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Winter 2013 FRONTIERS OF ENGINEERING The BRIDGE LINKING ENGINEERING AND SOCIETY Computational Social Science: Exciting Progress and Future Directions Duncan J. Watts The Rise of Computer-Enabled Supply Chain Design Steve Ellet Advancing Sustainable Manufacturing with the Use of Cognitive Agents Steven J. Skerlos Artificial Solar Fuel Generators Miguel A. Modestino and Rachel A. Segalman Mechanics, Materials, and Functionalities of Biointegrated Electronics Nanshu Lu Biocompatible Materials for Optoelectronic Neural Probes: Challenges and Opportunities Polina Anikeeva The mission of the National Academy of Engineering is to advance the well-being of the nation by promoting a vibrant engineering profession and by marshalling the expertise and insights of eminent engineers to provide independent advice to the federal government on matters involving engineering and technology.
The BRIDGE NATIONAL ACADEMY OF ENGINEERING Charles O. Holliday Jr., Chair C.D. (Dan) Mote Jr., President Maxine L. Savitz, Vice President Thomas F. Budinger, Home Secretary Venkatesh Narayanamurti, Foreign Secretary Martin B. Sherwin, Treasurer Editor in Chief: Ronald M. Latanision Managing Editor: Cameron H. Fletcher Production Assistant: Penelope Gibbs The Bridge (ISSN 0737-6278) is published quarterly by the National Academy of Engineering, 2101 Constitution Avenue NW, Washington, DC 20418. Periodicals postage paid at Washington, DC. Vol. 43, No. 4, Winter 2013 Postmaster: Send address changes to The Bridge, 2101 Constitution Avenue NW, Washington, DC 20418. Papers are presented in The Bridge on the basis of general interest and time- liness. They reflect the views of the authors and not necessarily the position of the National Academy of Engineering. The Bridge is printed on recycled paper. C © 2013 by the National Academy of Sciences. All rights reserved. A complete copy of The Bridge is available in PDF format at www.nae.edu/TheBridge. Some of the articles in this issue are also avail- able as HTML documents and may contain links to related sources of information, multimedia files, or other content.
The Volume 43, Number 4 • Winter 2013 BRIDGE LINKING ENGINEERING AND SOCIETY Editor’s Note 3 Views from the Front Lines of Engineering Kristi S. Anseth Features 5 Computational Social Science: Exciting Progress and Future Directions Duncan J. Watts Deep and significant progress in computational social science requires novel and creative approaches to data collection and research. 11 The Rise of Computer-Enabled Supply Chain Design Steve Ellet Recent advances in supply chain design are enabling sophisticated modeling to evaluate options, suggest new configurations, and test alternatives before proceeding with costly implementation. 15 Advancing Sustainable Manufacturing with the Use of Cognitive Agents Steven J. Skerlos Cognitive agents can help a manufacturer maximize its profit while coordinating achievement of the company’s sustainability targets. 23 Artificial Solar Fuel Generators Miguel A. Modestino and Rachel A. Segalman As scientific and engineering aspects of artificial photosynthesis devices mature, a better understanding of the challenges to fabricate cost-effective solar fuel generators is critical for their deployment. 31 Mechanics, Materials, and Functionalities of Biointegrated Electronics Nanshu Lu Mechanics, materials, and microfabrication techniques have advanced the design and manufacture of flexible and stretchable electronics, which will likely revolutionize health care and human-machine interaction. 39 Biocompatible Materials for Optoelectronic Neural Probes: Challenges and Opportunities Polina Anikeeva Flexible organic and hybrid electronics and optoelectronics offer unique opportunities to address the elastic, geometric, and chemical compatibility challenges of neural probe materials. (continued on next page)
The BRIDGE NAE News and Notes 49 NAE Newsmakers 51 2013 Annual Meeting Highlights 54 Remarks by NAE Chair Charles O. Holliday Jr. 55 “What I have been thinking about…”: Annual Address by NAE President C. D. Mote, Jr. 59 2013 Simon Ramo Founders Award Acceptance Remarks by Albert D. Wheelon 60 2013 Arthur M. Bueche Award Acceptance Remarks by John E. Kelly III 62 NAE 50th Anniversary Campaign 63 2013 US Frontiers of Engineering Hosted by Dupont 65 Calendar of Meetings and Events 66 In Memoriam 67 Publications of Interest The National Academy of Sciences is a private, nonprofit, self- The Institute of Medicine was established in 1970 by the National perpetuating society of dis tinguished scholars engaged in scientific Academ y of Sciences to secure the services of eminent members of and engineering research, dedicated to the furtherance of science and appropriate professions in the examination of policy matters pertaining technology and to their use for the general welfare. Upon the author- to the health of the public. The Institute acts under the responsibility ity of the charter granted to it by the Congress in 1863, the Academy given to the National Academy of Sciences by its congressional char- has a mandate that requires it to advise the federal government on ter to be an adviser to the federal government and, upon its own scientific and technical matters. Dr. Ralph J. Cicerone is president of the initiative, to identify issues of medical care, research, and education. National Academy of Sciences. Dr. Harvey V. Fineberg is president of the Institute of Medicine. The National Academy of Engineering was established in 1964, The National Research Council was organized by the National under the charter of the National Academy of Sciences, as a parallel Academy of Sciences in 1916 to associate the broad community of organization of outstanding engineers. It is autonomous in its adminis- science and technology with the Academy’s purposes of furthering tration and in the selection of its members, sharing with the National knowledge and advising the federal government. Func tion ing in Academy of Sciences the responsibility for advising the federal gov- accordance with general policies determined by the Academy, the ernment. The National Academy of Engineering also sponsors engi- Council has become the principal operating agency of both the neering programs aimed at meeting national needs, encourages edu- National Academy of Sciences and the National Academy of Engi- cation and research, and recognizes the superior achievements of neering in providing services to the government, the public, and the engineers. Dr. C. D. Mote, Jr., is president of the National Academy scientific and engineering communities. The Council is administered of Engineering. jointly by both Academies and the Institute of Medicine. Dr. Ralph J. Cicerone and Dr. C. D. Mote, Jr., are chairand vice chair, respec- tively, of the National Research Council. www.national-academies.org
