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The IUP Journal of Operations Management
May'15
Focus

This issue contains three papers and a case study on varied topics like lean manufacturing, Six Sigma, sourcing and business process management.

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Scrap Reduction in a Piston Manufacturing Industry: An Analysis Using Six Sigma and DMAIC Methodology
Implementation of Lean Manufacturing in a Small-Scale Industry
The Functional Integration of Operations Management in Banks:
A Framework for Research
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Scrap Reduction in a Piston Manufacturing Industry: An Analysis Using Six Sigma and DMAIC Methodology

--Dhiraj Kumar and Deepak Kaushish

Six Sigma at many organizations simply means a measure of quality that strives for near perfection. It is a disciplined data-driven approach and methodology for eliminating defects in any process, from manufacturing to transaction and from product to service. This paper demonstrates the empirical application of Six Sigma and DMAIC to reduce product scrap within a piston manufacturing organization. The paper follows the DMAIC methodology to investigate defects and root causes, and provides a solution to reduce/eliminate these defects. The analysis employing Six Sigma and DMAIC indicates that the design of casting spoon and its material influence the amount of defective pistons produced. In particular, the why-why analysis and two sample t-Test are combined to statistically determine the correlation of the casting spoon design and its material with defects as well as to define their optimum values needed to reduce/eliminate the defects. As a result, a reduction of scrap percentage from 9.9% to 5% was achieved, which helped the studied organization to reduce its Defects Per Million Opportunities (DPMO) from 99,000 to 50,000 and thus improve its Sigma level from 2.86 to 3.2. Also, the process yield was improved from 90.1% to 95% and a saving of 52 lakh/year was obtained.

Implementation of Lean Manufacturing in a Small-Scale Industry

--Pardeep Kumar and Sanjay Kajal

The purpose of the present paper is to implement lean manufacturing in a small-scale industry. In this regard, 5S tool is chosen for analysis in selected rice mills situated in Kurukshetra, Haryana. 5S weekly appraisal scores are calculated using 5S audit sheets, which show the adoption of lean manufacturing in the industry. The results reveal reduction in non-essential items such as tool searching time, dust, unwanted material and visual control. The results derived from the analysis were also discussed with the management who found the analysis to be very useful.

The Functional Integration of Operations Management in Banks: A Framework for Research

--Thomas Ilin

This paper responds to emerging concerns from banking practitioners and media about service operations mismanagement in banking industry. It presents a general review, discussion and empirical analysis of relevant academic literature on cross-functional integration from the Service Operations Management (SOM) and Service Management (SM) domains, together with a proposed SOM functional integration framework for use in future research into the enterprise-wide cross-functional integration of operations management in banking. Empirical analysis of literature themes by industry, content analysis of key papers exploring their usage of the term ‘function’, and critical analysis of the literature from a new ‘functionalist’ perspective are conducted. The focus on strategic intentions in SOM and SM academic literature fails to address the emerging concerns in the banking industry regarding problems arising at functional execution levels of management. Research into this gap in knowledge may help to explain the factors contributing to banking performance shocks and their relationship to operational inadequacies exposed during economic turbulence. A functional integration framework provides banking operations managers with an improved ability to locate operational inadequacies, and thereby identify opportunities to increase operational resilience. Although the implications of this conceptual paper can be translated to the financial services industry in general, the examples presented here are from banking.

Case Study
Apple and Conflict Minerals: Ethical Sourcing for Sustainability

--Debapratim Purkayastha and Adapa Srinivasa Rao

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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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