Using Six Sigma to avoid lost CHEP pallet Charges Comprehensive Nursing Essay Example

Using Six Sigma to avoid lost CHEP pallet Charges Comprehensive Nursing Essay Example

Six Sigma refers to a statistical process that uses qualitative and quantitative techniques to review mistakes and defects within manufacturing cycles (Singh & Rathi, 2018). Innovative technologies are essential in industries since they facilitate process improvement by reducing potential errors or defects (White & Bruton, 2018). Consequently, lost Commonwealth Handling Equipment Pool (CHEP) pallet charges entail the charges that CHEP’s customers incur when they lose pallets within the supply chain system (Mosqueda, 2009). These charges can be as high as $24 per pallet. In this case, the essay explores how CHEP’s customers can utilize the six-sigma process to avoid lost pallet charges. It also determines the project’s relation to the course content by examining the benefits of using the six-sigma process. Transport and logistics companies can reduce the charges associated with lost pallets by utilizing six Sigma to manage the rented pallets. (Using Six Sigma to avoid lost CHEP pallet Charges Comprehensive Nursing Essay Example)

What Work will be Performed?

Ptacek and Motwani (2011) illustrate that various activities will be performed using six Sigma to reduce lost pallet charges. First, the project team will begin by defining the problem causing the loss of pallets. Six sigma process utilizes data to confirm the problem, its severity and impact, and whether resources are available to rectify it. Second, they will measure the problem to determine its current state. Ptacek and Motwani (2011) observe that they collect data to uncover the root cause of the losses while testing and refining the data collection measurements to provide a basis for future corrective actions. Third, they will analyze the collected data to identify the causes of the problem by combining value stream mapping and time analysis (Ptacek & Motwani, 2011). The causes may include poor tracking methods. Fourth, they will improve the problem by developing and implementing suitable solutions that can effectively optimize pallet management to avoid the charges, such as increasing tracking strategies to reduce theft of pallets (Ptacek & Motwani, 2011). Fifth, they will maintain the identified solution by implementing controls, such as expanding it to every supply chain segment (transportation and warehousing). In this case, the team can refine the process by establishing a response plan outlining the operational levels of the tracking strategies for reducing the theft of pallets. (Using Six Sigma to avoid lost CHEP pallet Charges Comprehensive Nursing Essay Example)

Benefits of Six Sigma in Eliminating Lost Pallets

The project is related to course concepts since it shows the benefits of utilizing six Sigma in optimizing supply chain systems among shipping companies. Singh and Rathi (2018) observe that six Sigma emphasizes waste reduction by combining statistical and management tools to determine the rate at which pallets are lost and potential measures a company should take to minimize the waste. It helps identify pallet defects, which initiates early repair and eliminates further damage, which can be costly to the company. Moreover, six Sigma is beneficial since it identifies steps that do not add value to pallet management within the supply chain. Singh and Rathi (2018) observe that its value stream mapping tool analyses the steps involved in pallet management to determine the steps that consume a lot of time and resources, such as pallet reconditioning. In this case, it enables the transport company to procure pallets with fewer defects to reduce time and resources wasted during reconditioning. Additionally, it improves order fulfillment by reducing the delivery cycle time and eliminating mistakes to ensure that the products are delivered in perfect condition. (Using Six Sigma to avoid lost CHEP pallet Charges Comprehensive Nursing Essay Example)

Conclusion

Six sigma methodology is an effective method for eliminating charges CHEP’s customers incur for losing pallets. The essay explores a summary of activities performed using the six sigma process and its benefits in reducing lost pallets. The activities include problem definition, measurement, analysis, improvement, and control. It also established that six Sigma is beneficial in identifying steps that do not add value to pallet management, reduces procurement of defective pallets, and early identification of defects, saving the company resources and time utilized in reconditioning them. Henceforth, supply chain and logistics companies need to adopt lean six sigma methods to optimize their supply chain systems which can help reduce charges associated with lost pallets. (Using Six Sigma to avoid lost CHEP pallet Charges Comprehensive Nursing Essay Example)

References

 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) (Using Six Sigma to avoid lost CHEP pallet Charges Comprehensive Nursing Essay Example)

Ptacek, R., & Motwani, J. (2011). The Lean Six Sigma Pocket Guide XL: Combining the Best of Both Worlds Together to Eliminate Waste! Chelsea, MI: MCS Media, Inc. ISBN: 978-1450766340 (Using Six Sigma to avoid lost CHEP pallet Charges Comprehensive Nursing Essay Example)

Singh, M., & Rathi, R. (2018). A structured review of Lean Six Sigma in various industrial sectors. International Journal of Lean Six Sigma (Using Six Sigma to avoid lost CHEP pallet Charges Comprehensive Nursing Essay Example). https://doi.org/10.1108/IJLSS-03-2018-0018

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 (Using Six Sigma to avoid lost CHEP pallet Charges Comprehensive Nursing Essay Example)