time. The goal with a Kanban is to improve the way supplies are managed.
If you supply your operatories with one week’s worth of inventory required for 90% of the dentistry you do and a maximum of six weeks of inventory in resupply, you only need to place an order once a month. With your inventory now visual, a Kanban can take place. Applying the rules stated above, you need to know what your maximums and minimums look like. Take a look at this Ergonomic Products tilt bin:
The line across the tilt bin indicates the item’s minimum inventory level. It is a visual cue that now is the time to reorder.
It takes time to develop an inventory Kanban. Some months you may experience an unprecedented amount of cancellations while other months a sudden influx of patient traffic. It is important to continuously monitor and measure inventory. Be sure to trust, but verify that no one is hoarding inventory in the operatory. Inventory control plans must be designed around the first-in first-out stocking system.
Standardization is so important. Visualize every procedure set up. Take a picture of it. Label it. You should know how much every piece of gauze costs you. I realize I’ve only mentioned operative supplies in this blog, but your front desk can benefit as well. Think about the time savings when it is time to order.
Lean manufacturing principles can become part of your practice culture. Soon your entire dental practice will thrive and want to see how far a dollar will take them. Hopefully, I’ve made it easier.
