Analyzing Coal Mine Productivity – Factors That Play

Defining Productivity Productivity is a principal concern to all organizations - industrial, commercial, government, and academic. As a ratio of output to input, productivity measures the efficiency of an industrial process, much as thermodynamic efficiency measures the useful work obtained from the available energy consumed. However, there is one important difference. Whereas thermodynamic efficiency is a dimensionless a ratio of energies, productivity output and input are usually measured in different physical units. Nevertheless, the resulting ratio is a normalized expression for unit of output per unit of input to the process. In the early days of coal, mining was essentially a hand loading operation. There was little expenditure of alternative forms of energy within the process. Loading required expenditures of human energy on the order of 1.2 MJ/t (1,000 Btu per st). And if we accept the conventional value "you load 16 tons," the output to input ratio is 14.5 t (16 st) per manshift. In energy terms, it is on the order of 116 MJ/t (100,000 Btu per st) produced per labor Btu expended. However, the latter measure of efficiency was not meaningful in economic terms, while the 14.5 t (16 st) per manshift was significant. Since labor was the principal component of cost, it represented a direct relationship to the cost of production: [ ] Furthermore, when workers were paid directly on the basis of tons produced, the labor cost per ton was specified directly by this rate. With the introduction of mechanized loading, significant increases in productivity occurred, when measured on the basis of tons per manshift. Electric power consumed about 11.6-116 MJ/t (10,000-100,000 Btu per st). This makes the 29-GJ/t (25 million Btu per st) coal output/input ratio between 100 and 1,000. That is one or two orders of magnitude lower than hand loading. However, electric energy was quite inexpensive compared to labor, which made the mechanization economically efficient. The accepted productivity measure continued to be tons per manshift. This measure includes some of the effects of mechanization: namely, the additional manpower needed to maintain the machines and support the equipment that uses electrical energy. However, it does not consider the capital and operating costs that relate to mechanized equipment. As a result, the concept of tons per machine-shift has emerged as an accepted measure of shift productivity. The only appropriate measure that encorporates the productivity of men and machines is an economic one. The output is the tonnage per shift and the impact is the cost per shift. [ ] This is simply the inverse of the cost per ton. In addition, much flexibility is available in allo¬cating costs to the three categories. This adds a level of intangibility to the measure. The amount of information needed to obtain all of the required costs is appreciable compared to the simple matter of counting tons and workers. Furthermore, financial information relating to production costs is closely held by mining companies, so historical statistics on economic productivity are not publicly available. To extend the concept further, consider the value of the tonnage produced, to obtain a dimensionless ($/$) measure of economic productivity.