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By Robin J. Batterham

We still need to innovate, but it is getting harder. The real price of metals is declining, return on shareholder value is lower than other industries, and there is a shorter-term focus on staying viable in a capital-intensive industry where timeframes for implementation of new technologies can be long (+I5 years). In this environment, the levels of R&D spent by major minerals companies are remaining steady at around 0.2%-0.5% of revenue. This is not large and to remain viable in the future, we need to be smarter about the way in which we do R&D. The mining industry is a knowledge-based industry. Driving down the cost curve demands innovation, which demands knowledge. To be smarter and more effective in our approach to innovation, a new paradigm is required Generating, capturing and using knowledge has evolved from Mode 1 (discipline based and clear distinction between basic and applied research) to Mode 2 (multidisciplinary, team-based approached with flow between basic and applied activities). Mode 2 is now seen to be much more efficient and to deliver better appropriability (Tegart 2003). To survive, we need to innovate, and the best way to do this is collaboratively. Some examples and pointers for the future will be given in this paper. THE CURRENT SITUATION The Rand report and other recent studies have painted a grim outlook for the mining industry. The real price of metals continues to decline (Figure 1) and profit margins remain thin. This is reflected in shareholder returnwhich are well below other industries (Figure 2)-and current management strategies-which reflect something of a "survival mode." The current focus for most mining companies is on short-term, incremental gains

Jan 1, 2004

Pyrrhotite is pyrophoric when in a finely divided form. The problems of disposing of large quantities of finely divided pyrrhotite separated out by metallurgical processing from ore are formidable. In the case of an underground mine, a solution to the problem of disposal is to place the pyrrhotite in the stoped out areas and seal from any air supply. Further, the pyrrhotite could be diluted with tailings which would reduce the possibility of combust- ion. Several enquiries to various centres and authorities have shown that the products of the slow oxidation of pyrrhotite with moisture present can cement an inert matrix into a stable fill similar in physical prop- erties to fill stabilised with Portland cement. Stabilised fill can be used to advan tage with a suitable mining method to provide high recovery. The investigation demonstrated that air and 15% w/w water must be present for the fill to harden and that the sizing of the particles is a critical factor in drainage of a hydraul- ically placed fill and subsequent even harden- ing of the fill in a stope. With the materials used in the experiments in which the - 51 micron component of the tailings had been dis- carded, an optimum mix was found to contain 4:1 tailings/slag ratio and an overall pyrr hotite concentration of 8% (all proportion by weight). Approximately 34 days after drain- age to 15% moisture in natural air flow condit- ions, an unconfined compressive strength of 1.862 MPa was attained. A subsequent experi- ment was conducted with a sample of optimum mix in a pipe one metre long in forced air flow conditions. At a superficial velocity of 3.Om per hour the mix required 155 hours to harden to 1.862 MPa after drainage to 15% w/w moisture content. The pressure drop bet- ween the top and bottom of the mix in the pipe remained constant at 9 KPa/metre length. This result suggests that forced air flow conditions will increase the rate of hardening. No dangerous effluents were detected in the course of the experiments which could affect mine equipment or personnel.

Jan 1, 1973

By P. C. Thakur

Frictional ignitions (also called face ignitions) is defined as the rapid oxidation of a mixture of methane and air with a visible flame that could last from a few seconds to several minutes. These ignitions have a potential to turn into a mine explosion and eventually a large-scale mine fire. Over the last 22 years, U.S. coalmines have had 1566 frictional ignitions. There were no fatalities but serious injuries have occurred. Every effort, therefore, should be made to prevent frictional ignitions. The preventative measures fall under four categories: (a) degasification of coal seams prior to mining, (b) adequate ventilation, (c) wet cutting or water-jet assisted cutting and (d) machine design to minimize ignitions. The paper discusses each of these techniques in detail.

