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Industrial Engineering for the Next Generation
S. David WuDean and Iacocca ProfessorP.C. Rossin College of Engineering & Applied Science
Do you know?
• What is the world’s population?
• How many have access to mobile phones?
• How many have access to working toilets?
• How much does it cost to buy a disk drive that holds ALL of the worlds music?
• What country has the highest productivity in the world, today?
• What percentage of U.S. college graduates are in Engineering?
• What about China?
Do you know?
• What is the world’s population? 7 Billion
• How many have access to mobile phones? 6 Billion
• How many have access to working toilets? 4.5 billion
• How much does it cost to buy a disk drive that holds ALL of the worlds music? -$600
• What country has the highest productivity in the world, today? United States
• What percentage of U.S. college graduates are in Engineering? 4.5%
• What about China? 33%
I will talk about…
• What is facing the next generation?– New industrial/economic realities
– New technological frontiers
– Grand challenges of our time
• How do IE’s make an impact?
• Examples and initiatives
5
Automobile
Years
TelephoneElectricity
Radio
Television
VCR
PC
Cellular
% A
do
pti
on
Innovation Cycle
100
50
0 25 50 75 100 125 150
• Technology: Innovation “clock speed”
• Employment: U.S. and Global Labor Trends
– Agriculture: Value from harvesting nature
– Goods: Value from making products
– Services: Value from enhancing the capabilities of things (customizing, distributing, etc.) and interactionsbetween things
• Productivity: What drives competitiveness
Industrial/Economic Realities- Three Lenses
2013
Agriculture:Value from
harvesting nature
Goods:Value from
making products
Services:Value from enhancing the
capabilities of things (customizing,
distributing, etc.) and interactions between things
U.S. Labor Trend
Source: IBM
Ten Nations: Total 50% of World Wide Labor
Source: International Labor Organization
Global Labor Trend
Nation Labor%
Agro. %
Goods%
Services%
ServicesGrowth
China 21.0 50 15 35 191%
India 17.0 60 17 23 28%
U.S. 4.8 3 27 70 21%
Indonesia 3.9 45 16 39 35%
Brazil 3.0 23 24 53 20%
Russia 2.5 12 23 65 38%
Japan 2.4 5 25 70 40%
Nigeria 2.2 70 10 20 30%
Bangladesh 2.2 63 11 26 30%
Germany 1.4 3 33 64 44%
Where did the JOBS go?
• Technology: Innovation “clock speed”
• Employment: U.S. and Global Labor Trends
– Agriculture: Value from harvesting nature
– Goods: Value from making products
– Services: Value from enhancing the capabilities of things (customizing, distributing, etc.) and interactions between things
• Productivity: What drives competitiveness
Industrial/Economic Realities- Three Lenses
The “Productivity” View
Source: US Bureau of Economic Analysis
The % of GDP growth has been driven by increases in the Workforce and value added per worker (Productivity)
• To match the GDP growth of the past 20 years and the rising living standards of past generations, the United States needs to boost productivity growth from 1.7 to 2.3% a year.
– Slower growth in workforce >> needs higher growth in productivity
• There is large untapped potential to increase productivity and growth in the United States
The “Productivity” View
Source: MGI 2011 Report
Productivity Growth by Industry Sectors
Source: MGI 2011 Report
• Productivity gains in the public/regulated sectors,
– Healthcare delivery systems reform
– Energy productivity challenges
– Renew aging Infrastructure, e.g., over the past decade, the U.S. slipped from the 7th to 23rd in the quality of infrastructure
• Doubling down the investment on innovation
- e.g., to match the innovations from 1850-1950?
• Education: Develop the U.S. talent pool to match the economy of the future
To Boost Productivity Growth..
Source: MGI 2011 Report
Productivity & Competitiveness
Source: World Economic Forum
Engineering Degrees in the U.S.
National Need and Future Competitiveness
• OECD ranked the U.S. 27th out of 29 industrialized countries in the % of students in ENG– U.S. (4.5%)
– Singapore (39.1%), China (33.3%), Korea (25.4%), Japan (17.3%)
– Finland (20.9%), Germany (12.8%), France (13.8%)
– U.S. has 600,000 unfilled positions in tech fields
• A National Call to Action– U.S. Council on Jobs and Competitiveness
– Calling for 10,000 More Engineers/Year
– Led by CEO’s of Intel, GE, and DuPont, with more than 65 companies committed
What is facing the next generation?