FALL 2006 3 Editor’s Note The session on designing and analyzing societal net- works was organized by Tanzeem Choudhury of Cornell Kristi S. Anseth (NAE) is University and Scott Klemmer of the University of Distinguished Professor of Chemical California, San Diego. Speakers addressed opportuni- and Biological Engineering, profes- ties and challenges posed by the massive-scale adoption sor of surgery, and HHMI assis- of social technologies such as social networks, smart tant investigator in the Department mobile devices, digital health, and online education. In of Chemical and Biological this issue Duncan Watts of Microsoft discusses progress Engineering at the University of and challenges in computational social science, which Colorado Boulder. covers the study of complex social systems through computational modeling and related techniques. He notes that despite significant developments, progress in Views from the Front Lines of research related to the “big” questions (e.g., systemic risk in financial systems, problem solving in complex Engineering organizations) has been more limited. He describes rea- The annual US Frontiers of Engineering (FOE) Sym- sons for this, and the need for new platforms and institu- posium brings together outstanding young engineers, tions for collecting and conducting this research. ages 30 to 45, to share ideas and learn about cutting- The second session, chaired by Elizabeth Hoegeman edge research on a wide range of engineering topics. of Cummins Inc. and Rhett Mayor of the Georgia Insti- Approximately 100 of us gather for a few days each year tute of Technology, was on cognitive manufacturing. and spend our time networking, learning, and discussing. Here, the term refers to production systems that utilize A unique characteristic of the symposium series is that cognitive reasoning engines or distributed intelligence participants are competitively selected from researchers agents and are thereby capable of autonomous opera- working across the spectrum of engineering disciplines tion that requires only high-level supervisory control. in academia, industry, and government. FOE is a gem We learned about systems that perceive changes in pro- among NAE activities and provides these emerging engi- cesses and then respond to stay within target ranges neering leaders with a rare opportunity to learn about of metrics such as production cost, rate, and energy the latest research in engineering areas other than their consumption. In “The Rise of Computer-Enabled Sup- own and to meet with promising engineers working in ply Chain Design,” Steve Ellet of Chainalytics reviews different fields. The symposium is truly memorable, and the deployment of computer-enabled decision mak- I encourage you to nominate your eligible colleagues. I ing at the production system logistics level, exploring attended my first US FOE symposium in 1998 as a new approaches to global logistics optimization and sup- assistant professor, and it is now my great privilege to ply chain design. Steven Skerlos of the University of serve as chair of the organizing committee and meeting. Michigan discusses the importance of integrating sus- The nineteenth US FOE Symposium, hosted by tainability objectives into product design and describes DuPont, was held September 19–21, 2013, at the Hotel areas where cognitive manufacturing techniques may du Pont in Wilmington, Delaware. The meeting was enable mass sustainability. organized into four sessions with the following themes: Presentations in the third session, chaired by Halil designing and analyzing societal networks, cognitive Berberoglu of the University of Texas at Austin and manufacturing, energy: reducing our dependence on Stuart Thomas of DuPont, related to energy and efforts fossil fuels, and flexible electronics. Six papers, repre- to reduce dependence on fossil fuels and find technical senting the highly engaging topics covered by this year’s solutions for diversifying the fuel production infrastruc- presentations, are included in this issue of the Bridge. ture to meet energy needs. The session talks addressed Below is a brief summary of this event (for additional technical, economic, environmental, social, and politi- detail, see the write-up and photo on page 63). cal issues associated with dependence on fossil fuels, as
The 4 BRIDGE well as challenges in biofuel production and incorpora- The dinner speaker, a traditional highlight of FOE tion of nonfossil fuels in the infrastructure. In “Artificial programs, was Doug Muzyka, senior vice president and Solar Fuel Generators,” Miguel Modestino and Rachel chief science and technology officer at DuPont. He pre- Segalman1 of the University of California, Berkeley, sented an engaging perspective on DuPont over its 211- review artificial photosynthesis research on harvesting year history, which provided insight into the company’s solar energy for fuel production, and in particular the current emphasis on integrated science and engineering development of an integrated solar hydrogen generator to develop solutions to global challenges. Dr. Muzyka that consists of integrally connected photovoltaic and concluded his talk by noting that the collective impact catalytic units. of collaboration provides one of the best opportunities The final