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The email letter of intent of CMPDI, Ranchi, dated 09.02.2013 from Mr P K Pal, GM (E&M), CMPDI,

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The email letter of intent of CMPDI, Ranchi, dated 09.02.2013 from Mr P K Pal, GM (E&M), CMPDI, Ranchi enclosing the minutes of the meeting held at Coal Bhavan Annex on 15.01.2013 (Appendix A) sent to Professor P K J Mohapatra, Professor, Department of Industrial Engineering and Management (IEM), IIT Kharagpur called for a study on analyzing fuel consumption in modern-day fuel-efficient vehicles to arrive at diesel price escalation formulae for HEMM contracts. In this context, Mr P K Pal, GM of CMPDI, and two of his colleagues from CMPDI had a day-long discussion with three faculty members of the Department of Industrial Engineering & Management of IIT Kharagpur at IIT Kharagpur on April 3. The discussion helped the IIT Team to …show more content…

2.2 Relevance of the Steps Stage 1: Analysis of the historical data has helped in finding the followings: i) Relationship of the amount paid exclusively for diesel consumption with equipment capacity and relevant geo-mining parameters, ii) The rationale of the formulae those are presently in use, iii) The basis for raising concerns about the formulae iv) An estimate of diesel consumption per ton-km. Stage 2: Brainstorming with managers, engineers and contractors has helped to perceive the realities surrounding the contract process, the payment structure, and the governing factors. Stage 3: Field-based observations have brought to surface many facts about mine topology, road conditions, and actual diesel consumption patterns. Stage 4: Information from original equipment manufacturers has provided a strong base for identifying the fuel-efficient equipment and for fixing the bases for use of diesel. Stage 5: Past data are subjected to analyses and are used to estimate the base value of diesel consumption per ton and to estimate the values of multiplicative factors that can

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