SCHOOL OF MECHANICAL AND INDUSTRIAL ENGINEERING Msc program in Industrial engineering program (production engineering and management)

Graduate seminar Evaluation of BPR implementation at institute of technology Bahir Dar university Prepared by: Wubshet Abide Advisor : Amare Matebu(Dr. Eng.) Feb, 2014

Chapter one Introduction 1.1 Background of the study 1.2 Objective of the study 1.3 benefit of the project 1.4 scope and limitation of the project 1.5 research methodology Chapter two 2.1 What is Business Process Reengineering (BPR) 2.5Why BPR Projects Fail? What can be done about it? Chapter three Objectives of bdus bpr plan 3.1 Teaching learning business process 3.2 Research and outreach business process 3.3 Budget, finance and planning Chapter four Data collection and analysis

4.1 Result and Discussion 4.2 Research Strategy 4.3 Data Analysis, Results and Discussions Conclusion and recommendation

1.1 Background of the study

Business process reengineering is dramatic change that represents the overhaul of organizational structures, management systems, employee responsibilities and empowerment, performance measurements, incentive systems, skills development, and the use of information technology.

Cont
Successful BPR model can result in great reductions in cost or cycle time, and improvements in quality and customer services On the other hand, BPR projects can fail to meet the inherently high expectations of reengineering. Some organizations even destroy the morale and momentum of employee built up over their lifetime because of poor BPR implementation

According to Hammer & Champy (1993) 70% and Hall et al. (1993), 50-70% of BPR initiatives fail to deliver the expected results As per Remenyi & Heafield (1996), the failure of BPR projects is costly, because of the resources invested, the disturbance it brings to the organizations and the adverse effect to the morale of the workers. This effect will be more adverse to higher institution like Ethiopias where the economic and human resources are limited and underdeveloped

1.2 Objective of the study

General objective The general objective of this study is to identify critical success factors (CSFs) and examine the effectiveness of BPR implementations in Bahir Dar University. Specific objective The specific objectives of the study are to Identify major factors that affect BPR implementation at institute of technology ,Bahir Dar University, Evaluate the methodologies followed while implementing BPR at institute of technology Bahir Dar University,

 The practice and effectiveness of BPR implementation at Bahir Dar University will be assessed with respect to:
What was planned to be achieved through BPR? What is accomplished so far? Did BPR implementation

bring improved performance? What are the key success or failure factors for BPR implementations?

Data Type and Collection

In order to achieve the stated objectives, primary data both quantitative and qualitative are used. Quantitative data is collected from academic staff members using self administered questionnaires. And the qualitative data is collected through interviews of officials and reengineering teams from the respective universities

Target Population As academic staff members are more involved in the academic core process, data are gathered from academic staff members of universities through questionnaire distributed to academic staff and administrative staff members

Sampling and Sampling Techniques The sample size is determined using the standard tables for sampling using the confidence level of 95% and 10% confidence interval. With population size 429 the sample size becomes 78. Data Processing and Analysis Method

Why BPR Projects Fail? What can be done about it i) Lack of sustained management commitment and leadership; ii) Unrealistic scope and expectations; and iii) Resistance to Change

Positive pre conditions

Senior Management Commitment and Sponsorship;
Realistic Expectations; Empowered and Collaborative Workers;

Strategic Context of Growth and Expansion;

Shared Vision; Sound Management Practices; Appropriate People Participating Full-Time; And Sufficient Budget.

Negative preconditions related to BPR and organizations as:

The Wrong Sponsor;

A "Do It to Me" Attitude;

Cost-Cutting Focus; and, Narrow Technical Focus Unsound Financial Condition; Too Many Projects Under Way;

Fear and Lack of Optimism; and,

Animosity Toward and By IS and Human

Resource (HR) Specialists.

Objectives of BPR
Speed
Compression Flexibility

Quality
Innovation Productivity

 3.1 Teaching learning business process

3.2 Research and outreach business process 3.3 Budget, finance and planning

Chapter four
Data collection and analysis

Conclusion
Although the desired and stretched goals and

objectives of BPR are clearly written and documented at the university, these goals and objectives were not well communicated and set in to the staff members mind and attention. Consequently, the institute is unable to manage and accomplish the goals and objectives to the desired level.

This was explained by the fact that all the goals and objectives have lower and weighted mean scores both in the plan and accomplishment status. Having poor accomplishment rate of the goals and objectives, the current status of BPR is rated by the respondents to be below the moderate extent (below 3 in the Likert scale). This implies effectiveness of BPR implementation is below average and the institute is not gaining the competitive advantages expected from the radical change.

In this research on average, having BPR motivated by customer demands, effective utilization of resources, good information exchange and flow, continuous performance improvement, using technology as enabler not as solution, developing and communicating clear written goals and objectives, proper alignment of BPR strategy with the corporate strategy, using progress evaluation are rated as the most critical success factors.

Lack of employee training, unrealistic report to outsiders that hide actual progress of BPR implementation, management frustration with slow business results, lack of top management determination, top management reluctance to fund BPR implantations, employees negative attitude, lack of top managers interest, lack of IT to support BPR requirements are the top ranked obstacles to BPR implementation at Bahir Dar university institute of technology.

Recommendations
Higher education institutions and also other

organizations undertaking, or planning to undertake BPR efforts should consider critically the success factors, tackle the BPR related problems and evaluate all these factors against their organizational working environments to ensure that their BPR-related changes are comprehensive, well-implemented, and with minimum chance of failures.

Based on the findings of the study, organizations should not rash to implement the radical changes as BPR, if not handled properly, can lead to competitive disadvantages. In order to undertake BPR, the most important factor to ensure success is to analyze the current situation to identify goals, objectives and possible strategies. These goals, objectives and strategies should be openly and well communicated to the stakeholders. If there is a good case to undertake the changes, the stakeholders (top management and employees) must support the change and drive it through to success. All critical success factors must be taken care of and minimize all factors that lead to failure of the BPR initiatives.

 As BPR requires continuous improvement, progress

measurement and performance evaluation of outputs against the objectives and customer (internal and external) satisfaction, which is lacking point in most of the education institutions now, should be continuously monitored. This study is focused on the assessment of effectiveness of BPR implementation in the academic core process and identifies the success and failure factors related to the academic in the Bahir dar university institute of technology. Further study on the assessment of the other core process and linking the key success factors and competitive advantage should be done to evaluate the overall success or failure of BPR in institute of technology.