2. Productivity Improvement Programme
A team of delegates from different subsidiaries of CIL visited Australia.
Χoncept presentation was made during CMD’s meet at CIL HQ.
It was agreed that some coal mines will be selected and CIL and Orica
will work together to improve overall productivity
The project was named as “Productivity Improvement Programme” (PIP).
The projects selected were AKWMC Project in BCCL and Dudhichua
Project in NCL.
The whole process was divided in two phases: Phase 1 was called “Study
of Ongoing Practices” and Phase 2 was called “Demonstration of benefits”

3. AKWMC, Katras Area
The mine had been re-structured after amalgamation of Keshalpur and West
Mudidih Mines.
BCCL
Production target for 2008-09
•Coal - 1.5 Million Tonnes.
•Overburden - 4.5 Million cubic meters.
No. of working benches
•Overburden - 08
•Coal - 03

4. Machineries
•Shovels:
5cuM bucket capacity rope shovel- 06 Nos.
5 cuM bucket capacity hydraulic shovel-01 No.
2.8cuM bucket capacity hyraulic shovel- 03 Nos.
•Drills:160mm drill diameter- 05 Nos.
•Drill: 250 mm. Drill diameter-01 no.
•Dumpers on roll(35 Tonnes capacity) - 53 Nos.

5. AKWMC, Katras Area BCCL
Achieved high operational efficiency with stripping ratio of 1:3.
Achieved Coal Production of 1.12 MT against the target of 1.20 MT in 2007-08 .
Receptive to new technologies.
Sensitive to environmental issues like ground vibration,fly rocks and noise.
Low blasting costs.
Successfully doing excavation over old underground workings.
Higher percentage percentage of utilization of HEMM 85% as compared to
other mines of BCCL.

6. PIP Structure
Productivity Improvement Programme was structured as follows:
Formation of Steering Team: Steering team formed with some nominated members of
Katras area and Indian Explosives Limited.The steering team meeting was scheduled
once in a week for planning the operation in next week and to review the work done in last
week.
Selection of benches: Since time period the study was very less some of the overburden
benches in the mine were selected for PIP which are very hard and geologically disturbed
where mine management was facing problems in operation.
Benchmarking of on-going practices in mine: Productivity of some of the key operations
e.g. Drilling,Blasting and Mucking was benchmarked in terms of Rs./cuM and cuM/hr by
time and motion study of each operation.
Demonstration of benefits: Productivity of the same operations e.g. Drilling,Blasting and
Mucking was determined after some blasts were done on the same benches by M/s.
Indian Explosives Limited by using modern blasting technology.
Calculations: Demonstration of benefits in terms of productivity was done by comparing
demonstration and benchmarking data of each operation.
Presentation: A presentation on work done was made to the CGM (Katras area) and
steering committee.

7. Project Planning by Steering Committee
Steering committee met weekly to assess the progress of work done in previous
week and to plan the work for next week.
Appointed Mr. C.B.Prasad as an officer in-charge dedicated for PIP work.
AKWMC management suggested
To select only hard and fractured due to presence of depillared and caved
goaf benches for PIP exercise, which were over VIII seam top, VIII seam
bottom and VII seam.
To do time and motion study only for some selected machines deployed on
those benches. The machines selected were:
Shovels:
Drills:
S-38, S-483, S-394 and S-342.
IDM 30 III, IDM 30 I and RECP 311.
To take transportation cost as a constant for both phases.
To take average of four months costs for determination of existing operating
cost.
To conduct at least one blast in each bench for demonstration of the benefits.

8. Project Planning by Steering Committee
It was finalized by the Steering Committee that Orica
 Will conduct 4 stand up blasts by using advanced blasting technologies.
 Will mark drill holes, supervise drilling operations and provide relevant training
to drill operators.
 Will present the results obtained in both the phases of the study.

