IELM Newsletter, Issue No. 25

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SENG IELM newsletter Issue No. 25 SCHOOL OF ENGINEERING DEPARTMENT OF INDUSTRIAL ENGINEERING AND LOGISTICS MANAGEMENT Message from The Department Head HKUST celebrated its 25th Anniversary last year while IELM Department will put out the flags for its very own Silver Jubilee in 2018. At this very special mark of a quarter of a century, we are pleased to announce that a new undergraduate program in Decision Analytics will be launched in 2018-2019, marking another milestone for the Department. The Hong Kong economy has been gradually shifting from manufacturing to a service industry based economy and is now transforming towards one that is increasingly knowledge-based. In response to both industry and society requirements and to continue with our best efforts in providing excellent tertiary education in the field of Industrial Engineering, the newly developed program on Decision Analytics will be specially designed with innovative elements that are model and data driven so that graduates are capable of making much more productive use of data to further the competitive advantage of the firms they work for. This new program will train future leaders with strong analytical skills as well as with the ability to develop algorithms, simulated models, and to implement process and system innovations and provide solutions to important problems across industries. Graduates will be well equipped with predictive and prescriptive analytical tools, as well as domain specific knowledge in areas ranging from financial engineering to risk management, from demand and supply analytics to healthcare analytics, from revenue optimization to public policy, or even sports analytics. To cope with this development, we are now actively recruiting up to five new faculty members in different domain areas in order to provide relevant world-class education for our students. We believe that decision analytics will be increasingly relevant in the 21st Century; and hope that these new initiatives will attract an increasing numbers of talented and energetic students to our programs. Sincerely Professor Guillermo Gallego Crown Worldwide Professor of Engineering Head of Industrial Engineering and Logistics Management PROFESSOR GUILLERMO GALLEGO - INFLUENTIAL IMPACT ON REVENUE MANAGEMENT AND DYNAMIC PRICING Revenue management is one of the most successful approaches arising from Operations Research. By accurately forecasting the market demand and consumer inclination, companies are able to maximize profit through dynamically managing both price and availability of products and services, and at the same time create a win-win situation among consumers and service providers. In recognizing the contribution to theories and practices in Revenue Management, the 2016 INFORMS Impact Prize is awarded to Professor Guillermo Gallego, Crown Worldwide Professor of Engineering and the Department Head of IELM. Professor Gallego shared this prestigious prize with seven other academic and business executives, including Peter P. Belobaba, Thomas M. Cook, Robert L. Phillips, Barry Smith, Kalyan T. Talluri, Garrett J. van Ryzin, and E. Andrew Boyd. As an expert in revenue management and dynamic pricing, Professor Gallego established his research in this new arising field back in 1990s. One of his first published papers 'Optimal Dynamic Pricing of Inventories with Stochastic Demand over Finite Horizons', which was published with Garrett J. van Ryzin, Columbia University in 1994, was cited over 1300 times. With his extensive research and experience in this field, Professor Gallego has occupied a variety of editorial positions in leading journals in revenue management, and has developed strong collaboration with global corporations and government agencies. His extensive contribution to the area of Revenue Management was recognized by numerous awards he has received. He was named as an INFORMS Fellow in 2012, Manufacturing and Service Operations Management Society (MSOM) Distinguished Fellow in 2013 and is the recipient of many prestigious prizes including the INFORMS Revenue Management and Pricing Section Prize in 2005, the Revenue Management Historical Prize in 2011 and the Revenue Management Practice Prize in 2012. The 2016 INFORMS Annual Awards Ceremony was held on November 13 2016 dming the 2016 INFORMS Annual Meeting in Nashville, U.S. Professor Gallego gave the speech on behalf of all the awardees. He commented that 'Revenue Management will continue to have a board impact at all levels of society. With the data-driven supply and demand analytics, we can have a better understanding on how consumers make choices, and thus companies can decide board products and services that are profitable for the firm and of high value to consumers.' He hoped to see that data-driven supply and demand analytics will take the field of Operations Research to a higher level, and will continue to deliver the promise of having a positive impact to firms and conswners. Set up by Institute for Operations Research and the Management Sciences (INFORMS), the largest society globally for professionals in the field of operations research, management science, and analytics, the INFORMS Impact Prize is awarded