Curious Leadership with Dominic Monkhouse E255 | Theory of Constraints: Maximising Performance and Profitability with Dr Alan Barnard
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Jul 11, 2023 
Dr. Alan Barnard, CEO of Goldratt Research Labs and a Theory of Constraints expert, shares insights on optimizing business performance. He reveals how identifying constraints can double net profits without increasing sales. Alan emphasizes the importance of management attention as a key limiting factor in thriving businesses. Through real-life examples, he illustrates strategies for improving operational efficiency and navigating emotional decision-making. Plus, he recommends impactful books to inspire ambitious goal-setting and strategic thinking.
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Cookware Factory Turnaround
- Dr. Alan Barnard used Theory of Constraints to double throughput in cookware factories without increasing costs.
- Due date performance improved from 40% to 100%, and lead times decreased substantially.
Brewery Capacity Boost
- Dr. Barnard applied Theory of Constraints to South African Breweries' "Project Squeeze".
- This yielded a 10-15% capacity increase, exceeding typical 2-3% improvements in process plants.
Random House Profitability
- Random House Publishing's CEO aimed to double net profit by doubling sales.
- Dr. Barnard suggested a 10% increase in average selling price or a 20% volume increase as alternative leverage points.
