Pharmaceutical Inventory Management Using Kanban card in a 2-bin System in a Private Hospital

Abstract

Objective: To apply the 2-bin Kanban card system as a visual sign in drug inventory problems in a 120-bed private hospital. Method: This action research study was conducted in two cycles, each lasting two months. A total of 1,223 drug items were included in the FSN analysis and 863 were included in the study of the Kanban card. The study was divided into 4 phases. Phase 1, or planning, involved specifying the study period, organizing the work plan, and defining the scope of work. Pharmacists and the purchasing department planned to collect data on the movement of all drugs to calculate key parameters such as the average daily usage, lead time, safety stock, and more. Afterward, all drugs were categorized into groups using FSN analysis, which is based on their frequency of use or moving rate. The researcher selected drug groups that often experience stock shortages, including group F (fast-moving), group M (medium-moving), and group S (slow-moving). The aim was to determine the appropriate safety stock levels for each drug group and to design a Kanban card as a visual indicator when the quantity of a drug falls below the refill or reorder point. Phase 2 involved the implementation of calculations for the relevant parameters used in the next period. This included determining parameter data on the Kanban cards such as the refill amount of drugs in the containers and the safety stock levels in both bins 1 and 2 then inserting Kanban cards in drug storage containers on shelves. The safety stock could be represented as a single container divided into two parts with a Kanban card, or as two separate containers, each associated with a Kanban card. Phase 3 was observing and evaluating the system based on key performance indicators such as the rate of drug shortages and the rate of response to Kanban cards. Phase 4 involved reflecting on the results from relevant personnel and hospital administrators during each cycle of the study. Results: After a 4-month study period, the rate of drug shortage was 0.07%, which did not exceed the target of 0.5 % per month (the rate before the study was 0.38%). The average response rate to Kanban cards per month was 99.75%. The total value of expired drugs one year before the study was 255,188.92 baht, whereas, after the study, it was 234,629.59 baht. This represents 3.16% of the average inventory value of 7,404,920 baht following the study. This was lower than the target of no more than 240,000 baht per year of drug wastage (3% of the average inventory value of 8 million baht). Conclusion: The use of a 2-bin Kanban card system as a visual signal effectively decreases the incidence of drug shortages. The impact of reducing the value of waste drugs was not immediately evident due to the relatively short study period and the fact that the expired drugs had been purchased before the start of the research. However, if this process continues to be implemented, we may see improved results in the future.