Case
Teaching Notes
Supplementary Resources
Abstract
This is a case of the unpredictable nature of a project and the role of management in handling a crisis. In October 2014, a very severe cyclonic storm hit the city of Visakhapatnam, India. The whole city was devastated and the situation at the steel plant was critical as there was no power for 10 days. This case gives an idea about a crisis can arise and create unforeseen uncertainty conditions due to natural calamities of high magnitude leading to totally unpredicted consequences, the need for preparedness for organizations after experiencing such events and successfully wading out of the crisis.
This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.
2024 Sage Publications, Inc. All Rights Reserved
Resources
Appendix 1: Infrastructure of the Steel Plant
Coke Oven and Coal Chemical Plant
The coke oven and coal chemical plant was the first major unit to be commissioned in RINL in September 1989 with state-of-the-art equipment. At present there are four 7-metre tall coke oven batteries.
Coal is converted into coke by heating the prepared coal blend charge in the coke oven in the absence of air at the temperature of 1200℃–1300℃ for a period of 16/19 hours. The volatile matter of coal liberated during carbonisation is collected in gas collecting mains in the form of raw coke oven gas passing through stand pipes and direct contact cooling with ammonia liquor spray. The gas cooled from 800℃–80℃ is drawn to the coal chemical plant by an exhauster. The residual coke is pushed out of the oven by a pusher car through a guide into a coke bucket. The red-hot coke is taken to the coke dry cooling plant for cooling.
The main by-product in the process of coke making is crude coke oven gas and this has a lot of valuable chemicals; the coal chemical plant recovers ammonia (NH3), tar and Benzol from coke oven gas. The primary by-products from crude coke oven gas are ammonium sulphate (NH4)2SO4, crude tar, crude Benzol and cleaned coke oven gas. The cooled coke oven from CDCP (coke drive cooling plant) is separated into three fractions, BF coke, i.e. +25 – 70 mm which is sent to BF, coke breeze, i.e. +0 – 15 mm, which is sent to sinter making and nut coke, i.e. +15 – 25 mm, which is also used in the blast furnace.
There are 4 batteries, each of which has 67 ovens. The volume metric capacity of each oven is 41.6cum. The drive coal charge/oven is 32 tonnes.
Sinter Plant
Sintering is an agglomeration process of fine mineral particles into a porous mass by incipient fusion caused by heat produced by combustion within the mass itself. Iron ore fines, coke breeze, limestone and dolomite along with recycled metallurgical wastes are converted into an agglomerated mass at the Sinter Plant, which forms 70–80% of the iron bearing charge in the Blast Furnace. The vertical speed of sintering depends on the suction that is created under the grate. At VSP, two exhausters are provided for each machine to create a suction of 1500 mm water column under the grate.
Blast Furnace
Iron is made in the Blast Furnaces by smelting iron bearing materials with the help of coke and air. The solid charge materials like sinter, sized iron ore, coke, etc. are charged in the vertical shaft of the Blast Furnace at the top and a hot air blast is blown through the tuyeres (a nozzle through which air is forced into a smelter, furnace or forge) located at the bottom. The oxygen from the hot air combines with the carbon of the coke and generates heat and carbon monoxide. The gases, while ascending upwards, react with the descending charge materials. Eventually, the charge melts; hot metal and slag are produced and tapped out. The cooled gas is also used as fuel in the plant. The Paul-Wurth, bell less top system is installed for furnace charging. There are three blast furnaces in Visakhapatnam Steel Plant – one Blast Furnace of 3820 cum useful volume (after modernisation), another of 3200 cum useful volume and the third of 3813 cum useful volume.
Steel Melt Shop and Continuous Casting
Steel is made in the steel melting shop in the refractory lined vessels called LD Converters (named after the Austrian towns Linz and Donawitz) by blowing oxygen through the hot metal bath. While iron making is a reduction process, steel making is an oxidation process. The oxygen reacts with impurities like carbon, silicon, phosphorous, sulphur, etc. present in hot metal to produce steel. No external fuel is required as the silicon and carbon release a huge amount of heat energy. Also the carbon reaction releases large quantities of gas rich in carbon monoxide along with a huge amount of dust. The gases released from the converter are collected, cooled, cleaned and recovered for use as fuel in the steel plant. The entire molten steel at VSP is continuously cast at the radial type continuous casting machines resulting in significant energy conservation and better quality steel. 100% continuous casting on such a large scale has been conceived for the first time in India.
