Franz Edelman Award Franz Edelman Award for Achievement

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

Recipients of Franz Edelman Award 1998 -2019

Year 2019 Award Nominations Title By Developing an automated routing system has made BPS the first school district in the country to accurately map out the transportation implications from various policies. Boston Public Schools IBM Services introduced analytics and operations research tools to transform subjective, time-consuming business judgments into informed decisions based on data-driven insights IBM RTC software solution developed by Tetra Tech to efficiently manage sewer networks in real-time based on rain forecasts and sensor readings. It has been successfully implemented in the U. S. , Canada and France. Louisville Metropolitan Sewer District and Tetra Tech (WINNER) Innovative Fraud Detection System based on state-of-the-art AI, operations research, and automation. Microsoft strategic decision-making and resource allocation to support hazard identification, risk evaluation, safety assurance, and safety promotion Spanish National Aviation Authority (AESA). Vattenfall combines O. R. techniques with technical knowledge, commercial insight and system design to achieve estimated savings of $11 -$17 million per wind farm, and more than $170 million overall. Vattenfall.

Year Award Nominations Title By A new software that optimized the country’s natural gas pipeline China National Petroleum Corporation (CNPC) An advanced logistics management solutions for tackling t Europcar Operations research tools, including optimization software and satisfiability solvers, were essential to the spectrum clearing target calculations, auction winner determinations, and final TV channel assignments Federal Communications Commission. (WINNER) Multi-Echelon Inventory Optimization (MEIO) based inventory Intel 2018 The Pediatric Heart Network enlisted researchers with the Georgia Pediatric Heart Network Institute of Technology to create clinical practice guidelines (CPG) for pre-, intra-, and post-surgical care of patients with congenital heart defects (CHDs), the most common birth defect, impacting nearly 1 million children and 1. 4 million adults in the U. S. Implementing integrated forecasting and optimization models Turner Broadcasting System, Inc

Year 2017 Award Nominations Title By The American Red Cross, in partnership with researchers from the Georgia Institute of Technology, have developed a blood collection model to increase the amount of whole blood that can be processed into the blood product cryoprecipitate (cryo). American Red Cross The researchers created a mathematical optimization model that enabled Barco to easily assess the number of platforms to develop and which products should be included in each platform, and ultimately develop multi-functional product platforms that reduced product development time by 46 percent and increased on-time customer deliveries by 8 percent Barco The project sought to create a model that incorporated every component of mining, hoisting, and ore processing, while decreasing capital and operating expenses, and increasing production capacity. BHP Billiton General Electric (GE) partnered with Norfolk Southern (NS) Railroad to create and implement an algorithm to dispatch thousands of trains in real time, increase their average speed, and realize annual savings in the hundreds of millions. General Electric (GE) By applying an innovative revenue management system, traditionally used in travel and hospitality industries. Holiday Retirement (WINNER) By incorporating a range of operations research and management science techniques, including routing models, traffic simulation, decision theory, and statistical interference, the project has increased safety by reducing the potential for pedestrian-freight vehicle conflicts, decreased “last mile” delivery costs by 35 percent, and reduced vehicle emissions by 50 -60 percent New York City Transportation Department of

Year Title By 2016 Developed proprietary routing software ORION (On-Road Integrated Optimization and Navigation). UPS (United Parcel Service of America) 2015 Syngenta developed better breeding decisions, reducing the time and cost required to develop crops with high productivity. Syngenta

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)

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 SLOANKETTERING CANCER CENTER, USA

Year Title By 2005 General Motors Increases Its Production Throughput GENERAL MOTORS 2004 Reinventing the Supplier Negotiation Process at Motorola Inc. 2003 Perfecting the Scheduled Railroad- Canadian Pacific Model-Driven Operating Plan Railway Development 2002 A New Era for Crew Recovery at Continental Airlines

Year Title By 2001 Analysis for Merrill Lynch Integrated Choice Merrill Lynch, Inc 2000 Flexible Planning and Technology Management at Jeppesen Sanderson, Inc. 1999 Extended Enterprise Supply Chain Managment at IBM Personal Systems Group and Other Divisions Innovative implementation of five optimization systems IBM 1998 Bosques Arauco, S. A.

Louisville Metropolitan Sewer District and Tetra Tech Wins 2019 INFORMS Franz Edelman Award • With increasingly intense and more frequent rainfall, urban wastewater collection and treatment systems are often overwhelmed by large rainfall events, resulting in a greater risk to water environments and public health by contamination from overflows of untreated sewage and storm water. • As a pioneer in real-time control (RTC), Louisville MSD enlisted engineering services firm Tetra Tech to implement Csoft® as part of its Integrated Overflow Abatement Plan efforts. • Csoft® isa RTC software solution developed by Tetra Tech to efficiently manage sewer networks in real-time based on rain forecasts and sensor readings. It has been successfully implemented in the U. S. , Canada and France. • MSD’s fully automated RTC system responds to rainfall and actual system conditions by maximizing all available storage, conveyance and treatment capacities. • Excess water is diverted and temporarily stored until it can be redirected toward the appropriate treatment plant. • The system has saved MSD over $200 million in infrastructure costs, while improving the community waterways.

