Franz Edelman Award

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Franz Edelman Award Franz Edelman Award for Achievement in Operations Research and the Management Sciences The purpose of the Franz Edelman competition is to call out, recognize and reward outstanding examples of management science and operations research practice in the world

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Franz Edelman Award. Franz Edelman Award for Achievement in Operations Research and the Management Sciences The purpose of the Franz Edelman competition is to call out, recognize and reward outstanding examples of management science and operations research practice in the world. - PowerPoint PPT Presentation

Transcript of Franz Edelman Award

Page 1: Franz Edelman Award

Franz Edelman Award

• Franz Edelman Award for Achievement in Operations Research and the Management Sciences

• The purpose of the Franz Edelman competition is to call out, recognize and reward outstanding examples of management science and operations research practice in the world

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Recipients of Franz Edelman Award

1998 -2014

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Year Title By

2014 Combat the remaining pockets of polio around the world.

The U.S. Centers for Disease Control and Prevention (CDC), which collaborated with Kid Risk, Inc.

2013 Calculate the economic optimal dike heights Dutch flood expert team

2012 Global Optimisation Programme to cover multiple aspects of TNT's operations, including site location planning, optimal truck routing, fleet management and staff scheduling

TNT Express

2011 Minimizing delivered wholesale energy costs MISO (USA)

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Year Title By

2010 Dalí, the Securities Settlement System (SSS) with a core operations research engine.

INDEVAL, the Mexican Central Securities Depository

2009 HP Transforms Product Portfolio Management with Operations Research

Hewlett-Packard, USA

2008 The New Dutch Timetable—the OR Revolution

NETHERLANDS RAILWAYS

2007 Operations Research Answers to Cancer Therapeutics

MEMORIAL SLOAN-KETTERING CANCER CENTER, USA

2006 Streamlining Aircraft Repair and Overhaul at Warner Robins Air Logistics Center

WARNER ROBINS AIR LOGISTICS CENTER

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Year Title By

2005 General Motors Increases Its Production Throughput

GENERAL MOTORS

2004 Reinventing the Supplier Negotiation Process at Motorola

Motorola Inc.

2003 Perfecting the Scheduled Railroad- Model-Driven Operating Plan Development

Canadian Pacific Railway

2002 A New Era for Crew Recovery at Continental Airlines

Continental Airlines

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Year Title By

2001 Analysis for Merrill Lynch Integrated Choice

Merrill Lynch, Inc

2000 Flexible Planning and Technology Management at Jeppesen Sanderson, Inc.

Jeppesen Sanderson, Inc.

1999 Extended Enterprise Supply Chain Managment at IBM Personal Systems Group and Other Divisions

IBM

1998 Innovative implementation of five optimization systems

Bosques Arauco, S.A.

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CDC Won the 2014 Franz Edelman Award Leading Prize in Analytics, Operations Research for Polio Eradication

• The U.S. Centers for Disease Control and Prevention (CDC), which collaborated with Kid Risk, Inc. to use

analytics and operations research to combat the remaining pockets of polio around the world, won the 2014

Franz Edelman Award for Achievement in Operations Research and the Management Sciences.

• “Through collaborations with Kid Risk, Inc. and other partners, CDC is helping to identify the best strategies to

further polio eradication and achieve the endgame,” said Dr. Mark Pallansch, director of the Division of Viral

Diseases in the National Center for Immunization and Respiratory Diseases at CDC.

• As a spearheading partner of the Global Polio Eradication Initiative (GPEI), the CDC annually contributes over

$100 million of its budget and significant human resources to polio eradication activities for which it maintains

high standards for developing evidence-based policies and expectations of cost-effective use of its resources. In

2001, the CDC launched a collaboration with Kid Risk, Inc. to use a range of operations research and

management science tools combined with the best available scientific evidence and field knowledge to develop

integrated analytical models for the evaluation of the global risks, benefits, and costs of polio eradication policy

choices.

• The analytical results from the collaboration significantly furthered polio eradication in many ways, including more

rapid response to outbreaks and reaffirmation that pursuing eradication instead of control is the “best buy” to

prevent cases of paralysis and to save lives and money. 

• Recognition of polio eradication as a major program in need of stable financing helped support a fundraising

effort in 2013 that raised over $4 billion from donors to finish the job.  The team foresees increased integration

of operations research and management science tools to perform simultaneous probabilistic and

dynamic modeling for other complex global health challenges, including other vaccine-preventable diseases like

measles and rubella.

