Industrial Engineering To Reduce Coal Mining Cost

IN the past 75 years industrial engineering has been highly developed in many fields, but the coal mining industry has just begun to realize its potential for cutting costs. To receive the maximum benefit, a company should apply industrial engineering from the time a new installation is contemplated, but the principles can also be used to reduce and control the costs of an established operation. One company that had been mechanized for seven years reduced its total labor cost 57 pct by industrial engineering. Of this reduction, 20 pct was brought about by a preventive maintenance, rebuilding, and scheduled lubrication program that eliminated 80 pct of the delay caused by mechanical and electrical failures. Thirty percent of the cost reduction was attributed to rearranging the work force into crews of the most effective size, changing working methods, and training all mine supervision in the principles of the cost reduction program. The remaining 7 pct reduction was brought about by a wage incentive program for all the men in the mine. The productivity of this coal mining operation was increased from less than 8 tons per payroll man to 20 tons. This increased productivity was brought about while using the same equipment, men, and supervision.