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The IUP Journal of Operations Management

Feb-May '10
Focus

The previous issue focused on the recent economic slowdown and emphasized on renewed focus on modern manufacturing and distribution systems. With the economy on a recovery path, lessons learnt from the slowdown need to be shared.

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Supply Chain Model in a Multi-Echelon System with Inflationary Implications
Revisiting OEE as an Assessment Methodology for TPM Activities: A Practical Analysis
Research Methodology for Effective Utilization of Advanced Manufacturing Technologies in Northern India Manufacturing Industry
Enabling Technologies and Implementation Framework for Agile Manufacturing
Evaluation of Inventory Performance for Perishable Products Through Simulation
Facility Layout Selection Using PROMETHEE II Method
TQM: The Japanese Way in Malaysian Companies
A Note on Transformation, Standardization and Normalization
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Supply Chain Model in a Multi-Echelon System with Inflationary Implications

-- Richa Jain and S R Singh

The present study, formulates a multi-echelon supply chain network with a single producer, multi-distributors and multi-retailers for a deteriorating inventory during a finite planning horizon. The inventory levels of the producer and the distributors are assumed to be decreasing by discrete amounts instead of a continuous decrease as assumed in most of the literature available. This discreteness is an application of real life situation where the stocks deplete by discrete amounts and not continuously. The stock is assumed to undergo deterioration as soon as it is produced. The production rate has been specified as demand dependent to take into consideration the market forces also. The whole study has been done in an inflationary environment to impart economic feasibility to the model.

Article Price : Rs.50

Revisiting OEE as an Assessment Methodology for TPM Activities: A Practical Analysis

-- Mahesh Pophaley

With ever-increasing importance, plant maintenance is no more regarded as second line or nonproductive activity, and now it is widely accepted that plant maintenance has a great impact on the overall profitability of an organization. However, traditional approach to maintenance cannot provide any dramatic improvement; Total Productive Maintenance (TPM), as an upcoming industrial maintenance program, seems to be providing the answer. Since TPM is a new and fast growing concept among industries, assessing its usefulness is another facet. Further equipment effectiveness calculation has been the most interesting topic for plant managers, as it helps in identifying the inefficiencies and determining where to focus improvement actions. Traditionally, equipment performance has been measured using various matrices, but the Overall Equipment Effectiveness (OEE) is being used as an evaluation metric to judge the effectiveness of TPM implementation since its inception. This paper builds on previous works that examined the role of OEE measurement systems in TPM, with particular reference to developing a new framework for assessing the implementation effectiveness of TPM. In the paper, it has been argued that the nature of the trade-offs among manufacturing capabilities is more complex than has been assumed. Hence, the research work aims to develop a new model and proposes its analysis for measuring the TPM implementation effectiveness as per the original definition of TPM. While the model is yet to be proved, nevertheless, it is believed that there is enough evidence for a critical reexamination of traditional evaluation approach. The work suggests a more effective model from the manufacturing point of view.

Article Price : Rs.50

Research Methodology for Effective Utilization of Advanced Manufacturing Technologies in Northern India Manufacturing Industry

-- Harwinder Singh and J S Khamba

In today's highly dynamic and competitive world, the manufacturing scenario has undergone a rapid change in the last two decades by implementing Advanced Manufacturing Technologies (AMTs) either through joint ventures or by licensing agreements. This has put a lot of difficulties at all levels to improve the utilization level of AMTs of the organizations. The objective of this paper is to understand the hurdles/barriers and provides the research methodology for improving the utilization level of AMTs in Northern India manufacturing industry for achieving manufacturing success.

Article Price : Rs.50

Enabling Technologies and Implementation Framework for Agile Manufacturing

-- S Ayyappan and P K Jayadev

Manufacturing or servicing industries have to be updated by restructuring or reorganizing in order to overcome the demands of this era in which customers are not only satisfied but also delighted. In this competitive environment, the industries must be a flexible, adaptive and reconfigurable system that can be entitled by a unique term: Agile Manufacturing (AM). An AM system is able to develop a variety of products at low cost and in a short period. In this paper, the enabling technologies and implementation framework is presented.

Article Price : Rs.50

Evaluation of Inventory Performance for Perishable Products Through Simulation

-- Srikanta Routroy and Nardekar Abhinadan Bhausaheb

Today, one can find that supermarket chains are putting all efforts to control and manage the inventory so that they can decrease cost, improve service quality and increase product availability in order to enhance customer satisfaction. It is relatively easy to control and manage the inventory for non-perishable items, but it is difficult to manage for perishable items with unpredictable demand. The duration of product life cycle, ordering cost, holding cost, stock out cost, overstock cost, demand uncertainty, unit price and product availability play a major role in controlling inventory for perishable items. In this paper, a simulation model is developed using ARENA simulation tool for perishable products to evaluate different inventory performance in the retail stage. A case situation is developed to demonstrate the salient features of the concept.

Article Price : Rs.50

Facility Layout Selection Using PROMETHEE II Method

-- Vijay Manikrao Athawale and Shankar Chakraborty

Facility layout selection is an important and critical issue faced by every organization, while setting up and allocating the available or new facilities in a given location. While selecting the most suitable layout, due attention is usually paid to minimize the total transportation cost between different facilities. The importance of an effective facility layout design for efficient and smooth operation of an organization cannot be overlooked. It is well-recognized that a suitably designed facility layout represents the backbone of an organization and should be carefully organized. Placement of the available or new facilities within a selected area is a complex task for the designer, which requires the fulfilment of several conflicting objectives. It is therefore important for an organization to evaluate, design and select the most suitable layout for its functional effectiveness. Selecting the best facility layout for an industrial application from a finite set of candidate alternatives is an example of Multi-Criteria Decision-Making (MCDM) problem. In this paper, two real time examples of facility layout selection are presented to demonstrate the applicability of a highly potential MCDM method, i.e., PROMETHEE (Preference Ranking Organization METHod for Enrichment Evaluation). It is observed that the rankings of the alternative layouts obtained using the PROMETHEE II method almost match with those derived by the past researchers, which proves the potentiality of this method to solve such type of complex MCDM problems.

Article Price : Rs.50

TQM: The Japanese Way in Malaysian Companies

-- Jamal Abdul Nassir Shaari

This paper is a study on enhancing Malaysian quality management practices from Japanese experience. The study focuses on two main objectives: to investigate whether Malaysian companies practice Total Quality Management (TQM) the Japanese way; and to later identify their role towards organizational performance. The study employed qualitative and quantitative method of questionnaire survey on Malaysian manufacturing companies using the 6 point Likert scale. The findings of the study reveal that Malaysian companies do practice TQM the Japanese way, but there was no influence on organizational performance via employee and customer.

Article Price : Rs.50

A Note on Transformation, Standardization and Normalization

-- K Muralidharan

This paper discusses the importance of data cleaning and processing using various statistical techniques like Transformation (T), Standardization (S) and Normalization (N) from a practical point of view. It is possible that the unprocessed raw data at first instance will lead to poor interpretation because of the effects of systematic variations. A suitable transformation or standardization or normalization can nullify the effect of such variations. This is explained using a couple of examples from literature.

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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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