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MRB2233 Case 2CHAPARRAL STEEL: ACHIEVING HIGH QUALITY THROUGH A COMMITMENT TO BOTH EXTERNAL AND INTERNAL CUSTOMERS

Prepared by:FAZARIZUL HASHIDI BIN MOHD PAUZIMUHAMMAD ABD HAFIZ BIN JAFARRAFEI DARAJAT BIN MD MUSTAHARAHMAD AKMAL MOHD IDRISKoay Tze how

Chaparral steel - BackgroundFounded in 1973.Located near Dallas, Texas.Steel minimill producing a variety of steel products by recycling scrap steel.Sell to a diverse group of industries, including construction, railroad, defence, mobile homes, and appliances.Production very cost effective.Awarded the Japanese Industrial Standard Certification on its general structural steel product, first outside Japan.The only one steel company of its type to be certified by the American Institute of Mining, Metallurgical and Petroleum Engineers to manufacture its products for nuclear applications.

Chaparral steel DiscussionQ1: For a company like Chaparral Steel, why is a commitment to both its internal and external customers necessary?

Chaparral Steel main business is producing a variety of steel products by recycling scrap steelTo stay creative and innovative To achieved impressive results via communication and engagement. Committed to internal and external customer are the key factors enable Chaparral Steel to deliver excellent result to its client and position it as the leader in steel technology where it acts fast to fulfill different client expectation as well as requirement.

Chaparral steel DiscussionInternal CustomerInternal customer satisfaction is a component for quality improvement. Satisfaction of internal customer can create a very good working environment as well as enhancing colleagues bonding in the organization where they can work together and helping each others to achieve company goals, teamwork a lot of time actually deliver the result of 1+1 greater than 2.If internal customer not satisfied, the relationship with external customer can be worst. Because they are the one who always interact directly to the external customer. The internal customers reflect the basic elements of the company; it represents the inner structure, the quality, the capability and carrying the reputation of the company in front of external customer.

Chaparral steel DiscussionExternal CustomerExternal customers give revenue From a commitment from internal and external customer, a new idea and manufacturing technique can be implementing very fast at the factory.how Chaparral Steel improves their external customers.Conducts customer surveysSend employees on site visitListen carefully to external customer comments

Chaparral steel DiscussionQ2: As mentioned in the case, Chaparral periodically sends frontline employees on trips to visit the manufacturing sites of the companys customers. In your opinion, is this a justifiable expense? Why and why not?

Employee trips to manufacturing sites of Customers Company are important:To understand the customer nature of the business.To get interaction with customer more efficientlyCan give a full description and advise the correct way to install their product to customer at site.To observe the customer manufacturing process by using Chaparrals products and see how these product perform. From this observation, the employee can innovate a new technology or solution to Chaparral Steel that can contribute benefit to the companyIt is huge benefit to Chaparral steel because they want to hear from client. This is the key element that positions Chaparral steel at top edge of steel industry where a lot of companies actually dont practice this.The employees trip to the customer sites or companies are important to get know in the details what customers want and what Chaparral need to improve. It is justifiable expense and it can be part of research and development process.

Chaparral steel DiscussionQ3: Compare Chaparrals employee commitment to your current employer or a recent employer?

Fazarizul Hashidi; Business Development Manager at Celcom AxiataChaparrals employees are more committed with their jobs compare Celcom. There is limitation to communicate within department or division and they not share all the information within department at Celcom. Chaparrals employee has a very good communication within division. At Celcom, it is very difficult to get support from top management where employees dont have right to voice out their opinion to improve the department work quality.Chaparral Steel gives their employee to interact directly to the customer and vendor.

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Hafiz Jafar; Business Development Manager at Puncak Semangat Puncak Semangat has a culture that is quite similar with Chaparral Steel employees. Communication is very important at Puncak Semangat. Each Puncak Semangat subsidaries has their own expertise, therefore sharing information; knowledge as well as skills becomes integral part of success in Puncak Semangat. Each employee also are encourage to further studies or joining any courses that can improve the level of knowledge as well as skills. Employee get an opportunity to voice out our opinion or comments.

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Rafei Darajat; Engineer at Perodua Perodua culture has much similarity with Chaparrals employee. Perodua really focus on customer satisfaction. Each employee is encouraged to give ideas on how to improve our daily job and thus it results to efficient working condition. Perodua are encourage to perform 5S (Sorting, Setting in order, Systematic cleaning, Standardize, and Service) all the time. Internally, Perodua has developed its employee parallel with the organization as a whole. Perodua HR department has played its own role to cater the needs and demands of employees such as giving appropriate training and knowledge, competitive salary and benefits, as well as give fair appraisal and bonus at each end of year. Perodua believes by that the growth of the organization rely on the quality of employees.

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Ahmad Akmal; Librarian at UiTMAt Perpustakaan Dato Jaafar Hassan, UiTM Perlis the two things which crucial is external customer and internal customer which is as a fact, quite similar to Chaparral Steel. External customer is the most important customer where the customer here is the main purpose why the library existed. The staff here is the one who make things happens which to serve the customer better, internal staff need to give their commitment in order to provide satisfying service for the external customer. The main problem at this library is communication breakdown. Staff recognition, for example giving them award or place them in very important position, will change the behavioral.

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Koay Tze How; Mechanical Engineer at Sinclair Knight Merz ConsultingThe quality commitment and employee commitment practiced by Chaparral definitely placed at high benchmark among the same industry and also can be a reference of study by other industry. Sinclair Knight Merz very committed to external customer as well as internal customer. As a consulting firm, customer is the only source of income, but instead of working for client.Sinclair Knight Merz emphasizes on partnering with client and achieves outstanding client success. Sinclair Knight Merz committed to quality and timely management as these are the fundamental to build a trust with client. Sinclair Knight Merz always works together and establishes a long term partnership with its client to strike the goals.Employees are the only asset of a consulting firm.Sinclair Knight Merz quite emphasizes on employee commitments.

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