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Pages:
1 page/≈275 words
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Style:
APA
Subject:
Management
Type:
Essay
Language:
English (U.S.)
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Topic:

The Circored Iron Ore Reduction Plant in Trinidad

Essay Instructions:

I uploaded the case and Chapter 3 PowerPoint which are the only materials that the writer needs to use. Moreover, please follow the instruction below:
Introduction:
This case is written with a primary focus on operations strategy and /or quantitative methods. The question of this case is straightforward - Shall we close down and write the plant off? To begin the analysis, we need to understand the process flows. Chapter 3 in the textbook provides a relatively detailed structure of the process flows. Following the process flow analysis, the operation's cost structure is required to be conducted in order to make a recommendation.
The alternatives could be:
Discontinue the operation immediately.
Move the plant to an idle status.
If the plant is not to be closed, consider additional investments to fine-tune the process technology.
Based on the information above, please answer the QUESTION - As a member of, or a consultant to, the board of Cleveland Cliffs, what would you recommend concerning the future of the plant? Discuss the alternatives, then reflect what this means for Cleveland Cliffs' long-term valuation. (this is the key part of this order)

Essay Sample Content Preview:

Pumping Iron at Cliffs & Associates-The Circored Iron Ore Reduction Plant in Trinidad
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Institution
Date
Fluidized bed based Circored technology has facilitated a more efficient production of the Hot Briquetted Iron (HBI), but there is still a high cost of operating the plant and the total cost per year is $78,192,866. The loss of volume and high maintenance will affect the company’s operations and capacity and this to also be prioritized to ensure the plant is open, but since there are high costs of operations the plant should be close and written-off. To identify the bottlenecks and areas requiring improved efficiency to reduce loses it is necessary to consider the process utilization for each of the steps in the pre-heater, lock hoppers, 1st and 2nd reactors, flash heater, discharger and briquetting processes. Iron ore production is based on 5...
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