June 1996 € Volume 23 € Number 3
South African National Defense Force Wins Edelman
Peacetime restructuring of the SANDF leads to significant savings for
the newly reconstituted South Africa
The South African National Defense Force (SANDF), which had been the target
of political flak as well as enemy fire during a long period of internal
upheaval, faced an even more perplexing problem once peace came to the troubled
country: In the absence of a major external threat and with a limited budget,
what should be the size and shape of a united military force?
For answers, a team of scientists, drawn from the SANDF and the consulting
firm of Deloitte & Touche, turned to operations research and management
science tools and techniques. The team's clever work not only solved the
problem with substantial savings, but also won accolades from South African
President Nelson Mandela and INFORMS.
The College on the Practice of Management Science (CPMS), the Practice Section
of INFORMS, awarded SANDF the 1996 Franz Edelman Award for Achievement in
the Management Sciences and Operations Research at the recent INFORMS national
meeting in Washington, D.C. The Edelman competition, the "Olympics
of OR/MS," includes a day-long series of presentations and is considered
one of INFORMS' most prestigious awards. This year marked the 25th anniversary
of the competition.
"The problems these scientists faced were enormous," said Howard
Finkelberg, chairman of the Franz Edelman Award Committee, in presenting
the award to SANDF representatives in Washington. "Not only did they
have to create a united military from former enemies, they had to establish
a mission suitable to today's South Africa."
In a letter to INFORMS, Mandela praised the SANDF team for its "initiative
and valuable contribution."
"Let me assure you that the historic changes in our country would not
have been possible without the loyalty and professionalism of our men and
women in the armed forces," Mandela wrote.
"We are committed to maintain and strengthen this vital national asset,
the severe resource limitations notwithstanding. To this end, the National
Defense Force, on its own initiative, has demonstrated its commitment to
the nation by a highly professional application of modern management science
and operations research techniques. As such, it is even better placed to
provide adequate, appropriate and affordable defense for our new democratic
Republic, now and beyond the year 2000."
The SANDF team created the following models to solve the problem: 1) risk
model of impact of defense contingencies; 2) growth model of growth potential
of force structural elements; 3) cost model (zero-based budgeting); 4) mixed
integer program modeling of all relationships; and 5) a manual model allowing
users to turn tasks on and off and select different strategies. The project
resulted in force design savings of more than 22 percent, with clear opportunities
for major additional savings.
Maj. Gen. Marius Oelschig led a smartly dressed contingent of SANDF personnel
to Washington to compete for the Edelman Award and later to the podium to
accept first-place honors. The winning team included Sally Botha, Ivan Gryffenberg,
Rauten Hofmeyr, Jean Lausberg, Rupert Nicolay, Willem Smit, Stefanus Uys,
Willie van der Merwe and Gys Wessels. The team was coached by Steve Strauss
of AT&T Laboratories.
"Behind every successful man," quipped Oelschig in accepting the
award, "stands a totally flabbergasted mother-in-law. Let me assure
you that there will be a large number of flabbergasted skeptics of management
science and operations research in the Republic of South Africa after today.
You have no idea what this award really means, not only to the military
officers and the consultants on the team, but to the wider military community
in our country.
"The past few years have been extremely difficult ones for the military
profession in South Africa," Oelschig continued. "We have been
viewed, and in some cases still are, as the real opposition to reform and
transformation in our country. Yet the military has also been acutely aware
of the national expectation of diligent stewardship of the resources allocated
to us. This award not only recognizes the professional standard of work
produced by military planners, but also lends valuable credibility to our
claim to be apolitical and loyal to the Constitution.
"Our primary role remains that of defending the Republic of South Africa,
its citizens and its interests and to do so in the most responsible and
cost effective manner. This award proves that we are applying ourselves
to the problem in a modern, responsible and professional manner for the
good of the nation."
Oelschig said that winning the award against high quality competition confirms
his assessment that the Edelman competition is the "Olympic Games of
MS/OR."
The other finalists included:
The Federal Highway Administration, for its development of a method,
acceptable to the U.S. DOT, which allows road funds to be used for preventative
maintenance on bridges, saving billions of dollars in the process.
National Health Service (England), for developing a formula to project
health care needs and the resulting needed flow of money to regional health
services.
Kuwait Finance Ministry for constructing a formula which allowed the
country's courts to settle cases resulting from the Souk al Manakh stock
market crash.
AT&T Capital Corp. for designing a decision automation system which
allows the company to make 70 percent of its credit decisions automatically.
National Car Rental for its work utilizing operations research to reverse
a downward financial trend and bring the company back to profitability.
Procter and Gamble for developing computerized tools that helped reorganize
the company's product supply system, allowing Procter & Gamble to determine
the best location for plants and distribution centers.
The Franz Edelman Award, including a $10,000 cash award, recognizes outstanding
implemented work. It is presented to the team that has best developed a
proven program which delivers major benefits to a company or organization.
In addition, the program must be based on scientific principles. The honor
recognizes organizations that have used OR/MS to achieve a positive, significant
impact on operations. Finalists' presentations are videotaped for the Franz
Edelman Videotape Library.
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