Potential reductions in
plywood manufacturing costs
resulting from improved technology
Henry Spelter
George Sleet
Abstract
Recent technology improvements in plywood manu­
facturing processes are described. The potential impact
of these improvements on manufacturing costs and out­
put capacity of a plywood mill was examined by a ser­
ies of computer simulations. Results indicated that,
compared to a mill equipped with technologies charac­
teristic of the mid-1970s, a modernized mill could process
similar wood input into the same product output with
about 14 percent lower variable costs. By replacing
medium-diameter (14-in.) bolts with small-diameter
(9-in.) bolts, additional cost savings of 20 to 24 percent
could be realized, depending on the technology applied.
Also, annual output could increase by 13 to 28 percent
without adding more lathes, dryers, or presses.
Within the past decade, significant improvements in
plywood manufacturing technology have emerged. These
improvements are helping the industry to adapt to
changing raw material conditions, where traditional
large-diameter timber is becoming scarce (7) and even
smaller sawlog-sized timber is too expensive to peel. By
allowing the use of smaller, less costly timber and in­
creasing throughput by reducing equipment bottlenecks,
costs of manufacturing can be significantly lowered in
a typical North American mill.
The purpose of this study was to guide assessments
of the plywood industry of the future by developing es­
timates through computer simulation of the potential
cost and productivity impacts of these technologies. We
begin by reviewing the technologies in various parts of
the manufacturing process. Next, we describe the equip­
ment configuration of a model mill that we use as a basis
for comparison. Then, we present our estimates of poten­
tial cost reductions that may be expected when a mill
is upgraded. (For additional discussion of plywood manu­
facturing practices, see Baldwin (1) and Sellers (14).)
It should be noted that cost estimates were made by
Spelter based on a simulation model called Plywood Mill
8 JANUARY
Analysis program (PLYMAP) (15). PLYMAP is a com­
mand-driven FORTRAN program that prompts the user
to supply a set of technical and economic specifications
that define the manufacturing and economic conditions
of a mill. The model then generates estimates of product
recoveries, process flows, costs, and profits consistent
with the data that were assumed. Machinery and process
data used in the simulations for this report were ob­
tained from individual mills and machinery suppliers.
The cost estimates in this report are not official Ameri­
can Plywood Association estimates.
Review of technological
developments
Plywood manufacturing involves placing heated
blocks into a lathe, peeling the blocks, clipping the
resulting ribbons to size, and stacking the clipped sheets.
The sheets are dried to some target moisture content
(MC) and those above target are returned for addition­
al drying. Adhesive is applied and panels are assembled
from the individual sheets. The panels are consolidated
in a cold-press before being loaded into a hot-press where
the adhesive is polymerized under heat and pressure.
After pressing, the panels are set aside in hot stacks to
allow the adhesive to continue to cure, then they are
trimmed, some grades are sanded and patched, and then
strapped in bundles for shipping. The review of tech­
nological developments follows this basic outline.
Charging
When the plywood industry was processing large
old-growth timber, bolts were manually loaded into the
lathe by projecting bullseye targets on the bolt ends,
then positioning the bolt in the lathe with chain grap­
ples or overhead cranes. When large bolts were used,
The authors are, respectively, Economist, USDA Forest
Serv., Forest Prod. Lab., One Gifford Pinchot Dr., Madison, WI
53705-2398, and Director, Quality Services Div., American
Plywood Assoc., P.O. Box 11700, Tacoma, WA 98411. This
paper was received for publication in April 1988.
Forest Products Research Society 1989.
Forest Prod. J. 39(1):8-15.
1989
TABLE 1. – Estimated equipment technology adoption by North American
plywood mills.a
Units in service
Manufacturing technology 1979 1980 1982 1984 1986 1987
losses because of misplacement were small. Although
this procedure was slow, the downtime as a proportion
of the peel cycle was also small.
When mills began using smaller timber, automatic
geometric lathe chargers were developed. These depend
on mechanical fingers to sense bolt diameter and deter­
mine placement in the chucks.
In 1979, the X=Y charger was developed. The X-Y
charger scans bolt size and shape using obscure light
(shadow) techniques, sound waves,or laser beams. The
bolt is rotated a full turn as data are gathered on size
and shape. Based on this data, the block is charged into
the lathe to peel veneer from the “largest right
cylinder,” maximizing veneer output. Table 1 illustrates
the adoption rate of this technology over time.