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Dutch flood expert team won 2013 Edelman Award with method to calculate the economic optimal dike heights.

• The Dutch organisations Delta Commissioner of Holland, Ministry of Infrastructure and the

Environment, CPB Netherlands Bureau for Economic Policy Analysis, Delft University of

technology, Tilburg University, research institute Deltares, consultancy firm HKV, collaborated on

the winning submission, entitled Economically Efficient Flood Standards to Protect the

Netherlands against Flooding.

• The Dutch consortium won the award with a new calculation method developed and used to

calculate the economic optimal dike heights for the protection of the Netherlands against

flooding. Application of the method of calculation leads to greater efficiency. The

computational method used can be deployed worldwide in determining optimal dike

heights against flooding.

• Using operations research techniques, the team determined that it is efficient to limit increased

standards to only three critical regions. These results, accepted as a basis for policy by the

minister of Infrastructure and Environment, led to 7.8 billion euro less investment costs while

strengthening the country's defense against the kind of devastation that cost massive damage in

the United States during Hurricane Sandy and resulted in thousands of deaths in Holland during

a major storm in the early 1950's.

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TNT Express won Franz Edelman Award 2012.

• TNT Express routinely uses such OR tools to enhance its transportation networks, resulting in

more efficient routes and lower mileage.

• "We are delighted to receive this award, which testifies to the sophistication and efficiency of

TNT’s operations," said TNT Express Managing Director Global Networks and Operations Chris

Goossens. "Using operations research helps TNT save costs, improve service to customers and

develop managers’ skills."

• The awarded Global Optimisation Programme covers multiple aspects of TNT's operations,

including site location planning, optimal truck routing, fleet management and staff

scheduling. TNT Express has by now carried out over 100 network optimisation projects

worldwide, saving 60 mln km of mileage, 283 million kg of CO2 emissions and € 207 mln in four

years time, by optimising its domestic networks in Germany, France, Spain and Italy.

• In order to meet the demand for qualified operation managers, TNT Express has teamed up with

the Tilburg University/TiasNimbas Business School (Netherlands) to create the GO Academy, a

two-year management development program in transportation network optimization. Since 2008,

the training has been delivered to more than 200 managers from TNT.

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MISO Won Edelman Award 2011

• MISO (USA) , which manages one of the world’s largest energy markets, won the 2011 Franz

Edelman Award for Achievement in Operations Research and the Management Sciences.

• "By leveraging operations research, MISO and its stakeholders added significant value to the

region through improved reliability and increased efficiencies of the region’s power plants and

transmission assets,"

• Driven by the goal of minimizing delivered wholesale energy costs reliably, MISO, with the

support of Alstom Grid, The Glarus Group, Paragon Decision Technology, and Utilicast, used

operations research and analytics to design and launch its energy-only market on April 1,

2005, and introduced its energy and ancillary services markets on Jan. 6, 2009.

• The MISO improved reliability and increased efficiencies of the region’s power plants and

transmission assets. Based on its annual Value Proposition study, the MISO region realized

between $2.1 and $3.0 billion in cumulative savings from 2007 through 2010. The Midwest ISO

estimated an additional $6.1 to $8.1 billion of value will be achieved through 2020.

•  

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Indeval, the Mexican Central Securities Depository for all financial securities, manages Dalí, the Securities Settlement System (SSS) that

now has as its core an operations research engine.2010 Edelman Award

• Dalí settles securities operations that average over $250 billion daily, more than 70% of the value settled in the Mexican payments system. Thus, an amount close to the Mexican gross domestic product (GDP) is settled in five operating days.

• In 2005, Indeval, the Mexican Central Bank, and Instituto Technológico Autónomo de México (ITAM) began implementing Dalí, a safer, more reliable, and more efficient SSS. The two key requirements for the new system were:

• 1) having an SSS that can function with minimal resources, which is invaluable during financial crises when liquidity is scarce; and

• 2) real time settlement to meet ever-increasing demands for intraday liquidity and for better risk management tools.

• The core of Dalí is an operations research-based engine that is executed automatically and offers a continuous and secure operation, ensuring that settlement is irreversible. This single clearing and settlement engine incorporates a linear programming model that chooses which pending operations can be settled with the depositors’ available balances, maximizing the value of the transactions settled.