9. Benchmarking of On-going Practices
Drilling operation
Time and motion study of drill machines IDM 30 III, IDM 30 I and RECP 311 and
productivity was determined in terms of Rs./m and Rs./cuM.
Drilling operation
Drilling cost
Blasting operation
Blast design parameters are studied and tabulated.Bench wise powder factor was
determined and cost in Rs./cuM was determined.
Blasting operation
Blasting cost

10. Study of On-going Practices- Phase I
Mucking operation
Time and motion study for shovels S-38,S-342,S-394 and S-493 was done and
productivity of mucking operation was determined in terms of Rs./cuM and
material handled in cuM/hr.
Mucking operation
Mucking cost
Transportation cost
Transportation cost was constant for both phases and material handled per trip
was taken as 11cuM/trip as fixed by previous survey data.
Total mining cost
Total mining cost was determined by adding up drilling cost,blasting cost and
mucking cost.
COST COMPONENTS
DATA SOURCES

11. Phase II-Demonstration of Benefits
Methodology adopted in demonstration exercise :
DRILLING OPERATION
•Marking of drill holes in staggered pattern on the patch.
•Monitoring of the drilling operation for ensuring proper depth and pattern
•Training imparted to the drill operators and helpers.

12. Training of drill operators and Helpers

13. Demonstration of Benefits
BLASTING OPERATION
•To ensure proper charging of blast holes according to the plan.
•To model each blast with Orica’s patented softwares.
•To design each blast with the help of Shotplus-i software.
•To use hole liners in the crack holes.
Blasting cost
MUCKING OPERATION
•Time and motion study of the shovels is done by dividing the blasted muck
into three sections e.g. Initial, middle and last section as in study of on-going
practice.
•Material handled in cuM/hr. was determined with the study data.
Mucking cost
TRANSPORTATION COST
Transportation cost is taken constant as in study of on-going practice.

14. Blast Design & Model – Blast 2
Blast 2 in shotplus-i

15. Photographs of the blasted muck pile
during demonstration

16. Results
Cost during
benchmarking
operation in
Rs./cuM
Cost during
demonstratio
n operation
in Rs./cuM
Savings
in cost in
Rs./cuM
Percentage
savings
Drilling cost in Rs./cuM
13.23
10.27
2.96
22.39%
Blasting cost in Rs./cuM
19.59
13.80
5.79
29.54%
Drilling and blasting cost in
Rs/cuM
32.82
24.07
8.75
26.65%
Mucking cost in Rs./cuM
23.46
14.8
8.66
36.91%
Total mining cost in Rs./cuM
56.28
38.87
17.41
30.93%
Head
Overall savings in mining
cost* in Rs./cuM
17.41 (30.93%)

17. Benefits
Improvement in Fragmentation.
Drilling cost (per cuM) was saved by optimization of blast design parameters
Savings in production hours due to bigger blasts.
Exposure of mine management to advanced blasting technology.
Sharing of knowledge between BCCL and IEL.

18. Scope of improvement in Future
To Merge two small benches (5 to 6 m height) for faster development of the
mine. The mine is having capacity to drill 15m. Drill holes.
Application of Stratablast (a product of Orica’s Blast Based Services) for
mining of thin seams along with partings in a single blast for faster
development of the mine.Presently the mine is excavating no. of thin seams
in different benches.
To conduct bigger blasts for faster exposure of coal and better efficiency.
Help the mine meet environmental compliance norms.

19. DISCUSSIONS?????….

20. Thank you!!!

21. PHASE-I
STUDY OF ON-GOING PRACTICE

22. Method of study
DRILLING
Time study of:
• Drilling time.
• Rod changing time.
• Spotting time.
• Idle time.
• Meterage drilling.
 Rate of drilling (m/hr.) = Meterage drilling/ Total time taken in drilling (excluding
idle time).
 Drilling cost (Rs./m.) = Total cost incurred during the period of study/ Total
meterage of drilling done by the machine.
Back to main slide

23. MUCKING
Back to main
Time study of the shovels by:
• Study of the cycle time of loading of one dumper.
• Study of the spotting time of one dumper.
• Idle time of the shovel due to non availability of dumpers at the face.
 Material handled by the shovel (cuM / Hr) = Volume of the material carried by
the dumper per trip* / Total time taken in filling one dumper by shovel
(excluding idle time of the shovel)
 Mucking cost (Rs. / cuM) = Total cost incurred for the shovel during the study
period/ Total volume handled by the shovel during the period.
* Standard volume carried by each dumper is considered as 11cuM.