Peeling
Powered backup roll. – Veneer recovery is reduced
by the tendency of the bolt to spin-out or split-out. Spin-
out occurs when the torque required to peel a bolt ex­
ceeds the amount that the bolt eds can withstand. The
likelihood of spin-out increases when the forces to peel
veneer are increased, or when the outer chuck i n a dual
chuck system retracts. Split-out occurs when the bolt
breaks a t a defect, such as rot or heart shake.
Historically, backup rolls were used to keep blocks
from flexing as the diameter got smaller. A logical
modification was to power the backup roll so it would
aid the spindles in providing torque to the block (5).By
mid-1987, 110 mills were using powered backup rolls
(Table 1).
Powered nosebar. – Slivers that stick in the gap be­
tween the knife and the nosebar cause another peeling
problem known as plug-up. Plug-ups ruin good veneer
and interrupt peeling. Traditional fixed nosebars are
most prone to this problem, followed by small-diameter
roller nosebars. By enlarging the roller nosebar from 5/8
to 2-1/2 inches or more andpowering it, the plug-up prob­
lem can be almost eliminated. The exit gap resistance
is reduced, and slivers are simply driven through. An
additional benefit is a further reduction in spin-out.
Since its appearance in 1981, this technology has been
adopted on 120 lathes (Table 1).
FOREST PRODUCTS J O U R N A L Vol 39, No 1
Peripheral drive lathe. – Another solution to the
spin-out and plug-up problem is to power the bolt total­
ly, or in part, by a gang ofrolls situated above the knife.
The rolls can be spiked or smooth. Spiked rolls provide
a greater degree ofturning power. The rolls are arranged
a t about 2-inch intervals within a sectionalized nose-
bar. Because the forces driving and resisting the bolt are
nearly opposite, they neutralize each other, thereby
eliminating forces that can lead to spin-out (6).
An additional feature of this lathe is that the spikes
introduce microchecks on the tight side of the veneer,
relieving stresses (“tenderizing”) in the veneer. This
helps the ribbon lie flat on the trays, which makes clip­
ping more accurate. Also, less splitting occurs upon fur­
ther handling, and the veneer dries faster, boosting
dryer capacities by 10 to 15 percent (12). Tenderizing
could be important to mills that peel to very small cores
where weak, warp-prone, juvenild wood predominates.
Peripheral drive lathes were originally developed for
peeling 3-foot corestock(Japanese plywood is 3 by 6). One
4-foot lathe is operational in the United States for this
purpose and a second is on order. Now, 8-foot lathes are
available. By reducing the tooth size on the disks, the
marks placed on the surface are reduced and disappear
upon sanding, making acceptable face veneer.
A recent lathe variation is one that peels small bolts,
12 inches or less in diameter. To enable peeling, holes
12 inches deep are drilled at each end of the bolt during
charging and the spindles are placed into these holes.
This stabilizes the core from the inside rather than from
the outside as with a backup roll. Peeling to 2-inch cores
is possible. This lathe has not seen service in the Unit­
ed States.
Hydraulic knife positioner. – In any lathe, large
forces are brought to bear on the knife and pressure bar
during peeling. When changes in forces occur, they can
affect the position of the knife relative to the block,
thereby changing peel thickness (9). Depending on the
amount of wear in the connections,significantvariations
in thickness may occur. Changes in force take place
when elements of the system are disturbed, such as
when the pressure bar is opened to clear slivers or closed
after roundup.
In older lathes with screw drives (e.g., clutch, gear
box, bevel gears, lead screws, and cross shaft),there are
many wear points, which translate into large variations
in veneer thickness if the connections are worn. Often,
thicker peels are targeted to minimize downgrading of
panels due to undersize.
Recent digital linear knife positioners are much the
same a s gearbox drives, except the gearbox is replaced
by precision direct current (DC) motors, and more ac­
curate and slow-wearing ball screws are used in place
of lead screws. The signal to these is digitally encoded.
The peel can be changed infinitesimally, and thickness
variation is improved, although problems of looseness
remain.
The hydraulic positioner is an improvement on
either the gearbox or the DC digital knife positioner be­
cause it eliminates the lead and ball screws,cross shaft,
and other wear points. It also limits play to only two
9
points: connection to the positioner and the trunnion
mount to the cylinder itself. Field tests have demon­
strated less veneer thickness variation. In practice, var­
iation as little as ±0.002 inch is being achieved on
well-maintained lathes (18). Another key benefit is in­
creased productivity caused by faster charging and
roundup. Table 1 shows the adoption rate for this
equipment.
