Coal Mining Beyond the Obvious IT

Coal Mining Beyond the Obvious – IT & Supply Chain Perspective - Deep Krishna, MD - DKG Labs Pvt Ltd www. dkgrouplabs. com Date - 07 -Sept’ 16

Business Pain Areas – Indian context Coal Mining companies wishing to develop and implement smart sustainability practices are often faced by issues such as Demand simulation Effective governance Lack of operational efficiency on a global scale & effectiveness Lack of a coherent energy and supply chain strategy. Resource Allocation and equipment productivity Getting a bigger global footprint – via alliances or consolidation with companies that are strategic fits.

Business Pain Areas – Indian context Contd. . ] Procedural delay in environment compliances Long delay in grant of forestry clearances Infrastructure constraint for coal transport from pithead to consumption centers Lack of actionable data and the inability first to measure energy use and green house gas emissions and then to determine how to reduce them. Mining safety practices incompatible with environmental policies. No technology to observe illegal mining

Business Pain Areas – Indian context Contd. . Immature supply chains that don’t allow global consistency and adherence to environmental policies Handling corruption bottleneck for technology adoption Lack of understanding of the steps that must be taken to enter new markets where issues related to energy, environment and sustainability maybe paramount.

Thoughts to Trigger – The Changing Game How will coal mining companies use business innovation to transform the fundamentals of their operations, their customers and supply chain? 24 X 7 anytime, anywhere visibility of asset utilization and production information vs. plan Do we have visibility of our supply chain and customer? Are you facing tighter margins with information systems that lack the ability to access your business information? Did we leverage Information technology to its real potential for our industry? Are we ready for the impending increase in information volume, variety and velocity?

Thoughts to Trigger – The Changing Game Contd. . What role will coal mining fraternity take in leading the world in environmentalism and corporate social responsibility? Are we managing our customer relationships effectively? Is there a need for effective and economical use of technology to curb pilferage by tracking of transportation routes and have a direct impact on corruption ?

Characteristics - I We are Here Target No integrated views of mine performance for monitoring, or decisioncapability Real time Reporting and analysis of operations Spend time “looking forward” instead of reporting on the past Learning is from mining experience and the past Mining companies also learn from other industries, partners, acquisitions and other sources. Poorly supported programs exist to promote quality and efficiency Quality and programs, such as lean, Six Sigma, are utilized to manage productivity and to define optimal processes.

Characteristics - II We are Here Perception of employees, professionals and media as environment unfriendly. Workers’ safety is solely a function of training, procedures, policy and chance. Statutory requirement is managed with little automation or integration. Target To change perception attracting environmentallyaware advocates to work and support clean mining operations. To deploy GPS, RFIDs and Io. T based to improve the safety of employees’ day to day and during fatalities To track via a formal automated analytic tools.

From Talk to Action – Key Drivers for Growth What goes down must come up… The drivers and approaches to sustainability are changing… Digital Mining – Data Integrity – Enabling effective decisions in Mining operations Smart Supply Chain in leaner times Control cost for High performance. Sustainable growth. Innovative business model, operations and products.

Meeting the Execution Challenge - Key Solutions Strategic Continues investment in innovation from automation to data analytics and mobile technologies Significant enhancement of domestic coal production through policy support is needed to meet the spiraling demand. Enhance global footprints often by JV, M&A. Integration of supply chain and establish common process across the enterprise New models of innovation that use an open approach to harness ideas and expertise from around the world, often at low cost and using collaborative technologies. Using IT processes and tools as enablers to encourage collaboration within the government and coal mining companies Implement integrated energy programs in a way that balances risk and reward.

Meeting the Execution Challenge - Key Solutions Operational Production efficiency using Dispatch System to manage your moving assets and incidents Software products to deploy supply chain optimization , ensure workplace safety and control cost for high performance. Analyzing existing consumption patterns and environmental impact. Operating model review Adoption of ERP systems for backend Improved capital allocation Data integration Supply chain optimization

Proposed Measures/Approaches Age of Industrial Io. T Increase on-line monitoring Machine learning Wearables – Safety of Miners – Signal physical distress, exact location, driver fatigue, saving on electrical costs Data integrity to enable effective decisions in mining operations Implementing wireless communication systems Environment monitoring Disaster forecasting and mine safety management Asset Management Decision support system with mining database Network architecture for connecting mining sites with area and head offices and providing communication strategies

Introducing Inci. Mat (mini-TDS: : Pit to Port) Mine. Safe (End to End Safety) www. dkgrouplabs. com/incimat www. dkgrouplabs. com/minesafe

Business Pain vis-a-vis Solution

Business Pain vis-a-vis Solution Contd. .

Software snapshots - Indicative

Conclusion It is time for action to get to the root cause of the current issues and parade of challenges Indian Coal mining industry is going among global scenarios. There is a need to create an environment conducive to growth of coal production from the coal rich states to harness the full potential of coal deposits. In terms of implementation of these approaches we need to adapt to the best practices approach based on quick win, mid-term and long shot strategies. IT and supply chain are the backbone and ground realties for coal mining industry like any other industry and it requires immediate action and terrific effort from the leaders of the industry who act as a change agent to bring this transformation.