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The IUP Journal of Operations Management
Focus

Many new areas of study are increasingly covered under the domain of operations management. This issue brings to you some of those non-traditional topics, along with the traditional ones. India is primarily driven by thermal power. Coal in India is mainly available in Jharkhand state, from where it is transported to all the power plants across the country. The first paper of the issue, “Interactive Decisions for Transport Management: Applications in the Coal Transportation Sector”, by O P Dubey, M K Singh, R K Dwivedi, and S N Singh, presents a model for coal transportation between collieries and power plants, with the objective being reduction of transportation costs and optimal utilization of transport resources. This serves the twin benefits of cost savings both for the collieries and the power plants. Fourteen coal production sites (collieries) and six consumption sites (destinations) have been considered for the study. Using Operations Research (OR) techniques, several feasible solutions are obtained by changing the priority level of goals, demands and budget.

The second paper, “Assessing the Relative Efficiencies of Schools in Dhanbad District Using Data Envelopment Analysis”, explores the use of Data Envelopment Analysis (DEA) for estimating efficiencies of schools. While this may not be a ‘pure’ operations issue, it covers the realm of ‘processing’—information processing as akin to business processing. The researchers, R K Dwivedi and A C Trigunait have devised a DEA system for assessing the efficiency of government/government-aided schools in Dhanbad district of Jharkhand state in India. Though there has been enough discussion among parents over the selection of private or government schools for enrolling their children, there is little or no quantitative measure for such evaluation. Thus, a relative efficiency measure for evaluation of schools is required. This study, we believe, gives a framework for a comparison between government/government-aided schools and privately-operated schools.

The third paper, “Development of Cellular Layout for a Pump Manufacturing Industry”, by P S S Prasad and G Aravinthan, deals with a small-scale pump manufacturing industry. The existing layout is found to be a process layout, and an attempt has been made to study the possible benefits from the implementation of a cellular layout. The case specifically deals with the layout analysis of the production line of two different models of submersible pump. An algorithm involving operation allocation to machines, rather than part allocation to cells, is used to obtain the starting solution. The whole manufacturing process, for both existing and modified layouts, is simulated and the improvements in various parameters are presented.

Data warehousing is being increasingly looked upon as the key repository for generating customer and product information. The last paper of the issue, ”Creating a Virtual Data Warehouse for Manufacturing Industry”, by Nasina Jigeesh and Santhi Sree Kondabolu, deals with the development of a virtual data warehouse for the effective supply chain management for a multinational software development and consultancy company dealing with big semiconductor manufacturing industries. The design and development of the virtual data warehouse is described in detail using the existing database management systems and the existing huge database of the companies.

-- 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