Cleveland Cliffs Inc. and Lurgi Metallurgie GmbH - The Circored Project (B): Turning a First-of-Its-Kind Iron Ore Reduction Plant into a Commercial Success

Published 12 Jun 2002
Reference 5040
Topic Operations
Region Global
Length 6 page(s)
Language English
Summary

The two companies started in 1995 to develop a new breakthrough technology for converting iron ore into pure iron. The project was extremely challenging because of complexity (a three-way joint venture involving 3 countries) and uncertainty (new technology posing unforeseeable complications). The case describes the difficulties to make the technology work.

Teaching objectives

Understand the nature of unforeseeable uncertainty, and the limits of risk management. Understand risk profiles, and the management style that is appropriate for projects with unforeseeable uncertainty. Rather than relying on planning and execution, such a project requires a flexible approach that gives the team resources and capabilities for problem solving and learning, and the authority to change course.

Keywords
  • Project management
  • Risk management
  • Breakthrough technologies
  • Technology development
  • Uncertainty
  • R&D partnering
  • Steel making
  • Cross cultural projects