Case Study: The Circored Project

920 Words 4 Pages
The Circored Project was the beginning of a new technology using the new mini mills. In 1995, Cleveland Cliffs of Cleveland, Ohio partnered with the German Company Lurgi Metallurgie and LTV Steel. The key points to the Circored Project was project managers, changes to the management and design and market turmoil. A project manager must inspire a shared vision, be a good communicator, able to delegate tasks and be great at problem solving skills. Cliff Associates Limited(CAL), Ray von Bitter was the project manager for the entire project. CAL would visit the project site every few weeks, which made their overseeing procedures weak. The two contracting companies was Becthel and Lurgi. Tensions between Becthel and Lurgi started immediately …show more content…
This decision changed the outcome of the project from a failure to a success. Ed Dowling, a senior vice president at Cliffs and Christof von Branconi put together an expert task to investigate the problems. Ed Dowling appointed Steve Elmquist as the new general manager for CAL. Steve performed an audit on every piece of equipment, creating a list of the most important problems. From this audit, came 120 reliability improvement projects that summarized the remaining problems after the efforts of the previous year. Also, Lurgi produced a new design of the discharge system which was successfully piloted at two external engineering companies. With the changes in management and design, plant operations saw a steady improvement the following months. The employees also were motivated and excited about the success. The facility had become a technical success. Organizations that manage change effectively with a disciplined approach will survive and …show more content…
The project team performed competent risk management. At the 1995 conference, Cliffs and Lurgi used combined experts to diagnose risks. The plan also included contingencies and even residual risks were tackled. Martin Hirsh said, “the process kinetics were completely unknown. None of this could be calculated beforehand. I knew that because I started up three novel process generations earlier in my career.” Martin knew that the project would have risks because he had dealt with the same processes earlier in his career. They also did a business case going by the consensus forecast expecting to do good according to all the external analysts. The two previous year did well and the demand for the product was good. This is one reason why big companies bring in experts or consultants with

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