Trees to Dollars

Workshop

The Value of a Quality Product

Andy Godden

Forintek Canada Corp

16 November 2005

Using the Fibre Value Chain to Maximize Profitability

 What is Quality?

Quality is adding value to the product

A B
 Total Quality

• Quality is affected by the entire operation,

not just the sawmill
• Extends to logging, since the feller-buncher,
delimber, etc. also affect product recovery and
value
• Extends to the by-products produced, such as
chips, etc., since they are the raw material in
another sector and have an effect on their value.

Teamwork
 Quality in Sawmilling

Who’s Responsible?
Everybody
Directly accountable:
Foremen: Sawmill and Planer
QC Supervisors: Sawmill and Planer
Kiln Supervisors
Yard Supervisors: Log yard and Lumber yard
 Quality in Sawmilling

Improving Quality

Small improvements can have big payback

Attention to detail = $$$$

Lets look at a few examples…

 Improving Quality

Logging How could this

be reduced ?
Hauling
• Excessive road dirt

Mudflaps
 Improving Quality

Debarker

• Excessive Pressure
 Improving Quality

Storage
Rotation
Pile bottoms
Blocks (spacers) in line with strips
Pile placement

Is this your yard?

 Improving Quality

Storage
Or this one?
 Improving Quality

Perception
Damaged Wrap
or Poor Wrapping
 Value in Quality

Volume or Value Recovery?

Which is more important?

Would you sacrifice one for the other?

Why?
 Value in Quality

Adding Value
Value can come from many places. For example:

• Products
• By-Products
• Grades
• Volume Recovery
• Size Control
• Saws
Lets look at a few…
 What products do you want to make?

The quantity and quality of each affects total product value

Product & By-product Yield (Volume + Quality = Value)

Bark Chips Sawdust Planer Finished

37 % 7% Shavings Lumber
8% 48 %
Bark 12% Wood 88%
 Lumber Volume Recovery

Lumber Recovery Factor (LRF)

1 m3 = 424 fbm Nominal

LRF (fbm/m³) 212 254 296

Chips,
Sawdust &
Nominal Lumber 50% 60% 70% Shavings
Recovery

Turning an extra 1% of the log into lumber = an additional 4.24 fbm/m3

or
$ 0.85 @ $200/MBM

$ 2.12 @ $500/MBM
 Improving Lumber Value Recovery

What Really Matters is Overall Value Recovery

Every stage of your operation (everything you do)
affects value recovery:
Supply Breakdown Stacker

Packaging Planer Kiln

 Improving Value Recovery

Increasing Volume and Value Recovery

Reducing Reduction in
Target Size
Sawing Deviation
Saw Kerf
 Improving Size Control

Sawing Deviation Shapes

Uniform
Taper

Snake

Snipe
Flare

Bevel

Wedge
 Improving Size Control

How is Target Size Calculated?

Target Size is a reverse calculation from the finished or dry size.
Calculated by taking the Dressed Size and adding a Planer Allowance,
Shrinkage, and Sawing Deviation Allowance.
Target
Sawing Deviation Target Width
Thickness
x Target Width
Undersize Factor
Target
Thickness
Sawing Deviation

Shrinkage

Planing Allowance

Planing Allowance Dressed

Thickness

Green Dry Dressed Dressed Width

Shrinkage
Width
Dressed
Thickness
 Wood Required for a Board

ce nce
ce an wa Controlling wasted fibre
rd w an llow llo will add value to the
a o A . A h
Bo All ge ar idt finished product
ed g a V W
ish n in rink ing rf
n a w Ke
Fi Pl Sh Sa

Target Size 1.680

Finished Board 1.500 83%
Planer Allowance 0.060 3%
Shrinkage Allowance 0.080 4.5%
Sawing Var. Allowance 0.040 2.5%
Kerf Width 0.125 7%
Wood Required 1.805 100%

Target Size Total Sawing Allowance

 Show me the Money

Benefits of Target Size or Kerf Reduction

Estimated Annual Lumber Value Increase from a Kerf or Target Size Reduction
(Based on an Average Lumber Price of Only $200/MBM)
Estimated Annual Increase in Lumber Value

$500,000

$450,000 50 MMBM Production

100 MMBM Production
$400,000 200 MMBM Production

$350,000

$300,000

$250,000

$200,000

$150,000

$100,000

$50,000

$0
0 1 2 3 4 5 6 7 8 9 10
Target Size or Kerf Reduction (Thousands of an Inch)

Value of a target size or kerf reduction of only 0.005”

= $100,000/year for 100 MMBM/year mill @ $200/MBM
 Where Does the Money Come From?

How do smaller lumber sizes or kerf

increase lumber value?

Increase Grade Recovery

Dramatization
 Where Does the Money Come From?

How do smaller lumber sizes or kerf

increase lumber value?
Increase Grade Recovery

Additional Length

Dramatization
 Where Does the Money Come From?

How do smaller lumber sizes or kerf

increase lumber value?
Increase Grade Recovery

Additional Length

Additional Board(s)

Dramatization
 Improving Size Control

Lumber Size Quality Control Program

• Collection of data based on random sampling

• Monitors on-size / on-spec.

• Experience needed for caliper use
• Helps establish sawing accuracy
• Helps evaluate machine
center performance
• Helps with target and kerf
reduction
 Target Size Control Tool

Target Size Calculator

 Sawing Performance and Target Size

Sawing Performance
saw kerf feed speed
saw blade cutting
stiffness forces

sawing
accuracy

Lumber Target Size

To achieve target size reduction opportunities, saws

and feed speeds need to be tuned and monitored
 The Most Important Factor in Quality

Who is my customer?
Example: Sawmill Kiln Planer

What does the customer need vs. what I am supplying?

What is their strategy?
What can I do to develop a repeat customer or be
the preferred supplier?

Who is my supplier?
 Decision Support Tools

OPTITEK Log Breakdown Simulation Software

What will be the impact
of implementing new
equipment or new
technologies on my value
recovery?

Free for Forintek members

(Market Value ~ $45,000/copy)
 Decision Support Tools

Horsepower Calculator

Software to optimize motor

size for sawing and
chipping
 Value and Quality Recovery

If you don’t measure it, you won’t improve it

Product & By-product Yield (Volume + Quality = Value)

Bark Chips Sawdust Planer Finished

37 % 7 % Shavings Lumber
8% 48 %
Bark 12% Wood 88%
 Value and Quality Recovery

Discussion…

Questions?
 Our Websites

www.forintek.ca www.feric.ca www.paprican.ca

Thank You