24. COST COMPONENTS
Back to main
Following cost components are taken into consideration in determination of mining cost of OB
in Rs./cuM.
 Cost of Diesel, lubes and other consumables
 Cost of spares.
 Cost of maintenance manpower.
 Cost of operation manpower.
 Cost of depreciation.
Following cost components are considered as a constant in determination of per cubic
mining cost of OB due to non-availability of sufficient data:
 Electric power consumption cost.
 Hauling cost.
 Dozing cost.
 Administration cost.

25. DATA SOURCES
Back to main
DATA
SOURCE
Cost of HSD and consumables.
New Keshalpur and West Mudidih
Workshop.
Cost of Spares and maintenance.
New Keshalpur and West Mudidih
Workshop.
Cost of maintenance manpower.
Finance deptt. of the project and
Workshops.
Machine performance as per BCCL data.
Excavations deptt. of the Katras area.
Monthly cost sheet.
Computer deptt. Katras area.
Cost of explosives and blasting
accessories.
AKWMC magazine.
Meterage drilling and cuM handled by
machines per month.
Office of the project officer AKWMC and
pit office.

26. Study of blasting operation in case study
Back to main
Study of following operations in blasting operation:
•
Blast design parameters like burden, spacing and depth of the drill holes.
•
Charging operation.
•
Drilling cost per cuM.
•
Blasting cost per cuM.
•
Bench wise powder factor.

27. Study of drilling operation
Back to main slide
Drilling cost( Rs./m.) in case study (Excluding administration cost)
HEAD
IDM 30 III
RECP 311
IDM 30 I
COST in Rs.(from Jan to Apr.08)
HSD,LUBES & CONS.
867627.00
1087946.00
830952.00
SPARE PARTS
172092.00
300237.00
185208.00
MAINTE.MANPOWER COST
388601.24
388601.24
582901.86
OPERATION MANPOWER COST*
584093.60
683766.03
564717.08
DEPRECIATION COST
359852.00
291333.00
327407.00
TOTAL COST
2372265.84
2751883.27
2491185.94
DRILL METERAGE
14402.00
13318.00
12861.00
WORKING HOURS
779.70
1101.50
842.90
DRILLING COST /M
164.72
206.63
193.70
COST/HR
3042.54
2498.31
2955.49
Avg. drilling cost/m
*includes one drill operator, one
helper and half supervisor.
188.35

28. Mucking operation in case study.(Back to main)
Operation Cost of Shovel as per field study data (in Rs./cuM)
(excluding electric power and administration cost)
* includes one shovel operator, one cableman and half supervisor.
HEAD
S-38
S-394
S-342
S-483
Material handled in cuM/hr.( Mar. to Apr.08)
Initial Section
74.94
99.27
88.5
100.54
Middle Section
75.51
115.96
105.42
112.45
Last section
72.3
77.83
77.34
103.97
Average
74.25
97.69
90.42
105.65
Total working Hrs. (Jan. to Apr.08)
506.5
827.7
848.5
1968.2
COST in Rs. (From Jan. to Apr. 08) (Avg.muckig cost in Rs./cuM – 23.46 )
Cost of Maintenance Manpower
680052.13
1165803.70
874352.81
971503.10
274395.85
547849.15
441606.15
791548.65
87759.00
44410.00
311664.00#
132600.00
Cost of Depreciation
0.00
568028.00
0.00
1464724.00
Total Cost
1042206.98
2326090.85
1627622.95
3360375.75
Composite Material handled (cuM)
37607.63
80855.25
76721.37
207946.89
Cost/Hr
2057.66
2810.31
1918.24
1707.33
Cost per cuM in Rs.
27.71
28.77
21.21
16.16
Cost of operation manpower
*
Cost of Spares & Consumable
# due to comp. rep’g of undercarriage

