Intensive Forestry Portland Value Murphy for PDF -...

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Intensive Silviculture of Planted Douglas-fir Forests - Feb 15, 2011

(Gross)

Net Value Recovery $/m3

Glen MurphyStewart Professor

in Forest Engineering

Value RecoveryOptimizing Revenues From What

You Have Grown

Intensive Silviculture of Planted Douglas-fir Forests - Feb 15, 2011Intensive Silviculture of Planted Douglas-fir Forests - Feb 15, 2011

Why maximize value?Why maximize value?

Minimize CostsMaximize Volume

Maximize Value

Maximize Profits


Global competitorsGlobal competitors’’ initiativesinitiatives

˜ Canada:Ø $5 million NSERC funding

Strategic Network on Value Chain OptimizationØ FPInnovations

Value Maximization Program˜ Europe:

Ø $5.5 million EU fundingFLEXWOOD project …. to enhance value recovery along the wood supply chain

˜ Australia & New Zealand Ø Australian CRC Forestry Harvesting ProgramØ Value Recovery Coordinators (e.g. Hancock's)

Intensive Silviculture of Planted Douglas-fir Forests - Feb 15, 2011Intensive Silviculture of Planted Douglas-fir Forests - Feb 15, 2011

The supply chain opportunityThe supply chain opportunity

Foresters spend decades creating potential value in each tree.

The challenge is to optimally recover thisvalue and deliver it tothe right customer,in full, on-time andon-spec !!


How can value be lost?How can value be lost?

Extraction breakage

Thinning

Sub-optimal log making

Log Making Damage

Sub-optimal choice of grades or

standsHigh stumps & butt damage

Felling Damage

Uplift and DeliveryLog stocks

losses


Sales challengeSales challenge

5 to 30% additional value could be obtained by optimally matching

wood to markets

Changing demands

Changing

prices

Changing

crews

Changing stands

Changing locations

2


The potential yield cubeThe potential yield cube

Stands

Customers’ Log-types

Cut

ting

Pat

tern

s

YY

YY

YY

YYY

Y Y Y $38,131

57 m3

per ha


Complex sales arrangementsComplex sales arrangements

Sales agreements can make it very

difficult to optimallymanage market

supply

different units of measurement

different conversion

factors

different pricing points

different services supplied


Cruising for valueCruising for value


New value capture technologyNew value capture technology

Stand Value$$$

Log Product Yields

Above Ground Carbon

Gathering data with laser scannerAutomated tree

detection and stem profiling

Tree bole measurements linked to markets and combined with wood density profiles

and biomass expansion factors

C

Terrestrial Laser Scanning

Blue stain in veneer grade logsIntensive Silviculture of Planted Douglas-fir Forests - Feb 15, 2011

Thinning damageThinning damage

• Sugar maple and yellow birch (1970) 2.1%

• Radiata pine (1983) 1 - 2%

• Douglas fir (2000) < 2%

Damage depends on:ü Speciesü Thinning intensityü Planning and layoutü Tree distance from skidtrailsü Tree sizeü Skid trail spacingü Workers’ diligenceü Logging system

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High stumps & felling breakageHigh stumps & felling breakage

4 - 5%

4 - 7%


Mechanized felling gainsMechanized felling gains

580South Africa

480New Zealand

290New Zealand

160Inland BC, Canada

Value Improvement(US$/ac)

Country


LogLog--making lossesmaking losses

0

10

20

30

40

50

60

70

80

90

100

1 4 7 10 13 16 19 22 25 28 31 34 37 40 43 46 49 52 55 58

Value Recovery Studies

Per

cent

age

Val

ue L

oss

Average for Mechanical Log Making

Average for Manual Log Making

Worldwide Value Recovery StudiesWorldwide Value Recovery Studies

2 - 60%


LogLog--making lossesmaking losses


Measurement & forecastingMeasurement & forecasting

Measurements Measurements

Stem Length

Stem Diameter

Branch size, stem shape & defect are normally

assessed by the operator.

Important measurements are often made at high speeds in a harsh environment


˜ Radiata pine plantation

˜ Four sites

˜ Timberjack 1270D, swath cut

˜ Different machines used for actual harvest

˜ Value recovery: 81%, 92%, 96%, 101%

Effect of harvester optimizer Effect of harvester optimizer

No Optimizer

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Optimal bucking calipersOptimal bucking calipers

Tools like the OSU Buck and IFR Logger calipers could lead

to improvements in value recovery for manual log-making

Diameter, 20%

Length, 41%

Quality, 46%

Sw eep, 2%


OutOut--ofof--specification logsspecification logs

Spike Knots

Knot Size

Rot

93% too long

28% of logs were out-of-spec. for Australian study

Mechanized processor in Pinus radiata in NZ

23% of logs were out-of-spec.