session of the meeting, chaired by Lynn Loo for engineering innovation, and he encouraged attend- of Princeton University and Tina Ng of the Palo Alto ees to challenge traditional boundaries and ways of Research Center, covered advances in flexible electron- thinking. Ellen Kullman, DuPont chair and CEO, spoke ics. Here, we learned that conventional fabrication pro- by video about engineering as creative problem solving cesses are being transformed to incorporate electronic and the important role of engineers in finding solutions control and power sources into any object, including sur- to pressing needs. faces that are soft, pliant, and often easily damaged (such Finally, I would like to note that it was my sincere as human tissue). Applications ranged from energy-effi- pleasure to serve as chair of the Organizing Committee cient, stretchable lighting to lightweight photovolta- for this year’s US FOE Symposium. I always leave the ics, smart-sensing wallpaper, and dissolvable electronic program invigorated and excited about the future of our implants. Nanshu Lu from the University of Texas at profession. I also want to express my sincere gratitude Austin explains the mechanics, materials, and biointe- and thanks to the NAE staff with their boundless energy gration of tissue-like electronics that can conform to and and enthusiasm that truly make this program a timeless deform with living organisms for physiological sensing success. Specifically, I appreciate the tireless contribu- and stimulation. Polina Anikeeva of the Massachusetts tions of Janet Hunziker, NAE senior program officer, Institute of Technology describes next-generation flex- Vanessa Lester, program associate, and Lance Davis, ible electrode arrays and optoelectronic neural probes NAE executive officer, to the planning and implemen- that minimize tissue damage and maintain high-quality tation of the Frontiers of Engineering symposia. I also neural recordings over longer time scales. thank the sponsors of the 2013 symposium: DuPont, In addition to the oral presentations, the FOE sympo- The Grainger Foundation, National Science Founda- sia provide lively Q&A sessions, panel discussions, and tion, Defense Advanced Research Projects Agency, other activities that encourage conversation and net- Microsoft Research, Cummins Inc., and the Greater working. At this year’s meeting, these activities includ- Wilmington Convention and Visitors Bureau. ed a variety of technical tours at DuPont’s Experimental Station and Chestnut Run Plaza. 1 Rachel Segalman presented the paper at the symposium.
Deep and significant progress in computational social science requires novel and creative approaches to data collection and research. Computational Social Science Exciting Progress and Future Directions Duncan J. Watts The past 15 years have witnessed a remarkable increase in both the scale and scope of social and behavioral data available to researchers. Over the same period, and driven by the same explosion in data, the study of social phenomena has increasingly become the province of computer scientists, physicists, and other “hard” scientists. Papers on social networks and related topics appear routinely in top science journals and computer science confer- Duncan J. Watts is a princi- ences; network science research centers and institutes are sprouting up at top pal researcher at Microsoft universities; and funding agencies from DARPA to NSF have moved quickly Research. to embrace what is being called computational social science. Against these exciting developments stands a stubborn fact: in spite of many thousands of published papers, there’s been surprisingly little prog- ress on the “big” questions that motivated the field of computational social science—questions concerning systemic risk in financial systems, problem solving in complex organizations, and the dynamics of epidemics or social movements, among others. Of the many reasons for this state of affairs, I concentrate here on three. First, social science problems are almost always more difficult than they seem. Second, the data required to address many problems of interest to social sci- entists remain difficult to assemble. And third, thorough exploration of com- plex social problems often requires the complementary application of multiple research traditions—statistical modeling and simulation, social and economic
The 6 BRIDGE theory, lab experiments, surveys, ethnographic fieldwork, firms, regulatory and government agencies, markets, and historical or archival research, and practical experience— political institutions may all play important roles. More- many of which will be unfamiliar to any one researcher. over, because these different types of actors not only In addition to explaining the particulars of these chal- exist at different scales (firms comprise individuals, mar- lenges, I sketch out some ideas for addressing them. kets comprise firms and individuals, etc.) but also may interact with each other in important ways, problems Why Is Social Science Hard? of this type require one to consider events, actors, and By definition, “social” phenomena are less about the forces across multiple scales simultaneously. behavior of individuals than of collections of individu- Given the unavoidably multiscale, complex, and emer- als in groups, crowds, organizations, markets, classes, gent nature of social phenomena, it is not surprising that and even entire societies, all of which interact with each theories of social behavior and change have been diffi- other via networks of information and influence, which cult to work out in any realistic detail. Compounding this in turn change over time. As a result, social systems— theoretical difficulty are two separate but related empiri- like complex systems in physics and biology—exhibit cal difficulties. First, it has been impossible to collect “emergent” behavior, meaning that the behavior of observational data on the scale of hundreds of millions, or entities at one “scale” of reality is not easily traced to even tens of thousands, of individuals. Second, because