Jan 1, 2006

By J. Muralha

The paper presents the limit equilibrium equations for the analysis of toppling blocks on a rock slope. The safety conditions are assessed by a numeric procedure implemented in an Excel worksheet. The UDEC numerical program was exploited to validate the procedure. A probabilistic model considering the spacing variability of the discontinuities was developed to define the most relevant parameters in this kind of problems. La communication presente les equations d’équilibre limite pour l’analyse de blocs rocheux sur une pente. Les conditions de securité sont évaluées par une procédure numérique en Excel. Le logiciel UDEC a été exploité pour valider cette procedure. Un modèle probabilistique a été developpé pour définir les plus importants paramètres dans ces problèmes. Das Referat stellt die Grenzgleichgewichtsgleichungen für die Analyse von umstrürzenden Blök-ken auf eines Felshang vor. Die Sicherheitsbedingungen werden durch ein numerisches Verfahren mit Excel beurteilt. Um die Gültigkeit des Verfahrens festzustellen, wurde das Programm UDEC benutzt. Ein die Klufabstandsvariabilität berücksichtigendes probabilistisches Modell wurde entwickelt, um die wichtigsten Parameter dieser Probleme zu bestimmen.

Jan 1, 2003

By S C. Barrie

St BarbaraÆs Marvel Loch operations have successfully used longhole open stoping as the primary mining method for a number of years. A transition to Core and Shell mining was implemented in 2009 to recover substantial ore grade resources remaining in sill and rib pillars. The transition to core and shell for the Exhibition lode required continuous waste filling of created voids and thus the removal of the crown pillar at the base of the Exhibition pit by blasting. Access to the top of pillar was denied as the pit was partially rock filled with waste rock from underground development.Beyond the technical challenges of the blasting project, a simple and transparent risk management process was developed to ensure appropriate controls and mitigating strategies were in place to minimise risk to personnel during the pillar removal process.Although failure of the crown pillar was anticipated but with the actual timing unknown, on 25 December 2011 the crown pillar yielded during normal mine operations. Engineered and isolation controls in place at the time were of a sufficiently high standard to ensure limited exposure of the underground workforce and minimal damage to mine infrastructure. Successful risk management through implementation of appropriate controls during the project lifecycle of two years and three months proved to be fundamental to the safe removal of the crown pillar.CITATION:Barrie, S C, 2012. Successful risk management through project life cycle for removal of the crown pillar at the Marvel Loch Underground Mine, in Proceedings International Mine Management 2012, pp 125-134 (The Australasian Institute of Mining and Metallurgy: Melbourne).

Nov 20, 2012

By H. Nelisse, S. K. Patra, A. Natani, S. Rakheja

The current laboratory methods for assessing the vibration attenuation performance of seats involve repetitive trials with a number of human occupants, and raise certain ethical concerns. Moreover, the measurements with human subjects yield considerable variability in the data. Alternatively, several anthropodynamic manikins have been developed for effective assessments of the coupled seat occupant system [1]. The effectiveness of a manikin in predicting the response of a coupled seat-occupant system lies in its ability to reproduce the biodynamic response of the seated human body in terms of force-motion relationship at the body-seat interface, such as apparent mass (APMS). A number of prototype manikins have thus been developed on the basis of biodynamic characteristics of vertical vibration-exposed seated occupants of different body masses in the vicinity of 5th, 50th and 95th percentile male population. This study concerns with the analysis of a passive prototype manikin to enhance its ability to reproduce the idealized APMS response characteristics of the vibration-exposed seated human subjects defined in ISO-5982[2] for mean body masses of 55, 75 and 98 kg. Methods The APMS responses of a prototype anthropodynamic passive manikin were thoroughly characterized in the laboratory under different excitations and body mass configurations. The manikin was designed with sufficient flexibility to configure mechanical-equivalent models corresponding to seated body masses of 55, 75 and 98 kg, by adding/removing specified masses and springs (Fig. 1). The manikin, configured for a specific body mass, was positioned on a rigid seat without a backrest, which was fixed to the force platform of a whole-body vertical vibration simulator. The simulator was programmed to synthesize random vertical vibration with flat acceleration power spectrum in the 0.4-20 Hz frequency range with two different magnitudes: 1 and 2 m/s2 overall rms acceleration. The total static and dynamic forces of the manikin to and the seat were measured using the force platform, while a single axis accelerometer was installed on the seat pan to measure acceleration due to vertical excitation. The measured data was appropriately corrected for the rigid seat inertia force, and the apparent mass [ ]

Jan 6, 2006

By R W. Shaw

The MTM Process targets treating lower grade and/or problem concentrates that are not attractive to smelters. The process has been developed at laboratory scale for copper and is based on a related development for zinc that has been extensively developed both in the laboratory and through pilot testing. The basis of the process is novel ammonia-ammonium chloride leach chemistry adapted to give high copper extraction whilst being selective over iron, arsenic and many other elements. The preferred flow sheet depends on location, especially infrastructure and utilities. These impact upon the leach and crystallisation stages more than copper reduction.

