Six Sigma DMAIC Methodology Comprehensive Nursing Essay Example
“Why” Your Applied Project will be Created
The loss of CHEP pallets by shipping companies and other industries is a problem that attracts enormous costs from the rental company. This forces companies to invest in the six sigma DMAIC methodology to eliminate the loss of the pallets, which is essential in reducing their costs (Ptacek & Motwani, 2011). As a result, the essay will explore the reasons for creating the project by outlining the project’s problem and purpose statement, including the hypothesis generated while using the six-sigma methodology. It will examine applying the six sigma methods to complex and challenging logistics procedures. Therefore, the six sigma DMAIC methodology is essential in reducing CHEP pallet costs since it solves complex logistical and supply chain problems that may lead to pallet losses.(Six Sigma DMAIC Methodology Comprehensive Nursing Essay Example)
SpartanNash company is making significant losses due to charges associated with CHEP pallets lost during transit and storage of products within its warehouses. Mosqueda (2009) explains that companies lose the pallets through misplacement at distribution centers or when customers fail to return pallets after receiving their deliveries. They also lose some to thieves or forget them in temporary warehouses. In such cases, the company must compensate the pallet rental company, which can be several dollars depending on the number of pallets lost (Mosqueda, 2009). These unprecedented charges cut into the company’s profit margins, hence the need to eliminate them using the six sigma DMAIC methodology. (Six Sigma DMAIC Methodology Comprehensive Nursing Essay Example)
The project’s purpose is to establish how SpartanNash company can utilize the six-sigma methodology in navigating complex and challenging logistics processes to minimize the loss of CHEP pallets. This will enable SpartanNash to deliver products effectively while reducing the costs incurred. (Six Sigma DMAIC Methodology Comprehensive Nursing Essay Example)
H1: Lost CHEP pallet charges are the main contributor to losses at SpartanNash company.
H2: Six sigma DMAIC methodology reduces the complexity and challenges in logistic processes.
The six sigma DMAIC methodology involves five different phases: define, measure, analyze, improve, and control (Ptacek & Motwani, 2011). The project applies these methods across complex and challenging logistics processes by identifying and eliminating mistakes to reduce variability within the logistics process. Most companies streamline their logistic processes by incorporating innovative technology. White and Bruton (2018) observe that such technology can sometimes fail since it requires consistent evaluation and control, which might be costly. As a result, it is imperative to utilize the six-sigma methodology to reduce the challenges. In this case, the project team will apply it to reduce cycle time for order fulfillment (Ptacek & Motwani, 2011). SpartanNash Company utilizes pallets in distributing products like groceries to its customers. According to Ptacek and Motwani (2011), the team will analyze the company’s order fulfillment processes and identify the problems that increase the cycle time, such as increased paperwork and a large number of defective pallets which require reconditioning. (Six Sigma DMAIC Methodology Comprehensive Nursing Essay Example)
Moreover, they will apply it to eliminate mistakes within the logistics processes. They will utilize ‘Poka-Yoke,’ a six-sigma tool tasked with proofreading the logistics processes for mistakes (Salah & Rahim, 2019). In this case, the team will create an organized work environment within SpartanNash’s logistic processes to reduce the potential of mistakes by utilizing the 5S process, which involves sorting, setting in order, shining, standardizing, and sustaining. Additionally, they will improve the company’s logistic processes by improving order fulfillment efficiency. Maryadi and Ichtiarto (2021) explain that this involves the timely delivery of products to customers in perfect condition. The team will accurately document and complete the necessary paperwork for the delivery to reduce errors and optimize the process.(Six Sigma DMAIC Methodology Comprehensive Nursing Essay Example)
Six sigma DMAIC methodology outlines essential strategies that companies can utilize to solve logistic issues that result in loss of pallets (Ptacek & Motwani, 2011). The essay explores the project’s problem statement, emphasizing the need to eliminate pallet losses at warehouses, during shipping, or through theft to reduce the charges associated with compensating the pallet rental companies, like CHEP. Consequently, its purpose statement emphasizes the importance of six sigma in eliminating logistics problems. Furthermore, it examines applying the six sigma methods in solving logistics challenges to reduce variations and optimize the processes. The activities performed during this process include reducing cycle time, eliminating mistakes, and improving order fulfillment efficiency (Ptacek & Motwani, 2011). Henceforth, the six-sigma methodology is a strategy that companies can utilize to maximize their profit margins by optimizing logistics processes.(Six Sigma DMAIC Methodology Comprehensive Nursing Essay Example)
Maryadi, D., & Ichtiarto, B. P. (2021). Lean Six Sigma DMAIC Implementation to reduce Total Lead Time Internal Supply Chain Process.(Six Sigma DMAIC Methodology Comprehensive Nursing Essay Example) https://ieomsociety.org/proceedings/2021indonesia/394.pdf
Mosqueda, A. (2009, January 10). Pallet User Education Series: Smart Management Techniques to Avoid Lost Pallet Charges. Pallet Enterprise. Available at: https://www.palletenterprise.com/articledatabase/view.asp?articleID=2954 (Accessed: September 16 2022)(Six Sigma DMAIC Methodology Comprehensive Nursing Essay Example)
Ptacek, R., & Motwani, J. (2011). The Lean Six Sigma Pocket Guide XL: Combining the Best of Both Worlds to Eliminate Waste! Chelsea, MI: MCS Media, Inc. ISBN: 978-1450766340(Six Sigma DMAIC Methodology Comprehensive Nursing Essay Example)
Salah, S., & Rahim, A. (2019). Implementing Lean Six Sigma in supply chain management. In An Integrated Company-Wide Management System (pp. 105-111). Springer, Cham. DOI: 10.1007/978-3-319-99034-7_6(Six Sigma DMAIC Methodology Comprehensive Nursing Essay Example)
White, M., A. & Bruton, G., D. (2018). The Management of Technology and Innovation: A Strategic Approach. (3rd ed.). Australia: Cengage Learning. ISBN-13: 978-0-538-47822-9(Six Sigma DMAIC Methodology Comprehensive Nursing Essay Example)