the properties of the entities at the scale below (Ander- cause and effect can be difficult to infer from observation- son 1972). Firms, for example, can exhibit highly stable al data alone, experimental studies are also necessary. Yet identities and cultures even as the particular employees experiments involving, say, the performance of an orga- who work in them change completely over time, just as nization with a particular structure, or the popularity of you remain you even as the cells in your body turn over songs in a single instance of a cultural market, represent during the course of your lifetime. Conversely, the stock the collective behavior of hundreds or even thousands of market, the economy, or a political regime can collapse individuals, designs that are clearly impossible to imple- suddenly and unexpectedly even as the various players ment in a physical lab (Zelditch 1969). and background conditions remain the same. The Emergence of Computational Social Science In light of these three interrelated difficulties—(1) the The computing revolution complexity of the theoretical issues confronting social science, (2) the difficulty of obtaining the relevant has dramatically increased observational data, and (3) the difficulty of manipulat- the speed and memory of ing large-scale social organizations experimentally—it is hardly surprising that progress in social science has been computers and the scale and slow relative to that in the physical, engineering, and biological sciences, in particular over the past century. scope of social data that can But the computing revolution of the past two decades— be analyzed. a revolution that has dramatically increased not only the speed and memory of computers themselves but also the scale and scope of social data that can now be Complicating matters further, emergent properties analyzed—has the potential to revolutionize traditional can be both the cause and the effect of social change. social science, leading arguably to a new paradigm of Sometimes, that is, the decisions of corporations or “computational social science”1 (Lazer et al. 2009). even governments may depend critically on the per- sonal interests of a handful of executives, whereas at 1 “Computational social science” is a contested label, referring other times the behavior of those same individuals may in some quarters to simulation of agent-based models (see, for be powerfully constrained by the corporate or political example, http://computationalsocialscience.org/) and in others strictly to the analysis of computationally challenging datasets culture to which they belong. (http://research.microsoft.com/en-us/groups/cssnyc/). Here I use Nor is emergence as simple as one scale of reality the term somewhat liberally to refer to the emerging intersection aggregating to another. Rather, in many problems of of the social and computational sciences, an intersection that interest to social scientists, the actions of individuals, includes analysis of web-scale observational data, virtual lab–style experiments, and computational modeling.
WINTER 2013 7 The most prominent strand of research in com- feasible, and on a lower cost basis (Wang et al. 2012). putational social science leverages communication Finally, by shrinking the hypothesis-testing cycle—the technologies—including email, social networking and lag between analyzing one set of experimental results microblogging services, and cellphones—as well as and running the next set of experiments—from months online games, ecommerce sites, and other Internet- or years to days or even hours, crowdsourced virtual lab enabled services. All of these devices and services gen- experiments can dramatically expand the range of con- erate digital signals, often referred to as digital exhaust or ditions that can be studied. digital breadcrumbs, from which inferences can be made about individual and/or collective behavior. In this way, it is increasingly possible to observe the actions The web can be used to create and interactions of hundreds of millions of individuals in real time as well as over time. “virtual labs,” controlled Data derived from instant messaging services and social networking sites, for example, have been used environments for the conduct to construct networks of hundreds of millions of nodes, analysis of which (Leskovec and Horvitz 2008; Ugan- of macrosociological der et al. 2011) has confirmed earlier conjectures about experiments. the topology of large social networks (Newman 2003; Watts and Strogatz 1998). Other studies have mined email data to estimate the microlevel rules describ- Challenges and Opportunities for ing new tie formation (Kossinets and Watts 2006) or Computational Social Science used blog networks to measure the propensity to join As impressive as its recent accomplishments have been, new groups (Backstrom et al. 2006). Others still have computational social science faces a number of pressing mapped the diffusion of online content (Bakshy et al. challenges if it is to address the important questions of 2009; Dow et al. 2013; Goel et al. 2012; Leskovec et al. social science in a meaningful way. For example, orga- 2007; Sun et al. 2009) or conducted massive random- nizational and interorganizational problem solving, ized field experiments to estimate the causal effects of collective action and decision making, the relationship social influence on adoption (Aral and Walker 2011), between deliberation, governance, and democracy, the voter turnout (Bond et al. 2012), or likelihood to share emergence of disruptive technologies, and the rise of content (Bakshy et al. 2012). new political or cultural movements are all core social A less well explored but also important strand of scientific questions, but they have received little atten- research uses the web to create “virtual labs”: con- tion from computational social science largely on the trolled environments for the conduct of “macrosocio- grounds of limits to current data sources, platforms, or logical” experiments (Hedstrom 2006). Although early methods. In the following