Chaparral Steel Case

Operation Management

Akbar Hutama Putra

Over View of Case

Chaparral Steel Company is a steel minimil that produce a variety of steel products by recycling
scrap steel. This company location Is near Dallas, Texas, Founded in 1973.

Question 1

For a company like Chaparral Steel, why is a commitment to both its internal and external
customers necessary?

Most of success company have hotline for customer services, and for this case I really
recommend Chaparral focused in customer service. After that company can make customer
survey, send employee to site visit, and listen to customer comment. For internal, they can
introduce new technology to the employee, give education program, and this company can
focus to external and internal customer.

Question 2

As Mentioned in the case, Chaparral periodically sends frontline employees on trips to visit the
manufacturing sites of the company’s customers. In your opinion, is this a justifiable expense?
Why or why not?

In this case Frontline Employee, Chaparral Steel Frontline Employee, and Educated Employee
are justifiable expense. So this company act for visiting the manufacturing site are consider
justifiable expense

Question 3

Compare Chaparral Employee Commitment to your current employer or a recent employer.

If I compare to where I work right now, the current commitment is driven with difrent factor
form Chaparral, in my office all the commitment come form only the salary, but Chaparral use
different method to build employee loyality and commitment, they gave training that are
necessary not only for the company, but can be use by the employee in the future.