Aug 24, 2022

By G. Kumar

Water for domestic consumption is an essential right of society, which must be over secured. Water reclamation and reuse provides a unique and viable opportunity to augment traditional water supplies. As a multi-discipline and important element of water resource development and management, water reuse can help to close the loop between water supply and wastewater disposal. Effective water reuse requires integration of water and reclaimed water supply functions. During the coal mining activities, large quantities of water get contaminated and loses its potability characteristics. On an average, in coal mine operation, each coal mine discharges effluents at a rate of nearly 0.5 MGD and thereby wastage of nearly 50 MGD of water takes place per day from the famous Jharia Coal Field of the Dhanbad District. In this paper, attempt has been made to control the extremely high turbidity of mine waste water by using different coagulants and it is observed that ferrous sulphate is the most effective coagulants followed by alum, ferric sulphate and lime. Also combinations of coagulants are used for getting the optimal results. Further steps were also discussed to make this water potable and a scheme of low cost water supply system of mine waste water has been suggested under the Water Management Strategies. Keywords: potability, turbidity, coagulants, water management strategies

Sep 1, 2012

By H. J. Garcia

Biodegradation of cyanide by microorganisms isolated from solids previously exposed to cyanide has been investigated. Initial sodium cyanide concentration was 300 ppm at pH 10.5. The kinetics of biodegradation were found to be first order with respect to cyanide concentration, and the overall reaction rate constant is k = 0.102 day-1. The activation energy and the frequency factor were determined to be { A }Ea = 5.45 Kcal/mol and A = 1.28 x 10-2 sec-1, respectively. Based on these values, thermodynamic properties of an intermediate activated complex were assessed. All tests resulted in cyanide concentrations less than 0.1 ppm in about 35 days at 250C, whereas at 350C the time of biodegradation to reach this cyanide level was 30 days. Kinetic data were also established to relate biodegradation to amount of inoculum. The maximum theoretically-attainable rate, Vm , and the optimum amount of inoculum, K , were determined to be 4.8 x 10-4 M NaCN/day and 7.5 % of amount of inoculum. With respect to the mechanism of biodegradation, cyanide was shown to decompose to carbonate, bicarbonate and ammonia. Titrimetric analyses revealed concentrations of 5.6 x 10-3, 4.8 x 10-3 M, and 70.2 ppm for carbonate, bicarbonate and ammonia, respectively. The average cell population was determined to be 3.75 x 108 cells/mL.

Jan 1, 1994

By G. Laird, N. B. Gray, N. Lawson

"Photographic, video, laser, hot film and conductivity methods are used in the experimental study of gas-liquid flows. A discussion of their capabilities and limitations are given in this paper illustrating the wide range of phenomena that can be studied. Most of these methods are limited to physical models at room temperature with transparent fluids, although they can be extended for use with opaque and hot fluids. A number of these techniques have been used by the GKW CRC in studies on industrial plants and their usage is increasing although a number of technical difficulties still need to be overcome. An in-depth discussion of the laser doppler anemometry (LDA) and particle image velocimetry (PIV) methods is given with experimental results on the flow field of an air plume in water based on advanced development of the techniques and studies carried out at the GKW CRC. The LDA method provides high resolution data on the velocity profiles, while the PIV method provides an overall view of the complex flow structure occurring at the gas-liquid regions. These two methods complement each other in providing experimental data for validating numerical models and exploring the complexities of multi phase flows.IntroductionThe injection of gases into melts is an important operation in the metallurgical industry. It is used in converters, anode furnaces, blast furnaces, ladles, bath smelters, zinc fumers and many other smelting processes. In many of these processes, the gas is injected into a molten bath resulting in the formation of bubbles that promote reaction, mixing, alloying and heat transfer. The study of gas-liquid systems presents enormous challenges to the researcher due to the complexity of the mathematical and physical modelling which require innovative numerical and experimental skills."