sections I describe three chal- efforts relied on volunteers (Dodds et al. 2003; Salganik lenges and suggest some directions for future progress. et al. 2006), an important recent development in this field has been the use of crowdsourcing sites such as Creating a Social Supercollider Amazon’s Mechanical Turk to recruit and pay subjects, First, the dominant digital exhaust model of data col- analogous to the longstanding tradition in behavioral lection imposes important limitations on the type of science of recruiting from college student populations research questions that can be answered. (Mason and Watts 2009). Consider, for example, the problem of measuring One important advance due to crowdsourced virtual how friends influence each other’s purchase behavior, labs has been resolution of the synchronicity problem a question that is of great interest to social scientists as to ensure that N subjects will arrive contemporaneously well as to marketers, policymakers, and other change and remain engaged in the experiment for its duration agents. Answering such a question requires the abil- (Suri and Watts 2011), thereby allowing for networked ity to observe both the complete friendship network experimental designs. Another advantage is that exper- (already a difficult task) and the shopping behavior iments can be designed, launched, and executed on of everyone in the network. Using existing systems, a much shorter timescale than has been historically one might obtain an approximation of the friendship
The 8 BRIDGE network by using, say, Facebook data or mining email Expanding Virtual Labs logs, while ecommerce sites or retailer databases may A second challenge for computational social science show how much individuals are spending on particular concerns the continued development of experimental products. Currently, however, it is extremely difficult to macrosociology. Perhaps surprisingly, the major limita- combine even two such sources of data, and of course tion to existing experimental designs is not technical there are many different modes of communication and but rather logistical—namely, the difficulty of recruiting many different places to make purchases. large numbers of subjects in a reliable and cost-effective Generalizing beyond this one example, many ques- manner. For example, the largest synchronous virtual tions of interest to social scientists require studying the lab experiments to date have not exceeded N=36, relation between different modes of social action and largely because of the practical difficulty of recruiting interaction—for example, search data to infer intent, more than that number at any single time. network data to infer relationships, ecommerce data One potential solution to this problem would be to infer choices, and social media data to infer opin- to construct a large, persistent, and well-documented ions—but these modes are generally recorded and panel of subjects—potentially hundreds of thousands stored separately, often by different companies. A major of individuals—who might participate in many experi- breakthrough for computational social science, there- ments over months or years. Increasing the scale of fore, would be a “social supercollider”: a facility that experiments from dozens to thousands of simultane- combines multiple streams of data, creating richer and ous participants would fundamentally alter the types of more realistic portraits of individual behavior and iden- experiments that could be run—making it possible to, tity, while retaining the benefits of massive scale. for example, study the proverbial army in a lab (Zeld- itch 1969). By allowing researchers to specify their sam- pling frame in advance, another advantage of a large A “social supercollider” persistent subject set would be to facilitate investiga- would combine multiple tions of variation in behavior by demographic, national, or racial group. streams of data about Such a panel would also enable the study of entirely novel questions about the connections between individ- individual behavior and ual attributes and behavior as well as between different identity while retaining the elements of behavior itself. Do people who contribute generously to public goods games behave in any char- benefits of massive scale. acteristic way when participating in a collaborative problem-solving exercise or in an exchange network? Finally, beyond virtual lab experiments, a panel of Against this considerable promise stands the equally this scale and duration could be of great value for survey pressing concern of protecting individual privacy. Pri- research and randomized field experiments. vacy is already an important issue for all industries that collect digital information about their consumers; how- Putting the “Social” in Computational Social Science ever, for the same reason that the social supercollider A final challenge for computational social science is would be so powerful a scientific tool—namely that it that, in spite of many thousands of papers published would put all the pieces together—it raises far more seri- on topics related to social networks, financial crises, ous questions about individual privacy even than are crowdsourcing, influence and adoption, group forma- posed by existing commercial platforms. These ques- tion, and so on, relatively few are published in tradi- tions have in fact already been raised by recent revela- tional social science journals or even attempt to engage tions of the National Security Agency’s Prism project, seriously with social scientific literature. The result is which also appears to be an attempt to combine data that much of computational social science has effec- from multiple sources. Construction and management tively evolved in isolation from the rest of social sci- of anything like a social supercollider would there- ence, largely ignoring much of what social scientists fore have to proceed under the strictest scrutiny, with have to say about the same topics, and largely being respect to both governance and the end uses of the data. ignored by them in return.
