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Sustainability: Moving from Common Sense to Common Practice
2016 International Conference
Leesburg, VA - National Conference Center

September 18th - 21st

Simplifying Measurements to Make More Money Workshop

Ravi Gilani - Founder, Managing Consultant, Goldratt India

It has been more than 30 years when The Goal was published.

Since then Theory Of Constraints (TOC) has evolved significantly. Today Google throws up half a million results when we search for ‘Theory Of Constraints’. However in spite of thousands of successful TOC implementations across the world, it has still not become The Way to improve.

After a few years of implementing TOC, even the highly successful implementations have either stagnated at higher level, or have deteriorated. Why?

I believe the primary reason for this has been that the organizational global measurements have not been changed. Measurements are the physical manifestations of the policies of decision makers. Prime measurements continue to be volume measurements (Tons sold, number of vehicles sold), sales turn over (Billion $), market share (%), margin (%) etc.

And measurements drive behaviors!

During crisis or in emergencies organizations do temporarily shift their focus, but as soon as the crisis situation is over organizations revert to their old ways of working as reflected by the measurements.

This presentation shares the right prime & supporting measurements to use depending upon the financial health of the organization (profits continuously increasing, profits fluctuating, loss making, survival at stake etc.), and the physical constraint (orders, capacity, cash etc.).

Ravi Gilani is the Founder and Managing Consultant of Goldratt India. As the Managing Consultant of Goldratt India, Ravi introduced Dr. Eli Goldratt’s Theory of Constraints (TOC) in India in 1998. He is the first 'Jonah' (TOC Expert) in India. He is also the first Indian member of the Goldratt Group’s international network of associates. Ravi was trained by Dr. Goldratt in Supply Chain Management. Ravi served on the board of TOCICO during 2005 - 2008. Ravi is an alumnus of the Indian Institute of Technology, Delhi. He enjoys striving for the impossible by challenging sacred assumptions and simplifying complexity.

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