Hospitals manage many different medical supply items, and the cost of supplies can represent up to 30% of the cost of an individual case. The cost of supplies is the second largest hospital expense category, behind labor, so this is a very significant issue for any OR and any hospital. And this area is one where Lean methods can have a very significant impact, since the method used for supplies management in most hospitals is very antiquated and inefficient. Fortunately other industries also have to deal with supplies and materials and have come up with solutions that are highly effective and which can be applied to hospitals as well. Although there are many methods of supply management, we will be discussing one in particular that is of special interest, Kanban.