WINTER 2013 9 It is unclear who is to blame for this state of affairs— wide variations in publication norms and timescales. computer scientists for being presumptuous, social sci- Finally, to be successful computational and experimen- entists for being defensive, or both—and even whether tal research designs must be coordinated with methods it is a bad thing. Perhaps all interdisciplinary fields start drawn from the theoretical, survey, and ethnographic out as ugly ducklings and have to become swans on traditions of social science. their own, not by making friends with existing fields Deep and significant progress in social science, in but by outcompeting them. My view, however, is that other words, will require not only new data and meth- meaningful progress on important problems will require ods but also new institutions that are designed from the serious engagement between the communities, each of ground up to foster long-term, large-scale, multidisci- which has much to offer the other: computer scientists plinary, multimethod, problem-oriented social science have technical capabilities that are of great potential research. To succeed, such an institution will require benefit to social scientists, and the latter’s deep subject substantial investment, on a par with existing institutes matter knowledge is essential in order to ask the right for mind, brain, and behavior, genomics, or cancer, as questions and to formulate even simple models in ways well as the active cooperation of industry and govern- that address these questions. ment partners. The current and justifiable excitement surrounding New Institutions for Computational Social computational social science presents an opportune Science moment to engage in such an undertaking. Unfortunately, harnessing the complementary strengths of multiple research communities is easier said than Conclusion done. Consider, for example, the problem of managing Driven by new sources of data, ever-increasing comput- systemic risk in financial systems. On the one hand, ing power, and the interest of computer scientists, social simple and elegant models of financial crises that are science is becoming a computational discipline much as inspired by the analogy of contagion in networks (Delli biology did in the late 1990s. As exciting and important Gatti et al. 2012; Gai and Kapadia 2010; May and Ari- as this development is, however, social science is not naminpathy 2010; Nier et al. 2007) turn out to omit and should not become a subfield of computer science certain features of real banking systems—for example, or “data science.” Just as in computational biology, the that banks “create” money by expanding their balance computational element of computational social science sheets or that prices must adjust so that markets will should remain in service to the substantive and substan- clear—that are critical to understanding recent crises. tial questions of social science. On the other hand, descriptively accurate accounts of Achieving this goal will require significant invest- real financial crises tend to be so complex and multi- ments in new sources of data, new platforms for organiz- faceted (Brunnermeier 2009; Financial Crisis Inquiry ing existing data, and new institutional arrangements Commission 2011; Gorton 2012; Hellwig 2009) that it for fostering team-based interdisciplinary research. is difficult even for experts to agree on which mecha- Although somewhat novel for social science, which has nisms are the most important and therefore what fea- long operated on the model of the single-authored book tures are critical to include in even a simple model. or paper, the research lab model is familiar from the bio- The existence of diverse and even incommensurate logical and medical sciences, and with the appropriate literatures on the same topic is a surprisingly common commitment could revolutionize social science in the problem in social science, and resolving it requires 21st century. substantial investment in time as well as considerable diversity of expertise. As no one individual is likely References to satisfy this requirement, interdisciplinary teams Anderson PW. 1972. More is different. Science 177:393–396. of researchers who have both the resources and the Aral S, Walker D. 2011. Creating social contagion through incentives to engage in long-term, high-risk collabora- viral product design: A randomized trial of peer influence tions seem increasingly necessary. Such collaborations in networks. Management Science 57(9):1623–1639. are also challenging, however, in light of the cultural Backstrom L, Huttenlocher D, Kleinberg J, Lan X. 2006. and language differences that separate disciplines like Group formation in large social networks: Member- computer science from the social sciences, as well the ship, growth, and evolution. In: Proceedings of the 12th
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Recent advances in supply chain design are enabling sophisticated modeling to evaluate options, suggest new configurations, and test alternatives before proceeding with costly implementation. The Rise of Computer-Enabled Supply Chain Design Steve Ellet Engineers across all practices, industries, and applications are dealing with increasing system complexity, pushing the limits of engineering and human ability to grasp the large and complex. Whether it’s designing an iPhone, a semiautonomous rover to land on Mars, or a modern, fast, and efficient sup- ply chain, an increasing level of sophistication is required. In supply chain design, this growth is being driven by increasing business complexity, access Steve Ellet is vice presi- to “big data,” and Moore’s Law. dent of supply chain design at Chainalytics in Atlanta. The Role of Supply Chain Design Like all fields of design, engineers in supply chain design sift through a vast quantity of options to arrive at the best design—one that meets the needs of a business and its customers with minimal cost, risk, and environmental impact. Decisions about where to manufacture and stock products, which transportation modes to use, and what service levels to provide can either give a company a competitive advantage or leave it vulnerable to competi- tors and service disruptions. Today’s supply chain designers increasingly use large-scale mathematical programming models (with the help of optimization- and simulation-based software tools) to evaluate tradeoffs between cost and performance. These tools enable the sophisticated modeling of end-to-end supply chains to eval- uate a large number of alternatives, suggest new configurations, and test the
