Section Fourfire extinguishers. In addition to efficient utilization of human
resources, Chaparral has achieved its position as one of the
world’s most efficient producers of steel through heavy
emphasis on technological innovation and computerization.
Interestingly, most of Chaparral’s research and
development efforts come from its production employees, as it
views product development as a responsibility of production
personnel. Because of heavy emphasis on profit sharing and
the avoidance of individualized suggestion systems, which
discourage teamwork and information sharing, the company’s
employees are motivated to work together in developing
technological advancements in production. Although Chaparral’s
research and developmental efforts come from its production
employees, these are well-trained employees. Chaparral’s
production employees who have only high school educations go
through two years of training in such areas as electronics,
hydraulics, and statistical process control. Further, there is very
high representation of college-trained engineers at Chaparral,
such as those running the fur-naces.^1 Admittedly, Chaparral has
a production advantage in producing steel from scrap.
However, its efficiencies are remarkable considering that with
less than 1,000 employees, Chaparral’s annual production of
approximately 1.5 million tons of steel comprises about 1.5
percent of the steel produced in the United States.^2