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ποΈ 1. Importance of Material Management
Material management in mines is a crucial function that ensures the right material (spares, explosives, equipment parts, fuel, safety gear, etc.) is available at the right place, time, and cost, supporting smooth and continuous mining operations.
π― Key Objectives:
- To maintain uninterrupted production by avoiding material shortages.
- To control inventory cost through proper stock levels.
- To prevent overstocking, wastage, or material obsolescence.
- To ensure safe storage and issue of materials under DGMS norms.
- To enhance efficiency, accountability, and cost-effectiveness.
π 2. ABC Analysis Explained
ABC Analysis is a scientific method of inventory classification used in mines to prioritize control and attention based on annual consumption value.
| Category | Description | Typical % of Items | % of Total Value | Control Level |
|---|---|---|---|---|
| A | High-value, low-quantity items (e.g., engines, drill bits, tyres) | 10β20% | 70β80% | Very strict |
| B | Moderate value and quantity items | 20β30% | 15β25% | Normal |
| C | Low-value, high-quantity items (nuts, bolts, gloves, ropes) | 50β70% | 5β10% | Minimal |
Purpose: To focus managerial effort where it matters most β the βAβ category items, which account for the major share of inventory cost.
ποΈ 3. Inventory Control Methods
MinimumβMaximum System
Defines reorder levels and maximum stock limits to prevent shortages and overstocking.
Economic Order Quantity (EOQ)
Balances ordering and holding costs to find the ideal order size.
$$ EOQ = \sqrt{\frac{2DS}{H}} $$
Where: D = Annual demand, S = Ordering cost/order, H = Holding cost/unit/year
FIFO (First-In, First-Out)
Oldest material is issued first. Used for perishables like lubricants.
VED Analysis
Classifies items as Vital, Essential, or Desirable based on criticality.
FSN Analysis
Classifies items as Fast, Slow, or Non-moving to identify obsolete stock.
βοΈ 4. Statutory & DGMS Aspects
While not directly regulated, DGMS enforces material management indirectly through:
- Reg. 153 (Maintenance of Equipment): Ensuring timely availability of parts.
- Explosives Rules, 2008: For safe storage, accounting, and issue of explosives.
- Managerβs Responsibility: To maintain adequate stores for safety-related materials like PPE, lighting, and machinery spares.
π§ Quick One-Liners (Revision)
- Material management = 5 Rs β Right material, place, time, quantity, and cost.
- ABC analysis β Based on annual consumption value.
- A-items: 10β20% items = 70β80% value.
- FIFO β Used for perishable goods like lubricants.
- VED β Vital, Essential, Desirable classification based on criticality.
- DGMS focus: Safe storage, maintenance parts, and cost control.
π Descriptive Model Answer
Q: Explain material management and its significance in mining. Describe ABC analysis.
Answer: Material management in mines involves planning, purchasing, storing, and controlling materials to ensure continuous production at minimum cost. It enhances safety, reduces downtime, and ensures compliance. ABC analysis classifies materials based on annual consumption value into A, B, and C categories, enabling focused control on high-value items.
π MCQ Knowledge Test
Score: 0 / 25
π Further Reading & Internal Links
Internal Linking Suggestions
External Resources
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