Public Sector OR in Japan: Education , Research, and Applications

1. ORSI2012, Dec. 20-22 Public Sector OR in Japan: Education, Research, and Applications Tatsuo OYAMA Professor, National Graduate Institute for Policy Studies 7-22-1 Roppongi, Minato-ku, Tokyo 106-8677 JAPAN Phone : +81-3-6439-6007, Phone & Fax : +81-3-6439-6138 E-mail : oyamat@grips.ac.jp

2. Public Sector OR in Japan : Education, Research, and Applications • Brief History of ORSJ • Government officials : Recent trends • Recruiting and Promoting High-level Government Official • Sending Government Officials Abroad • Educating and Training Government Officials • Public sector OR in Japan • Education Activities in Public Sector OR • Research Activities in Public Sector OR • Future prospects for OR in public sector

3. Brief History of ORSJ • Operations Research Society of Japan (ORSJ) • 1955 : First meeting was held • 1956 : First journal Keiei Kagaku • (Management Sciences) • published • 1957 : Founding of ORSJ The Union of Japanese Scientists and Engineers (JUSE), one of the most representative consulting company in Japan, contributed much for the start of ORSJ. “Four years after the foundation of ORSA and TIMS” Number of memberships were around 350 in 1957, then constantly increasing, reached 1000 in 1967 and 2000 in 1975. After 1980, however, total number of memberships has been slightly decreasing.

4. ORSJ: Trend of Memberships

5. In 1997 ORSJ had a 40th anniversary conference in Tokyo, inviting around 10 young researchers from Asian countries to the APORS (Asia-Pacific Operations Societies) session. We published a newly revised version of the dictionary of OR including around 500 applications distributing a CD-ROM to all society members. In the following years we published a 40th Anniversary Series of 15 books called “New Frontier of Management Sciences”, some of which follow parallel computation in the mathematical programming, combinatorial optimization－focusing on the meta heuristics－, queueing algorithm, fuzzy OR, mathematical modeling in marketing, public policy and OR, congestion and queue, logistics engineering, production scheduling and DEA. In 2007 we held a 50th anniversary conference in Tokyo again, and also had several memorial events.

10. Number of Sessions in Each Area

12. Government officials : Recent trends Employment examination for government officials 4.36 million government officials 1.114 million (25%) national 3.247 million (75%) local Bureaucrats have been losing people’s trust “New Public Management” (NPM) 1. Reducing control by the government, and utilizing the market mechanism 2. Placing value on results rather than plans and processes Economic and political impacts of “globalization” Governance shift 1. Domestically : from vertical relation to horizontal relation 2. Internationally : from horizontal and independent type to vertical network type

13. Recruiting and Promoting High-level Government Official

15. Table 1: Numbers of Universities according to the Type, passed for Type I Examination () : % to the total

16. Table 2: Numbers of the applicants, the passed and the employed ( ) : number of women The promotion system for Japanese government officials is characterized by two keywords : “slow” and “prize accumulation”.

17. Brief History of Sending Government Officials Abroad • 1862 In the Edo period (1603-1867) Mr. Griffith’s comment Young Japanese government officials at that time were all “polite, sincere, hard-working, earnest and capable” people with the potential to lead the future Japanese society Strong will to study and work for themselves and for their own country Dr. Heinrich Schliemann Young Japanese government officials’ sincerity and politeness • BUSHIDO : The Soul of Japanpublished in 1899 in the US and written by a famous Meiji era Japanese scholar and author Dr. and Professor InazoNitobe Moral standards of Samurai as consisting of such properties as sacrifice, faithfulness, purity, thrift or plainness, honor, affection and so on “noblesse oblige” Samurai were considered and treated as elite with great privilege and great responsibility

18. Educating and Training Government Officials • 16,801 training courses provided and 186,838 government officials trained. 168 courses and trained 5,915 officials in total by the NPA aimed at giving necessary knowledge and techniques for them to carry out their duties and responsibilities. • More than 1,500 officials to short term courses in the US (1,100), Great Britain (222), France (116), Germany (50), Canada (34) and Australia (12). • 970 officials to the United States (481), Great Britain (193), Australia (61), Germany (48), France (47), Canada (46) and others (94). • Young government officials tend to quit more frequently • Authority and responsibility must be established for each position and government official • Need to establish our own rule and customs to evaluate each individual’s contribution to their work more clearly and explicitly • Need to “invent” an evaluation system

19. Figure 3: Total number of government officials sent abroad

20. Figure 4 Number of students majored in policy-related areas

21. Public sector OR in Japan Public sector segment is described by a huge amount of statistical data that are obtained by various forms of processes: surveys, sampling, and other collective means. “Reliable” data needs to be used more efficiently and effectively as we now find the need for various kinds of policy planning, implementation, and evaluation becoming more important. Past contributions of OR, both theoretical and technical, has not been strong enough in these areas, even though it has contributed in some degree. Here is where OR can be applied more actively and positively, and, thus, we see a bright future for OR in Japan, especially in the public sectors.

