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The IUP Journal of Operations Management
Aug'13
Focus

This issue consists of three papers. Outsourcing, though commonly thought of in FMCGs and capital and electronics goods industries, is a reality in the pharmaceutical sector.

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Key Determinants of Successful Project Delivery in Pharmaceutical Outsourcing
Productivity Improvement: A Work Study Analysis at the Audio Division of Hyundai Mobis India Ltd
Impact of Enterprise Systems on Firm Performance: A Business Integration Capabilities Perspective
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Key Determinants of Successful Project Delivery in Pharmaceutical Outsourcing

--M Raja Shekhar Reddy, Nasina Jigeesh and Prabhu Kumar

Most of the manufacturing work of pharmaceutical companies in the US and Europe is being outsourced to India and China. These outsourced works are being systematically handled with the help of various methodologies including project management. This paper aims to analyze the key determinants of successful implementation and delivery of projects to pharmaceutical clients who outsource the work to Indian vendors. A case-based approach is taken to study the project management processes of a major Indian pharmaceutical vendor to deliver the projects to the clients. The study comes out with a set of key determinants which influence the success of a project. It also sheds light on the vendor’s ability to delight the client by meeting or exceeding the requirements of the project as laid out in the Service Level Agreement (SLA) between the client and the vendor. The study also provides critical managerial implications and authentic insights into the processes involved in the execution of pharmaceutical outsourcing projects in the Indian context.

Productivity Improvement: A Work Study Analysis at the Audio Division
of Hyundai Mobis India Ltd.

--V Sasirekha and Gautam Kumar Tripathi

Work study is the scientific research involving work techniques with the objective of identifying the best way of doing a work. This study performs a work study analysis at the audio division of Hyundai Mobis India Ltd. with the aim to offer suggestions to improve its operational and production efficiency. Primary data was collected from seven work stations of audio manufacturing process, through observation method (i.e., video-recording without the knowledge of the workers). The analysis reveals that the cycle time of all seven work stations is not equal, and the electronic equipments were often found hanging due to high temperature on production shop floor. The study identifies several reasons behind the increase in the cycle time, and accordingly offers suggestions to improve the production efficiency at the audio division.

Impact of Enterprise Systems on Firm Performance: A Business Integration Capabilities Perspective

--Anupam Saxena and M P Jaiswal

The purpose of this research is to understand the Enterprise Systems’ (ES) contribution to firm performance using the Resource-Based View (RBV). For this, a conceptual model thoroughly grounded in the RBV of firms is developed and tested for 53 large Indian manufacturing firms, with respondents being the senior-most business and IT executives. Overall association is investigated between the ES and business integration capabilities (conceptualized at three different levels) and between business integration capabilities and firm performance. The results indicate that ES resources have a low level of positive association with one level of business integration capabilities and business integration capabilities’ association with firm performance is also partially supported. Based on strong empirical evidence, this paper contributes to both research and practice by successfully identifying the contribution of ES resources to various aspects of business integration, and of business integration to the various aspects of firm performance.

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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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