biennially to an individual or team in recognition of their contribution which has had widespread impact in the practice of OR. Making Smart Decisions AN END TO BATHTIME BLUES: INNOVATION AND EFFICIENCY FROM SITNSHOWER! (from left to right) Albert Chan, Jacky Chow, Professor Neville Lee, Samuel Hui Population aging is a worldwide problem, bringing many challenges to society. According to the US National Institute of Aging, one third of elderly people experience a fall each year, with 80% of these taking place in a bathroom situation. Thermal shock from bathing might also trigger a heart attack, which poses an additional risk. In addition, many nursing homes and hospitals are suffering from a shortage of trained staff able to give suitable and expert care. Besides, bathing products currently available on the market are both expensive and ineffective. In view of these pressing issues, Professor Neville Lee, Associate Professo1· Emeritus of IELM, and two IELM alumni, Albert Chan and Jacky Chow (MPhil, 2006), developed Sit & Shower, a fully automated bathing chair which allows elderly people the flexibility and privacy to bathe in a safe and comfortable environment. This fully automated bathing chair is designed with a dual application purpose of showering and toilet application. Angled water jets around the chair prevent water from splashing all over the bathroom, but at the same time allow thorough cleansing of an individual. Water temperature is monitored so as to avoid scalding and possible burns. The overall bathing experience is markedly improved with an automatic soaping and bathing function followed by a drying off period using warm air. Professor Lee enthusiastically commented that, 'This novel machine can allow elderly people to bathe in comfort and privacy. A great deal of manpower is required to take care of elderly people in homes and hospitals, and usually caregivers are reluctant to take up the task of bathing and cleansing. Elderly people might also feel embarrassed and uncomfmtable to have others assisting them with this very private function. With this practical machine, they can exercise a great deal of independence and wash safely with the minimum of lisk.' To make sure the machine they have developed can truly address the difficulties and needs of the health care industry, the team carried out extensive research and collaborated with social workers and frontline caregivers. One very real bonus is that the machine is designed to be fitted and installed in most bathrooms without modification or removal of existing fittings. The prototype of this original bathing chair has been extensively featured in the media; it has also been widely exhibited at InnoCarnival 2016 at the Hong Kong Science Park at the end of October 2016, and at The Hong Kong Convention and Exhibition Centre for InnoDesignTech Expo and Golden Age Expo and Summit in early December 2016 and late January 2017 respectively. The design is already at the final testing stage, and will be launched later this year, at the price of HK$12,ooo to HK$15,ooo. Over a dozen nursing homes and hospitals have already expressed interest in this very practical and innovative machine. It is hoped that elderly people will gain a real degree of independence with this new technology. For more information, please visit Sit & Shower's website at http://www.sitnshower.com. @sit & Shower Research Achievement NOVEL AUDIO TECHNOLOGY AND SALES MODEL BRING MORE AFFORDABLE AND BETTER-PERFORMING HEARING AIDS TO A WIDER AUDIENCE! Currently, the elderly and those who are hearingimpaired face real problems in their choice of both a suitable and affordable hearing aid. In China, it is estimated that over 70 million people currently suffer from some sort of hearing impairment and over 90% of this group do not wear any type of hearing aids. There are devices available in the market that amplify all the signals including background noise, but many users report that the sound produced is not at all clear. There are better quality items available but the cost is prohibitive. However, a revolutionary alternative will be available in late 2017. Professor Richard So, Professor of IELM Department and his student Calvin Jiangang Zhang, a recent graduate of the MPhil Program in Technology Leadership and Entrepreneurship (TLE), have invented an intelligent hearing aid which can perform ten times better than existing products, but only cost one-tenth of the price. This hearing aid comprises of a mobile app and ear buds. With the use of the bio-inspired filtering and pattern recognition system technology, the background noise can be separated from target audio signals. The user is able to select and adjust the volume and clarity of target signals with a mobile app, and significantly improve the overall experience of using a hearing aid. Professor So is an expert in audio research and virtual reality with a PhD from the Institute of Sound and Vibration Research at the University of Southampton in UK. His original research, initiated in 2006, imitates many functions of the ears and auditory cortex in the human brain with the extensive use of computer systems. It was not until Calvin joined his research team in 2012 that the realization from fundamental knowledge to product