Quality Management in SCCL for Clean Energy Coal Production

1. QUALITY MANAGEMENT IN SCCL By J. NAGAIAH, AGM (QM)

2. SCCL's QUALITY POLICY SCCL, a century old Fossil fuel producer in the country, serving the nation's energy needs, is committed to a "clean energy policy" by producing qualitative, marketable coal, that meets customers' requirement, ensuring safety and sustainable environment, for a healthy and prosperous nation, with a determination for an all-round continuous improvement, in all related fields, from coal production to it's utility at consumer's end with satisfaction, through effective Quality Management System.

3. Functions of the Dept. Sampling Analysis Coal Gradation Monitoring coal grades Coal Linkages Statutory Monitoring & Coal grades Correspondence with CCO a) Open Permission b) Closing notices c) Provisional grades d) Final grades e) Monitoring coal samples

4. Definitions: - In this order, unless there is anything repugnant in the subject or context – ‘Coal’includes anthracite, bituminous Coal, Lignite, Peat and any other form of carbonaceous matter sold or marketed as coal and also coke; ‘Coal Controller’means the person appointed as such by the Central Government under the provisions of the Coal Controller’s Organisation (Group ‘A’ posts) recruitment Rules 1986; ‘Colliery’means any mine or open working where winning or extraction of coal is the principal object of the mining, quarrying or any other operation carried on therein and includes a plant for the production of coke or for the washing of coal; ‘Disposal’includes agreeing or offering to dispose of, and the disposal of ownership or any proprietary interest, the right of possession and possession whether or not accompanied by any disposal of ownership or of any proprietary interest or of the right to possession; ‘Agent’ ‘Manager’ and ‘Owner’when used in relation to a colliery shall have the meanings respectively assigned to them in the Mines Act, 1952; ‘Size’when used in relation to coal shall have the same specification as given from time to time, by the Bureau of Indian Standards in their specification number IS:437 – 1979

5. DETAILS OF SOME ABBREVIATIONS CHP- Coal Handling Plant CSP- Coal screening Plant (Equivalent to CHP) FSA- Fuel Supply Agreement C.C.O- Colliery Control Order, 2000 C.C- Coal Controller Sec: Section

6. QUALITY Quality thus defines a “high degree of men – material and thing” or goodness, worth or usefulness of the goods. In this context, let us take high degree of the material which SCCL produces i.e. COAL. This chapter mainly deals about the “ COAL QUALITY”. ROLE Quality play major role for industrial development. Marketing a product is mainly based on the quality of the product. Coal industry had already experienced the necessity of maintaining quality, since “ Sellers market has become buyers market”. IMPLICATIONS • Quality of coal virtually is a key for the survival of the coal industry as well as other organizations. • Quality attracts the customer as build the well as relations. • Quality makes the organization financially viable/ sound

7. Steps to Improve the Quality At face (UG): ► By working only rich section/ bands of the seams ► By segregating the shale / clay ► By separately loading and transporting of good coal ► By picking of stones and other extraneous material ► By commitment of face workmen and ► By Increasing inspection by officials.

8. At face (OCP)► By elimination of contamination of OB ( over burden) with coal bench. ► By separation of inferior coal bands and transporting separately. ► By selective mining. ► By working seams as per the blending ratios. ► By arranging picking arrangements at coal benches as well as along the quarry belts. At CSP/CHPs & Mine Elevators ► By picking shale / stone or any other extraneous material at crushers and from belt conveyors. ► By arranging crushers to break huge lumps to required size. i.e. 200mm. ► By arranging magnetic separators. ► By regulating flow of different grade coal as per the blending ratios for dispatch. ► By arranging grade –wise coal stocks yards for easy blending purposes. ► By deputing supervisors at CSP/ CHP to check the coal being transported from the mines.