Spindleless lathe. – With the powered backup roll
and powered nosebars, core diameters of as little as 3
inches have been achieved, making small-bolt process­
ing more attractive. But another barrier to effective
mall-bolt peeling is the charging time of the lathe. For
small diameters, the time spent charging and rounding
up the bolt can take up to one-half or more of the peel
cycle. This reduces lathe productivity.
An innovation of major consequence for small-bolt
peeling is the spindleless lathe. Where traditional lathes
hold and spin the blocks with chucks on each end, this
lathe cradles the block between three full-length, in­
dividually driven rolls. Charging times of under 2 sec­
onds have been reported (2). Since the lathe drives the
surface of the block, the block must be somewhat round
going in. This requires a second lathe to preround blocks.
However, prerounding reduces roundup time during the
main peel, bolstering lathe productivity. The maximum
ingoing block diameter of the first-generation equip­
ment is 8 inches. One such lathe is presently operation­
al. A second-generation spindleless lathe, now availa­
ble, can process bolts up to 14 inches in diameter, operate
at faster speeds (900 feet per minute (fpm) vs. 650 fpm),
and generate veneer more uniform in thickness (4). One
second-generation lathe was installed in early 1988.
Clipping
Rotary clipper. – Conventional guillotine-type clip­
pers propel a knife downward into a cut, which momen­
tarily stops the veneer flow. This stoppage can cause the
leading edge of the veneer to fold under. At best, this
causes a loss of good veneer. At worst, it causes a pile­
up and a loss of a large amount of veneer. Because of
this limitation and the loss of clip accuracy at high
speeds, guillotine clippers are usually run under 400
fpm, limiting green-end output.
The rotary clipper involves a major change in clip­
per design because the blade, instead of being station­
ary, moves with the veneer ribbon flow. When a clip sig­
nal is received, the blade rotates downward, cleanly
severing the ribbon at the lowest point. The movement
of the blade is in the same direction as the ribbon flow,
so there is no interruption of the ribbon. Speeds of over
500 fpm are obtainable with high accuracy caused by
lower knife mass and inertia. Over 100 rotary clippers
were installed or ordered by mid-1987 (Table 1).
Drying
Automatic dryer control. – Accurate and consistent
drying of veneer is made difficult by the inherent varia­
bility of veneer with regard to MC and thickness. Be­
cause of this nonuniformity, veneer exits the dryer at
different MCs, and those sheets above a specified level
are marked for redrying. The dryer control mechanism
10
is the count of wet sheets. If the proportion of wet sheets
from a batch of 100 differs from a set level, the dryer
speed is adjusted. To keep redry rates low, many mills
run dryers at speeds slower than optimum, resulting in
much overdried veneer. Veneer that is too dry requires
higher glue spreads to prevent dry-out of the glueline.
A new dryer development monitors veneer moisture
inside the dryer. The hot-air temperature is recorded be­
fore and after it passes over the veneer. The temper­
ature difference indicates how much evaporation is oc­
curring, hence it is a measure of moisture retained in
the veneer. If there is no difference, the veneer is bone
dry. A large temperature difference indicates that the
veneer is still quite wet. A reading slightly above or
below a target causes a microprocessor to automatical­
ly change the dryer speed. Redry rates continue to be
collected and if they vary much from target, the tem­
perature target is altered within the microprocessor.
This allows veneer moisture variations to be handled.
This system compensates for veneer variability by al­
lowing the dryer to adjust to changes in MC. In mills
where the system has been installed, throughput in­
creased up to 10 percent (13). By mid-1987, seven mills
had installed such controls (Table 1).
Radiofrequency (RF) redryer. – Maximum through­
put for the primary dryer is realized at a fairly high
(15%) redry rate. But the high redry volumes tie up sig­
nificant dryer capacity. An efficient alternative is the
RF redryer. When a separate redryer is available, then
the optimum redry rate for the primary dryer is higher
(as much as 25%). Redry loads are put onto an infeed
chain in stacks about 26 inches high. The stack is au­
tomatically loaded and heated with microwaves for
about 15 minutes. The RF energy drives off some of the
moisture and redistributes the rest within the load. No
operator is required other than the forklift operator to
ready and remove loads, and there is virtually no redry
loss caused by breakage or downgrading as in conven­
tional dryers (16). In mid-1987, five mills had installed
RF redryers (Table 1).
RF vacuum dryer. – A third development in drying
is the RF vacuum dryer. Where the RF redryer is meant
for redry only, the RF vacuum dryer is for primary dry­
ing. It consists of a large vacuum chamber 7 feet square
and 25 to 30 feet long. Loads of unstickered veneer are
set on carts and wheeled inside. A vacuum pump re­
moves the air, and RF energy is used as a heat source.
