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
Intensive Silviculture of Planted Douglas-fir Forests - Feb 15, 2011
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 !!
Intensive Silviculture of Planted Douglas-fir Forests - Feb 15, 2011
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
Intensive Silviculture of Planted Douglas-fir Forests - Feb 15, 2011
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
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Intensive Silviculture of Planted Douglas-fir Forests - Feb 15, 2011
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
Intensive Silviculture of Planted Douglas-fir Forests - Feb 15, 2011
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
Intensive Silviculture of Planted Douglas-fir Forests - Feb 15, 2011
Cruising for valueCruising for value
Intensive Silviculture of Planted Douglas-fir Forests - Feb 15, 2011
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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Intensive Silviculture of Planted Douglas-fir Forests - Feb 15, 2011
High stumps & felling breakageHigh stumps & felling breakage
4 - 5%
4 - 7%
Intensive Silviculture of Planted Douglas-fir Forests - Feb 15, 2011
Mechanized felling gainsMechanized felling gains
580South Africa
480New Zealand
290New Zealand
160Inland BC, Canada
Value Improvement(US$/ac)
Country
Intensive Silviculture of Planted Douglas-fir Forests - Feb 15, 2011
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%
Intensive Silviculture of Planted Douglas-fir Forests - Feb 15, 2011
LogLog--making lossesmaking losses
Intensive Silviculture of Planted Douglas-fir Forests - Feb 15, 2011
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
Intensive Silviculture of Planted Douglas-fir Forests - Feb 15, 2011
˜ 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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Intensive Silviculture of Planted Douglas-fir Forests - Feb 15, 2011
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%
Intensive Silviculture of Planted Douglas-fir Forests - Feb 15, 2011
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
Intensive Silviculture of Planted Douglas-fir Forests - Feb 15, 2011
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.
Intensive Silviculture of Planted Douglas-fir Forests - Feb 15, 2011
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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Intensive Silviculture of Planted Douglas-fir Forests - Feb 15, 2011
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
Intensive Silviculture of Planted Douglas-fir Forests - Feb 15, 2011
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
Intensive Silviculture of Planted Douglas-fir Forests - Feb 15, 2011
Product trackingProduct tracking
Branding and manual Branding and manual data entrydata entry
Marking and Marking and barbar--codingcoding
Radio frequencyRadio frequencyID tagsID tags
Intensive Silviculture of Planted Douglas-fir Forests - Feb 15, 2011
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
Intensive Silviculture of Planted Douglas-fir Forests - Feb 15, 2011
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%
Intensive Silviculture of Planted Douglas-fir Forests - Feb 15, 2011
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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Intensive Silviculture of Planted Douglas-fir Forests - Feb 15, 2011
How do others control VR?How do others control VR?
Bucking audits can help Bucking audits can help identify identify ““unseenunseen”” losseslosses
Intensive Silviculture of Planted Douglas-fir Forests - Feb 15, 2011
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
How do others control VR?How do others control VR?
Intensive Silviculture of Planted Douglas-fir Forests - Feb 15, 2011
How do others control VR?How do others control VR?
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
Intensive Silviculture of Planted Douglas-fir Forests - Feb 15, 2011
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
Intensive Silviculture of Planted Douglas-fir Forests - Feb 15, 2011
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
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