APO, Inc. provides optimization services including Lean, Six Sigma, and data analysis tools to eliminate waste, reduce variation, and model processes. Their services include waste elimination, statistical process modeling with 2D and 3D animation, and quantitative data mining techniques like logistic regression, decision trees, and neural networks.

1. Advanced Process Optimization
“OPTIMIZE YOUR PROCESS…MAXIMIZE YOUR PROFITS”
A SERVICE OVERVIEW OF APO, INC.
©2009 Advanced Process Optimization, Inc

2. Core Services
 Elimination of Wasteful Processes & Procedures
 Lean
 Process Variation Reduction
 Six Sigma
 Process Flow Modeling
 2D & 3D statistically-backed, animated models
 Quantitative Data Analysis – Data Mining
 Predict failures by development of decision criteria
 Objective, quantifiable analytical dissection of operating costs
 Market forecasting based on high-order analysis of client-base

3. Comprehensive Waste Elimination Process
• Historical data, processes and procedures
Data • Waste walks, interviews and brainstorming
Collection
• SMED, Kaizen Events, 5S
LEAN • Visual Workspace, DMB, Single Point Lessons
Tools
• Process flow modeling, analytics
Modeling • Animated, statistical analysis

4. LEAN – Data Collection
 Historical Data
 Data collected manually
 Historian data from Level 1-2 systems
 Customer feedback
 Likert surveys
 Quality Management Systems (QMS)
Let‟s learn from the past!

5. LEAN – Data Collection
 Processes and Procedures
 ISO 9001:2000
 Standard Operating Procedures (SOP)
 Manufacturer’s Operating Guidelines
 Operator’s Individual Work Practices
 Division of Work
 Training
What operating policies are currently in place?

6. LEAN – Data Collection
 Waste Walks
 As a team, become the part or “Thing” that is being
processed
 Physically walk or follow the “Thing” through the
process
 Individually and independently record Value Added
(VA) and Non-Value Added (NVA) Time in process
 Spaghetti diagrams can illustrate the chaos.
Let‟s find out what‟s REALLY going on!

7. LEAN – Data Collection
 Interviews and Brainstorming
 Talk to the people operating the process –They
know best!
 Talk to the managers
 Discuss as a group and flesh out inconsistencies
and variations from perceived standard.
What is perception vs. reality?

8. LEAN Tools
 SMED
 Single Minute Exchange of Dies – Changeover
time in processing.
 Staging of tools, equipment and materials
 Eliminate the need for complex set-up
 Externalize processes that have been done during
changeover
 Reduce time it takes to make good first part.
Let‟s rethink how we do our changeovers and calibrations!

9. LEAN Tools
 Kaizen Events
 Typically a five day “Blitz” using all resources from in
department and beyond to achieve a clearly defined
improvement initiative.
 Cross-functional teams. Team is the functional word!
 Exuberant management involvement and encouragement
is mandatory.
 Planning, planning, planning… Execution, celebration.
 Build morale and keep the momentum going.
Ok guys, let‟s knock this thing out! Get „er done!

10. LEAN Tools
 5S
 A technique used to eliminate clutter, standardize
workspace tools, parts and procedures, expose equipment
failures, and organize a work area. Use with Kaizen.
1. Sort – Remove items that are non-essential to work
function
2. Straighten – Label, organize work area
3. Shine – Clean equipment to expose failures (leaks)
4. Standardize – Everyone uses the same tools and
procedures
5. Sustain – Checklists and audits to maintain success
No one likes to work in a pig sty. It‟s UNSAFE!

11. LEAN Tools
 Visual Workspace
 Shadow boxes
 Go, No-go indicators
 Alarms, out-of tolerance warnings
 Centralization of critical operating information
 Safety lines of demarcation
Critical knowledge at a glance!

12. LEAN Tools
 Daily Management Boards (DMB)
 Located at the operation
 All Key Performance Indicating (KPI) data is displayed
 Safety information is displayed.
 A layman can walk by and know if the process is doing well or
not
 All important documentation is available.
(SOP, SJP, ECP, etc.)
 Daily meetings held at shift changeover to review state of the
operation
This is the “dashboard” of the operation!

13. LEAN Tools
 Single Point Lessons
A standardized, controlled document used to display
a single point of instruction through visual aids and
concise descriptions.
 Displayed on a single page.
 Used for equipment inspection, assembly
steps, breakdown of complex procedure.
 Uses pictures and/or graphics
Even I can understand this! Its so clear to me now!

14. LEAN – Modeling
 Process Flow Modeling
 Graphical representation of process using
standard symbols and nomenclature
 Typically descriptive of the process and provides
a “flow chart” look at the system
 Can contain decision blocks, but lacks statistical
backbone and decision algorithms
A good first step in understanding the process!