The water boils, but the temperature never exceeds
120°F because of the vacuum. There is no drying de­
grade because low temperatures are used and handling
is minimized. But, there is a high electrical cost. The
system was evaluated and rejected by a few plywood
companies. However, now that industry target MCs are
closer to 15 to 20 percent, the economics may be more
favorable.
Gluing
The interaction of veneer temperature, MC, surface
roughness, assembly time, and mill temperature com­
plicates veneer gluing. With perfectly smooth, cool
veneer, glue requirements are relatively small. As con­
ditions deviate from the ideal, spread rates must be in­
JANUARY 1989
TABLE 2 – Assumed equipment operating limits in an older plywood mill
Equipment Operating limits
Ring debarker 150 fpm
lower glue spreads, and shorter press cycles. By 1987,
Lathe with roller nosebar Maximum spindle speed. 400 rpm
over 30 mills were involved with a high-moisture glu­
Maximum sheet speed 1,200 fpm
Charge time 3 seconds
Guillotine clipper 375 fpm, full sheet
250 fpm, roundup
Two 4-deck. 20-section jet dryers 375°F
Automated spray layup 12.5 panels/min.
Manual press loading 2 sec./opening
creased to prevent dry-out or decreased to prevent over-
penetration. Two significant gluing developments are
foam extrusion gluing and high-moisture gluing.
Foam extrusion. – The essence of foam extrusion is
to take a somewhat conventional adhesive and mix it
with air until it is about six times its original volume.
The foamed adhesive is pumped to an extruder head
above the layup line where it is laid down in 1/8-inch­
diameter ribbons, 3/8 inch apart, onto the veneer. Near
the end of the layup line, a masher roll presses the
panels, flattening the ribbons into a film covering all
parts of the opposing veneer surfaces.
This system allows thinner spreads, as little as 24
lb. per 1,000 ft.2 of single glueline (MSGL) during cool
weather. With traditional glue applicators, spreads are
normally 33 to 46 lb./MSGL. Glue waste is lower than
with curtain coaters, spreaders, or spray systems. The
adhesive is directed through nozzles and laid down in
49.5-inch widths, reducing trim and cleanup waste. The
glue is isolated from the atmosphere, so there is no
evaporation loss. The total loss, including trim, is about
8 percent with foams compared to 11 percent with cur­
tain systems, 14 to 16 percent with spray systems, and
up to 33 percent with roll coaters (11,14). Reports of 20
to 25 percent glue cost savings have been reported (3).
By mid-1987, there were seven foam-based layup lines
in service (Table 1).
Problems with laps and gaps in the core have been
reported for southern pine. Wavy, irregular veneers,
often from the juvenile core of blocks, poorly align as
they descend through the crowders. This prevents sheets
from being laid down properly. the problem is a func­
tion of the crowders rather than foam gluing. Solutions
could include unitizing random strips by means of a
sheet composer or incising veneer with spiked rolls simi­
lar to those with peripheral drive lathes.
High-moisture gluing. – Veneer for plywood has
traditionally been dried to average targets as low as 4
percent MC to avoid overpenetration of the glue into the
veneer and minimize blows. Blows are caused by excess
moisture that turns to steam inside the press. The
trapped steam builds pressure until localized glueline
failure or even panel rupture occurs.
Various resin formulations are available that allow
gluing at higher MCs. In mills where the program has
been tried, 18 percent is now a typical redry level where
previously there might have been an 8 percent redry lev­
el. With higher MC levels, compression loss and blows
can become a problem. These problems, however, are off­
set by the process advantages of high-moisture gluing.
FOREST PRODUCTS JOURNAL Vol. 39, No. 1
including greater dryer throughput, less wood loss
through shrinkage, less breakage of overdried veneer,
ing program.
Pressing
Compression controls. – To obtain good contact be­
tween veneers, press pressures are set at levels as high
as 200 psi. Such pressure causes densification of the
wood with a resulting loss in volume. Densification can
be lessened by reducing pressure during the press cy­
cle. A recent study (17) showed that reducing press pres­
sures incrementally can reduce compression loss without
harming the gluebond. Many mills have installed con­
trols that after a fixed period of full pressure reduce the
initial pressure, but keep the positions of the platens
constant for the remainder of the cycle. By 1986, 108
mills had installed some form of compression control
equipment (Table 1).
