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2015 TOCICO International Conference

Transforming Businesses Track


Alan Barnard
ANDREY MALYKHAVON
Simulation Consultant, Amalgama LLC, Russia
Alan Barnard
Co-Presenter DR. ALAN BARNARD
CEO Goldratt Research Labs (USA)
Mine Outbound Logistics Planning for a Large Mineral Resources Company
September 7, 2015

One of the world’s largest mineral resources companies plans to establish a long-term mining business and develop an outbound logistic network to deliver the finished product to customers all over the world. During the identification phase study, the company needed to evaluate the most optimum logistic network configurations, compare and choose stock management policies that will provide highest availability at lower cost and determine required quantity of rail cars and storage volumes at sea ports and distribution hubs to achieved desired world class service levels.

An AnyLogic model was developed by Goldratt Research Labs to support the study. The model covers production of 2 grades of finished products at the mine, loading the product to trains, transportation to hubs and ports, loading to sea vessels at ports and land distribution across several countries via Hub to customers by trucks.

The simulation was able to demonstrate that using PULL stock management policy with dynamic target stock adjustment algorithm instead of traditional PUSH policy allowed to reach 12% higher service level and provide world class performance with 16% less storage capacity in ports and hubs.

In the presentation, the team leads from GLR and Amalgama will talk about the challenges we’ve overcome during the project, demonstrate the model and discuss the business value of the results achieved with the help of simulation.







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.


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.

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