The 12 BRIDGE robustness of the alternatives before proceeding with costly implementation. BOX 1 Supply chain design has become a respected area of MIP vs. Enumeration in the Real World industrial engineering, with dedicated academics, prac- Mixed integer programming (MIP) involves a massive titioners, software vendors, and consultants. Over the amount of mathematical complexity, but is useful in last 20 years the field has transformed from spreadsheets solving otherwise intractable problems. Consider a and a few early heuristic-based tools to modern tools small system of three warehouses (A, B, and C), in which each facility can be either active or inactive. The and techniques that have become the standard for sup- number of alternative network configurations to evalu- porting critical design decisions in leading companies. ate is 23 or 8 (A, B, C, AB, AC, BC, ABC, or none of these). If there were 10 warehouses, there would be Historical Overview: Linear and Mixed Integer 210 or 1,024 configurations. But, even then, it is still not impossible to simply test each one by running an Programming LP 1,024 times and choosing the lowest cost (which is Mathematical historians credit Leonid Kantorovich, a what mathematicians like to call enumeration). Now Soviet economist, with developing linear programming consider Coca-Cola’s US finished goods warehouse network, with over 400 warehouses. The number of (LP) in 1939, applying it first to the lumber industry and options—2400 or around 2.6 × 10120 —is more than soon thereafter to the war effort. In 1947 an American, the estimated number of atoms in the universe (≈1080). George Danzig, published the Simplex method for solv- This single example vividly shows that enumeration has serious limitations in real-world applications. ing LP problems, leading to broader applications of the approach. In supply chain design, the first LP models were used Recent Advances in Supply Chain Design to answer network flow questions—for example, to Over the past decade improvements in processor perfor- determine the amount of volume for each node (i.e., mance and the correlated drop in cost as described by facility) or arc (i.e., transportation lane) in a given net- Moore’s Law (see Figure 1) have supported a dramatic work configuration. These analyses became common- increase in the speed, complexity, and size of supply place in the 1980s and early 1990s, and were typically chain design models. The most important advances used to identify the best locations for distribution cen- have allowed for the consideration of additional detail ters. At this time, it was common to refer to this type and accuracy, thus increasing confidence that the model of analysis as network optimization; the term supply chain represents the actual state. Like AutoCAD, the more design came much later once the design capabilities were detailed and accurate the model the better (to a point more robust. of diminishing returns, which is still pretty far off in sup- Linear programming led to the development of mixed ply chain design). Key recent advances have occurred in integer programming (MIP), which has been substan- computer hardware, big data systems, and modeling tools. tially more useful in supply chain design. It allows for the direct consideration of on-off decisions and step Computer Hardware functions (e.g., deciding whether a facility or manufac- Computer hardware moved to 64-bit Windows. Under turing line should be active or inactive and how large a 32-bit system, the MIP solver was limited to 2 GB it should be). MIP is highly effective, but it creates an of memory (up to 3 GB in some configurations). The enormous amount of mathematical complexity, and removal of this constraint, coupled with the low incre- can break down badly in real-world applications, as mental price, has led to an explosion of model com- explained in Box 1. plexity in recent years. Also, the common availability of Like an efficient searching algorithm, MIP looks multicore and multiprocessor hardware in recent years across the millions of options and cuts off entire sections has produced a step change in modeling capability. of the solution space that can be proven to be worse Solving an MIP model generates many subproblems and than the current best solution. This way, only a fraction is therefore well suited to a multithreaded approach. of the network configurations actually have to be solved Cloud-based solving technology is further removing to determine a global optimum. But even then, MIP barriers to large-scale modeling. Some vendors have requires large amounts of memory and time, often more built this capability directly into the software: the user than can be accommodated with current hardware in a can opt to connect to a remote solution-focused serv- business-reasonable amount of time. er maintained by the software vendor to solve one or
WINTER 2013 13 FIGURE 1 The increasing availability of computing power as described by Moore’s Law has significantly enhanced the complexity, accuracy, and adoption of computer-enabled supply chain design. Source: WG Simon. more larger problems. Services like Amazon Cloud also In addition to historical data, supply chain design enable users to push the limits of high-end hardware models require what’s called design data, information with a fraction of the hardware investment. about options that did not exist in the historical net- work, such as candidate transportation lanes and poten- Big Data Systems tial facilities. Design data play an important role in Big data systems make it possible to access and manipu- supply chain design, and it’s essential to guard against late the large datasets that underlie supply chain design bias in such data. For example, consider a model in models. A company’s records of orders, shipments, and which all existing transportation lanes use actual costs production, all at the transaction level, are the preferred (i.e., heavily negotiated rates) while new or potential inputs to the modeling process to ensure an accurate and lanes just have a carrier’s general estimate and are not unbiased model. The rise of business data warehouses, negotiated at all. The model would choose all the exist- which provide easy access to these data, has increased ing lanes (because they are cheaper), incorrectly rein- the use of historical data for analytical purposes, in turn forcing the current state. The team members might be increasing the focus on data accuracy. happy because the model says they’re doing a great job
The 14 BRIDGE FIGURE 2 Screen image of a modern supply chain design software depicting a global distribution network. Source: LLamasoft. and have an optimal supply chain, but this conclusion the building of seasonal inventory, global tax strategies, would be very wrong. item-specific flow path design, and the consideration of Accurate and unbiased “market data,” such as freight greenhouse gas emissions and other sustainability fac- costs, are also critical to the success and credibility of tors. the analysis. Big data systems empower large-scale, mul- ticompany econometric models, such as Chainalytics’ Conclusion Freight Market Intelligence Consortium, that produce The world is becoming more complex. Change is acceler- the required inputs from the market. ating. Companies need to be able to formulate strategies that deal with external factors such as changing oil prices, Modeling Tools natural and man-made disasters, and customers’ increas- Modeling tools have become sophisticated but remain ing service expectations. Using sophisticated modeling easy to use (Figure 2). Some of the important strides techniques and tools such as MIP, companies are mak- in this area are support for multiple objective func- ing better, faster, fact-based decisions that require fewer tions, the coupling of optimization and simulation in a resources to make and move their products to market. single application, automated sensitivity analysis, math In the world of supply chain design, being more effi- formulation and solver improvements, and usability cient means not only cheaper but greener as well. The improvements that have reduced the barriers to entry more accurate and detailed supply chain design models for inexperienced users. become, the easier it will be to reduce cost and waste. These advances have pushed the boundaries of supply And this is only the beginning. These tools and tech- chain design beyond network optimization into far more niques have made tremendous strides in the past few complex and valuable analyses of specific manufactur- decades, but they are still in their infancy. Software ing lines, near-shoring or reshoring (i.e., whether to companies and practitioners are pushing the envelope move production closer to the point of consumption), on the size of model that can be solved, addressing more seasonal production plans, omnichannel distribution, and more complexity.
