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The IUP Journal of Operations Management
Focus

This issue consists of four papers dealing with various topics ranging from operational efficiency and green supply chain to linear goal programming. Finding optimum product-mix for production systems is an important activity in business. Literature reveals failure of the traditional ‘Theory of Constraints’ heuristic in determining product-mix when multiple constrained resources exist. In the first paper, “A Mixed Integer Linear Goal Programming Model for Optimizing Multiple Constrained Resources Product-Mix Problem Under the Theory of Constraints”, the author, Matai Rajesh, develops a Mixed Integer Linear Goal Programming (MILGP) model to deal with product-mix problem when multiple constrained resources exist. The proposed MILGP model emphasizes utilization of all bottlenecks as primary goal and maximization of throughput as secondary goal. The proposed model may be used advantageously to find what extra capacity is required for each bottleneck in the process.

In the second paper, “Does Size Influence the Operational Efficiency of the Major Ports of India? – A Study”, the authors, T Rajasekar and Malabika Deo, attempt to measure the operational efficiency of major Indian ports during the period 1993-2011 by employing Data Envelopment Analysis (DEA) models. About 44.13% of the ports were found exhibiting increasing returns to scale, which indicates that these ports need to increase their scale of operations via expansion or internal growth and by building alliances. However, it was inferred from the research that inefficiency lies with ports irrespective of the size. Hence, the general notion that size contributes to the operational advantage is negated and it is seen that efficiency of ports does not depend on size.

In the third paper, “Implementation of Total Productive Maintenance in Manufacturing Industries: A Literature-Based Metadata Analysis”, the authors, Abhijeet K Digalwar and Padma V Nayagam, attempt to understand the usage of Total Productive Maintenance (TPM) tools and the extent of TPM implementation, tested under various scenarios in manufacturing industry. A detailed analysis of 42 cases of implementation of TPM using the tools from literature is done in this study. Metadata analysis is carried out to analyze the frequency, pattern, and importance of certain tools on all the 42 cases in a holistic way. The results of the metadata analysis carried out on various fronts provide an increased understanding of how to better implement TPM in the manufacturing industry and provide managers with improved guidelines for identifying the most important tools that will lead to TPM success.

In the last paper, “Drivers Affecting the Green Supply Chain Management Adaptation: A Review”, the authors, V K Jain and Shivani Sharma, review the literature on Green Supply Chain Management (GSCM) and list the most effective drivers on the basis of the available literature. They identify 14 drivers of GSCM among which regulations, customer pressure and competition are the key drivers, while social responsibility, business benefits and organizational factors are of intermediate importance.

-- 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