• Thanks to the model, many transactions that would remain pending if they were processed individually are settled together, thus reducing liquidity requirements dramatically — by 52% in cash and 26% in securities. The most important benefit of the implementation of O.R. in Indeval’s SSS is the enhancement and strengthening of the Mexican financial infrastructure.

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HP Transforms Product Portfolio Management with Operations Research

OR-based solutions for product variety management that address the diverse needs of its businesses throughout their products’ lifecycles.

• Custom-built ROI calculators to evaluate each proposed new product before it is introduced.

• Revenue Coverage Optimization (RCO) tool is used to manage product variety after it has been introduced.

• By identifying a core portfolio of products, RCO enabled HP businesses to increase operational focus on the most critical products in their offerings.

Using these tools, HP achieved over $500M in profit improvements across several business units since 2005.

(Award of 2009)

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The New Dutch Timetable: The OR Revolution

(Award of 2008)

Key Words: rail transportation; scheduling of vehicle and crew; large-scale systems; integer programming; network graphs;

In December 2006, Netherlands Railways introduced a completely new timetable.

Constructing a railway timetable from scratch for about 5,500 daily trains was a complex problem. To support this process, several timetables were generated using sophisticated operations research techniques. Furthermore, because rolling-stock and crew costs are principal components of the costs of a passenger railway operator, innovative operations research tools were used to devise efficient schedules for these two resources.

The new resource schedules and the increased number of passengers resulted in an additional annual profit of $60 million.

It is also expected that many will switch from car transport to rail transport, thus reducing the emission of greenhouse gases.

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Operations Research Advances Cancer TherapeuticsEva K. Lee, Marco Zaider,

School of Industrial and Systems Engineering and Center for Operations Research in Medicine and HealthCare, Georgia Institute of Technology

Key Words: prostate cancer; brachy therapy; optimization; integer programming; treatment planning

Using operations research approaches, the team has devised sophisticated optimization modeling and computational techniques for real-time (intra-operative) treatment of prostate cancer using brachy-therapy (the placement of radioactive "seeds" inside a tumor).

The resulting system offers significantly safer and more reliable treatment outcomes. In addition, it eliminates the need for preoperative simulation and post-implant dosimetric analysis, resulting in savings of hundreds of millions of dollars per year in the United States alone.

Post-treatment quality of life is improved through drastic reduction (up to 45–60 percent) of complications.

(Award of 2007)

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Streamlining Aircraft Repair and Overhaul at Warner Robins Air Logistics

Center• University of Tennessee, College of Business Administration• Realization Technologies, Inc.

• The Warner Robins Air Logistics Center (WR-ALC) used operations research in 2005 to arrive at a radically different approach to manage the repair and overhaul activity on its C-5 transport aircraft.

• WR-ALC used an OR technique called Critical Chain to reduce the number of C-5 aircraft undergoing repair and overhaul in the depot from twelve to seven in just eight months.

• The time required to repair and overhaul the C-5 aircraft was reduced by 33 percent. The five additional aircraft in operation have generated immediate additional revenue of $49.8 million per year.

• (Award of 2006)

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General Motors Increases Its Production Throughput

Department of Industrial and Manufacturing Engineering, Oregon State University

• General Motors Corporation (GM) initiated a long-term project to predict and improve the throughput performance of its production lines to increase productivity throughout its manufacturing operations

• GM quantified throughput performance and focused improvement efforts in the design and operations of its manufacturing systems through coordinated activities in three areas: – (1) it developed algorithms for estimating throughput performance, identifying

bottlenecks, and optimizing buffer allocation, – (2) it installed real-time plant-floor data-collection systems to support the

algorithms, and – (3) it established common processes for identifying opportunities and

implementing performance improvements. .

• Through these activities, GM has increased revenue and saved over $2.1 billion in over 30 vehicle plants and 10 countries

• Key Words: manufacturing; performance/productivity; production/scheduling;

• (Award of 2005)

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Reinventing the Supplier Negotiation Process at Motorola

• Motorola, Inc. identified a method of reducing the time and effort required to prepare for and conduct negotiations with its suppliers, simplify their coordination, and optimize contract awards across sectors, to save costs.

• Motorola's global procurement function selected end-to-end Internet negotiations platform. Combining innovative bidding, online supplier negotiations, and scenario-based optimization analysis, it identified the best procurement strategy while enhancing supplier relationships.