Light and Medium Merchant Mill
The cast blooms from the continuous casting department are heated and rolled in the two high speed and fully automated rolling mills namely Light & Medium Merchant Mill (LMMM) and Medium Merchant & Structural Mill (MMSM). The billets produced in LMMM are further rolled in the Bar Mill/Wire Rod Mill (WRM). The finished products include wire rods and long products like reinforcement bars, rounds, squares, flats, angles, channels, billets, etc.
Blooms from the Continuous Casting Division are rolled into billets, some of which are sold and the rest are sent to the Bar Mill/WRM.
Medium Merchant and Structural Mill
The Medium Merchant and Structural Mill (MMSM) is one of the modern rolling mills of Visakhapatnam Steel Plant. This is a single strand continuous mill with a production capacity of 850,000 tonnes per year. The important feature of this mill is that Universal beams (both parallel and wide flange) have been rolled for the first time in India using Universal stands. Parallel flange beams have an advantage over conventional beams because, for the same weight, the section is stronger and stiffer due to greater moment of inertia and higher radius of gyration.
Wire Rod Mills
WRM-1
The Mill is a high speed 4 strand No-Twist continuous mill designed to produce 850,000 tonnes of wire rod coils per year. Rolled billets of 125 mm × 125 mm square cross section, length ranging from 9.8 m to 10.4 m and weighing approximately 1250 kgs are used. The mill is designed to roll steel stock of 0.9% max. carbon content.
WRM-2
The Mill is designed to produce 600,000 tonnes per year of rounds in coil form. The Mill is designed to roll low, medium and high carbon steel, case hardening steel, cold heading quality steel, electrode steel, spring steel, bearing steel and free cutting steel. The mill uses continuous cast billets of 150 mm × 150 mm square cross section, 12 m length and weighing 2100 kgs approximately, as input material.
These are highly automated and computerised Rolling Mills.
Product Mix
WRM-1: Plain Rod – 5.5 mm to 12.7 mm diameter. However, sizes up to 14 mm are also being rolled at present.
Rebar – 8 mm, 10 mm and 12 mm diameter in coil form.
WRM-2: Plain Rod – 5.5 to 20.0 mm in step of 0.5, Plain rod Dia 20.64 mm can also be rolled in future.
Special Bar Mill
The Mill is designed to produce 750,000 tonnes per year of plain rounds in straight length and in coil form by using an input of continuous cast billets of 150 mm × 150 mm × 12 m and weighing approximately 2,050 kgs. The mill is designed to roll medium and high carbon steel, case hardening steel, cold heading quality steel, electrode steel, spring steel, bearing steel and free cutting steel. It is a continuous mill consisting of 21 stands of housing-less design producing 20–45 mm size in straight and coil form (reduced wastage for end user). Free size rolls (customized sizes with closed tolerances), low temperature rolling for finer grain structure, online automatic measuring gauge for better quality control, automatic bar bundling and strapping machines for packaging of finished products are its salient features.
Structural Mill
The Mill is designed to produce 700,000 tonnes per year of structural sections in straight length in approximately 3,733 rolling hours and 850,000 tonnes per year of structural sections in straight length in approximately within 4,533 rolling hours, an input of continuous cast cold bloom of 200 mm × 200 mm × 12 m and weighing approximately 3,760 kgs.
Coke Oven Batteries at Visakhapatnam Steel Plant
References
https://www.vizagsteel.com/index.asp
Records of Rashtriya Ispat Nigam Ltd.
Information gathered through interviews of GM/AGMs of concerned departments.
Appendix 2: Process Flow Chart
The different segments of the flowchart are listed sequentially as follows:
- Raw materials
- Iron making
- Steel making
- Rolling
- Products
Each segment of the flowchart shows its respective ingredients or components via corresponding icons.
Source: Records of Rashtriya Ispat Nigam Ltd, Visakhapatnam
Appendix 3: Damage Potential of Tropical Cyclones
The classification of cyclonic disturbances is based on the wind speed around the circulation centre. Satellite cloud imageries are used along with other meteorological features to estimate the intensities and the wind speed associated with these intense systems. The strong winds, heavy rains and large surges associated with tropical cyclones are the factors that eventually lead to loss of life and property. The expected impact of various categories of storms is summarised below.
