By Douglas A. Sloan (auth.)
This ebook had its begin whilst Douglas A. Sloan and the past due Ralph Davies first made up our minds to percentage our firm's event in mine deal with ment consulting assignments by utilizing this adventure because the foundation for a mine administration and productiveness direction. through the years with a growing number of assignments, the path textual content notes have been continually up to date and more suitable. despite the fact that, the notes purely reached the rather few individuals within the mining who attended each one year's classes. the aim of this e-book is to make this event and data to be had to all people who has an curiosity in systematic mine administration. The e-book is predicated on approximately 500 mine administration consulting assignments which through the years have been conducted through too many experts to start to say names. notwithstanding, a few of the overseas specialists whose paintings was once used or who at once contrib uted needs to be pointed out. First will be Col. 1. F. Urwick whose books, articles and private counsel of the writer have had a common impact normally ebook and a particular effect at the association bankruptcy. Others are John Humble whose paintings in constructing administration by way of goals (MBO) is mirrored in that bankruptcy and Patrick H. Irwin for his paintings in company making plans, which he has written of in that chapter.
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Absorption costing is a cost allocation procedure to allocate all costs to each and every unit produced with the understanding that a ton containing insufficient metal value to cover all costs should not be mined. However, mining is not that simple and some tons may be mineable even if they do not exactly cover all costs. Some will have value in excess of all costs. These tons can be called 'full-cost' tons. Others will have value of less than cost diminishing downwards to country rock that contains no metal.
The disadvantage of this method is 50 Mine Management that the sales value per ton fluctuates while the ore is being processed. In practice, this is not serious because a standard value can be used while the ore is in process and adjustments for fluctuating values made at the time of sale. The great advantage of this measure is that it separates the metallic content of the ore from the ore cost and the cost of mining is usually independent of the metallic content. The grades per ton can be measured, compared and controlled independently of the control of the cost per ton.
Good planning requires a top down approach with bottom up inputs Planning should start at the top and work down. It is a waste of time and money to have valuable executives second guessing what those higher in the organization want. However, good top-down planning requires sound information flowing from the bottom. Plans for the parts derive from the framework of the whole. The purpose, objectives and resources of each unit are derived from those of the larger organization to which it belongs. Consolidation of individual unit plans will not produce an overall strategic plan.