22. Education Activities in Public Sector OR Education activities of OR are mainly seen in the graduate schools having policy-related programs such as public policy, public administration, public management, business administration, development study, urban planning, and so on. Statistics courses are given in most policy-related public and private graduate schools in the various forms of introductory statistics, (intermediate) statistics, statistical analysis, quantitative data analysis, statistical methods for policy analysis introductory mathematics for statistics, and so on.

23. Technical courses : introduction to simulation, decision analysis, mathematical modeling for policy analysis, and theoretical methodology-oriented courses such as introduction to mathematical programming, optimization model analysis, (applied or introductory) game theory discrete optimization are taught in some graduate programs in GRIPS, University of Tsukuba and Nanzan University. Specific statistical courses : categorical data analysis, experimental designs, multivariate analysis, and time series analysis are given in University of Tsukuba Graduate School of Business Administration and Public Policy.

24. Research Activities in Public Sector OR In most policy-related graduate programs students are required to write master’s thesis whose research topics are mostly related to their own interests. In the case that students sent from their own central and local governments, they tend to choose their master’s thesis topics close to their work in their own offices as they are accessible to the available data. Recent master’s thesis titles in some graduate schools are given as follows.

25. GRIPS ・Applying network model approaches to optimize city waste collection and transportation systems ・Mathematical modeling analysis on the optimal location-allocation of emergent fire department facilities and staffs based upon the regional data of the degree of risks ・Mathematical modeling analysis on the connectivity -robustness of the disaster prevention communication network system University of Tsukuba ・On the relation between voting behavior and regional characteristics ・Some results for impossibility theorems of social welfare function and social choice function ・Congestion evaluation system using road user’s recognition of congestion

28. T.Oyama,1993; Saitekikamoderubunseki (Optimization Model Analyses), Nikka Giren Publishing Co., 372p(in Japanese)

29. Table of Contents 1.Model Analysis 1.1 System and Mathematical Model 1.2 Data and Model Solution 1.3 Model Manipulation and Sensitivity Analysis 2. Linear Programming Model 2.1 Linear Programming 2.2 Input/Output Model 2.3 Optimal Labor Force Allocation Model 3. Integer Programming Models 3.1 Integer Programming 3.2 Train Scheduling Model 3.3 Power Utilities Construction Planning Model

30. 4. Graph Optimization Model 4.1 Graph Theory 4.2 Maritime Salvage Boats Location Model 4.3 Public Facilities Location Model 5. Network Optimization Models 5.1 Network Theory 5.2 Energy Network Model 5.3 Road Traffic Network Model 6. Queueing Combined Integer Programming Models 6.1 Queueing Theory 6.2 Optimization Model for Information System

31. 7. Markov Models 7.1 Markov Process 7.2 Industrial Structure Model 7.3 Labor Force Transition Model 8. Gravity Models 8.1 Law of Gravity and Gravity Model 8.2 Commodity Flow Model and Information Service Flow Model 8.3 Population Move Model 9. Entropy Models 9.1 Entropy and Entropy Model 9.2 Commodity and Information Flow Model 9.3 Interregional Telephone Calls Flow Model

32. T.Oyama and T.Sueyoshi,2002; Public Policy and OR, Asakura Shoten Publishing Co.,271p(in Japanese)

33. ⅠBasic Theory for Mathematical Model Analysis 1. Public Policy and Mathematical Model Analysis 1.1 Mathematical Model and Data 1.2 Mathematical Model Analysis 2. Basic Mathematical Model 2.1 One-variable Mathematical Model 2.2 Continuous-type Stochastic Model 2.3 Discrete-type Stochastic Model 3. Forecasting and Evaluation 3.1 Forecasting Methods 3.2 Regression Analysis 3.3 DEA

34. 4. Optimization and Simulation 4.1 Continuous-type Optimization Model 4.2 Discrete-type Optimization 4.3 Simulation 5. Stochastic Phenomena and Game 5.1 Markov Model 5.2 Queueing Simulation 5.3 Game Theory Ⅱ Application of Mathematical Model to Public Sectors 6. Application to Traffics and Transportaion 6.1 City Traffics Data Analysis 6.2 Mathematical Model Analysis for Planning City Bus Routes 6.3 P&R Panning via Shortest Path Counting Method

35. 7. Application to Quantitative Evaluation Problems 7.1 Regression Analysis for Measuring Salary Gaps 7.2 DEA Model Analysis for Measuring Efficiency of Electricity Generation Sectors 8. Application to Public Facility Location Problems 8.1 Optimal Facility Location Model Analysis for the Health and Welfare Services for the Aged 8.2 Mathematical Model Analysis for the Optimal Location of Post Offices 8.3 Optimal Location Mathematical Model Analysis of P&R Facilities 9. Application to Energy Policy and Public Utilities 9.1 Markov Model Analysis for the Electricity Supply and Demand 9.2 Mathematical Model Analysis for the Optimal Electricity Supply System 9.3 Optimization Model Analysis for Introducing Diversified Electricity Resource MGT