Panel watering. – In the same study (17), it was
shown that immediately wetting the panel after press­
ing restores some compression loss. About 1 percent of
the original thickness of the panel recovers after this
treatment. By mid-1987, 36 mills were watering their
panels (Table 1).
Analysis procedures
TO estimate the economic effects of these innova­
tions, the PLYMAP program was first simulated with
process parameters reflecting older technologies. These
parameters, shown in Table 2, represent the maximum
throughput of each process center. For this and all other
simulations, market prices and factor costs representa­
tive of mid-1987 West Coast conditions were used (trends
developed in this analysis can be applied to southern
mills, only the magnitudes will differ). The average bolt
diameter processed was assumed to be 14 inches, the
species was Douglas-fir, and production was assumed to
be 4-ply, 1/2-inch-thick, CDX plywood.
The effects of each technology were simulated in­
dividually by reassigning appropriate parameter values
consistent with new equipment, then comparing the
results with the reference simulation. Because of bot­
tlenecks elsewhere, equilibrium operating rates of some
machines may be below these limits. Wood input was
also adjusted so that none of the unchanged process
centers would exceed their capacities. Next, the com­
bined effects of all the technologies were estimated with
all model parameters allowed to range up to higher
limits consistent with modern equipment. Because tim­
ber costs vary with diameter and these simulations were
for 14-inch Douglas-fir bolts, separate simulations were
made to determine effects of processing different di­
ameter timber in tandem with new technology. One of
these simulation sets involved spindle-driven lathes; the
other, spindleless lathes with prerounded bolts.
Cost estimates
Older mill
Within the limits set by the parameters shown in
Table 2, the program was simulated over a range of
veneer thicknesses centered on 0.125 inch. Because of
11
the variation in veneer thickness, there is a trade-off be­
tween higher recovery from thinner peels but more un­
dersized panels, and lower recovery but more full-sized,
higher priced panels. The target peel thickness that op­
timized these trade-offs was found to be 0.128 inch.
For the range of equipment limits assumed, the mill
processing 14-inch timber and 0.128-inch-thick veneer
was limited by its clipper (Table 3). Excess capacities at
the debarker, lathe, dryer, layup line, and press are in­
dicated by below-par equilibrium operating rates. An­
nual output, based on a 250-day workyear and two shifts
per day for the green end and three shifts per day for
the dry end, was 121 million ft.2 (3/8-in. basis).
Gross wood costs, assuming $260/1,000 BF (log scale)
for delivered No. 2 Douglas-fir sawlogs, were $75/1,000
ft.2 (3/8 in.) ofplywood produced (Table 4). Net wood costs,
after deducting revenues for chips and cores, were cal­
culated at $61/1,000 ft2 Wood is the most expensive cost
item, accounting for over 55 percent of variable costs.
This is based on over 50 percent losses of wood in process­
ing and veneer recovery (Fig. 1). Most wood losses oc­
cur because of the 8 percent spin-out rate; the some­
what large (5.3-in.) target core; and the 18 percent trash,
clipper, and fishtail loss.
Labor costs were next highest, accounting for 30 per­
cent of variable costs, based on total compensation of
$13.5/hour. For this mill, approximately 2.4 hours of
labor were required per 1,000 ft.2 of plywood.
Glue represented 10 percent of total variable costs.
The spread was 39 lb./MSGL. Glue costs were estimat­
ed at $10.64/100 lb., based on phenol resin costs of
$33/100 lb.
Electricity and fuel costs were the remaining 4 per­
cent of the total. Because only the key power users in
the mill were modeled, the energy and power cost of
$5/1,000 ft.2 may be understated, by about one-half.
Powered nosebar and
powered backup roll
The powered nosebar and backup roll combination

TABLE 3. – Equipment operating rates at equilibrium for various simulations.

Lathe Clipper full Press load
Technology Debarker Charge time Ribbon speed sheet speed Dryer free time Layup panels time/opening
(fpm) (sec.) ---------------(fpm)--------------- (%) (panels/min.) (sec.)