Winds
The impact of the passage of the cyclone eye, directly over a place is quite different from that of a cyclone that does not hit the place directly. The latter affects the location with relatively unidirectional winds, i.e. winds blowing from only one side and the leeside is somewhat protected. An eye passage brings with it rapid changes in wind direction, which imposes torques which can twist the vegetation or even structures. Parts of structures that are loosened or weakened by the winds from one direction are subsequently severely damaged or blown down when hit upon by the strong winds from the opposite direction. A partial eye passage can also do considerable damage, but it is less than a total eye passage. As tropical cyclones have a circular shape, an eye passage over a location exposes it to the maximum possible duration of destructive winds. The higher wind is also associated with a convectively active eye-wall region and has higher wind gusts than outside it. The gustiness effect is amplified over land where friction reduces sustainable wind but not the peak gust. This widens the gap between the peak and the lull of the gusts even more, creating strong negative pressure forces on the leeside of buildings, especially damaging metal sheet and wooden structures.
Aerodynamic forces that include the drag force acting in the direction of the mean wind, and the lift force acting perpendicular to that direction are experienced by the structure due to the action of the wind flow. The structural response due to this wind drag is called the “along wind” response. This has to be taken into consideration in designing tall buildings for cyclone resistance. Communication networks and microwave towers are susceptible to damage when winds reach 85 knots or 158 kmph speed. When winds reach 251 kmph, even satellite communication dishes can be vulnerable and blown off. Coastal roads/locations are vulnerable to damage from inundation/waves run up. Uprooted trees, power poles and lines and debris are the most detrimental hazards to roadways.
Rainfall
Unabated rains give rise to unprecedented floods which annoy people who become shelter-less and it also creates problems in post cyclone relief operations. Restoration of water distribution systems is one of the most critical issues after a cyclone. Not only does power supply get disrupted, but it also leads to leakages and damage in the water supply pipes. Even the strongest port and airport facilities, fuel and water storage tanks, high voltage transmission tower, etc. are vulnerable to damage.
Storm Surge
A storm surge is the single major cause of devastation from tropical storms. Massive piling of sea water due to strong winds is known as a storm surge. This leads to sudden inundation and flooding of coastal regions. A surge is the outcome of the interaction of sea air and land.
When the cyclone approaches the coast, it provides additional force in the form of a very high horizontal atmospheric pressure gradient, which leads to strong surface winds. As a result, the sea level rises and continues to rise as the cyclone moves over shallower waters and reaches a maximum on the coast near the point of landfall. Storm surge is inversely proportional to the depth of the sea water.
Appendix 4: Categorisation of Cyclonic Disturbances
S.no | Intensity | Strength of Wind in kmph | Condition of Sea | Wave height (m) | Damage expected | Action suggested |
1 | Depression (D) | 31–49 | Moderate to Rough | 1.25–2.5 2.5–4.0 | Minor damage to loose and unsecured structures | Fishermen advised not to venture into the open seas. |
2 | Deep Depression (DD) | 50–61 | Very rough | 4.0–6.0 | Minor damage to loose and unsecured structures | Fishermen advised not to venture into the open seas. |
3 | Cyclonic storm (CS) | 62–87 | Very high | 6.0–9.0 | Damage to thatched huts. Breaking of trees branches causing minor damage to power and communication lines | Total suspension of fishing operations |
4 | Severe Cyclonic storm (SCS) | 88–117 | Very high | 9.0–14.0 | Extensive damage to thatched roofs and huts. Minor damage to power and communication lines due to uprooting of large avenue trees. Flooding of escape routes. | Total suspension of fishing operations. Coastal hutment dwellers to be moved to safer places. People in affected areas to remain indoors. |
5 | Very severe cyclonic storm (VSCS) | 118–166 | Phenomenal | Over 14.0 | Extensive damage to kutcha houses. Partial damage to power and communication lines. Minor disruption of rail and road traffic. Potential threat from flying debris. Flooding of escape routes. | Total suspension of fishing operations. Mobilise evacuation from coastal areas. Judicious regulation of rail and road traffic. People in affected areas to remain indoors. |
6 | Extremely severe cyclonic storm (ESCS) | 167–221 | Phenomenal | Over 14.0 | Extensive damage to kutcha houses. Large scale disruption of power and communication lines. Disruption of rail and road traffic due to extensive flooding. Potential threat from flying debris. | Total suspension of fishing operations. Extensive evacuation from coastal areas. Diversion or suspension of rail and road traffic |
7 | Super cyclonic storm (SuCS) | 222 and More | Phenomenal | Over 14.0 | Extensive structural damage to residential and industrial buildings. Total disruption of power and communication supply. Extensive damage to bridges causing large scale disruption of rail and road traffic. Large scale flooding and inundation of sea water. Air full of flying debris. | Total suspension of fishing operations. Large scale evacuation of coastal population. Total suspension of rail and road traffic in vulnerable areas. People in affected areas to remain indoors. |
Source: http://www.rsmcnewdelhi.imd.gov.in/images/pdf/cyclone-awareness/damage-potential-cyclone/damage.pdf
Appendix 5: Tracking Hudhud
The descriptions of each of those images are as follows:
- The top left image shows a satellite image of the cyclone, which has a well-defined eye surrounded by clouds.
