Consumer finance: challenges for operational research

Consumer finance has become one of the most important areas of banking, both because of the amount of money being lent and the impact of such credit on global economy and the realisation that the credit crunch of 2008 was partly due to incorrect modelling of the risks in such lending. This paper reviews the development of credit scoring—the way of assessing risk in consumer finance—and what is meant by a credit score. It then outlines 10 challenges for Operational Research to support modelling in consumer finance. Some of these involve developing more robust risk assessment systems, whereas others are to expand the use of such modelling to deal with the current objectives of lenders and the new decisions they have to make in consumer finance. <br/

Sustainability ranking of desalination plants using Mamdani Fuzzy Logic Inference Systems

As water desalination continues to expand globally, desalination plants are continually under pressure to meet the requirements of sustainable development. However, the majority of desalination sustainability research has focused on new desalination projects, with limited research on sustainability performance of existing desalination plants. This is particularly important while considering countries with limited resources for freshwater such as the United Arab Emirates (UAE) as it is heavily reliant on existing desalination infrastructure. In this regard, the current research deals with the sustainability analysis of desalination processes using a generic sustainability ranking framework based on Mamdani Fuzzy Logic Inference Systems. The fuzzy-based models were validated using data from two typical desalination plants in the UAE. The promising results obtained from the fuzzy ranking framework suggest this more in-depth sustainability analysis should be beneficial due to its flexibility and adaptability in meeting the requirements of desalination sustainability

Using a high fidelity CCGT simulator for building prognostic systems

Pressure to reduce maintenance costs in power utilities has resulted in growing interest in prognostic monitoring systems. Accurate prediction of the occurrence of faults and failures would result not only in improved system maintenance schedules but also in improved availability and system efficiency. The desire for such a system has driven research into the emerging field of prognostics for complex systems. At the same time there is a general move towards implementing high fidelity simulators of complex systems especially within the power generation field, with the nuclear power industry taking the lead. Whilst the simulators mainly function in a training capacity, the high fidelity of the simulations can also allow representative data to be gathered. Using simulators in this way enables systems and components to be damaged, run to failure and reset all without cost or danger to personnel as well as allowing fault scenarios to be run faster than real time. Consequently, this allows failure data to be gathered which is normally otherwise unavailable or limited, enabling analysis and research of fault progression in critical and high value systems. This paper presents a case study of utilising a high fidelity industrial Combined Cycle Gas Turbine (CCGT) simulator to generate fault data, and shows how this can be employed to build a prognostic system. Advantages and disadvantages of this approach are discussed

A Process to Implement an Artificial Neural Network and Association Rules Techniques to Improve Asset Performance and Energy Efficiency

In this paper, we address the problem of asset performance monitoring, with the intention of both detecting any potential reliability problem and predicting any loss of energy consumption e ciency. This is an important concern for many industries and utilities with very intensive capitalization in very long-lasting assets. To overcome this problem, in this paper we propose an approach to combine an Artificial Neural Network (ANN) with Data Mining (DM) tools, specifically with Association Rule (AR) Mining. The combination of these two techniques can now be done using software which can handle large volumes of data (big data), but the process still needs to ensure that the required amount of data will be available during the assets’ life cycle and that its quality is acceptable. The combination of these two techniques in the proposed sequence di ers from previous works found in the literature, giving researchers new options to face the problem. Practical implementation of the proposed approach may lead to novel predictive maintenance models (emerging predictive analytics) that may detect with unprecedented precision any asset’s lack of performance and help manage assets’ O&M accordingly. The approach is illustrated using specific examples where asset performance monitoring is rather complex under normal operational conditions.Ministerio de Economía y Competitividad DPI2015-70842-