philemoni, hekima k

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 MZUMBE UNIVERSITY FACULTY OF SCIENCE AND TECHNOLOGY DEP ARTMENT OF PRODUCTION AND OPERATIONS MANAGEMENT A Research Report presentation. TITLED: THE IMPACT OF BUSINESS PROCESS RE-ENGINEERING ON ORGANIZA TIONAL PERFORMANCE OF MANUF ACTURING ORGANIZATION. A Case Study of Luponde Tea Estates-Njombe. By Philemoni, Hekima K A Research Report to be submitted to the Faculty of Science and Technology as a Partial Fulfilment to be awarded a Bachelor Degree in Production and Operations Management offered by Mzumbe University 2011/2012 Saturday, May 26, 2012 1 Prepared by Philemoni, Hekima K

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MZUMBE UNIVERSITY

FACULTY OF SCIENCE AND TECHNOLOGYDEPARTMENT OF PRODUCTION AND OPERATIONS MANAGEMENT

A Research Report presentation.

TITLED: THE IMPACT OF BUSINESS PROCESS RE-ENGINEERING ON

ORGANIZATIONAL PERFORMANCE OF MANUFACTURING

ORGANIZATION.

A Case Study of Luponde Tea Estates-Njombe.

By

Philemoni, Hekima K

A Research Report to be submitted to the Faculty of Science and Technology as aPartial Fulfilment to be awarded a Bachelor Degree in Production and

Operations Management offered by Mzumbe University 

2011/2012

Saturday, May 26, 20121 Prepared by Philemoni, Hekima K

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Content:

Saturday, May 26, 20122

Research report presentation will cover; Background of the problem

Statement of the problem

Objectives of the study

Significant of the study

Methodology

Analysis , presentation and discussion of findings• Respondents characteristics

• Variables such as BPR level, productivity, quality and cost

• BPR and OP

• Multiple relationships of variables

• Correlation of variables

Conclusion and recommendations

Note: BPR-Business Process Re-engineering

OP- Organizational Performance

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Background of the problem

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• BPR start as private company later adopted as technique (Hammer 1990)• BPR is technique in which organizations become more efficient and

modernized.

• According to Sharma, (2006) BPR implies transformation processes thattogether form a component of a larger system aimed at enabling organization toempower themselves

• According to Dagre, Grover et al (1993;) the primary objective of BPR is tomake business organizations more competitive.

• BPR removes non value adding processes rather than improving for automation(Hammer, 1990).

• All this is done to ensure they achieve the dramatic improvements in aspect likequality, productivity or cost minimization, services delivery speeds andcustomer satisfaction through the in-depth use of information technology(hammer and champy, 1993)

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Background of the problem…. 

Saturday, May 26, 2012

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According to Davies (2003), in Tanzania most

organizations undergo transformation or redesign their

system informal compared to other countries Nigeria,

Malaysia etc., which reform by formal BPR program.

The same technique was adopted at Luponde TeaEstates where they redesign/re-engineer their old way

to new one.

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Statement of problem

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• According to Davenport (1998), in Tanzania and also all overthe world, very often we hear of one organization after the otheradopting BPR.

• According to Mayer & de Witte , (1998),Every organizationhave its own consideration in adopting the technique like;

To undertake routine cost cutting measures

As seemingly fashionable trend

To improve organizational performance (as per LTEs)

• Low OP at LTEs late 2000 influenced to adopt the BPR.

• The process started on 2001 to 2005 when they were successful

implemented.• Current investigation through reports of production section

presented in management meeting shows that OP has improvedsince completion of project.

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Statement of the problem

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For this reason, despite of the research conducted atNigeria, China in banking sector. This study aims to

assess whether the improvement in OP is the result of 

BPR or not? By studying the relationship between

BPR and OP in manufacturing organization inTanzania.

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Objectives

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• General objective

To assess the impact of BPR on OP of manufacturing

organization.

• Specific objectives

i. To determine relationship between BPR and

productivity at LTEs.

ii. To determine relationship between BPR and quality of 

the product offered at LTEs.

iii. To determine relationship between BPR and

production cost at LTEs.

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Significance of the study

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The research project will be helpful as;

• In utilizing the theoretical knowledge of BPR and OP

obtained in classroom to real practice

To stimulate other studies on BPR and OP• To be used as literature review to those who wish to

use and resources at MU and

• To add knowledge on the existing BPR program

applied by LTEs if possible to modify

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Methodology

Saturday, May 26, 20129

A case study used in this study at LTE.

Purposive sampling techniques used to obtain a samplesize of 40 respondents from the Target population of 300 employees.

Questionnaires were used to obtain data fororganization. Forty (40) questionnaires weredistributed and only 30(75%) questionnaires answeredand returned back to the researcher.

The findings aggregated were quantitatively analysed

by using SPSS 16 and AMOS 5 to obtain reliableconclusion.

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Findings

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All the outcome of the study are shownin Chapter 4,In summary;

• Gender, department, education level and

experienced used to identify thecharacteristics of respondents as shown

at chapter 4 part 1.Figure.

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Findings

• All the variables incorporated in figure above , >50%

agreed by respondents to each variables. The findings are

presented in chapter 4 from Table 4.2 to table 4.5. There

 fore, this shows that the variable are valid hence

 researcher can go further.

• BPR assessed against OP measures through cross tabulation

as shown in Appendix II. The bolded value/figure in main

diagonal were considered to be consistent in this study,

hence used to assess the relationship between BPR and OPmeasures as per study. Therefore,  the findings shows that

 there is relationship between BPR and OP.

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Findings 

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 Multiple relationship of the variables as shown inpart 7 and appendix III

Productivity affected by product quality and cost

Cost affected by product quality

There fore, the findings shows that there is direct effect of 

variables through BPR

Correlation of variables (Part 8 figure 4.4) From

the findings it was revealed that.

BPR is positive correlated with productivity

BPR is positive correlated with product quality

BPR is negative correlated with production cost Prepared by Philemoni, Hekima K

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Conclusion

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From the findings;

It has been identified that BPR improves OP by

improving productivity, improving product quality

and reducing production costs. This can be

evidenced by table 4.3, Table 4.4, Table 4.5, figure

4.4 and Equations (4), (5) and (6) in this case.

In the study it is concluded that BPR has a positive

impact on OP at LTEs.

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Recommendations

Saturday, May 26, 201215

• The LTE should work hard to develop worker ashigher percentage of them hold primary level

• The management should improve the workers rentation

policy so that young employees with higher education

should be refined at the estate

• Other research are advised to determine the

relationship between BPR and OP

˜……END OF PRESENTATION…..˜  

Prepared by Philemoni, Hekima K