Cognitive agents can help a manufacturer maximize its profit while coordinating achievement of the company’s sustainability targets. Advancing Sustainable Manufacturing with the Use of Cognitive Agents Steven J. Skerlos The emerging field of “cognitive” manufacturing is characterized by capa- bilities and visions for moving beyond “smart” manufacturing toward systems that have the capacity to monitor and evaluate manufacturing performance and then propose process and operations improvements based on sensor and multifaceted data, optimization techniques, and advances in machine learn- ing. In this paper I consider how cognitive systems can advance the state of Steven J. Skerlos is Arthur the art in sustainable manufacturing. F. Thurnau Professor of After providing a definition of sustainable and cognitive manufacturing, I Mechanical Engineering at explain the importance of an optimization framework for sustainable manu- the University of Michigan facturing, discuss research needed using different knowledge systems to assess in Ann Arbor. sustainability impacts, and illustrate several applications of cognitive agents to advance sustainable manufacturing. Defining Sustainable and Cognitive Manufacturing Sustainable manufacturing has been defined by the US Department of Com- merce as the creation of manufactured products using processes that mini- mize negative environmental impacts, conserve energy and natural resources, are safe for employees, communities, and consumers, and are economically sound (Haapala et al. 2013). Implicit in this definition is the support of sus- tainable development, which is defined as meeting the needs of humanity today without compromising the ability of future generations to meet their own needs (WCED 1987).
The 16 BRIDGE Sustainable manufacturing efforts are viewed as A more realistic formulation would pose economic per- incomplete unless they address concerns in three core formance as the objective with the environmental and dimensions: economic, environmental, and social. social dimensions posed as constraints, which could be These dimensions are now commonly referred to as the conceptually written as follows: triple bottom line. Sustainable manufacturing can thus MAX Profit = (unit revenue– unit cost) * production volume (1) be thought of as a multidimensional challenge with Subject to Environmental targets components that must be evaluated in a temporal, geo- Social targets graphical, and cultural context. But sustainable manufacturing is challenged by Equation 1 is a corporationwide execution system incomplete data, knowledge, metrics, and supporting problem based on setting environmental and social systems. It must therefore increasingly rely on cognitive improvement targets as constraints. The distinction manufacturing, which involves the implementation and between targets within the objective function and con- interaction of a variety of sensors and machine learning straints is important since the introduction of environ- techniques that not only provide real-time monitoring mental and social targets alongside economic targets but also can perceive performance and suggest alterna- would require the inherently arbitrary task of monetizing tives to reduce cost and environmental impacts. These sustainability targets against the firm’s primary objective machine-based interpretive systems, called cognitive of profit. The inclusion of environmental and social tar- agents, are embedded in the processes of design, supply, gets in the constraint set is a more transparent expression production, control, and procurement, to name a few. of what is valued by the firm and makes clear what steps are being taken to address sustainability issues beyond compliance with applicable legislation. Sustainable manufacturing The embodiment of Equation 1 as a design driver for the life cycle influence of manufacturing firms is repre- efforts should address sented in Figure 1. At the highest level, the manufac- turing system would not only optimize product design economic, environmental, to maximize profit but also predict environmental and and social concerns. social impacts across the product life cycle to meet environmental and social constraints, using deviations between predictions and data to improve subsequent The application of cognitive agents can help identify predictions. The master system would coordinate sub- and navigate sustainability tradeoffs in manufacturing systems at the factory level, and these subsystems would decision making. Toward this end, I review research select manufacturing processes and orchestrate facility advances needed to help manufacturers establish their operations in concert with firm objectives to minimize sustainability targets. I then suggest that cognitive costs, waste, and negative impacts on workers, commu- agents, inspired by early advances in carbon/energy nities, and the environment. management, can help a manufacturer maximize its Given the complexity of Figure 1 it is appropriate to profit while coordinating achievement of the compa- ponder the development of cognitive agents to support ny’s sustainability targets across its forward/reverse sup- the achievement of sustainable manufacturing objec- ply chains, manufacturing processes and systems, facility tives. However, as discussed in the next section, the operations, product designs, and, potentially, the influ- challenges are manifold. Nonetheless, real-world appli- ence of future regulations. cations of optimization-driven sustainable manufactur- ing are emerging in narrower contexts, such as factory Optimization Framework for Sustainable operations, supply chain design, and manufacturing pro- Manufacturing cess planning, as discussed below. Translated into an optimization statement, the Depart- Knowledge Systems to Enable Sustainable ment of Commerce definition of sustainable manufac- Manufacturing: Research Needs turing would aim to simultaneously maximize economic, environmental, and social performance. But such an The first challenge in achieving the vision of Figure 1 approach is inconsistent with how most firms operate. is establishing the link between manufacturing systems
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