9. Categorisation of coal: - The Central Government may, by Notification in the Official Gazette, prescribe the classes, grades and sizes into which coal may be categorised and the specifications for each such class, grade or size of coal. Procedure for categorisation of coal: - (1) On the basis of the categorisation notified by the Central Government under clause 3, theCoalController shall lay down the procedure and method of sampling and analysis of coal for the purpose of declaration and maintenance of grades of coal mined in a colliery. The owner, agent or manager of a colliery shall declare the classes, grades or sizes of the coal of any seam or section of a seam in a colliery in accordance with the procedure specified in sub-clause (1). The owner, agent or manager of the colliery shall allow the inspection of the colliery undertaken by the coal controller or any officer authorised by him in this regard so as to ensure the correctness of the class, grade or size declared. During inspection of the Coal Controller or the officer authorised by him decides to draw samples, the owner, agent or manager of the colliery shall provide all reasonable facilities and assistance for drawing such sample. If after the inspection or from the sample drawn, the Coal Controller is satisfied that the grade as declared by the owner, agent or the manager of the colliery does not conform to the grade notified under clause 3, the owner, agent or manager of the colliery shall be bound to revise the grade as per the directions issued by the Coal Controller. If any dispute arises between a consumer and a owner of a colliery regarding the declaration of grades of coal, the same may be referred to the Coal Controller whose decision shall be binding on the owner of the colliery. A memorandum of reference to the Coal Controller regarding such dispute shall be accompanied by a fee of rupees two thousand and five hundred and in such manner as may be specified by the Coal Controller, from time to time.

10. QUALITY MONITORING: Collecting samples form mines / CSPs/ CHPs – Analysing them at regular intervells to the status of grades of coal is called the quality monitoring system. • SAMPLING SYSTEM–GRADATION OF COAL : • There are two types of sampling systems . • Channel sampling system:For gradation of coal seams/ bands and to finalize the grades of seam/ section or bands of seam. • Statutory sampling system:For regular monitoring of coal grades

11. Mode of channel samples: • These samples are collected form coal seams by cutting channels with 30cms width and 10 cm thick to a height of working section of the seam or of required to the full height of the seam. • Before taking the channel samples, the concerned mine authorities should devide the areas of the sample spot which normally cover the working area of the year thus it represents the tentative quality of coal to be mines in that area. • Before starting the channel cutting the side of the seam neatly dressed down and floor also should be kept clean. • The width of the channel should be clearly marked by colour bands • Each layor chipped by a chessel and collected separately in gunny bags marked distringctly. All such samples collected in gunny bags should be sent for analysis where layor wise analysis will be done and seam wise grade are thus declared.

12. Mode of monitoring samples: These samples are collected from coal streams from conveyor belts or form moving trucks / wagons. • Auto sampling systems • Conventional sampling system • Conventional sampling: • Samples from stock piles • Samples from trucks/ tubs • Samples from wagons • Samples from ships • Samples form conveyor belts • Basis of samples: • Time basis • Moss basis • Mode of collection of samples. • Samples of coal collected by increments. No. of increments depends up on the quality of coal to be sampled and quality of coal in an increment.

13. All the coal thus collected through increments in three shifts is piled and crushed to 200 mm and taken ¼ of it by coning and quartering and crushed to 50/ 25 mm again coning and quartering and crushed to 3 mm. This 3 mm size powder is made in to 3 bags each 2 Kg as below. One 2 Kg pocket for seller One 2 Kg pocket for buyer One 2 Kg pocket for Referee and sent it laboratory. • ANALYSIS:At laboratory 3 mm size powder is again pulverized to -212 micron size. • 3 samples each 2 to 3 grams is taken and analyzed for • External moisture • Equilibrated moisture and • Ash content. • All the above are calculated to percentages and by applying the following formulation the UHV of the coal is calculated. Thus arrived coal grades.

14. Coal grades

16. GDK 2A, RG I 1.80 LT ROM-D UHV: 4606 GDK 5A, RG I 1.00 LT ROM-D UHV: 4710 GDK 6A, RG I 1.50LT ROM-D UHV: 4453 GDK 7 LEP RG I 0.20 LT ROM-D UHV: 4409 Linkage GDK 6B RG I 3.40 LT ROM-D UHV: 4401 Coal beneficiation GDK 8, RG 2 0.40 LT ROM-C UHV: 5276 GDK 8A, RG 2 2.38 LT ROM-E UHV: 3611 GDK 9, RG 2 1.10LT ROM-E UHV: 3689 GDK 10, RG 2 0.40LT SLACK-D UHV: 4892 GDK 10A, RG 2 0.10LT ROM-E UHV: 3385 GDK. OCP2 RG-4 20.00LT ROM-D UHV: 4579 GDK. OCP1 RG-4 24.00LT ROM-E UHV: 4031 Med. OCP, RG-3 4.00LT ROM-D UHV: 4507 GDK OCI CHP 60.28 LT UHV: 4296 K.Cals/kg Cr. ROM-D Linkage summary and revenue Projections:

17. GRADE-WISE PRODUCTION FOR 2007-08 GRAD

18. SCCL LINKAGE PLAN FOR 2007-08

20. FINANCIAL IMPLICATIONS ON SLIPPAGE OF COAL GRADES One grade slippage Rs. = Ps B C 170.40 C D 293.90 D E 430.50 E F 136=00 F G 178=00

21. Quality - Responsibility • Planning stage – Selective Mining – Agt/ Mgr • Execution - Drills / Districts - Asst.Mgr/ U/Mgr • Supervision - Separation of - Overman/ Sirdar Shale/Stone • Work - Picking of - Workmen Shale/Stone

22. Some of the case studies Quality Improved at GDK-3 Inc COAL - 2 M Present working Section Grade “D” Previous working Section Grade “E” COAL CLAY COAL ►Instead of taking coal – clay and coal with 3.4 Mts. The working height is restricted to 1.8 to 2 M along the floor/ roof to maintain quality of coal ‘D’ than E

23. Quality Improved at GDK-2A Inc COAL Present working Section Clay + Coal separately blasted and lifted Grade “D” 3.6 M Previous working Section Including Clay Grade “E” CLAY COAL

24. Quality Improved at GDK- 5A Inc Present working Section above clay leaving coal band Grade “D” COAL - 2 M Previous working Section with clay Grade “F” COAL CLAY COAL ►Revenue gain = Rs. 2,37,60,000-00 only 2 Mtrs. Thick coal band above clay is worked and improved grade from “F” to ‘D’

25. Quality Improved at GDK- 8A Inc CLAY 0.4 Mtrs. Clay C O A L • Clay is first blasted and shifted • After removing clay coal is blasted and lifted. • “ Selective Mining” Where top clay is present Thus grade improved to “D” form E/F. • Revenue gain = Rs. 2.6 crores 2.8 Mtrs Coal

26. Quality Improved at GDK- 10A Inc CLAY Previous working Section 3.5 Mtrs. with clay Grade “F” COAL CLAY Present working Section below the clay leaving coal band as support to clay band Grade “D” COAL COAL A 30Cms. Coal lays below clay is left as support against clay and only coal up to 3 Mtrs. Worked thus improved coal grade from ‘F’ to ‘E’

27. Quality Improved at KTK-2A Inc CLAY Clay separately blasted &lifted COAL Previous working Section with clay Grade “F” No Customer Only coal loaded separately Grade Improved “ F” to “ E”

28. 1. PRODUCTIVITY BEST SAFETY FIRST QUALITY MUST

29. QUALITY IS 2. ABILITY CLARITY MIGHTY QUALITY IS YOUR CUSTOMER OUR STRENGTH

30. 3. QUALITY IS OUR YOUR CUSTOMER STRENGTH

31. 4. QUALITY IS ABILITY MIGHTY CLARITY

32. SLOGANS ON QUALITY • Safety first. • Production best. • Quality must • SINGARENI • Runs for quality. • Mines for quality and • Wins quality • Aim for quality • Act for quality and • Achieve quality.

33. 4. S - Strives for quality I - Inculcate awareness for quality N - Name for quality. G - Gives quality A - Assures quality R - Runs for quality E - Eyes for quality N - Never looses quality I - Inspire for Quality

34. Q - Qualify yourself in quality • U - Unanimously maintain quality • A - Assure quality and achieve quality • L - Look for quality • I - Improve quality • T - Thirst for quality • Y - Yield quality all the time

35. Quality is our strength • Qualitative quantity of coal is our priority • Question for quantity and quality • Introduce new technology for high quality • Quality and quantity should go hand in hand. • Aim for NO impurity and achieve quality • 12. Quality is our motto • 13. Quality is only the way for sellers and buyers

38. UNDER JURISDICTION OF DIRECOTR (P&P)

39. UNDERJURISDICTION OF DIRECTOR (OPERATIONS)

40. QUALITY PLEDGE (For SCCL Employees only for its use during the annual quality assurance week) We solemnly take oath that we make our best efforts and strive hard to produce qualitative coal by segregating it from clay, stone, shale etc.., in a cost effective manner. We are happy to share our responsibility in qualitative coal production and dispatch to the best satisfaction of the customers in the national interest. We trust that this pledge is a first step in our quality march, which finally results in the over all development of us, as individuals, as a company and finally our motherland.

41. Thank You