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The current coal market demands better management of resources and minimum-cost performance from underground mines. It is a matter of survival in which only well-managed operations will capture a share of the market. This situation forces mine managers to apply management science techniques in scheduling and controlling operations. Tools for operations research are generally lacking at mine sites. Techniques which are used have typically been applied in isolation and in mine design. An integrated production and cost management system, which spans planning, scheduling, and monitoring activities, is demanded. Techniques employed must be responsive to changing environmental and economic conditions. An integrated approach to underground coal mine management is developed. A model for achieving the level of control of mine operations critical to surviving in the current market is outlined. The integrated Production and Cost Management System (PROCOST) is designed to provide the mine manager with a reliable, quantitative, decision-assisting system that can be used in formulating timely responses to complex fluctuations in operations. PROCOST consists of a productivity forecast model, a sectional bill of materials containing current resource consumption factors, a linear programming scheduling model, and operations analysis that focuses on production and cost performances. Necessary data gathering components are specified, and emphasis is placed on involving operating personnel. PROCOST was applied to an underground coal mine using information obtained from various reports. An accurate productivity forecast model was developed and validated, and linear programming was used to validate resource consumption factors. Descriptive statistics were used to analyze operational performances. Manpower required for different operating scenarios was analyzed, and a labor loading index was calculated to reflect loading of different labor types. Material requirements planning was used to control the flow of supplies and materials based upon production demand. The overriding objective of PROCOST is integration of mine management functions to achieve optimal performance of the operation. Controlling utilization of resources and analyzing operational performances are key components. It was applied successfully to the model mine, as evidenced by validation of production and cost results. Further analysis indicated that it can be useful in seeking a minimum-cost arrangement of resource utilization.