• Sourcing over $16 billion and saving more than $600 million, Motorola changed its supplier negotiation paradigm and moved to a truly global process.

(Award of 2004)

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Perfecting the Scheduled Railway:Model-Driven Operating Plan Development – Canadian

Pacific Railway

• Canadian Pacific Railway has employed new decision support tools to create a scheduled railway. These decision support tools contain a variety of Operations Research approaches including an optimal block sequencing algorithm, a heuristic algorithm for block design, (very fast) simulation, and time-space network algorithms for locomotive planning and empty car distributions.

• This implementation has led to savings of $300 million and Improvement in Labor productivity, locomotive productivity, fuel

consumption, and railcar velocity. (Award of 2003)

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A New Era for Crew Recovery atContinental Airlines

University of Texas at Austin & Continental Airlines, Texas• Airlines face schedule disruptions daily because of unexpected events,

including inclement weather, aircraft mechanical problems, and crew unavailability. These disruptions can cause flight delays and cancellations. As a result, crews may not be in a position to service their remaining scheduled flights.

• Airlines must reassign crews quickly to cover open flights and to return them to their original schedules in a cost-effective manner while honoring all government regulations, contractual obligations, and quality-of-life requirements.

• CALEB Technologies developed the Crew Solver decision-support system for Continental Airlines to generate globally optimal, or near optimal, crew-recovery solutions.

• The Crew Solver system helped it save approximately US $40 million for major disruptions only.

(Award 0f 2002)

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Pricing Analysis for Merrill Lynch Integrated Choice

• Electronic trading and the commoditization of trading threatened Merrill Lynch's value proposition—to provide advice and guidance through a financial advisor.

• Management decided to offer investors more choices for doing business with Merrill Lynch. A cross-functional team evaluated alternative product and service structures and pricing and constructed models to assess individual client's behavior.

• The resulting Integrated Choice strategy enabled Merrill Lynch to seize the marketplace initiative, changed the financial services landscape, and mitigated the revenue risk.

• As of year-end 2000, client assets reached $83 billion in the new offer, net new assets to the firm totaled $22 billion, and incremental revenue reached $80 million.

• (Award of 2001)

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Flexible Planning and Technology

Management at Jeppesen Sanderson, Inc • The world leader in the production and distribution of flight manuals,

Jeppesen Sanderson couldn't keep up with rapidly growing customer demand and an ever-expanding product line.

• The company, which provides critical information for more than 300,000 pilots, saw its customer service begin to deteriorate in 1997 when its work volume grew to the point that it overwhelmed its production system

• Jeppesen responded by establishing a small operations research department to analyze the production problems and come up with solutions. The department developed a suite of optimization-based decision support tools aimed at increasing efficiency and reducing costs in every production area.

• By the end of 1999, Jeppesen's percentage of late orders had gone down from 35 percent to 0 percent. Simultaneously, the company realized an annual cost reduction of $3 million.

• Jeppesen officials now project future annual savings of $7 million attributable to the improved production scheduling

• (Award of 2000)

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Extended-Enterprise Supply-Chain Management at IBM

• In 1994, IBM began to reengineer its global supply chain. It wanted to achieve quick responsiveness to customers with minimal inventory. To support this effort, an extended-enterprise supply-chain analysis tool was developed, called the Asset Management Tool (AMT).

• AMT integrates graphical process modeling, analytical performance optimization, simulation, activity-based costing, and enterprise database connectivity into a system that allows quantitative analysis of extended supply chains.

• IBM has used AMT to study such issues as inventory budgets, turnover objectives, customer-service targets, and new-product introductions.

• Implemented AMT at a number of IBM business units and their channel partners. AMT benefits include over $750 million in material costs and price-protection expenses saved in 1998. (Award of 1999)

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Innovative implementation of five

optimization systems - University of Chile

• Timber is Chile's second largest industry. One of the largest Chilean forestry firms, employs five different optimization systems, designed by a team from the University of Chile, at three different decision levels.

• The systems include ASICAM, a daily truck scheduling system; OPTICORT, a short-term harvesting system; PLANEX, a harvesting equipment and access road location optimization system; OPTIMED, a medium range planning tool; and MEDFOR, a long-term strategic planning tool

• The impact of these systems has been organizational and financial with reporting a total savings of $5 million a year.

(Award of 1998)