15. LEAN – Modeling
 Statistical, Animated Modeling
 Express process performance as a function of the recorded
data.
 Display the process flow as an animated model. Value stream
mapping.
 Quantify and understand the effects of waste in the system as
delays, bottlenecks, over/under utilization, and profit loss
 Determine ROI of an improvement project with
quantifiable, presentable data.
 Experiment with changes to the system virtually before
implementation to mitigate risk.
 Deploy improvements in a systematic and planned manner
This is the APO, Inc. difference! We bring it all together!

16. Comprehensive Six Sigma Process
• Historical data, processes and procedures
Data
Collection
• Time studies, interviews and brainstorming
• Cpk, SPC, OEE, Voice of Customer
Six Sigma • DOE, House of Quality, FMEA
• High-order statistical analysis
Modeling • Model based solutions

17. Six Sigma – Data Collection
 Historical Data
 Data collected manually
 Historian data from Level 1-2 systems
 Defect & Failure Rates
 Quality Management Systems (QMS)
Let‟s learn from the past!

18. Six Sigma – Data Collection
 Processes and Procedures
 ISO 9001:2000
 Standard Operating Procedures (SOP)
 Manufacturer’s Operating Guidelines
 Operator’s Individual Work Practices
 Division of Work
 Training
What operating policies are currently in place?

19. Six Sigma – Data Collection
 Time Studies
 Observe operation and record data manually
 Rate or schedule of receiving precursor
 Cycle time
 Takt time
 Uptime/Downtime (Scheduled and otherwise)
 Changeovers
 Failures and defects
 Breakdowns
Let‟s take an honest look at our process!

20. Six Sigma – Data Collection
 Interviews and Brainstorming
 Talk to the people operating the process –They know
best!
 Talk to the managers
 Discuss as a group and flesh out inconsistencies and
variations from perceived standard.
 Do we collect our data the same way?
 Does incentivization, or lack thereof, skew or inhibit
Truth in Reporting?
What is perception vs. reality?

21. Six Sigma - Tools
 Process Capability (Cpk)
 What is your process capable of?
 Will it meet and/or exceed the specifications of
your client?
 Do you account for the 1.5σ drift in unassignable
variability?
Know what you‟re capable of before making promises!

22. Six Sigma - Tools
 Statistical Process Control (SPC)
 SPC charts allow you to monitor the process and
determine if you are “out of control”
 Determine your process UCL & LCL
 Know your clients USL & LSL
Create a system for consistent, reliable performance!

23. Six Sigma - Tools
 Voice of the Customer (VOC)
 Itis important to know what is critical to the
customer
 Focus your energy in the proper direction
 Align your initiatives with the customer’s needs
Do things for the right reasons!
Resources are finite and exhaustible!

24. Six Sigma - Tools
 Design of Experiments (DOE)
 Powerful, matrix based troubleshooting tool
 Allows for controlled step changes to a system for
diagnostic purposes
 Money saving, thorough technique
Powerful analytic tool to get it right the first time!

25. Six Sigma - Tools
 House of Quality
 Powerful, matrix based assessment tool
 Relates VOC to company improvement initiatives
 Prioritizes projects by VOC
 Determines correlations in initiatives
It‟s ALL about the customer (internal or external)!

26. Six Sigma - Tools
 Failure Mode Effect Analysis (FMEA)
 Reduce failures (errors, defects, shut-downs)
 Determine imminent threats to process
 Prioritize equipment repairs by risk level
 Move into a Reliability Centered Maintenance
(RCM) program
Predict failures instead of reacting to them!

27. Six Sigma – Modeling
 Statistical, Animated Modeling
 Express process performance as a function of the recorded
data.
 Display the process flow as an animated model
 Quantify and understand the effects of waste in the system as
delays, bottlenecks, over/under utilization, and profit loss
 Determine ROI of an improvement project with
quantifiable, presentable data.
 Experiment with changes to the system virtually before
implementation to mitigate risk.
 Deploy improvements in a systematic and planned manner
This is the APO, Inc. difference! We bring it all together!

28. Quantitative Analysis – Data Mining
 Logistic Regression
 Prediction technique based on existing data
 Reports probability of an action based on controlled criteria
 Decision Trees
 Exposes prime drivers to resultant.
 Can predict outcomes based on decision rules.
 Neural Networks
 Estimating, predicting, forecasting and classification
 Linear Programming
 Used for solving complex, constrained problems
 Transportation & routing optimization
High powered analytical tools at your disposal!