Characteristics of Location for crusher

• Location should be
Economical at long term process

Operable for long term

Recoverability of initial investment
Cost effective in operations
Available Locations

There are 3 options.

• Option A – Land adjacent to the quarry

• Option B – Land belongs to Mr.
• Option C – Land owned by us
Site View Map

• Land 3
• Quarry • Land 1

• Land 2
Factors affects to economical process

Operational cost
Initial investment
• Transport cost
• Road preparation cost
• Does it need extra security?
• Ramp construction cost
• Does it need extra staff?
• Office & Accommodation
• Any rental charges for the land?

Operable for long term

• Public interference
• Environment facts
Cost - Benefit Analysis

• Initial Investment

Factor Option A Option B Option C

Road preparation No additional Need to construct Distance around 1.6km

preparation around 800 m with soil Need to prepare as suit
fillings with compaction for better performance.
and ABC layered.
Ramp construction Almost available due to Need to construct. Need to construct with
its site position. soil fillings.

Office & Existing office can be Office building available. Need to construct office
Accommodation used after expansion. Need accommodations building and
Need accommodations for new staff. accommodations.
for new staff.
Cost – Benefit Analysis
• Cost of production
Option A Option B Option C
Distance Around 200m Around 800 m Around 1.6 km
Vehicle utilization 2 ten wheel trucks with stand 3 or 4 ten wheel trucks with 4 or 5 Ten wheel trucks with
by 1 truck stand by 1 truck 1 stand by truck
Additional* Rs 450,000.00 Additional* Rs 675,000.00
needed if trucks are hired. needed if trucks are hired.

Fuel consumption 1320 liters per month 3080 liters per month 3850 liters per month
211,200.00 additional cost Respectively 303,600.00 and
than A. 92,400.00 additional cost
than options A and B.

Road Maintenance Additional 20 machine hours Additional 30 machine hours

and 50 cubes of quarry waste and 75 cubes of quarry waste
monthly. (Cost is around Rs monthly.
85,000) (Cost is around Rs 127,500)

* Additional hiring charges for trucks to be used than option A

Cost – Benefit Analysis

Staff Compare to option A two Compare to option A three

additional heavy vehicle additional heavy vehicle
drivers needed if our own drivers needed if our own
trucks used. trucks used.

Land Rental Rs 300,000.00 Rs 300,000.00 Nil

Security Extra security needed Extra security needed

2 person (D/N) 2 person (D/N)
Cost around Rs 220,000.00 Cost around Rs 220,000.00
Cost – Benefit Analysis
• Operable for long term

Option A Option B Option C

Village Interference Have a residence within Close to main road. Risk Isolated area. Low risk.
50 m. Risk level is high level is moderately high.

Environmental impact Dust & noise impact Dust & noise impact Existing tree cover can
be used as additional
dust cover.
Selection of Location
• Option A
Most cost effective option at the operations. But due to public and environmental
issues, it seems unavailable.
• Option B
Not available as land owner has planned to install his own crusher at that area.
• Option C
Have to spend around 11 million rupees for the road and ramp construction.
Spend additional operational cost of Rs 200.00 per cube than option A. Although
initial cost and operational cost is relatively high, to long term crusher operation
it would be viable to consider to maintain smooth process.

Option C
SWOT Analysis of Location
Strengths
• Surrounded by tree cover
• Own land No rental
• Land can be used for long term
plan
Opportunities
• Can be used after the lease
agreement without an affect
• No interference of blasting
• More space for operations and
stock piles
Weaknesses
• Operational cost is respectively
high
• Vehicle utilization is critical
• Machine travelling is high for
maintenance when needed.
Threats
• Challenge to increase
productivity with vehicle
utilization
• Protection of stream is critical
• Initial investment is high
,especially to construct the ramp.
Re building SWOT
Turning threats to Opportunities and then strengths
• Vehicle utilization via using high capacity trucks

3 cube 4 - 4.5 Cubes

• Increase Loading machine productivity (ex : Use 300 capacity excavator)

• Design changes to crusher if possible ( ex .Using stock bin over cone crusher)
• Using more space increase efficiency of aggregate loading and reduce traffic and
waiting time of sales function.
• Use sink type crusher installation (Jaw crusher) to not only to reduce ramp
construction cost but also increase truck cycle time efficiency.
Commercialization
• Production cost per cube for 4500 production
Function Cost per cube
Drilling and Blasting Rs 530.00
Cleaning and Mucking Rs 150.00
Loading and transport to the crusher Rs 660.00
Breaking Rs 130.00
Crushing Rs 600.00
Aggregate Loading Rs 165.00
Administrative and other cost Rs 800.00
Financial cost Rs 350.00
Total Rs 3385.00
Commercialization
• Production cost per cube for 5000 production
Function Cost per cube
Drilling and Blasting Rs 525.00
Cleaning and Mucking Rs 130.00
Loading and transport to the crusher Rs 600.00
Breaking Rs 120.00
Crushing Rs 560.00
Aggregate Loading Rs 150.00
Administrative and other cost Rs 690.00
Financial cost Rs 350.00
Total Rs 3125.00
Target Market

• Central Expressway Project Existing Market

• Other road projects (RDA /PRDA)
• 3rd party asphalt plants and batching plants Finding New
• High rise building projects Market
• Retail market
Income & Expenditure
For 4500 cubes production

Total production cost = Rs 15,232,500.00

Current market price
• ABC = 4750.00
• Aggregate price (average) = 5000.00
Expected production = 4500
• ABC = 3000
• Aggregate = 1500
Income = 21,750,000.00
Expected profit = Rs 6,517,500.00
Income & Expenditure
For 5000 cubes production

Total production cost = Rs 15,625,000.00

Current market price
• ABC = Rs 4750.00
• Aggregate price (average) = Rs 5000.00
Expected production = 5000
• ABC = 3500
• Aggregate = 1500
Income = Rs 24,125,000.00
Expected profit = Rs 8,500,000.00
Recommendations
• Increase productivity of the crusher is the most important factor to reduce unit cost. It can be
done via
Loading & hauling utilization
-use high capacity trucks ( if 6 cubes capacity trucks are used maximum feed/cycle time can be obtained)
-use 300 capacity excavator to loading if possible, it can reduce loading time up to 4 minutes for a ten wheel truck.
-Maintain hauling roads regularly to reduce cycle time of dump trucks. (If average cycle time less than 25 minutes we can manage with 4
dump trucks )
• Do design modifications to avoid/reduce unnecessary crusher idling
Maintain stock area near to jaw crusher hopper. (need a spare excavator)
Establish stock bin arrangement prior cone crusher to maintain cone feed continuously. (Normally it will brings at least 10 cubes
savings per day )
• Use sink type installation of Jaw crusher as far as possible. (can reduce ramp construction cost
and noise also)
• If adequate area is available , separate the jaw crusher and cone crusher with intermediate stock
pile (6” * 4”)
(need a wheel loader and bin/hopper for the cone crusher. )