- The top right image shows a satellite image of India and Southeast Asia. It tracks the development of the cyclone using a multicolored line, which is color coded according to the Saffir–Simpson scale, to show the intensity of the cyclone’s various stages. The line shows that the cyclone started over the Andaman Sea, entered Andhra Pradesh coastline via the Bay of Bengal, and finally curved northwards in India before breaking off.
- The bottom center image forecasts the storm path in India. It marks the countries Bangladesh, China, Nepal, Pakistan, Arabian Sea, and Sri Lanka and the capitals New Delhi (India) and Dhaka (Bangladesh). Data shown by the image are listed as follows:
Timestamp | Storm path forecast | Storm path potential | Windspeed radius, knots | Windspeed, knots |
Sun. 5.30 PM: | Visakhapatnam (Andhra Pradesh) | Andhra Pradesh, Odisha | 64 | >64 (Cyclone) |
Sun. 11.30 PM | Odisha | Andhra Pradesh, Odisha, Chhattisgarh, Telangana | 50 | >64 (Cyclone) |
Mon. 11.30 AM | Chhattisgarh | Chhattisgarh, Maharashtra | 34 | 34–63 |
Mon. 11.30 PM | Madhya Pradesh | Chhattisgarh, Maharashtra, Madhya Pradesh | – | <34 |
A scalebar on the bottom left of the map has “200 miles” marked on its top and “200 km” marked on its bottom. A text on the bottom right of the map reads “Source: Joint Typhoon Warning Center”
Appendix 6: Average Control Vertical Temperature From 10.10.2014 to 21.10.2014 in Degrees Centigrade
Battery | ACVT on 10th | ACVT on 11th | ACVT on 13th | ACVT on 14th | ACVT on 15th | ACVT on 16th | ACVT on 17th | ACVT on 18th | ACVT on 19th | ACVT on 20th | ACVT on 21st | |||||||||||
Pusher side | Coke side | Pusher side | Coke side | Pusher side | Coke side | Pusher side | Coke side | Pusher side | Coke side | Pusher side | Coke side | Pusher side | Coke side | Pusher side | Coke side | Pusher side | Coke side | Pusher side | Coke side | Pusher side | Coke side | |
No 1 | 1256 | 1271 | 1212 | 1230 | 1047 | 1031 | 995 | 990 | 952 | 952 | 1161 | 1175 | 853 | 882 | 860 | 880 | 832 | 867 | 1191 | 1210 | 1191 | 1211 |
No 2 | 1284 | 1301 | 1232 | 1250 | 1020 | 1001 | 969 | 972 | 939 | 966 | 895 | 910 | 872 | 890 | 890 | 900 | 863 | 877 | 1090 | 1116 | 1193 | 1216 |
No 3 | 1223 | 1252 | 1172 | 1206 | 986 | 992 | NA | NA | 952 | 966 | 921 | 914 | 905 | 905 | 887 | 876 | 864 | 847 | 966 | 973 | 1135 | 1155 |
No 4 | 1236 | 1238 | 1204 | 1215 | 1034 | 1037 | NA | NA | 954 | 960 | 948 | 921 | 883 | 885 | 800 | 872 | 931 | 938 | 1091 | 1093 | 1152 | 1143 |
Source: Primary data from Human Resource Information Section, HRD Group, Visakhapatnam Steel Plant.
This case was prepared for inclusion in Sage Business Cases primarily as a basis for classroom discussion or self-study, and is not meant to illustrate either effective or ineffective management styles. Nothing herein shall be deemed to be an endorsement of any kind. This case is for scholarly, educational, or personal use only within your university, and cannot be forwarded outside the university or used for other commercial purposes.
2024 Sage Publications, Inc. All Rights Reserved