–New industrial/economic realities
–New technological frontiers
–Grand challenges of our time
Big Data: What it is?
• Datasets whose size is beyond the ability of current database software to capture/store/manage/analyze.
• It’s not defined in terms of being larger than a certain number of terabytes.
• As technology advances over time, the size of datasets that qualify as “big data” will also increase.
• Vary by industry sector; depending on software tools commonly available and sizes of datasets handled
• “Big data” in many sectors today will range from a few dozen terabytes to several petabytes.
Source: McKinsey Global Institute
Big Data and Analytics
• Coupled with sophisticated analytics can substantially improve decision-making.
• Create, store, and analyze massive transactional data to make better management decisions
• Allow ever-narrower segmentation of customers and much more precisely tailored products/services.
• Improve the development of the next generation of products and services
Source: McKinsey Global Institute
Big Data and Analytics
• The use of big data will underpin new waves of productivity growth and consumer surplus.
• While the use of big data will matter across sectors, some sectors are set for greater gains, e.g., finance/insurance; government; healthcare; manufacturing
• By 2018, the U.S. alone could face a shortage of 140,000 to 190,000 people with deep analytical skills as well as 1.5 million managers and analysts with the know-how to use the analysis of big data to make effective decisions.
Source: McKinsey Global Institute
Big Data Potentialsby Industry Sectors
Source: US Bureau of Labor Statistics, MGI
His
tori
c P
rod
uct
ivit
y G
row
th %
Big Data Potential Index
Bubble Size: Relative size of GDP
Other major technological frontiers
Biotechnology
Nanotechnology
Photonics & Nanoelectronics
What is facing the next generation?
–New industrial/economic realities
–New technological frontiers
–Grand challenges of our time
Energy, Health, Security, Sustainability, Joy of Living
1. Make solar energy economical2. Provide energy from fusion3. Provide access to clean water4. Reverse-engineer the brain5. Advance personalized learning6. Develop carbon sequestration methods7. Restore/improve urban infrastructure8. Engineer tools of scientific discovery9. Advance health informatics10.Prevent nuclear terror11.Engineer better medicines12.Manage the nitrogen cycle13.Enhance virtual reality14.Secure cyberspace
NAE Engineering’sGrand Challenges
Source: National Academy of Engineering
How do IE’s make an impact?
Examples and initiatives
–Healthcare Delivery
–Energy Systems Engineering
–Sustainable Development
Healthcare Delivery
• The healthcare delivery system requires drastic reform to enhance its productivity
• Healthcare delivery organizations see significant opportunities to gain share,preserve revenue, manage margins, and minimize risk.
Designing Tomorrow's Healthcare Systems
Healthcare Systems Engineering
• Key elements of the Healthcare Systems Engineering program include the following:
• Core Healthcare Systems Courses
• ISE Foundation Courses
• Industry Projects
• Electives
Program Design
Healthcare Modeling
Where is the Beef?
• A 3-6 credit hour “capstone” project to be completed in collaboration with industry partners and under the supervision of faculty.
• Students work in small groups on projects in the healthcare industry.
Capstone Design Requirement
Operational Mgt.
