Worth Repeating
“The supply chain manager should be a key ingredient in the organization’s approach to any project involving pro- curement/design of systems or equip- ment. Since most initiatives in healthcare facilities’ design and operation involve these aspects, the supply chain manager should be an integral part of the team.”
James Dickow, president and CEO, Dickow Consulting Group LLC
“There is a growing understanding of the important role the healthcare envi- ronment can play in the transmission of HAIs, as deadly pathogens can live on surfaces and can put patients at risk for an HAI. Because routine cleaning does not always eliminate pathogens from high-touch surfaces, there is developing consensus that improved methods of disinfecting the healthcare environment are needed.”
Utpal Khambholja, MD, medical offi cer, Advanced Sterilization Products
“A growing awareness of the impact of contaminated surfaces on HAIs has accelerated the use of embedded antimi- crobial technologies to inhibit bacterial growth and colonization on high-contact surfaces, including surgical face masks, wound care, and furniture upholstery, as a complement to sanitization and disinfection strategies.”
Paul Ford, PE, CEO, Sciessent LLC
“As contact transmission control pro- cedures, such as hand sanitizers and masks, become more commonly used, the transmission of airborne droplet nuclei by natural air currents and HVAC systems will receive more attention as an important pathway of airborne infec- tious disease.”
Brian Hafendorfer, PE, senior applications engineer, Trane
“I am aware of a number of situations where people set up faux companies to purchase from and were eventually caught. Awareness, segregation of du- ties, [such as between] purchasing, re- ceiving and accounting, and an auditing process are keys to prevention.”
Michael Bohon, founding principal, Health- Care Solutions Bureau LLC
tudies show that logistics can consume nearly half of a hospital’s operating budget. Add the current reform pres- sures laid on healthcare institutions today, and it stands to reason that reducing costs while delivering high-quality care has be- come a top priority.
S
In their effort to achieve this, a growing number of hospitals are revisiting materials management practices and questioning the viability of the traditional — and pervasive — PAR level inventory management system. The Lean kanban replenishment approach and the use of radiofrequency identifi ca- tion (RFID) technology to collect data are receiving growing attention and emerging as leading practices.
What are the PAR level and kanban replen- ishment systems? Both are methods used to manage supply inventories. The common goal is to ensure the availability of supplies while maintaining tight control over stor- age space and inventory quantities. Both also share the objective that no more than a target amount of material should be planned for any given item and location, but with enough on hand to never run out. On these points, the two approaches coincide. Where they diverge is in the way they propose to accomplish their goals.
PAR for the course
The PAR level system works as follows: A storage quantity, known as the PAR level, is established for each item based on average usage and a target number of days’ supply. The system requires that the number of items remaining in a specifi c location be counted based on a pre-determined cycle, with new items added to bring the quantity “up to par.” This involves frequent count- ing and multiple trips to and from the stockroom. The counting required can be so onerous that most supply handlers don’t do it, preferring instead to simply “eyeball” the materials and make an educated guess at the supply quantities to refi ll.
60 September 2011 • HEALTHCARE PURCHASING NEWS •
www.hpnonline.com
This imprecise estimating of visual vol- umes often leads to disruptive stockouts and urgent orders. In an effort to prevent such disruptions, employees tend to increase stock levels, which results in excess and costly overstocking. This in turn impacts storage capacity, inventory value, inventory wastage due to product expiration, and ultimately cash fl ow.
The PAR level system is usually associated with hospitals because virtually no one else uses it. The system likely would never be used in a world-class manufacturing environ- ment, although manufacturers certainly have the same inventory control needs and goals as a hospital. Any suggestion in the manu- facturing world to conduct a daily physical inventory count for large numbers of sup- plies would be greeted with astonishment and ridicule. In fact, many leading manu- facturers do not even conduct an annual inventory count, as they are able to sustain a high level of accuracy through automation, tight controls and cycle counting.
Kan-do spirit Kanban has the same overall goals, but it approaches the replenishment process differently. From the Japanese word for signal, kanban was introduced to the Toyota Production System in the 1950s and soon became widely accepted in industry. Indeed, its entire concept is based on creating just that — a clear signal of inventory requirements.
PEOPLE & OPINIONS Look to product makers
for process shakers World class manufacturing techniques can
improve hospital service levels, operating margins by Gerard Leone and Richard Philippe
PEOPLE & OPINIONS
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