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The IUP Journal of Operations Management



February' 03
Focus Areas
  • Inventory Control
  • Supply Chain Management
  • ERP, JIT, TQM
  • Business Process Re-engineering
  • Logistics Management
  • Business Process Outsourcing
  • Six Sigma
  • Benchmarking
  • Flexible Manufacturing Systems
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Disruptive Technologies
Supply Chain Analysis : Quality and Maturity Perspective
Logistics Function: Some Perspectives
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Disruptive Technologies


-- A Srikant

The article addresses disruptive technologies that most successful companies will face eventually. It describes how a particular industry responds to the innovation brought in by disruptive technologies. The write-up describes the chronological order of evolutionary changes in various industries, the dilemma being faced by the innovators and solution for this precarious situation. It distinguishes between the sustainable development and disruptive technologies. Most importantly it describes how the disruptive technologies are to be managed in view of the emergence of competition

A case study on the Mobile Internet industry included in it, gives a practical overview of what is happening in this regard. It gives the basic overview of the mobile Internet and the implication for the content providers, retailers and manufacturers.

Supply Chain Analysis : Quality and Maturity Perspective


-- Arnab Banerjee

Supply Chain as a concept is being highly recognized to gain business advantage. This paper comes up with various parameters to decide the quality of a supply chain. It gives a matrix to help settle upon the status of the quality of supply chain and few critical factors, which are not measurable mathematically, but has always to be checked and coordinated for a good hold on the performance aspect of the supply chain. A need for maturity model was felt which describes the current standing of the existing supply chain in the business arena and becomes a guide map for direction to the supply chain enhancement.

Logistics Function: Some Perspectives


-- Jayasimha KR, Niranjan Swain and Braj Mohan Chaturvedi

Since inception of the industrial era logistics existed in one form or the other. The journey of the logistics from farm-to-market era logistics to total integration of logistics has gone through various phases of development. 1990s saw the emergence of a total integrator logistics function i.e., concept of supply chain management. The future agenda is to create a platform where everyone would view supply chain as a single entity, which converges all the capabilities as well as share risks. The article discusses the evolution of logistics function and looks into the future agenda for Supply Chain Management, a post totalintegration phenomenon.

Factors of Supply Chain Management and Supply Chain Performance Relationships: A Systems Approach :


--Shams-ur Rahman

Effective and efficient management of supply chains offers a means of gaining competitive advantage in a business environment which is characterised by fierce competition and uncertainty. To date most of the studies conducted to understand different issues of supply chain management are generally quantitative.

In this study a qualitative method known as thinking process (TP) was applied to identify critical factors of effective supply chain management, determine the causal relationships between these factors and investigates their interrelationship with supply chain performance

The study was conducted in a group-based model building environment with a group of students who specialised either in logistics management or e-commerce. The results suggest that understanding the dynamic nature of supply chain through causal relationships is critical to the formulation of supply chain strategies.

Development of an Operational Parameter Measuring System


-- Antonio N de Miranda Filho* and Emílio Araújo Menezes

In search of a more comprehensive view of construction processes' true problems, this paper proposes an Operational Parameter Measuring System based on the principles of Lean Production. By measuring waste, activity rating, cycle time and cost, the system aims to provide accurate information to site management so that actions can be taken to correct the identified problems or to reestablish the process on its course

In order to adapt Lean Production to construction peculiarities, a bridge was built between traditional practices and new developments. The Measuring System is in this way based on the integration of Activity Sampling and Activity Based Costing principles. The combination of both tools made it possible for the system to be conceived on the principles of focusing control on the complete process, increasing process transparency and building continuous improvement into the process

The application of the Measuring System on the masonry process in a construction site during a period of 15 days allowed for the combined processing and information analysis of the performance measurements. This procedure pointed out opportunities for improvement and led to important conclusions about the influence of labor allocation on the increase of product costs and the occurrence of waste.

