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2015 TOCICO International Conference

Transforming Businesses Track

Alan Barnard
Goldratt Research Labs (USA)

Alan Barnard
Simulation Consultant, Amalgama LLC, Russia
How to Effectively and Efficiently Improve Flow
Within Any Environment (Workshop)
September 7, 2015

In "Standing on the Shoulders of Giants” (2008), Dr. Eli Goldratt showed the importance of differentiating between a concept (universal) and an application (specific) and showed that the key to the success of Henry Ford’s Flow Lines and Taiichi Ohno’s Toyota Production System was the fact that they built their management philosophy as a specific application of the universal "Four Concepts of Flow”. These Four Concepts of Flow are:

  1. Improving flow (or equivalently lead time) is a primary objective of operations.
  2. This primary objective should be translated into a practical mechanism that guides the operation when not to produce to prevent overproduction.
  3. Local efficiencies must be abolished.
  4. A focusing process to balance flow must be in place.

In the foreword of The Goal, Dr. Goldratt said that, to make a new breakthrough in any field you are passionate about, requires only two steps; having the courage to face inconsistencies and (the wisdom) to challenge basic assumptions.

In the first part of this workshop, Dr. Barnard will share why he believes that Goldratt’s Four Concepts have much wider application than managing operations – how it can and should be applied to improve any environment. However, expanding the Four Concept to be even more universal will require that:

  1. We clarify the common goal for all managers responsible for effectively and efficiently meeting the demand placed on their area of responsibility.
  2. We clarify and expand the definition of key words within the Four Concepts such as "Flow”, "Practical Mechanism”, "Local Efficiencies” and "Focusing Process”
  3. We resolve the apparent inconsistency between Goldratt’s Four Concepts and Five Focusing Steps (the Four Concepts do not mention ”Constraint” or "Bottleneck”)
  4. We expand the Practical mechanism mentioned in Concept 2, to include all the practical mechanisms needed to prevent the most common mistakes in Planning, Execution and Improvement (not just the mechanism needed to prevent overproduction)
  5. We create a new classification for environments, not based on the nature of flow (e.g VATI analysis), but based on the type of work that flows through the system (widgets being produced, project tasks being processes, customers being serviced, resources being maintained/repaired, documents being processed)

In the second part of this workshop, Dr. Barnard will show how we can use dynamic simulation models to quantify the impact of the six most common mistakes (2 in Planning, 2 in Execution and 2 in Measurement and Improvement) that cause losses in flow time and flow rate and compromise reliability and quality within any environment. He will then show the 6 practical mechanisms that can be used to prevent these common mistakes to improve any environment, but also how to use them in combination to make any organization not only more robust (protected from volatility), but to make it more anti-fragile (so they can benefit from volatility).

The simulation model will also be used to show the financial and operational performance impact and specific application of these practical mechanisms within different environments including the impact on the special events that typically waste the scarcest resource in any organization – management attention.

DR. ALAN BARNARD (PhD) is one of the leading experts in the world in the field of Theory of Constraints (TOC) and frequently worked with Dr. Eli Goldratt, creator of Theory of Constraints on large and complex projects around the world. Alan is the CEO of Goldratt Research Labs (USA), Chairman of African Phosphate (RSA) and The Odyssey Institute (USA).

Alan’s goal in life is to use his 20+ years TOC research, consulting and implementation knowledge & experience to help both organizations from the private and public sector as well as individuals see and unlock their inherent potential.

In 2009, Alan was awarded a PhD in the Management of Technology & Innovation from the Da Vinci Institute with a thesis titled "How to identify and unlock inherent potential within organizations and individuals using a Systems Approach”.

Alan is certified by the "Theory of Constraints International Certification Organization” (TOCICO) at the "implementer” level in all Theory of Constraints (TOC) applications (Operations, Finance, Projects, Supply Chain, Thinking Processes and Holistic Business Strategy). Alan received the Life-time Achievement award from TOCICO in 2006 for his life-time contribution to TOC and TOCICO.

Alan is also author of various published TOC related papers & articles and contributed two chapters to the 2010 McGraw Hill published "Theory of Constraints Handbook” and was a contributing author of for Gerald Kendall’s book "Viable Vision: Transforming Total Sales into Net Profits” (Ross Publishing, 2004).

Alan is a former president of SAPICS (2000 to 2002) and former president of TOCICO (2003 to 2005) and received the TOCICO Lifetime Achievement award in 2006. He has worked at a strategy level with companies such as ABB, BHP Billiton, African Explosives, Cisco, SAP, Random House Publishing, Tata Steel, RAK Ceramics, and Larsen & Toubro in the Private sector and in the Public sector with the UN DP, the UN WFP, Utah State Government and City Councils in Developing countries to help them identify and unlock inherent potential through the application of Theory of Constraints.

Alan is also the developer of the HARMONY Strategy & Tactic Desktop, Web App and iPhone App software suite that was nominated for the Silicon Valley Business App Awards in 2013.

ANDREY MALYKHAVON Andrey has 6 years of experience in business consulting and 8 years of experience in practical simulation. Graduated with honors from Ulyanovsk State University, Russia. In 2011 acquired Ph.D. degree in simulation. His Ph.D. thesis was devoted to development of simulation framework for microscopic traffic simulation.

In 2008 and 2009 Andrey worked for The AnyLoigc Company (Russia). His consulting experience also includes working for Ernst&Young (2010 – 2011) and BearingPoint (2011 – 2013).

In 2012 Andrey became a co-founder of Amalgama – a boutique company specializing in development of simulations and decision support systems.

Andrey’s focus is on applying simulation and data analysis techniques to solve complex and challenging business tasks, especially in logistics, inventory management and production. Andrey is an expert in using AnyLogic for creating complex simulation-based decision support systems.

Andrey’s commercial clients include General Electric (USA), NIS (Serbia), Mechel, Metinvest, BHP Billiton (Canada),  Uz-Daewoo, Hyundai, Russian Post, M.Video, Rosatom, Diageo, Uralkali and others.

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