Calibration, Calibration, knowledge, knowledge, maintenancemaintenance Intensive Silviculture of Planted Douglas-fir Forests - Feb 15, 2011

Accuracy assessmentAccuracy assessment

LengthDiameter over bark

l 902 log lengths checked for accuracyl 1413 diameters checked for accuracy

Mechanized processor in Pinus radiata in NZ


Length & diameter accuracyLength & diameter accuracy

1.1Standard Deviation

0.9Absolute Diameter (in)

14.212.95.23.4Standard Deviation

6.04.61.91.8Absolute Length (in)

Very Fast

FastNormalSlowErrors

Length accuracy and precision decreased as speed increased.

No consistent trend for diameter errors.


Bark thicknessBark thickness

Impact of Site Impact of Site

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

Radiata pine Douglas fir Ponderosa pine

Val

ue L

oss

Over bark diameter Another StandSmith and Kozak (1967) a Smith and Kozak (1967) b

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Quality, productivity & peopleQuality, productivity & people

How fast is too fast?

Studies by Russian scientists in the mid-1960’s showed that:

(1)humans could make use of 0.7 to 4.0 bits of information per second

(2)typical production speeds in conifer sawmills generated 2.13 to 4.26 bits of information on knots per second

(3)human brain is inadequate for making unassisted decisions at production speeds


Quality, productivity & peopleQuality, productivity & people

˜ In lumber grading poor accuracy hasbeen associated with high speeds and complex and variable cutting requirements

˜ In a study of pharmacists, error rateincreased as production rate increased

˜ Scandinavians note that harvester operators have trouble seeing defectsat current feed speeds of 12 ft/s

˜ Large differences between people


Product trackingProduct tracking

Branding and manual Branding and manual data entrydata entry

Marking and Marking and barbar--codingcoding

Radio frequencyRadio frequencyID tagsID tags


Possibilities, production, Possibilities, production, & uplift& uplift

19%8%16%25%Pulp3%6%3%1%Poles6%4%13%13%MediumSmall3%3%14%7%MediumLarge7%1%6%3%

MediumXtra Large

6%16%8%13%MediumIn-

round

15%18%11%7%SmallMedium28%22%19%22%SmallLarge

Sawlogs

14%23%10%9%Pruned LogsInventory

Audit Optimal ProcessorUplift

Branch Size

Log SizeLog Grade

Study of New Zealand harvesting operation


How can value be lost?How can value be lost?

Extraction breakage

1-2%

Thinning

Sub-optimal log making

Log Making Damage

1-2%

Sub-optimal choice of grades

or stands

High stumps & butt damage

Felling Damage

Uplift and Delivery

Log stocks losses2-5%


y = 322.14x - 188.84R2 = 0.62

900.00

950.00

1000.00

1050.00

1100.00

1150.00

1200.00

3.50 3.60 3.70 3.80 3.90 4.00 4.10 4.20

On-site average log velocity (km/sec)

Tot

al re

venu

e ($

/net

MB

F)

New value capture technologyNew value capture technology

Acoustic sorting of wood

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How do others control VR?How do others control VR?

Bucking audits can help Bucking audits can help identify identify ““unseenunseen”” losseslosses


Defects for 29 Contractors – Ernslaw One

Perc

enta

ge o

f sam

ple

0

1

2

3

4

5

6

7

8

Log ends Trim Length Branch SED MachineDamage

Straightness

Defect type

Aug-99Sep-00Apr-02




Roseburg Forest ProductsRoseburg Forest Products

˜ Logging jobs rated as Easy, Average, Tough˜ 2% of logs sampled in woods and log yard˜ Quality based on: sweep, machine damage, knot size,

broken ends, shatter, under/over length, stump height, stump pull, excess cull, misbuck, etc.

˜ Acceptable level depends on job rating

70% 95% 100%75% 80% 85% 90%

Easy

Average

Tough

OK Bonus1X 2X

Penalty-1X-2X-5X & stopwork


Value capture opportunitiesValue capture opportunitiesDon’t have to accept value losses as part of doing business.

Huge opportunity to recapture lost value and add to the profit line.

Optimal matching of stands to markets

Delivering the right product to the right customer


After decades of focusing on costs, it is now often easier to add a dollar in value than reduce costs by a dollar!

Take home messageTake home message


(Gross)

Net Value Recovery $/m3

Glen MurphyStewart Professor

in Forest Engineering

Value RecoveryOptimizing Revenues From What You

Have Grown

Intensive Forestry Portland Value Murphy for PDF -...

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