29. Study of blasting operation
Back to main
Avg. drilling
and blasting
cost in
Rs/cuM
Avg.
blasting
Bench
Avg.
depth in
M
Av.
Burden
in M
Av.
spacing
in M
P.F.
in
cuM/K
g.
S-38
(VIII seam bottom)
11.38
3.53
4.25
1.27
32.51
20.10
S-394
(VIII seam bottom)
11.20
3.27
3.87
1.19
34.29
20.76
S-483
(VIII seam top)
6.41
3.04
3.90
1.31
38.47
22.52
S-483
( VIII seam top)
11.19
3.80
4.70
1.51
27.68
14.99
Avg.
1.32
32.82
19.59
Cost* in
Rs./cuM
*includes explosives cost and
salary cost of blasting crew.

30. Drilling and Blasting
BENCH WISE P.F. AND BLASTING COST (Rs./cuM)
Avg.
depth
in M
Av.
Burde
n in M
Av.
spacing
in M
P.F.in
cuM/K
g.
Blastin
g cost
in
Rs./cu
M
Drilling
cost in
Rs./cu
M
Avg.
drilling
and
blasting
cost in
Rs/cuM
Bench
Date of
blast
S-394
19.05.08
6.52
3.7
4.2
1.37
15.89
16.17
30.93
S-394
27.05.08
6.09
3.7
4.2
1.84
11.77
12.32
22.73
S-342
30.05.08
11.73
4
4.5
1.93
10.96
10.38
20.75
S-38
15.06.08
14.34
4
4.5
1.84
11.58
12.06
21.87
1.75
12.55
12.73
24.07
Back to main
Avg.

31. Mucking operation
Ongoing practice
Operation Cost of Shovel as per field study data (in Rs./cuM)
(Excluding Electric Power and administration cost)
HEAD
S-38
S-394
S-342
S-483
Material handled in cuM/hr. (From May - June 08)
Initial Section
138.03
147.86
171.81
N.A.
Middle Section
157.57
191.05
204.18
N.A.
Last section
114.17
124.46
140.89
N.A.
Average material handled
(cuM/Hr)
136.59
154.46
172.29
N.A.
Cost/Hr
2057.66
2810.31
1918.24
N.A
Cost per cuM in Rs.
15.06
18.19
11.13
N.A.
Mucking cost in Rs./cuM (Avg.)
14.80

32. Mucking operation
Ongoing practice
Back to main
Operation Cost of Shovel as per field study data (in Rs./cuM)
(Excluding Electric Power and administration cost)
HEAD
S-38
S-394
S-342
S-483
Material handled in cuM/hr. (From May - June 08)
Initial Section
138.03
147.86
171.81
N.A.
Middle Section
157.57
191.05
204.18
N.A.
Last section
114.17
124.46
140.89
N.A.
Average material handled
(cuM/Hr)
136.59
154.46
172.29
N.A.
Cost/Hr
2057.66
2810.31
1918.24
N.A
Cost per cuM in Rs.
15.06
18.19
11.13
N.A.
Mucking cost in Rs./cuM (Avg.)
14.80

33. Cost comparison in study and
demonstration exercise
Cost Analysis
Head
Cost during
benchmarkin
g operation
in Rs./cuM
Cost during
demonstrati
on
Savings
operation in in cost in Percentage
Rs./cuM
Rs./cuM
savings
Drilling cost in Rs./cuM
13.23
10.27
2.96
22.39
Blasting cost in Rs./cuM
19.59
13.80
5.79
29.54
Drilling and blasting cost in
Rs/cuM
32.82
24.07
8.75
26.65
Mucking cost in Rs./cuM
23.46
14.8
8.66
36.91
Total mining cost in Rs./cuM
56.28
38.87
17.41
30.93
Overall savings in mining
cost* in Rs./cuM
*Mining cost includes
drilling,Blasting & mucking
cost.
17.41 (30.93%)