concept was actually started. With this new invention, not only will it improve the quality oflife for Professor Richard So (right) and Calvin Zhang showcase the research outcome of their audio technology Their audio technology has won several entrepreneurship competition prizes both the elderly and hearing-impaired, it can also be applied to different areas, such as enhancing audio quality of hearing protection equipment and communication devices such as mobiles and walkie-talkies, as well as increasing the accuracy of a voice recognition device. The team has already filed patents for the hearing aid, and has set up a start-up - lncus Company Limited in 2016 for commercial application. As new entrepreneurs, they have already received several awards in different entrepreneurship competitions, including the Silver Award at the Bank of China (HK) Federation of Innovative Technologies and Manufacturing Industries (FITMI) 'Technology Start-Up' Award 2016, the First Prize in Innovation in the Cross-Strait, HK and Macau Innovation and Entrepreneurship Competition , and the First Prize in the start-up category of the 'New World Cu First Qianhai Shenzhen-Hong Kong Youth Innovation and Entrepreneurship Competition. Calvin has also received an award of HK$5,ooo donated by the Hong Kong Quality Assurance Agency Business and Community Support Fund for .... . .... his active engagement in innovative research and development projects and for his outstanding academic achievement. This innovative hearing aid will be launched on the market later this year and the team is planning to promote and sell the product via a social media platform. Calvin noted that, 'the price of the heai.ing aids in the market is marked up by about 70% as the traditional sales model engages many layers of business. By using an online platform, the price can be reduced by 90% to around US$88 per unit .' Professor So commented that with regard to future direction, he and his reseai.·ch team plan to collaborate with service providers who specifically target the elderly as a group, as well as being in possible partnership with local health authorities to market this innovative product. He also remarked that the team would be developing a second generation of hearing aid, where the processors are built into the ear buds. In this way, users without a smait phone could also activate the device. IELM ALUMNI AWARDED THE OCCUPATIONAL SAFETY & HEALTH BEST PROJECT AWARD The Occupational Safety & Health Best Project Award has been established to encourage students in Hong Kong to appreciate the importance of occupational safety and health in their studies. Under the supervision of Professor Richard So, a team of three IELM undergraduate graduates, LEUNG Wing Shan Josie, MOK Ka Wai Cavell, and YIM Winnie (Class of 2016) won the award in the UG category in 2016 with their final year project entitled 'Prevention of Forklift Truck (FLT) Accident in a Logistics Company' - a project that was completed with the active collaboration of Kerry Logistics. The Award Presentation Ceremony was held on December 9 2016. Organized by the Occupational Safety & Health Council, this award is presented to students who have completed outstanding project work related to the areas of occupational safety and hygiene, work ergonomics, accident prevention and loss control, construction safety, risk management, safety and health products design, etc. SELECTED PROJ CTS UNDE T E HONG FI AL YEAR P OJ CT SUPPORTING SCl-1 OGX ME 20 6/ 7 We are pleased to announce that the Final Year Project conducting by two IELM final year undergraduate students, LOUIE Richard Yan Ho and LAI Coco Hiu Ki, has been selected to be one of the top 50 projects in the Hong Kong X Final Year Project Supporting Scheme 2016/17- Supervised by Professor Jin Qi, Assistant Professor of IELM, Richard and Coco are working on a research project titled 'An Analysis of Operations in the Local Hong Kong Healthcare System'. Population aging in Hong Kong creates a burden to the local healthcare system; currently, public clinics are facing critical demand for services which has led to extremely long m waiting times for patients. To resolve the problem of long wait times for patients, Richard and Coco have decided to focus on developing a new queuing system which will improve the overall efficiency of the current system, with HKUST's campus clinic being used as the target of investigation. Set up by Hong Kong X-Tech Startup Platform, the Hong Kong X FYP Supporting Scheme 2016/17 was implemented to supp01t final year research projects that are related to Science, Technology, Alts, Design, Finance and Business. The 50 selected projects will each receive a grant of HK$20,ooo for project execution and enhancement; and they will compete for a maximum of 6 projects as Best of the Best FYP Award in July 2017- Judging is completed based on the fulfillment of various criteria, i.e. the exploration of an innovative idea, whether knowledge can be connected to potential application, and a possible potential for commercialization. Making Smart Doclslons PROFESSOR CHUNG-YEE LEE: KEYNOTE SPEECH AT THE CAINIAO NETWORK INTERNATIONAL ALGORITHM FINAL CONTEST Professor Chung-Yee Lee, Director of Logistics and Supply Chain Management Institute, Cheong