enterprise service systems engineering · business problem (pain points) rfp analysis costing...

Enterprise Service Systems Engineering:

Executive Overviews for the Four Finalists for the IISE Outstanding Service Systems Engineering Award

Vittal Prabhu

Chair in Service Enterprise Engineering

Penn State University

IISE SSE Award Chair

David Reid, Sr. Principal Team Lead,

Restaurant Experience, Chick-fil-A

Kathy Zavaleta, Sr. Principle Health Systems

Engineer, Mayo Clinic

Xiaolei Xie, Assoc Prof, IE, Tsinghua

University

Aly Megahed, AI Research Manager and

Master Inventor, IBM

7 July 2020

Thank You to Our Partners and Sponsors

• Institute of Industrial & Systems

Engineers:

• Chapter #1 (HQ Columbus)

• ISE/OSU Professional Chapter

• Michigan Chapter

• Indiana Chapter

• Greater Miami Chapter

• Student Chapters at Ohio State

and Virginia Tech

IISE Professional Affinity GroupsIISE Professional and Student Chapters

Vittal PrabhuProfessor & Charles and Enid Schneider Faculty Chair in Service Enterprise Engineering

Marcus Department of Industrial and Manufacturing Engineering

Penn State

SEE360.psu.edu

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1800 1850 1900 1950 2000 2018P

erce

nta

ge o

f To

tal

Year

Agriculture

Goods

Services

Value from harvesting nature

Agriculture

Value from making products

Goods

Value from enhancing the capabilities of things

(customizing, distributing, etc.) and interactions

between things

Services

US Growth of the Service Economy

Our Viewpoint

“Engineering the 21st-Century Service Economy”

SEE 360

Awareness

Students, Parents,

Teachers, Industry

Academics

SEE Minor, Ph.D. IE –

OSA, (B.S. M.S.)

Advancement

Research Projects,

Emerging Opportunities,

Entrepreneurship

For students in Penn State

Penn State Projects

SEAL and

sponsored

projects

SEE Project

s

Harold and Inge Marcus Department of Industrial and Manufacturing Engineering

Outstanding Innovation in Service Systems Engineering Award

• Purpose: to recognize outstanding innovation in performance improvement in the Service Sector(s) via the application of Industrial and Systems Engineering.

• Rubric:– Innovative– Achieved Measured Positive Outcomes– Impact on progressing ISE’s contribution to the Service

Sectors– Advances knowledge and methods for applying ISE to

Service Systems.

Analytics for IBM’s IT Services Tendering Processes

Aly Megahed, Taiga Nakamura, Shubhi Asthana, and Sandeep Gopisetty (IBM Research)Mark Smith, Michael Rose, and Maja Daczkowska (IBM Services)

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✓ IBM Services designs, builds, and runs foundational systems and services that are the

backbone of the world's digital economy

✓ Clients of IBM Services include 4 out of the top 5 airlines by revenue, 8 out of 10 leading

mobile operators, 8 out of 10 largest automobile manufacturers, and many others

✓ Global Technology Services had a $34B+ revenue in 2018

✓ Each single deal is worth a few million to multiple billion dollars✓ Our business provides client customers with various capabilities

✓ Defined in a Request for Proposals (RFP)✓ Up to 10 competitors for each deal✓ Client objectives defined in a typical engagement lifecycle: between 3-12

months✓ Each opportunity may include such services as Cloud, Mobility, Unix, Mainframe,

Network Services, as well as service delivery management and governance✓ 10K: average number of components in a typical complex opportunity✓Contract durations: typically 3 to 5 years

Background and Business Overview

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BEF

OR

E/PA

ST MANUAL

SLOW

PAPER BASED

FRAGMENTED

Business Problem (Pain Points)

RFP Analysis

Costing

Pricing

Market Benchmarking

Win Prediction

• 100s (or 1000s) of pages. Used to take days, big team, and expertise

• Spreadsheets• Thousands of screens of cost detail in various costing tools

• Spreadsheets on top of costing tables

• Gut feel or no real view to market pricing

• No analytics on deal progress/how to manage the pipeline

Pricing

Client

Costing

Opportunity Selection

Technical Solution Costing

Commercial Solution Pricing

ManualBy Person

ManualSpreadsheet

Based

ManualExperience

Based

Technical &Commercial

Strategy Development

Win Strategy Setting and

Review

No Market View

Client Proposal

Client Requirements

Iterative

Lack of Competitive

Insight

IT Services Proposal - BEFORE

Win Prediction - non-existent or gut feel

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RFPInterpretation

IBM Research

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• Largest industrial research organization in the world

• More than 3,000 researchers in 12 labs located across six continents

• Dedicated to applying AI, analytics, and science to industry challenges

• Scientists from IBM Research have produced:

• Six Nobel Laureates

• 10 U.S. National Medals of Technology

• Five U.S. National Medals of Science

• 6 Turing Awards

• 19 inductees in the National Academy of Sciences

• 20 inductees into the U.S. National Inventors Hall of Fame

Opportunity Identification

We’re bringing analytics to transform subjective, time-consuming business judgments into informed decisions based on data-driven insights

Deal Validation & Qualification

Deal Pursuit Contract Delivery

▪ RFP Mapping– Identify Client

Reqs.

