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A Brief on Industrial Engineering Department

Area MCS Statement

Area Level

Region Level

Corporate Level

Introduction

SCCL is pioneer in introduction of Scientific Management Techniques.

1.1

IED Started in 1950s with IBCONS Consultants.

i)	All the IEs are Graduate Engineers with Post Graduation in Industrial Engineering.
ii)	IED of SCCL is the oldest in the Mining Industry and is older than IE Professional Body Indian Institution of Industrial Engineering.
iii)	IED is pioneer in scientifically establishing Jobs Standard, Crew Sizes and Job Evaluation in the Coal Mining which helped the Company in improvement of Productivity over the Years.
iv)	Evolved for the first time various Performance Parameters for measurement of Productivity/Performance of various Groups, Mines and Company for monitoring.
v)	Designed and introduced Productivity linked Wage Incentive Plans developed on Scientific basis for the first time in the Mining Industry.
vi)	Played vital role in Computerisation of Pay Roll and Materials Management System
vii)	Provided Consultancy Services to M/S Coal India Limited and M/S APMDC in Industrial Engineering
viii)	On request of AP Transco, made a presentation about the role and functioning of Industrial Engineering in SCCL. This enabled them to start the IE function in their organisation.

1.2

IE Functions:

Work Study

i)	Methods Study
ii)	Systems Study and Improvement
iii)	Job Standards and Work Norms Development
iv)	Optimal Crew Sizes determination
v)	Development of PERT Charts for various tasks(Maintenance, Erection, District Preparation etc�)

Manpower

Wage Cost constitutes major component of Total Production Cost. Hence to contain the Cost continuous monitoring of the Manpower Resources is given top priority by the Company right from the beginning for Optimal Utilisation of Manpower.

i)	Manpower Assessment
ii)	Manpower Planning
iii)	Skill Sets Requirement
iv)	Redeployment
v)	Transfers
vi)	Promotions
vii)	Performance Monitoring
viii)	Identifying surplus Manpower and introduction of VRS
ix)	Advance Planning of Manpower of various skills

Motivational Techniques

Performance of the Company depends upon the motivational levels of its Employees. Hence Company is motivating the employees by introducing various Wage Incentive Plans. Management is monitoring & revising and introducing new schemes to keep in pace with the changing needs.

i)	42 Wage Incentive Plans are in operation
ii)	73575 persons covered under Wage Incentive Plan(76.5% of the total employees)
iii)	Pay out is about Rs. 18 Crores per annum
iv)	Management is now planning to cover all employees under Wage Incentive Plans. And it is going to be a major task to design in the coming days.

In Board of Directors Meetings of the Subsidiaries of Coal India Limited, the Productivity Linked Incentive Schemes in operation in SCCL are being quoted and the management of these companies are approaching for know how from SCCL.

At their request, MCL, WCL and CCL have already been supplied with necessary inputs by IED SCCL on this issue.

Management Information System

For Decision support Systems and Monitoring the Performance of various Inputs

a) Generation of Mine wise, Area wise and Company wise various reports like

	i)	Management Control Statement
	ii)	HEMM Performance Report
	iii)	UG Machine Mining Performance Report
b)	Information for GM�s Review Meeting
c)	Internal Bench Marking

Change Management

Industrial Engineers are playing active role in Management of change by providing assistance to the Management at various levels. IED acts as a catalyst for Development of the Organisation through various initiatives on Change Management.

i)	Multi Departmental Teams
ii)	Member of IR Teams ( Area and Corporate)
iii)	Public Relations

Business Process Re-Engineering

(Recent Works)

i)	Out Sourcing/Off Loading of Non-Core Activities (Low Skills, Low Value Addition and High Costs)
ii)	BOO System
iii)	Introduction of Management by Objectives to improve the economic viability of UG Mines
iv)	Development of Sand & Coal Transport Rates
v)	New Methods
	67.5 Cft Tubs
vi)	New Systems
	Area Terminal Benefit Cells
	Filing and Correspondence Management
	Corporate Purchase
	Ergo Designed Work Implements (NID)

Cost Reduction

By developing Norms and Monitoring

i)	Overtime, Playday and PHD Allowances
ii)	Material Cost
iii)	Wage Cost

Material Norms

i)	HSD Oil Norms fixation and Monitoring
ii)	Lubricants Norms fixation and Monitoring

IEs in Other Departments

i)	Planning Departments
ii)	Materials Management
iii)	Software Development
iv)	H R D
v)	Education

Perspective View for IED in SCCL

i)	Concentration on Resources Management
ii)	Participation in Strategic Management and Decision Support System
iii)	Identification of thrust Areas and evolving action plans on a continuous basis
iv)	Utilisation of latest concepts like ERP,TQM, TPM etc�

Need for IEs in changing Scenario

i)	Liberalization, Privatization & Globalization is the order of the day and Coal sector is no exception. Improvement of Productivity and improvement of quality and reduction of Cost are the saviors of Coal Industry. Industrial Engineers role in reducing/containing production cost by improving Productivity will be remain more relevant now to keep the company stay competitive and progress further.
ii)	The Reports/Recommendations of IED are not always palatable to all. Hence requires consistent support from Top Management.