Ying Chan Professor of Engineering, and Chair Professor of IELM was invited to give a Keynote on 'Academia Industry Collaboration: Challenges and Opportunities' at the Cainiao Network International Algorithm Final Contest on September 18 2016. Jointly organized by School of Engineering, Alibaba Group and Cainiao Network Technology Co., Ltd, this contest aimed to attract participants from all over the China to create cutting-edge solutions to real-world challenges. In the contest, finalist teams presented their innovative solutions on solving two major challenges faced by the e-commerce industry - 'The Last Mile Rush' and 'Demand Forecasts & Storage Planning', with the use of big data. As an expertise in logistics and supply chain management, scheduling and inventory management, Professor Lee was invited to be one of the judges of this competition. Other judges include Mr. Wen-Ping Wang, CTO of Cainiao Network Technology Co., Ltd, as well as Professor Weihua Zhou (IEEM PhD alumnus, 2007), Associate Dean for Research and International Affairs at Zhejiang University. There were many excellent creative and innovative solutions proposed by the teams, and it is hoped that their solutions will be implemented by the e-commerce industry in the near future to target overall efficiency and effectiveness. THE SECOND JOINT WORKSHOP - TECHNION & HKUST With the aim of fostering the scientific dialog and cooperation between researchers in the field of Industrial Engineering and Management at Technion - Israel Institute of Technology and HKUST, The Second Joint Workshop - Technion & HKUST was held at HKUST Jockey Club Institute for Advanced Study (IAS), HKUST during September 26 - 27 2016. Under the support from HKUST's Sponsorship Scheme for Targeted Strategic Partnerships (SSTSP), this workshop has brought together over 60 faculty members and PhD students from both institutions to exchange innovative ideas and knowledge on Operations Research and Data Science. The workshop kicked off with a warm welcome by Professor Guillermo Gallego, Crown Worldwide Professor of Engineering and the Department Head of IELM and Professor Avishai Mandelbaum, Dean of the Faculty of Industrial Engineering and Management of Teclmion. Participants then took turns to present their recent research findings and share their insights on various topics, including data science, revenue management, social networks and auctions and game theory. The workshop was conduded with a wonderful banquet at Sai Kung. It was a significant occasion for all faculties from both universities to gather and exchange ideas and thoughts on various areas of OR and Data Science, and it is hoped that this kind of workshop will be organjzed again in the near future. WORKSHOPS ON DESIGN THINKING • • A series of Workshops on Design Thinking were offered by Professor James Agutter in October 2016 to arouse HKUST community's awareness in the ways of applying the concept of design to real life problems. Professor James Agutter is the Director of Spark Design Initiative in the College of Architecture and Planning DETAILS: Workshop t.: Digital Prototyping October 11 2016 Participants gained an understanding of the process and value of creating digital prototypes of digital products such as applications and interfaces. Multiple tools were utilized and low and high fidelity testing protocols were fully discussed. Workshop 3: Physical Prototyping October 17 2016 The importance of prototyping as an approach to externalize ideas and learn from iterations was ~--~~ .. discussed in this workshop. Methods, techniques and tools were introduced and a sample product design challenge was given. and Associate Professor of Architecture at the University of Utah. As an innovative thinker, Professor Agutter has been deeply involved in research on applying 2D and 3D design concepts to large scale, real-time data environments. He has also focused on applying design thinking concepts to other areas such as the student experience and in healthcare innovation. Nearly 100 students and staff participated in these workshops. They commented that it was a very useful and valuable experience in attending these workshops as they could take away many useful skills which can be applied to other fields in the future. Workshop 2: Design Thinking Process October 15 2016 This full day workshop aimed to train students how to utilize the Design process to solve a specific example problem. Concepts such as the design process, critical thinking, human-centered design, rapid prototyping, visual thinking, needs assessment, human factors and multidisciplinary team dynamics are explored. Through lectures and hands on projects, difficult real world problems by navigating across the boundaries between art, business, engineering, science, human and social values were addressed. Detailed methods and techniques were introduced and explored. Has your contact information changed? Do you have any recent news that you would like to be included in our next newsletter? Send us your information by the following means: Email: Mail: ieug@ust.hk IELM Newsletter Editor Department of Industrial Engineering and Logistics Management The Hong Kong University of Science and Techno1ogy Clear Water Bay, Kowloon, Hong Kong Facebook 海峽兩岸及港澳地區創新創業大賽