– Map Reqs. to

Offerings

▪ Costing Analytics

▪ Price to Win

Analytics

▪ Market

Benchmarking

▪ Predicting Deal

Outcome– Monitoring Status

of Opportunities

▪ Re-Pricing– Deal

Competitiveness

Assessment

▪ Deal Closure

Prediction

Our Work Addresses Sales Pipeline Management

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DeliveryEngagementBusiness Development

Business Development

Descriptive

Deal Win Prediction and Sentiment AnalysisPredictive

+ Descriptive

Request for Proposal (RFP) Analytics

Descriptive

Deal Progress Monitoring Predictive

Deal Competitiveness Assessment

CostingPrescriptive

+ Predictive

Pricing

Opportunity Identification

Deal Validation & Qualification Deal Pursuit Contract Delivery

Prior Deals ServiceOfferings

People Profiles

ServiceDelivery Data

Current DealsPipeline

Revenue Info

+ Prescriptive+ Predictive

Prescriptive+ Predictive

Methodology and Solution: Engagement Lifecycle Analytics

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Techniques Used:• Text Mining• Natural Language

Processing• Machine Learning• Integer

Programming• Blackbox

Optimization• Data Mining• Custom

techniques featuring all the above!

• RFP documents are very different. Mining documents and traditional techniques are not sufficient • Solution: A custom text mining and natural language processing method

• Get a consistent format • Semantic structure identification• Custom text mining for section classification • Custom natural language processing for requirement classification

RFP Analytics

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Extracting Client Requirements

RFP Analytics: Mapping Requirements to IBM Offerings

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• A mixed integer programming problem, but • Cost function has no closed-form expression, and is computed by a black-box• Each query of the black-box is expensive (~ 15s per query)

• Solution: • Approximate the cost offline• Then, online, switch between querying actual function and approximate one

Requirements

Attributes (yi)

Offerings (xi)

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Price-to-Win-Analytics

൯𝑀𝑎𝑥𝑝 𝑝 − 𝑐 ∗ 𝑝𝑟(𝑝

Classification Model (Price Sensitivity)

Costing Analytics and Pricing Optimization

Cost Mining of Historical Data of the

Peers

Recommender System for

Missing Values

Peer Selection Algorithm

Continuous Improvement on

Ophthalmology Outpatient

Department Service

Tsinghua

University:

Bowen Pang, Hangtian Li, Yilin Zou,

Xiaolei Xie(advisor)

Tongren

Hospital:

Xiaoxi Jia, Chuan Zhang,

Wei Tian (advisor)

Team members:

IISE Service Systems Engineering Outstanding Innovation Award Presentation

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⚫ Beijing Tongren Hospital was founded in 1886 with a history of 132 years. Originally established

by an American Methodist church specializing in ophthalmology, it gradually developed into a

comprehensive hospital with special features, and its ophthalmology department was among the top

3 nationwide.

⚫ There are three sub-districts in the hospital, with a daily average of 10,000 outpatient visits. The

outpatient volume of ophthalmology patients accounts for about 40% of the total outpatient visits,

and the number of patients from other provinces account for 60%-70% of the total number.

Background

Long procedure and waiting timeComplex physician

scheduling policy

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Ophthalmology

outpatient service

improvement

Methodology Sketches

Outpatient process

and layoutPatient arrival Service time data

Establish simulation model to

analyze process designs

Propose process

optimizationAnalyze

results

Obtain the

optimal solution

Summarize

the rules

Formulate

MIP model

Enumerate

constraints

Input

parameters

CPLEX

solution

Simulation

analysis

Summarize

the rulesFormulate

MIP model

Simplify

the model

Results analysisModel

adjustment

Improving

process

Physician

scheduling

Layout

planning

• Reduce patient waiting time

• Improve patient satisfaction

• Improve hospital

management efficiency

• Improve space utilization

• Reduce congestion

Problem Identification &

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Improvement on Queueing Rule

Improved Ophthalmology clinic hall queueing rule

7:30 a.m. ophthalmology clinic hall

Before

After Waiting Area

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Simulation Model

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•Proposal: Combine blocks 2 and 6, balance

the number of consulting rooms in the three

blocks, and then move the inspection service

points to blocks 3,4 and 6.

