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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
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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….
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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
Saturday, May 26, 20127
• 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
Saturday, May 26, 201213
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
Saturday, May 26, 201214
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…..˜
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