Older equipment 45 3.0 800 375a 10 9.7 2.7
Modified by
Powered nosebar and
backup roll 40.6 3.0 775 375a 12 9.7 2.4
Peripheral drive 41.6 3.0 690 375a 2 9.7 2.4
Hydraulic positioner 44.0 2.0 725 375a 8 9.7 2.4
Rotary clipper 47.5 3.0 910 405 4 10.1 2.0a
Press controls 43.0 3.0 800 375a 14 9.5 3.1
All modifications
14-inch bolts 47.8 2.0 880 490 4 12.1 1.0a
13-inch bolts 50.1 2.0 950 490 2a 12.1 1.0a
12-inch bolts 51.0 2.0 980 465 2a 11.6 1.4
11-inch bolts 52.5 2.0 1,040 445 2a 11.2 1.8
9-inch bolts 53.0 2.0 1,200a 365 9 9.5 3.8
All modifications plus spindleless lathe
14-inch bolts 47.2 2.0 510 425 9 12.0 1.0a
13-inch bolts 44.2 2.0 517 425 7 12.0 1.0a
12-inch bolts 51.5 2.0 525 420 3 11.9 1.0a
11-inch bolts 53.5 2.0 540 410 2a 11.6 1.3
9-inch bolts 57.3 2.0 565 375 2a 10.7 2.1
a Bottleneck.

TABLE 4 – Operating costs for various simulations.

Revenue from
Technology Wood cost Cores Chips Net wood cost Labor cost Glue cost Energy cost Total costs
----------------------------------------------------------------------------- ($/1,000 ft2)a --------------------------------------------------------------------------------
Older equipment 75.4 9.0 52 61.2 33.3 10.8 47 110.0
Modified by
Powered nosebar
and backup roll 66.2 1.6 48 59.8 32.8 10.8 48 108.1
Peripheral drive 67.5 2.1 49 60.5 31.4 10.8 50 107 7
Hydraulic positioner 71.7 8.6 43 58.8 32.5 10.8 49 107 0
Rotary clipper 75.4 9.0 52 61.2 31.9 10.8 4.5 108 4
Press controls 73.0 8.8 50 59.2 33.6 10.7 47 108.2
Foamed gluing 75.4 9.0 52 61.2 33.4 86 47 107.9
A11 modifications
14-inch bolts 63.4 1.5 42 57.7 24.3 81 41 94 2
13-inch bolts 58.8 1.7 42 52.9 24.4 81 4.1 89 5
12-inch bolts 54.1 2.1 42 47.8 25.2 81 42 85.3
11 inch bolts 49.4 2.5 42 42.7 26.2 81 43 81 3
9 inch bolts 39.8 3.8 41 31.9 30.6 81 51 75 7
All modifications plus spindleless lathe
14-inch bolts 63.1 0.6 56 56.9 24.8 86 43 94 6
13 inch bolts 58.3 0.6 56 52.1 24.9 86 43 89 9
12 inch bolts 53.3 0.7 57 46.9 25.0 86 43 84 8
11 inch bolts 48.3 0.9 58 41.6 25.6 86 43 80 1
9 inch bolts 38.0 1.3 59 30.7 27.7 86 45 71 5
a
3/8 inch basis

12 JANUARY 1989
has three effects: 1) it reduces the incidence and size
of spin-outs; 2) it allows peeling to a smaller core; aned
3) it reduces veneer loss and lathe downtime caused by
sliver plug-ups. Therefore, the spin-out rate was lowered
from 8 percent to 3 percent; the average spin-out di­
ameter was reduced from 9.5 to 6.8 inches; and the tar­
get coresize was reduced fromn 5.3 to 3.25 inches. Down­
time caused by clearing slivers, assumed to occur in
every 15th log in the base case,m was eliminated. These
parameter assumptions were based on previous mill
studies and reports (8,10).
When these changes were made, the annual gross
margin of the mill increased by $0.33 million or
$1.7/1.000 ft.2 (Table 5). Peeling to a smaller core in­
creased the proportion of full-sheet veneer. Since full-
sheet veneer is clipped faster, clipper capacity increased
by 2 percent, but the clipper remained the bottleneck
and prevented the full benefit of this addition from be­
ing realized. Wood input to the lathe was reduced by 10
percent in order not to exceed the clipper capacity.
Peripheral drive lathe
To model a peripheral drive lathe, core size was
decreased to 4 inches, plug-ups and spin-outs were elimi­
Figure 1. –Disposition of wood by waste and product
categories.
TABLE 5. – Operating revenues for various simulations.
FOREST PRODUCTS JOURNAL Vol. 39, No
nated, and dryer capacity was increased by 15 percent.
These changes increased annual output capacity by
2.6 million ft2. Because of the faster dryer throughput,
one of the two dryers could be run on a 2-shift per day
basis. Resulting costs per 1,000 ft.2 were $2.3 lower and
gross margins were $2.2 higher. Annual gross margin
increased by $0.36 million.
