Abstract
Since the beginning of 1963 SIGMA has had a team of operational research scientists working for Compañía de Acero del Pacífico, one of the largest steel-makers in South America. The task has been to demonstrate the value of operational research to the company by solving a series of both tactical and strategic management problems and also to train some of the company's own engineers to form an effective internal operational research team.
The company has allowed us to publish the results of any of the studies made and this has made it possible to write a complete story describing not only the work done and the successes, but also the difficulties that were encountered and the mistakes that were made. This article is not intended therefore to demonstrate yet further applications of well-known techniques nor to develop original problem-solving methods; rather it is to come out in the open and reveal the really difficult practical problems that face almost any operational research men and show how we attempted to solve them.