Jan 1, 1996

By Vilma Beltrán

Dado que los trabajos de procesamiento metalúrgico de la mina Uchucchahua, ocasionaron impactos en el medio ambiente, afectando la calidad del agua y eliminando la vida acuática en las lagunas Añilcocha, Colquicocha y Tinquicocha, se procedió a encontrar una alternativa de tratamiento biológico que recupere la calidad de vida en la mina Uchucchacua. En este sentido, el presente trabajo describe el tratamiento pasivo de los efluentes con manganeso de la mina Uchucchacua. Para dicho procedimiento, se desarrollaron trabajos en dos etapas: el de laboratorio y balde. El primero comprende los sistemas de tratamiento pasivo anaeróbico y aeróbico.El aeróbico se inició sobre la base de los procesos de filtración y aireación a fin de determinar el grado de oxidación y precipitación del manganeso como óxido, mientras que el segundo se realizó en función a los resultados obtenidos en la etapa laboratorio y comprende los siguientes procesos: filtración, autooxidación, aireación, sedimentación. En consecuencia, los procesos anaeróbicos no favorecen la reducción de Mn II en los efluentes estudiados, mientras que los procesos aeróbicos permitieron la disminución del manganeso.

Sep 13, 2001

By L. E. Djingheuzian

Introduction For many years the immense deposits of bituminous sands of northern Alberta have been attracting the attention of our governments, engineers and .scientists ( 6). Undoubtedly these bituminous sands represent one of the greatest potential resources of liquid fuels in the world. However, their commercial development has been retarded by the complexities of the technological problem and by the economic factors involved in the processing of the sands. The technological problem has been attacked from several angles ( 2, 3, 1, 11), and cold water separation of bitumen is one of them. To the ore dressing engineer, the cold water process is of utmost importance since, by the use of standard ore dressing machinery, it accomplishes most efficiently and economically the separation of bitumen from bituminous sands. The significance of using ore dressing equipment was especially enhanced by the fact that the scientific principles which underlie the design of standard machines were demonstrated in the cold water separation process with an extraordinary clarity. This greatly facilitated the analysing of limitations and advantages of different machines during-the pilot plant investigations and helped to complete the investigations practically in the allotted time.

Jan 1, 1952

By S. F. Urban, G. Derge

At the time this investigation was initiated variations were observed in the quality of different heats of basic electric-furnace steels, although they had been made under purportedly similar conditions. This indicated that these variations were related to normally unobserved variations in the character of the bath, especially during the "refining" period. Although the slags used for this operation are commonly referred to as "reducing" slags, and are regarded as having a "deoxidizing" action on the bath, no reliable measurements of this action were available. It was decided, therefore, to study the behavior of oxygen in the metal for ' large enough number of heats to learn its normal variations and to relate these variations to regularly observed conditions of operation. The most important general conclusion reached was that the time a heat is held under a reducing 'lag should be reduced to a minimum, which was about an hour and a half under the conditions studied. Beyond this time no observable beneficial effects are obtained from the reducing slags, insofar as oxygen and sulphur content of the bath are concerned. It is likely that added time may increase hydrogen content as well as heat costs. The oxygen content of the bath is never reduced below the amount in equilibrium with the carbon. Concurrently with this work, J. S. Marsh1 presented data that supplement and support many of the results of this paper. Procedure The work was done in two different electric-furnace shops of the same plant. The selection of heats was made primarily with regard to the convenience of heat schedules. companion slag and metal samples were taken just prior to slag-ofi and throughout the refining period for an initial set of 17 heats, and before slag-off and near tap for an additional I3 heats. slag Sampling presented no particular problem; a spoonful of slag was poured onto a metal plate and when sufficiently cool was sealed in an airtight container. Sampling the metal for oxygen presented a more complex problem. Because of the lack of previous experience in sampling electric-furnace baths, a number of methods were compared. Chilled Wedge Samples2 An unkilled metal sample is removed from the furnace in a well-slagged car-bometer spoon and poured immediately into a heavy copper mold designed to provide rapid freezing. Three different types of molds were used to determine the optimum for electric-furnace hats. The Big wedge Mold (a) was a 4 by 4 by 4-in. split copper mold, yielding a wedge-shaped casting I in. wide, 1 1/2 in. long, and 34 in. maximum thickness, and was finally adopted as the most satisfactory design.