Proposals and Evaluation

The work has been published in Chinese Hospital Management (Chinese core journals, with more than 4,000 submissions per year, and the rate of publication is around 8%)

Index before after

Number of visits before 12:00

567 727 (28.2%)

Number in waiting hall 100 15

Number waiting in the third and fourth districts

0 35

Number waiting in the second and sixth districts

0 20

Flow profile (before improvement) Flow profile (after improvement)

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Simulation Optimization

Real System

High fidelity simulation

model

Low fidelity mathematic

model

1. Design simulationmodel and calibratemodel parameters.

2. Calibrate parametersusing simulation outputdata.

3. Obtain optimal design using mathematic model.

4. Verify the designgiven by low fidelitymodel.

5. Implementthe design.

Mathematical model

Simulation model

AdvantageHigh

efficiencyHigh fidelity

Disadvantage Low fidelity Low efficiency

•Replicating the simulation model in order to

find a better system design has low solution

efficiency.

•We propose an output fitting method

combining mathematical models to improve

the efficiency of the solution.

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Physician Scheduling

There are 45 sub-departments in the hospital’s ophthalmology clinics and approximately 200

doctors.

Each doctor has their own rotation requirements, and a monthly schedule is required.

Manual recording

Generate

Manual scheduling

Time

consuming

More

mistakes

Not human-based

management

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Scheduling Software

Import information

One-click scheduling

Edit doctor

information

For practical use by the doctors. We have written a GUI interface.

manual software

The software is convenient to use. It directly outputs the color formatted Excel and

the name of each department with the corresponding rotation doctor.

3131

Summary of Physician Scheduling

Rotation record is

confusing and non-

standardized.

Doctors’ rotation wishes

are satisfied with low-rate;

Scheduling performance is

difficult to evaluate.

Time consuming, which

takes upwards of 1 day;

Not easy to modify the

schedule.

Rotation data records are clear

with strict rules.

Improved satisfaction on

doctors’ rotation wishes;

Clear evaluation indicators.

Solve and output time within

10 seconds;

Easy to add new constraints

and obtain the new results.

Unified data

format

CPLEX

solution

Objective

function

32

New Area Layout Planning

Challenges of Layout planning of the Ophthalmology Department

• Vision Check is an inspection before diagnosis, which is a congestion point of the outpatient process.

• Ophthalmology patients need to do various inspections, go there and back during the outpatient process, which

increases the travel distance.

Formulate MIP model to minimize

the travel distance of patients

Simplify the model based on the

ophthalmology outpatient process

Adjust the model according to the

analysis of patient flow

Solving procedure Problem size: 38^4 (2.09 million) decision variables and

constraints, using Cplex Studio to solve will take a long time.

The model can be solved now and plan 1 is obtained.

Plan 2 is obtained and the performance is better than plan 1.

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Layout Planning Result

Original plan Plan 1 Plan 2

Total walking distance (unit distance) 81086 50559 45756

Distance change percentage －38% －44%

Continue

Adjusting

Plan 1 Plan 2

Re-arrange

Vision Check

Vision Check

Original plan

Vision Check

Result:

• Reduce walking distance

• Reduce going there and back, thus relieve congestion

• Improve space utilization

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Waiting time

Process time Satisfaction

2/3 of the patients finish the total process in 2.5 hours.

The satisfaction rate is improved to 82.5 points.

The waiting time for inspection is reduced by 15%;

The total process time is reduced by 7%;

The satisfaction rate is improved by 10%.

82% of the patients finish the inspection process in 30 minutes.

Summary of Improvement

Before

After

Institute of Industrial and Systems Engineers (IISE)

Service Enterprise Engineering (SEE 360) in Penn State’s Harold and Inge Marcus Department of Industrial and Manufacturing Engineering

Thank you for the opportunity to present our work.

©2020 MFMER | 3639846-36 | Confidential & Proprietary

Business Confidential Management Engineering & Consulting

Department of Management Engineering & Consulting

Mayo Clinic150 Years of Innovation

Service Innovation, Opioid Stewardship,

and the Value of Systems Engineering



It’s estimated that

more than enough opioids are

prescribed each year to give every

American their own bottle of pills.