Federal Communications Commission Wins 2018 INFORMS Franz Edelman Award Holiday Retirement, the largest private owner and operator of independent senior living communities in the U. S. , with more than 300 facilities and $1 billion in annual revenue, partnered with Prorize LLC to revise its outdated pricing model, replacing it with a new revenue management system that would increase revenue and improve customer satisfaction. Previously, an inconsistent pricing structure resulted in frequent price negotiations between corporate and local staff, and between local staff and customers, which led to revenue loss and a negative customer experience. By applying an innovative revenue management system, traditionally used in travel and hospitality industries, Holiday Retirement has consistently experienced a 10 percent revenue increase in new leases since the new system was fully deployed in 2014.

Holiday Retirement Wins 2017 INFORMS Franz Edelman Award Holiday Retirement, the largest private owner and operator of independent senior living communities in the U. S. , with more than 300 facilities and $1 billion in annual revenue, partnered with Prorize LLC to revise its outdated pricing model, replacing it with a new revenue management system that would increase revenue and improve customer satisfaction. Previously, an inconsistent pricing structure resulted in frequent price negotiations between corporate and local staff, and between local staff and customers, which led to revenue loss and a negative customer experience. By applying an innovative revenue management system, traditionally used in travel and hospitality industries, Holiday Retirement has consistently experienced a 10 percent revenue increase in new leases since the new system was fully deployed in 2014.

UPS Wins 2016 INFORMS Franz Edelman Award for Changing The Future Of Package Delivery UPS (United Parcel Service of America) Game Changing Operations Research Project Expected to Save 100 Million Miles Driven Per Year A global leader in analytics, operations research and technology, UPS® (NYSE: UPS) has won the prestigious INFORMS Franz Edelman Award for Achievement in Operations Research and the Management Sciences for its proprietary routing software ORION (On-Road Integrated Optimization and Navigation). ORION uses advanced fleet telematics and complex algorithms to crunch 1, 000 pages of code and more than 250 million address data points to provide UPS drivers with optimized delivery routes each day. Following the prototyping period between 2008 and 2011, and the official launch in 2013, ORION is on track to complete U. S. deployment by the end of 2016. “ORION is a testament to the scale of innovation that can be accomplished when operations research, information technology and business processes are seamlessly integrated, ” Once U. S. implementation is complete at the end of this year, the ORION deployment is expected to result in an annual savings of 10 million gallons of fuel, a reduction of 100, 000 metric tons in CO 2 emissions, and an estimated $300 to $400 million in savings and cost avoidance. ”ORION has been a game changer for UPS, impacting 55, 000 drivers across 1, 000 buildings in the United States when it is fully deployed, ” UPS is also proud to honor Carnegie Mellon University Heinz College, the winner of the INFORMS 2016 UPS George D. Smith prize. The prize is awarded to an academic department or program for effective and innovative preparation of students to be good practitioners of operations research, management science or analytics. =============== Franz Edelman is counted among the fathers of innovation in OR/MS. Coming of age in Hitler's Germany, Edelman dedicated his career to facilitating better decisions on matters great and small through operations research. Today, his discoveries, along with other OR/MS pioneers, inspire initiatives to help leaders get better results in every sector of management and operations.

SYNGENTA Wins 2015 INFORMS Edelman Prize, Leading Award in Analytics, O. R. The Franz Edelman competition attests to the contributions of analytics and operations research (O. R. ) in the profit and non-profit sectors. Since its inception in 1972, cumulative dollar benefits from Edelman finalist projects have reached nearly $225 billion. With current breeding methodologies, the rate of increase in crop production is not sufficient to meet today’s food needs. Syngenta changed that by applying O. R. methods to make better breeding decisions, reducing the time and cost required to develop crops with high productivity. This data-based transformation helps Syngenta achieve its commitment to meeting the world’s growing food needs in an economically and environmentally sustainable way. Each of four O. R. tools used by the prize winner supports one or more key “pipeline” phases: variety design, variety development, and variety evaluation. Syngenta’s trait introgression (TI) tool and the breeding project lead (BPL) tool make processes within the pipeline more efficient. Syngenta is using the TI tool to transfer favorable traits from one soybean variety to another. It uses the BPL tool to develop varieties with higher productivity. With each tool, the project lead compares alternative TI and breeding strategies until a strategy is identified with a high probability of success, as well as minimal cost and time. Yield trial design (YTD) optimizer and data quality cart (DQC) tools are supporting decisions that impact the quality of variety selection and advancement toward commercialization. The new analytical tools dramatically improve project lead training, decision-making, and planning, resulting in cost avoidance for soybean R&D of more than $287 million from 2012 -2016 and substantially improving the probability of successfully delivering a portfolio value exceeding $1. 5 billion. Syngenta recognizes the positive impact these tools have on soybean R&D and is initiating a multi-year effort to customize and launch similar tools across all major crops.

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.

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.

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 CO 2 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/Tias. Nimbas 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.

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. •

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.

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 $500 M in profit improvements across several business units since 2005. (Award of 2009)

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.

Operations Research Advances Cancer Therapeutics Eva K. Lee, Marco Zaider, School of Industrial and Systems Engineering and Center for Operations Research in Medicine and Health. Care, 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)

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)

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 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)

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)

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 timespace 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)

A New Era for Crew Recovery at Continental 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, crewrecovery solutions. • The Crew Solver system helped it save approximately US $40 million for major disruptions only. (Award 0 f 2002)

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)

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 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) • • •

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 supplychain 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)

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 longterm 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)