Hydraulic knife positioner
Quicker charging and roundup, increased yield, and
more uniform veneer thicknesses were the primary
benefits claimed for hydraulic digital control of the knife
positioner. The rapid retract rate (12 in./sec. compared
to 4 in./sec. for gear box drives) and split-peel capabil­
ity allowing faster roundup saves up to 1 second per cy­
cle. Increased yield results from more efficient sheet
breaking, shorter “runout” at the end of the ribbon, and
increased fishtail recovery. To reflect the first benefit,
charge time was reduced from 3 to 2 seconds. Clipper
losses were recalculated to reflect veneer savings. To
reflect more uniform veneer thickness, veneer thickness
variation was reduced from 0.007 to 0.004 inch.
These changes increased annual gross margin by
$0.59 million or $3.5/1,000 ft2. Reducing thickness varia­
bility caused fewer panels to be downgraded because of
thinness, and the optimal target peel thickness fell to
0.126 inch. Losses at the clipper and fishtail saw were
reduced from 16.1 to 13.9 percent. But again, because
of the clipper bottleneck, the plant was unable to real­
ize the total benefit from the improvement.
Rotary clipper
The major benefit of rotary clippers is the increase
in throughput potential. We modeled the effect of this
machine by relaxing the limit if 375 fpm maximum clip­
ping speed. We note that rotary clippers are run in ex­
cess of 500 fpm.
The result was an increase in annual gross margin
of $0.44 million. The bottleneck shifted from the clip-
per to the presses and dryers (Table 3). Because the
1 13
 TABLE 6. – Typical adhesive mixes and costs.
press-loading time per panel was assumed at 2 seconds,
and each dryer was limited to four decks, both work
centers reached their limits at a clipper speed of only
400 fpm.
Compression controls
After installing two-stage pressure controls on press­
es, compression loss declines by about 2.5 percent. Us­
ing three-stage pressure controls, about 3.5 percent re­
duction in compression can be achieved (17). With a
reduced compression loss, the optimum veneer thick­
ness drops to 0.124 inch. This results in a $0.23 mil­
lion/year increase in gross operating margins or about
$1.8/1,000 ft2.
Foam extrusion gluing
To model this technology, glue spreads were decreas­
ed by 25 percent. Adhesive cost calculations were based
on formulations shown in Table 6. Adhesive waste, net
of trim loss, was reduced from 5 to 0 percent. A royalty
fee of $.15/MSGL was included in the cost. As a result,
annual gross margin increased by $0.24 million or $2.0/
1,000 ft2.
Since the assumed change was from a spray system,
the glue cost savings were approximately 20 percent. If
the change had been from a spreader system, the sav­
ings would probably have been more. From a curtain
system, they would probably have been less.
Combined technologies
By combining the capacities of the powered nosebar,
hydraulic knife positioner, and rotary clipper, the bot­
tleneck moves to the dryers and presses. Without dry-
end improvements, both the clipper and the lathe have
to be operated below their capabilities.
To reduce the press bottleneck, the mill could install
automatic loaders to shorten loading time to 1 second
per opening, and that was assumed here. By adopting
a high-MC gluing program, the dryer bottleneck can be
reduced. Veneer moisture targets were increased to 8.5
percent, and veneer with moisture higher than 16.5 per­
cent was assumed to be redried. A redry rate of about
16 percent resulted.
Note that high-moisture gluing is only one strategy
to increase dryer capacities. Alternatives include instal­
lation of dryer controls to adjust dryer speed for veneer
moisture fluctuations, thereby increasing dryer efficien­
cy; or installation of RF redriers to free existing dryers
for more primary drying.
The result of these changes was that, while oper­
ating revenue per 1,000 ft.2 stayed the same, costs fell
by 14 percent and throughput increased by 27 percent.
Subsequently, overall annual revenues and gross mar­
14
Figure 2. – Annual mill gross profits by technology and log-
diameter class.
gins (revenues less variable costs) rose sharply, the lat­
ter from $4.26 to $7.97 million. The presses remained
the ultimate bottleneck, while the dryers were near, but
not at, capacity.
Conventional lathes – effect
of changing timber diameter
Sheathing mills are increasingly utilizing smaller
sawtimber grade logs instead of larger, more expensive
peelers because on a cubic foot basis, smaller logs costs
less. With smaller size timber there is less clear (B or
higher grade) veneer; as a percentage of total block, the
core represents a bigger proportion of the wood. Because
there is less wood to peel, there is increased time to
charge the lathe and roundup the block, both of which
waste time from the peeling viewpoint. Thus, these
technologies are vital to the successful peeling of small
bolts.
The simulations indicated that gross margins per
1,000 ft.2 increased with decreasing timber size (Table 5).