Centers for Disease Control and Prevention (2014)



Applying IISE Body of Knowledge to Opioid Stewardship

Real-time Dashboards

Heat Maps Process redesign

Operational Workflows

Best Practice Toolkits

Surveys & Focus Groups



148%

RESULTSDecrease in mean oral MME for hip & knee patients

90% all opioid prescriptions meet target < 90 MEDD

Decrease in prescriptions for chronic therapy

Reduction in mean MME for chronic therapy prescriptions

20% 58% 90%

Stated in morphine equivalent (MME) or morphine equivalent per day (MEDD)



Control Chart of Morphine Equivalent per Day (MEDD)

Wisconsin Primary Care Chronic Opioid Therapy Registry

20% Reduction in Mean



Time Series Plot of Number of Chronic Therapy Orders

Wisconsin Primary Care Chronic Opioid Therapy Registry Jan. 2018-May 2020

58% Reduction in No. Orders



Twenty million Americans suffer

from a form of addiction.

Facing Addiction in America

US Dept. of Health and Human Services (2016 )



As members of

the IISE community

we put our engineering knowledge

to work in innovative ways.

©2020 MFMER | 3612552-46 | Confidential & ProprietaryManagement Engineering & ConsultingBusiness Confidential

Questions & Discussion

From Lean Modules to Lean Mindset • January 17, 2020 • David B. Reid 48

FROM LEANMODULES TOLEANMINDSET

Leveraging Your Organization’s Greatest Asset for Accelerated Improvement

David B. ReidSenior Principal Team LeaderProduction DesignChick-fil-A, [email protected]

July 17, 2020

mailto:[email protected]

From Lean Modules to Lean Mindset • January 17, 2020 • David B. Reid

TOP DOWN APPROACH TO LEAN

49

Costly

Not Scalable

Too Slow

1.

2.

3.


IF OUR PEOPLE ARE OUR GREATEST ASSET,AND

LEANIS OUR GREATEST TOOL,

THEN

WHY AREN’T WE LEVERAGING THEM TOGETHERTO ACCELERATE OUR IMPROVEMENT?


A BETTER WAY: A MODEL TO REDUCE THE EIGHTH WASTE

51

T I M W O O D Y

Where do we capture, prioritize, and share our Team Members’ best ideas to improve?

YOUR TEAM’S IDEAS


DEVELOPING A LEAN MINDSET

53

Motivate for Lean (Where's Your Pain Point?)

Teach Lean Principles

Set a Sandbox

Build a Sharing Community

Celebrate Wins

Provide Paths for Deeper Learnings


SANDBOX BOUNDARIES

54


SANDBOX BOUNDARIES

55

IMPROVEMENT SANDBOX

8 WASTES5S

ROOT CAUSEORDER ACCURACY

INVENTORY STORAGEVISUAL MANAGEMENT

TIME & MOTIONETC.

FOOD SAFETY

PEOPLE SAFETY

PR

OD

UC

T Q

UA

LIT

Y

EQU

IPM

EN

T W

AR

RA

NT

Y


DEVELOPING A LEAN MINDSET

56

Motivate for Lean (Where's Your Pain Point?)

Teach Lean Principles

Set a Sandbox

Build a Sharing Community

Celebrate Wins

Provide Paths for Deeper Learnings


MOST POPULAR LEAN IDEAS BY TEAM MEMBERS

57

Project Category DescriptionNumber of

“Likes”

Number of

Comments

Total “Likes”

and Comments

“Forget to

Scan?”

Receipt Text

App

Ordering

Add “Forgot to Scan Your App? One.chick-fil-

a.com/forgot2scan” to receipt. Provides

Customer convenience as well as saving time

for the next Guest at the register

330 315 645

Multi-Biscuit

MoldSmallwares

TM welded multiple biscuit cutters together to

reduce motion of cutting one at a time301 132 433

Peppermint

DispenserProcesses

Mounted a second Razzle Cookie Dispenser

next to Oreo crumb Dispenser for Peppermint

Chocolate Chips

265 130 395

Dipping Sauce

DisplayMarketing

Created a small rack to sit on top of Drink

Tower at Front Counter. All dipping sauces fit

in the rack to provide an immediate visual

answer to the evergreen question “What kind

of sauces do you have?”

176 51 227

Salad Table

Job AidProcesses

Took all PDF job aids from training materials

related to Salads and combined them into a

poster for easy viewing at Salad Table

117 48 165


EXAMPLES

From Lean Modules to Lean Mindset • September 24, 2018 • David B. Reid

YOU’VE GOT THIS!

QUESTIONS?