Jan 1, 1948

By S. F. Urban, G. Derge

At the time this investigation was initiated variations were observed in the quality of different heats of basic electric-furnace steels, although they had been made under purportedly similar conditions. This indicated that these variations were related to normally unobserved variations in the character of the bath, especially during the "refining" period. Although the slags used for this operation are commonly referred to as "reducing" slags, and are regarded as having a "deoxidizing" action on the bath, no reliable measurements of this action were available. It was decided, therefore, to study the behavior of oxygen in the metal for ' large enough number of heats to learn its normal variations and to relate these variations to regularly observed conditions of operation. The most important general conclusion reached was that the time a heat is held under a reducing 'lag should be reduced to a minimum, which was about an hour and a half under the conditions studied. Beyond this time no observable beneficial effects are obtained from the reducing slags, insofar as oxygen and sulphur content of the bath are concerned. It is likely that added time may increase hydrogen content as well as heat costs. The oxygen content of the bath is never reduced below the amount in equilibrium with the carbon. Concurrently with this work, J. S. Marsh1 presented data that supplement and support many of the results of this paper. Procedure The work was done in two different electric-furnace shops of the same plant. The selection of heats was made primarily with regard to the convenience of heat schedules. companion slag and metal samples were taken just prior to slag-ofi and throughout the refining period for an initial set of 17 heats, and before slag-off and near tap for an additional I3 heats. slag Sampling presented no particular problem; a spoonful of slag was poured onto a metal plate and when sufficiently cool was sealed in an airtight container. Sampling the metal for oxygen presented a more complex problem. Because of the lack of previous experience in sampling electric-furnace baths, a number of methods were compared. Chilled Wedge Samples2 An unkilled metal sample is removed from the furnace in a well-slagged car-bometer spoon and poured immediately into a heavy copper mold designed to provide rapid freezing. Three different types of molds were used to determine the optimum for electric-furnace hats. The Big wedge Mold (a) was a 4 by 4 by 4-in. split copper mold, yielding a wedge-shaped casting I in. wide, 1 1/2 in. long, and 34 in. maximum thickness, and was finally adopted as the most satisfactory design.

Jan 1, 1948

By F. Z. Utyashev

The present work considers the essence of fragmentation: on the level of a simple model as a material response to the curvature accumulated by it at large deformations. It is on this basis that the correlation between curvature and fragment sizes is determined. It is shown that at deformation the area of curvature center inevitably changes. It is revealed that a specific value of variation of center surface area, i.e. ^As parameter, is numerically equal to the value of curvature acquired by a material. Minimum sizes of fragments and grains depending on ^As have been estimated, and the dependence of this parameter on strain has been established. Besides, the present paper considers the effects exerted by curvature center geometry, material distortion, directions of deformation and thermal warming up in the localization zones on structure refinement when various techniques are applied.

Jan 1, 2006

By Steve Hubbard, Brad Marchant, Rolando Cuadra

"Triton Mining Corporation acquired the rights to Mina El Limon in Nicaragua in 1993 by international bid. The bid included the gold operations at Limon and an exploration concession of approximately 4000 km2. Triton assumed control of operations and exploration in May 1994.The Limon mine is located in west-central Nicaragua, approximately 100 kilometers northwest of Managua. The climate is tropical, characterized by a wet season from May through October, and a dry season November through April. Gold at Limon is associated with both banded quartz and silicified breccia veins in Tertiary volcanic rocks, belonging to the lower Coyol Group. Mining is from two open pits and one mechanized underground operation. A second underground mine is currently under development for production during 1997.This paper describes the expansion of the milling facility at El Limon from a nominal capacity of 400 tonnes/day, producing approximately 20,000 ounces of gold annually, to the existing 900 tonne per day mill operation. Engineering of the new mill facility was initiated in September 1994 and construction was completed a year later."

Jan 1, 1997

By Fabiana da Silva Santos

O presente estudo fez uso de uma liga de NiTi, rica em Ni, elaborada em um forno de fusão por indução a vácuo - VIM e posteriormente refundida em fornos de arco elétrico com eletrodo não consumível de tungstênio – VAR. Com base nos resultados de Calorimetria Diferencial de Varredura (DSC), Difração de Raios-X (DRX) e Microscopia Eletrônica de Varredura (MEV) / Espectroscopia de Energia Dispersiva de Raios-X (EDS), foi possível observar a heterogeneidade composicional/ típica de fundido por processo convencionais, as inclusões de TiC e Ti4Ni2O provenientes da fusão no forno VIM, e o refinamento microestrutural e manutenção da sua composição original com uso de cadinho de cobre e câmara/atmosfera dos fornos VAR.