For bolts below 11 inches in diameter, however, the rise
in margin was not as great as the fall in throughput,
hence, total annual gross margin was lower (Fig. 2).
Thus, the optimum bolt size was 11 inches.
Spindleless lathes – effect
of changing timber diameter
To simulate the effect of the spindleless lathe, charge
time was reduced from 3 to 2 seconds. Because bolts were
prerounded by a lathe before being fed to the main lathe,
the loss of peeling time due to roundup was eliminated.
Target core was reduced from 3.25 to 2.0 inches, and glue
spreads increased from 25 to 27 lb./MSGL to reflect the
rougher veneers obtained from smaller diameters. The
maximum ribbon speed was also reduced from 1,200 to
900 fpm.
Since there was less idle time at the lathe, the mill
ran more efficiently. The cost savings from using small
timber were retained without an offsetting sacrifice in
throughput (through 12 in.). Below 12 inches, drying ca­
pacity began to constrain the green end because of the
increased proportion of wetter sapwood from smaller
blocks. But output dropped at a slower rate than costs,
so annual gross margins continued to rise with decreas-
JANUARY 1989
 est component of cost, this ability enhances plywood eco­
nomics more than any other individual change.
In examining the impact of changing block size, the
time needed to charge the lathe and roundup the bolt
assumes critical importance. With conventional lathes,
about 2 seconds seems to be the least that is required
for charging. Adding in the 2 to 3 seconds it takes to
roundup the bolt means that at least a 4- to 5-second gap
exists between consecutive ribbons of veneer. This un­
productive lathe time leads to a bottleneck that reduces
operating efficiency in the remainder of the mill for di­
ameters below certain levels (11 in. in these simulations
for conventional lathes). Annual gross margins fall with
each decline in bolt diameter beyond that size (although
margins per 1,000 ft.2 continue to rise).
Figure 3. – Potential annual mill capacity bytechnology and
In the case of the second-generation spindleless
log diameter class. D, P, L) dignify bottleneck. lathe, with a reported charge time of about 2 seconds
and no roundup time due to prerounding, annual gross
margins continue to increase as timber size declines to
ing log diameter, peaking at 9 inches (Fig. 2). 9 inches. Similar results could be obtained with conven­
Compared to conventional lathes, the spindleless tional lathes if bolts were prerounded.
lathe yielded results that were about even in terms of As large-diameter timber becomes increasingly
margin for block diameter sizes of 14 to 12 inches. Be­ scarce and expensive,the emphasiswill shift to process­
low 12 inches, however, the spindleless lathe was su­ ing smaller bolts. Much research and development ef­
perior because of the reduced idle time peels. fort has gone into modifying the plywood process to eco­
The lowest cost per 1,000 for any combination of nomically utilize smaller bolts. The result of that effort
technologies was achieved by using the spindleless lathe is an array of technologies that can help mills to adapt
with 9-inch-diameter bolts. Due to net wood costs of only to the changing economics of structural panel markets,
$3111,000 overall operating costs were over one-third and to produce commodities at a competitive cost.
lower than the overall operating costs for older equip­
ment (Table Literature cited
Summary and conclusions
In reviewing these results, it should be noted that
the cost levels shown are based on simulations to illus­
trate potential directions for improvement. We believe
that the indicated changes from one technology to
another are reasonably accurate and consistent with the
assumptions made, but it is up to users to extend this
exercise within the context of their own particular mills
to determine the potential benefit to them.
We suggest that by installing modern equipment, a
mill can gain significant benefits in increased through­
put, decreased wood costs, decreased labor costs, and
decreased glue costs.
For example, annual production can be increased by
almost one-third with 14-inch bolts without adding
ditional lines, presses, or dryers (Fig. 3). By reducing
waste and peeling to a smaller core size, net wood costs
can be reduced from $61 to ft? Likewise, high
labor efficiency can reduce labor costs $33 to
$24/1,000 ft.2 Gluing innovations can lower glue costs
from $11 to $8/1,000 ft.2 Overall gross margins increase
from $35 to $51/1,000 ft.2, and combining this with the
increased output boosts annua1 gross operating margins
from $4.3 to $8.0 million.
The most significant. impact of modern plywood
technology is that it improves the economics of
bolt peeling. The combination of rapid, accurate lathe
charging and small-core peeling places within the reach
of plywood manufacturers a significantly cheaper re­
source than traditionally used. Since wood is the larg-

FOREST PRODUCTS JOURNAL Vol 39, No 1 15