IISE’s Global Response—We Engineer Value (Even in Times of Major Disruption)

30 Jan 2020: How to Design and Execute Flow Workshops in Healthcare—OSU

University Hospital East Case Example (Scott Sink and Olivia Vance)

25 Feb 2020: Agile Principles and Methods to Accelerate Critical Process

Innovation and Improvement—Joan Tafoya and Caitlyn Kenney

19 March 2020: Creating Cultures to Support Performance Excellence (crucial

foundational element for surviving major disruptions!!) (David Poirier, President IISE)

Webinars that Matter in the face of COVID-19

Engineering Management Systems to Ensure

Survival and Success

If you missed these timely, great Webinars, go to this link on the

IISE Website and get to them.

https://www.iise.org/details.aspx?id=46729


Navigating your Business Through the COVID-19 Crisis—7 April

Business Continuity Strategies and Tactics in Periods of Major Disruption—16 April

James A. Tompkins Ph.D.

Chairman, Tompkins International

Engineering Management Systems to Ensure

Survival and Success

David Poirier, P.E.

CEO The Poirier Group


And to get to these latest two, same location/link…..


The Role of Data and Information(Engineered Management Systems)

in Periods of Major Disruption

Driving Benefits Realization Faster with Operational Analytics

Jared Frederici,

North American Program Lead,

The Poirier Group

Ben Amaba,

Global Chief Technology Officer

Data Analytics and AI Elite Team,

Industrial Manufacturing

IBM



Housekeeping

A webinar recording will be made available after the

session, follow up e-mail you will receive tomorrow.

Download the presentation DURING the Webinar, before

it ends!! and request extra handouts after the webinar.

Questions? Type them in the CHAT window and we will

answer as time permits.

Follow up questions are welcomed and contact

information is provided at the end of the presentation.

And, the Recording and Presentation pdf will be available

on IISE’s website for IISE members shortly after the

webinar date—Training/Webinars/Performance

Excellence. Membership Has Privileges!!https://www.iise.org/details.aspx?id=46729


• Vinny is a Member of IISE and the Society for Health Systems.

• The State of Utah asked Goldratt to Project Manage the Covid Response effort. The Goldratt team is playing a role in putting together the strategy and implementing it. We are mainly focused on Data Analytics and Insights, Identifying, Testing and Tracing efforts in regards to Covid.

• In simpler terms, everyone from the state and Dept of Health still have their day jobs on top of this, so our main job is helping coordinate the efforts.

About Vinny and this Case Study

You can download the deck (handouts)

You will receive an e-mail tomorrow with link to recording.

You can go to this IISE link soon and get deck and recording.


What’s your #1 takeaway

learning?

What’s your #1 action item?

What’s your #1 new question

you are pondering?


Pioneering and Engineering a New WorldJim DobsonSenior Manager, Business Planning & Industrial EngineeringWalt Disney Parks, Experiences, and Products

Rescheduled due to Logmein Audio Failure Mode.

Now 16 June 11-12 EDT

https://attendee.gotowebinar.com/register/5384715

667845858320


Upcoming Webinars that Matter

Professor Prabhu from Penn State will moderate for

:10 minute, TedTalk style executive summaries from the

four Finalists for IISE’s Prestigious Outstanding Service

Systems Engineering Award. (Chick-fil-A, IBM

Research in AI, Beijing Tongren Hospital, and Mayo

Clinic)Registration URL

https://attendee.gotowebinar.com

/register/8367755584608147723

Mike Sherwin from IISE’s Logistics & Supply Chain

Division and ISE at University of Pittsburgh and Jon

Carmona from the Poirier Group will share insights

and methods for making Supply Chains more Resilient.


IISE’s Annual Conference

Membership Has Privileges—Consider joining IISE? https://www.iise.org/Annual/details.aspx?id=560

Attend our Performance Excellence

Track

https://www.iise.org/Annual/details.aspx?id=560

Customer and Member Satisfaction and Feedback Survey

Resilience Reexamined: Reengineering How We do Business and Ensure Public Safety

Vinny Monteiro

The Goldratt Consulting Group

and

IISE Society for Health Systems

You can download the deck (handouts)

You will receive an e-mail tomorrow with link to recording.

You can go to this IISE link soon and get deck and recording.



Thank You!

You will be receiving an e-mail tomorrow that will include a link to the recording of the session today.

Contact us for More Info:

SHS:

Aaron Kanne [email protected]

Ali Hobbs [email protected]

Vinny Monteiro [email protected]

Scott Sink:

• https://www.linkedin.com/in/dscottsink/

• [email protected]

70




https://www.linkedin.com/in/dscottsink/


enterprise service systems engineering · business problem (pain points) rfp analysis costing...

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