Linking Operations and Profitability


-- Alastair Nicholson

Profitability is often missing in the defining of `value' in Operations Management literature. In practice, it is obligatory for business survival. Following the earlier focus of operations on cost reduction, attention moved to market relationships and the development of new systems. Neither of these directly relate to profitability measures. This paper argues for accepting the role of `operations' in serving both business requirements and operational processes independently and a key role of `Operations Management' as linking business outcomes and operational initiatives through profitability.

Risks and Prevention Measures in Logistics Outsourcing


-- Chuanxu Wang* and Amelia C Regan

Many firms have turned to logistics outsourcing as a way to restructure their distribution networks and gain competitive advantages. Logistics outsourcing in which a third party logistics (3PL) provider is contracted for all or part of an organization's logistics operations has seen consistently increasing use. Although there are clearly pros and cons of using logistics outsourcing, the full extent of both of these has not been adequately examined. This paper begins to examine some of these risks and discusses risk prevention measures.

Six-Sigma?


-- Debanjan Bhattacharya

SixSigma is a business process that allows companies to drastically improve their bottom line by designing and monitoring everyday business activities in a way that minimizes waste and resources while increasing customer satisfaction. While traditional quality control programs have focused on detecting and correcting defects, Six-Sigma encompasses something broader. Most companies operate at a three or four sigma level, where the cost of defect is roughly 20 to 30% of revenues. By approaching six sigmaless than one defect per 3.4 million opportunitiesthe cost of quality drops to less than 1% of sales. Industries are desperate to find new ways to buoy profitability. That is the reason why the companies as diverse as AlliedSignal, GE, Sony, Honda, Bombardier, Canon, Hitachi and Polaroid have adopted six-sigma. Six-Sigma produces superior financial results, using business strategies that not only review companies but also help them leapfrog ahead of their competition in terms of market share and profitability.

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Automated Teller Machines (ATMs): The Changing Face of Banking in India

Bank Management
Information and communication technology has changed the way in which banks provide services to its customers. These days the customers are able to perform their routine banking transactions without even entering the bank premises. ATM is one such development in recent years, which provides remote banking services all over the world, including India. This paper analyzes the development of this self-service banking in India based on the secondary data.

The Information and Communication Technology (ICT) is playing a very important role in the progress and advancement in almost all walks of life. The deregulated environment has provided an opportunity to restructure the means and methods of delivery of services in many areas, including the banking sector. The ICT has been a focused issue in the past two decades in Indian banking. In fact, ICTs are enabling the banks to change the way in which they are functioning. Improved customer service has become very important for the very survival and growth of banking sector in the reforms era. The technological advancements, deregulations, and intense competition due to the entry of private sector and foreign banks have altered the face of banking from one of mere intermediation to one of provider of quick, efficient and customer-friendly services. With the introduction and adoption of ICT in the banking sector, the customers are fast moving away from the traditional branch banking system to the convenient and comfort of virtual banking. The most important virtual banking services are phone banking, mobile banking, Internet banking and ATM banking. These electronic channels have enhanced the delivery of banking services accurately and efficiently to the customers. The ATMs are an important part of a bank’s alternative channel to reach the customers, to showcase products and services and to create brand awareness. This is reflected in the increase in the number of ATMs all over the world. ATM is one of the most widely used remote banking services all over the world, including India. This paper analyzes the growth of ATMs of different bank groups in India.
International Scenario

If ATMs are largely available over geographically dispersed areas, the benefit from using an ATM will increase as customers will be able to access their bank accounts from any geographic location. This would imply that the value of an ATM network increases with the number of available ATM locations, and the value of a bank network to a customer will be determined in part by the final network size of the banking system. The statistical information on the growth of branches and ATM network in select countries.

Indian Scenario

The financial services industry in India has witnessed a phenomenal growth, diversification and specialization since the initiation of financial sector reforms in 1991. Greater customer orientation is the only way to retain customer loyalty and withstand competition in the liberalized world. In a market-driven strategy of development, customer preference is of paramount importance in any economy. Gone are the days when customers used to come to the doorsteps of banks. Now the banks are required to chase the customers; only those banks which are customercentric and extremely focused on the needs of their clients can succeed in their business today.

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