36. T. Oyama(ed.), 1998;Handbook of Public Policy OR(Translation from Operations Reserch and the Poblic Sector, Elsevier Science),Asakura Shoten Publishing Co.,776p(in Japanese)

37. [1] H. Takasakura and T. Oyama, 1994; “Optimization of collection and transportation system of city wastes”, Communications of Operations Research, Operations Research Society of Japan, Vol.39, No.12, pp.653-658 (in Japanese). [2] T. Oyama and T. Ichimori, 1995. "On the Unbiasedness of the Parametric Divisor Method for the Apportionment Problem", Journal of Operations Research Society of Japan, Vol.38, No.3, pp.301-321. [3] M. Hata T. Oyama, 1995. "Application of hierarchical mathematical programming model for the optimal facility location problem of the aged", Proceedings of the RAMP Symposium ‘95, Mathematical Programming Research Group, Operations Research Society of Japan, pp.91-106 (in Japanese). [4] T. Oyama, 1996. "Optimizing city waste collection and transportation systems via the application of network model approaches", Perspectives of Advanced Technology Society 3 : Urban Life and Traffic, Y. Matsuda and M. Fushimi (eds.), Maruzen Planet Co., Tokyo, Japan, pp.21-36. [5] M. Miwa, T. Ishikawa and T. Oyama, 1998: “Basic investigation on building the transition process model of railway track irregularity”, Proceedings of J-RAIL’98, Federation of Railway Technology, pp.443-446 (in Japanese).

38. [6] T. Oyama, 1999; “Mathematical model analyses on the optimal location of advanced medical instruments MRI”, Chap. 3, Research Report on evaluating advanced medical instruments MRI, Medical Economy Research Association, Vol.7, pp.47-66 (in Japanese). [7] T. Oyama, 1999; “Regional inequality analyses and mathematical model analyses for the location of advanced medical instruments MRI”, Communications of Operations Research, Operations Research Society of Japan, Vol.44, No.7, pp.361-364 (in Japanese). [8] T. Oyama, H. Tamura, and T. Sano, 1999; “Research on the location of post office facilities”, Monthly Research Report of Post and Telecommunications”, Research Institute of Post and Telecommunications, No.11, pp.4-23 (in Japanese). [9] M. Miwa, T. Ishikawa and T. Oyama, 1999: “Building the transition process model and its application to the MTT operation planning”, Proceedings of J-RAIL’99, Federation of Railway Technology, pp.443-446 (in Japanese). [10] Miwa, M., T. Ishikawa and T. Oyama, 1999: "Modeling the transition process of railway track irregurarity and its application to decision making for maintenance strategy", Proceedings of WCRR'99, Tokyo, 4p.

39. [11] T. Oyama, N. G. Hall and K. Kobayashi, 2000: “Generalizing divisor method for the apportionment problem --- theoretical development and numerical experiments”, Optimization : Modelling and Algorithm 13, Mathematical Statistics Research Institute, pp. 47-73. [12] Nagano, S. and T. Oyama, 2000 : "Mathematical programming model analyses on minimizing regional gap of health care services and finding an optimal facility location for the elderly", Communications of Operations Research, Operations Research Society of Japan, Vol.45, No.12, pp.33-41 (in Japanese). [13] Mizuno, K. and T. Oyama, 2001 : "Mixed integer programming model analyses for the optimal electricity supply system in the post-liberalization period", Communications of Operations Research, Operations Research Society of Japan, Vol.46, No.9, pp.33-41 (in Japanese). [14] Miwa, M., T. Ishikawa and T. Oyama, 2001: "Modeling the transition process of railway track irregurarity and all-integer type mathematical programming model analyses for the optimal planning of the track maintenance schedule", Journal of Civil Engineering Society, No.681/IV-52, pp.51-65. [15] Ojima, J. and T. Oyama, 2003 : “Index gap minimization model analyses for local promotion branches of Iwate Prefecture”, Communications of Operations Research, Operations Research Society of Japan, Vol.48, No.8, pp.567-573 (in Japanese).

40. Future prospects for OR in public sector Policy evaluation has become more necessary, important, and also very common with the emerging attention to the new public management. (so-called NPM) Also, much quantitative data has been gathered and prepared by all Japanese governmental organizations. Note that OR theory and techniques that take advantage of this data have not been applied effectively so far (this is also the case for public sector research in other countries). There are also many policy issues and problems that have not been considered seriously by OR researchers, even though their solutions are important and needed in the near future. These global problems arise in the areas of environment, energy resources, complex societal problems such as recycling, information technology industries, natural disasters and other emergent risk situations; they all require appropriate policy decision making. They are worthy challenges to OR researchers.

41. Thank you very much