RegulatingAI to collaborate with President Trump & Shake Shack, Post Office embrace OPEX

PEX Network’s weekly news bulletin rounds up the latest from the process community including operational excellence (OPEX), digital transformation, business process management (BPM), process mining, artificial intelligence (AI) and much more.

This week includes:

• RegulatingAI aims to collaborate with Trump administration on responsible AI governance
• Shake Shack embraces OPEX
• Post Office’s Operational Excellence Incentive performing well
• IAG appoints new chief AI scientist
• Waygate Technologies wins Kaizen Award for OPEX

RegulatingAI aims to collaborate with Trump administration on responsible AI governance

Following the re-election of President Donald Trump, US-based nonprofit RegulatingAI (RAI) has issued a statement expressing its intention to work with the administration to promote responsible, inclusive AI governance. As an organization dedicated to developing ethical frameworks for AI, RAI hopes to find common ground with the President’s pro-innovation stance. Trump’s administration has consistently advocated for minimizing regulatory barriers, a policy aimed at keeping the US competitive in the global AI race.

Sanjay Puri, president of RegulatingAI, emphasized that a balanced approach to governance is essential for achieving ethical, practical and innovative AI solutions. “Our goal is to support a framework that prioritizes public interests and fosters continuous AI innovation,” said Puri. “By working together, we hope to drive AI advancements that enhance the quality of life for everyone, regardless of socioeconomic background.”

Lee Bogner, Mars, explores the importance of data in AI

Shake Shack embraces OPEX

Shake Shack has demonstrated that OPEX can drive strong growth in challenging markets. The New York-based burger chain, known for its premium quality offerings, has surged by more than 60 percent year-to-date, driven by a combination of new locations, rising customer traffic and improved operational margins.

The company’s recent Q3 earnings report showed promising trends, with same-store sales growth and a boost in restaurant operating margins, even in the face of rising costs. Shake Shack has optimized its operations in various ways, including refining kitchen workflows and service processes. Also, the company has embarked on a cost-reduction initiative for new store builds, expected to lower construction expenses by 10 percent in 2024 compared to 2023.

Shake Shack plans to expand further, with new company-owned and franchised locations in the pipeline, along with a planned loyalty program aimed at enhancing customer retention. The company’s operational mindset has set it apart from competitors, enabling it to withstand economic challenges and position itself as a compelling long-term investment.

Pradheep Kileti, National Grid, discusses balancing operations and innovation

Post Office’s Operational Excellence Incentive performing well

To support branch profitability, the UK Post Office has rolled out a new Operational Excellence Incentive program, which has already shown impressive results in its first month. This incentive allows postmasters to earn an additional 5 percent in variable remuneration by meeting monthly operational standards. Designed to help postmasters enhance their branch operations, the program reflects the Post Office’s commitment to improving branch performance and profitability.

During the first month (August 2024), the incentive program generated £871,000 (more than US$ 1.1 million) in payouts, with 83 percent of branches receiving a performance-based increase. Over 3,000 branches achieved a perfect score, qualifying for the full 5 percent remuneration boost. If performance remains steady, the total annual payout is expected to reach £11.3 million, surpassing initial projections.

Steven Boyd, a postmaster in Plymouth and an early adopter of the program, reported positive results. “The Operational Excellence Incentive has been incredibly valuable for my branches,” Boyd said. “The data insights we’re provided each month allow us to make small adjustments that enhance our operations and increase our earnings.”

IAG appoints new chief AI scientist

International Airlines Group (IAG) appointed Dr Ben Dias as chief AI scientist. Dias has over 20 years of experience in AI, data science and analytics, allowing him to bring a deep technical background and a history of industry innovation from his time at easyJet, Royal Mail, Tesco and Unilever.

As chief AI scientist, Dias will lead AI strategy across IAG’s suite of airlines, including British Airways, Iberia, Aer Lingus and Vueling. He will focus on creating AI models that enhance customer experiences, optimize operational efficiency and support the Group’s sustainability initiatives. Notably, IAG has established IAG.ai labs in London and Barcelona as collaborative hubs where data scientists and AI engineers will work together to develop solutions for predictive maintenance, automated customer support and personalized services.

According to Jorge Saco, IAG’s chief information, procurement services innovation officer, Dias’s appointment reflects the company’s growing commitment to AI as a driver of transformation. “Ben’s leadership in AI is exactly what we need to advance our vision, optimize our operations and improve the travel experience for customers,” Saco said.

Michael Arena, thought leader and researcher, reflects on the power of social capital in the age of AI

Waygate Technologies wins Kaizen Award for OPEX

Waygate Technologies, a Baker Hughes business, has received the 2024 Operational Excellence Award from the Kaizen Institute. This award recognizes Waygate’s significant strides in efficiency, which have been accomplished by adopting the Kaizen philosophy of continuous, incremental improvement across the organization. Focusing on their Radiography Systems product line in Wunstorf, Germany, Waygate implemented several initiatives that produced measurable improvements in productivity and operational flow.

Key initiatives included:

• Daily Kaizen: Encouraging small, daily changes across departments to address inefficiencies and improve workflows.
• Mission control: Creating a centralized project management hub for real-time visibility and quicker decision-making.
• Layout and line design workshops: Optimizing physical spaces to improve flow, reduce waste and increase productivity.

The results of these initiatives are striking. Delivery punctuality improved by 40 percent, ensuring timely delivery for customers. They also achieved a 20 percent inventory reduction, freeing resources and cutting storage costs.

READ MORE PEX COMMUNITY NEWS

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