Oct 30, 2017

By Eung Ha Cho, Wendi Li

Wet desulfurization of Pittsburgh No. 8 coal and Illinois No. 6 coal were conducted with sodium hypochlorite in the laboratory. Pittsburgh No. 8 coal was leached by hypochlorite at high pHs in one step only. The hypochlorite concentration varied from 0.2 to 0.6 molar; sodium hydroxide concentration, from 0.2 to 0.8 molar; and temperature was at the levels of 80 and 90°C. The desulfurization of Illinois No. 6 coal was conducted in three consecutive steps of pretreatment in concentrated ammonia at room temperature, leaching with hypochlorite at room temperature and hydrolysis in sodium hydroxide solution at 90°C. In the leaching step, hypochlorite concentration varied from 0.2 to 0.8 molar. The desulfurization method of Pittsburgh No. 8 coal was found to reduce mainly pyritic sulfur. More than 70% of pyritic sulfur removal was achieved at the optimum conditions of 0.4 molar hypochlorite, 0.4 molar sodium hydroxide and 90°C. The desulfurization method for Illinois No. 6 coal was capable of reducing significant amounts of organic sulfur. The removal of organic sulfur achieved a 37.8% reduction at the optimum operation of leaching at 0.4 molar hypochlorite and room temperature followed by hydrolysis at 0.3 molar sodium hydroxide and 90°C. The chlorine content in the coal produced by the chlorination during leaching was kept below the threshold value of 0.3% at the optimum conditions of the desulfurization method for each coal.

Jan 1, 2005

By Dave Bulled, Jim Thompson, Tim Leriche, Mark Blake, Troy Wilkie

"A commitment to a core testing, plant modeling and reconciling technique has shown substantial economic benefits to IOC in terms of accurate production forecasting, smoother operation of the mill, improved expectations of throughput and co-operation across production departments from geology, planning, mining, and processing, to shipping of concentrate to market.This paper describes a successful seven year program of forecasting throughput of the autogenous milling circuit at the Carol Lake concentrator of IOC. Work started with audits of the grinding circuit in 2001 and benchmarking of the data collected from samples of mill feed and plant operation to the CEET mill design and throughput forecasting model.Initially 390 drill core samples were tested for SAG Power Index (SPI) to measure the energy required in milling, and the data distributed using a geostatistical technique across the two operating pits, so that hardness was estimated in each of the 40,000 blocks (or 1500 million tons) of potential ore. In 2004 a forecast of energy requirement, i.e. forecast of throughput for a given power availability at the mill, was produced for each ore block using the CEET model and used for mine planning to smooth plant throughput. The forecast for blocks mined on a monthly basis was reconciled with plant results over the next 2 years and minor changes made to the CEET model. The forecasting exercise was repeated in 2006 and in 2008 with the latest model based on the testing of almost 1300 samples of drill core at closer spacing.INTRODUCTIONThe contracting of sales to clients and the timely supply of products to meet those contracts is a cornerstone of good business practice. Ensuring the correct scheduling of production is a major concern of mining companies where the supply and qualities of the raw material is uncertain and production facilities are not flexible. This is particularly challenging when the product is of high volume and produced far from the customer, such as iron ore.Apart from the metal content of the ore being mined, the greatest impact on production scheduling is the throughput of the comminution section of the extraction plant; most notably when size reduction is achieved by autogenous grinding. The response of the mills to variability in the hardness of the ore can change throughput by as much as 50% from day to day at some plants."

Jan 1, 2009

By R. L. Roller

In recent years, there have been many articles and papers written on the use of specially designed belt conveyor systems in mining operations, either economic studies or actual experience. These papers generally conclude that the use of these systems can reduce overall costs from 10% to 40% over conventional methods using general purpose equipment (truck/shovel, scrapers, etc.). However, they also generally conclude that conveyor systems are inflexible and capital intensive. With the increasing cost of mobile equipment, the capital cost conclusion is losing steam, particularly when the costs of maintenance shops, road and ramp construction and other related start-up costs are thrown in. Attention here will be focused on answers to flexibility related questions, but first, a look at costs in general. Basic production economics tell us that when we have a small job to do, it is cost effective to use simple, low cost, general purpose tools which will have a minimum impact on total cost. It also tells us that when we have a large project, we can employ methods using special, relatively expensive production tools. Figure 1 illustrates what occurs on projects, of different sizes, with various quantities of production. With small quantities of work, the cost per unit of work starts out much lower using general purpose equipment, rather than using special purpose methods and equipment. However, at a relatively low quantity of work, the cost hits a lower limit and, regardless of how great the quantity of work, the unit cost can never go any lower.

Jan 1, 1985