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The IUP Journal of Operations Management
Focus

This issue covers a wide range of traditional and new operations management techniques. Total Quality Management (TQM) and Total Productive Maintenance (TPM) are considered as two pillars of any quality management system. In the first paper, “Statistical Analysis and Reliability Estimation of Total Productive Maintenance”, the authors M S Prabhuswamy, P Nagesh, and K P Ravikumar, perform a statistical analysis to measure the effectiveness of total productivity maintenance. The number of parts produced and defects for a product are noted for different shifts in a factory before and after TPM. The difference between the defectives is computed and it is seen that there is a change in productivity after the implementation of TPM. The contribution of the paper lies in performing quantitative analysis pre- and post-implementation of TPM.

The second paper looks at an advanced version of Six Sigma—Lean Six Sigma. M Vijaya Sunder, in his paper, “Synergies of Lean Six Sigma”, dwells on two popular process improvement methodologies—Lean and Six Sigma—to compare and contrast the differences and commonalities which can lead to a successful continuous improvement program. The views of Lean and Six Sigma professionals using surveys, interviews and case studies have been studied and analyzed for understanding the real-time challenges of corporates in current markets for quality deployment across financial services, healthcare, hospitality and ITES. Lean, an on-floor improvement technique, and Six Sigma, a popular statistical-based methodology, are looked at from a focused perspective for developing a hybrid methodology. The model is further tested for acceptability as a proposal of usage for process improvement professionals and proved successful with an acceptance rate of 98.8%. The important failure modes of Lean Six Sigma deployment, advantages and points of caution are presented in the paper.

The third paper, “Continuous Improvement Strategies: An Overview”, by Jagdeep Singh and Harwinder Singh, presents an overview of various continuous improvement strategies used by corporations. Most of the manufacturing industries are currently encountering a necessity to respond to rapidly changing customer needs, desires and tastes. To compete in this competitive environment, these manufacturing organizations need to adopt such strategies in their manufacturing process. The paper covers continuous strategies, including Kaizen, TPM, TQM, JIT, 5S, Six Sigma, and FMEA. The contribution of this paper lies in assimilating the concepts in a comprehensive manner and tracing the advancements and adoptions of these concepts.

Lastly, the Research Note, “Management by Walking Around: An Effective Tool for Day-to-Day Operations of Hospital”, by D Rama Mohan, S Sathish Kumar, and G Subrahmanyam, deals with a topic of management that is more spoken of and less written about. The authors, all doctors of a reputed medical institution in India, espouse ‘walking around’—the system of making rounds and interacting with staff and patients for effectiveness of day-to-day operations of the hospital. Making rounds by administrators at specific period in a day and organizing regular review meetings for taking follow-up actions is the key to the concept of ‘walking around’. Considering year-long data, the authors note that 87.28% of the issues were resolved sometimes instantly or within a very short span of time, whereas the rest were pending requiring follow-up action by various heads of the departments. This study is more relevant given the somewhat poor condition of service delivery in many healthcare institutions.

-- Anupam Ghosh
Consulting Editor

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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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Operations Management