Projects
Capacity and patient flow optimization
Optimal methods to support patient care delivery
Operation room scheduling
Healthcare supply chains
Data mining and health informatics
Human Factors/Ergonomics Engineering
Hospital Occupancy Planning
ER patient throughput optimization
Match hospital inpatient staffing to demand
Optimal Allocation of Surgery Blocks to Operating Rooms
Capstone Design Projects
Clinical Applications
Therapeutic Optimization
Knowledge-Based Risk Assessment
Evidence-Based Cost-Effective Diagnosis
Predictive care modeling
Chronic care modeling
Medical decision making
Organ transplant assignment
Laboratory control and stability studies
Optimal selection of screening assays for infectious agents in blood
Risk-adjusted Statistical Monitoring
Capstone Design Projects
Introduction to Healthcare Systems
Quality and Process Improvement in Healthcare
Information Technology in Healthcare
Financial Management in Healthcare
Healthcare Systems Engineering Capstone Project
Healthcare Systems Project
Healthcare DeliveryProgram Tracks
Healthcare Systems Engineering
Current Track
Simulation
Design of Experiments
Optimization Modeling
Stochastic Models & Applications
Healthcare Informatics
Track in progress
CSE 347 - Data Mining
GBUS 458. Strategic
Information Systems
CSE 347 - Data Mining
BIS 324 Business Data Management
Healthcare Executive Leadership
Future Track
MSE - Technology, Operations and
Competitive Strategy
MBA 402 -Managing
Financial and Physical Resources
BIS 350 - Project Management
ECO 425 Cost-Benefit Analysis
Healthcare Supply Chain Management
Future Track
MSE - Technology, Operations and
Competitive Strategy
SCM 340
Demand and Supply Chain
Planning
MBA 402 -Managing Financial
and Physical Resources
SCM 354
Integrated Logistics and
Transportation Management
• 25 affiliated industry partners
– Mayo clinic: founding partnership
– Hospitals/Health Networks: Geisinger, LVHN, SLUHN, EH, etc.
– Insurance: Highmark, Capital BC, Independent BC, Cigna
– Medical Schools: Mayo, Temple, Thomas Jefferson
– Government/Associations: FDA, PADOH, HHAP
– Medical Devices: B. Braun, Abbott Labs
– Consulting Firms
Industry Partnership
An Innovative Approach to Healthcare: Building a Better Delivery System”
Healthcare Systems Engineering
Examples and initiatives
–Healthcare Delivery
–Energy Systems Engineering
–Sustainable Development
• Research- Power Systems Engineering- Systems Integration/Optimization- Smart Grid Cluster
• Education– Multidisciplinary curricula– Produces a new generation of technical leaders
for the energy industry (Pipeline Building) – Required industry projects provided by
partner companies or focused research projects
• Services
Energy Systems Engineering Institute (ESEI)
Smart Grid Cluster
Source: Energy Trend Insider
Smart Grids of the future will require advanced system components and communications technologies
Smart Grid Cluster
• Research- Power Systems Engineering- Systems Integration/Optimization- Smart Grid Cluster
• Education– Multidisciplinary curricula– Produces a new generation of technical leaders
for the energy industry (Pipeline Building) – Required industry projects provided by
partner companies or focused research projects
• Services
Energy Systems Engineering Institute (ESEI)
The Aging Energy Workforce
Demand in Energy Workforce
• Vintage Conductors and Lines
• New Transmission Line Builds
• Substation Design
• Aging Infrastructure
• Advanced Cooling andClean Water Supplies for Nuclear Plants
• Coal Fired Boilers / Fuel Analyses
• Marcellus Shale and Natural Gas for Carbon Reduction
• Integrated Renewables (US DOE Smart Grid Fellows)
• Smart Campus
• Alternative Energy Strategies and Water Trading in Delaware Watershed (NJ/PA)
Sample Research/Student Projects
Examples and initiatives
–Healthcare Delivery
–Energy Systems Engineering
–Sustainable Development
Sustainable DevelopmentProgram
“Development that meets the needs of the present without compromising the ability of future generations to meet their own needs” -The Brundtland Commission
Three Pillars:• Environmental Protection • Economic Well-Being• Social Inclusion
• Cambodia- Develop customized school
management systems
• Haiti- Business plans for high-value crops
and agro processing
• Kenya- Address poverty through
entrepreneurial job creation
• Nicaragua- Clean water supply system, eco-
stove, composting latrines
• Marcellus Shale, Pennsylvania
Sustainable DevelopmentProjects at Lehigh
• Research in Humanitarian Engineering, Environmental Sustainability, and Social Entrepreneurship
• University as an UN NGO• Connectivity to UN Sustainable Development
Solutions Network
Sustainable DevelopmentInitiative
How do next generation of IE’s make an impact?
Conclusions
• What is facing the next generation?– New industrial/economic realities
– New technological frontiers
– New grand challenges
• How do IE’s make an impact?
• Examples and initiatives– Healthcare Delivery
– Energy Systems Engineering
– Sustainable Development
• Questions and Comments
Have a GREAT conference!!