Section 10 Page 1. Machinery Efficiency
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1 Section 10 Page 1 Machinery Efficiency 1
2 Section 10 Page 2 Machine Efficiency We have looked at the costs of owning machinery and the costs of operating machinery through the examination of variable costs such as repair and maintenance. However the efficiency with which we use machinery has a huge effect on the operating capabilities and costs of any mechanised system. The efficiency of the system and its ability to complete work targets also has a significant effect on income as well as costs. Delayed harvest for example can be costly where a crop degrades quickly once it has passed its optimum date for harvest. Income can also be effected by late sowing, as yields will drop when crops are sown at a suboptimal time. The two terms we need to worry about are, Work Efficiency and Timeliness Costs WORK EFFICIENCY Brian Witney gives a full explanation of this topic in his book, Choosing and Using Farm Machines, (available in the library) There are a number of terms we can use to describe work rate. Spot Rate: Working time at average operating speed and theoretical or effective operating width. Can be used for comparison of machines etc. No account is taken of time losses in terms of turning at the end of the paddock or unproductive time for machine adjustment. Overall Work Rate: takes account of turning time, filling and unloading time when not on the move. Machine adjusting and unclogging time. It is basically what you would expect to complete over the work cycle. What planning should it be used for? 2
3 Section 10 Page 3 Seasonal Work Rate: Takes more factors into account and is the performance of the machine over the available time. It does not take into account weather delays. It includes additional time losses such as: Time to travel to and from the field. Machine preparation time for hitching and daily servicing. Operator rest time. Repair time. Calendar Rate: Is the performance of the machine over calendar time and includes, machine preparation time before and after storage. Delay time through unacceptable weather, crop or ground conditions. These are clearly dependant upon climatic conditions but would usually be about two thirds of the seasonal rate. Discussion: For what purposes would you use the above terms? FIELD EFFICIENCY. Field efficiency is the ratio of the overall work rate over the theoretical spot rate. In order to increase efficiency we need to keep time losses to a minimum. Factors include: Theoretical spot rate Unused machine capacity Material Handling procedures Turning techniques Fieldwork patterns, i.e. field size and shape Machine adjustments and blockages System limitations Some typical figure for efficiency values. 3
4 Section 10 Page 4 A more complete table is available on the last page of the previous section. Operation Field Efficiency % Operating Speed Km/h Tillage Mouldboard plough Rotary Cultivator Disc Harrow Crop Establishment Fertiliser broadcasting (inc. Transport) Combine Drill Potato Planter Sprayer Harvesting Rotary Mower Forage Harvester Roll Baler Combine harvester Potato Harvester Think about how to improve performance of these operations. Think about the process of analysis. Discuss the financial implications. 4
5 Section 10 Page SOIL WORKABILITY When designing any mechanisation system, one of the main parameters is time available for field operations ( T). It has been extremely difficult to predict this by means of calculation with any degree of certainty because of the large number of factors involved. These factors could be grouped into two main categories:- 1) Soil physical properties and soil climatic interactions 2) Soil - Machine interactions. An initial requirement is a definition of "workability". There is general agreement among researchers as to what defines workability. Workability is said to exist when the soil is in such condition that it can withstand agricultural operation and it will not sustain structural damage as a result of these operations. Godwin & Spoor (1977) laid down two conditions for this to apply. They stated that the soil must: a) be able to withstand the vertical and horizontal loads applied by the tractor and implement to prevent unacceptable sinkage and slip, b) be in a condition where it can be manipulated in the desired way without serious structural damage or compaction. Rounesvell (1993) went slightly further by explaining the conditions as individual concepts of 'trafficability' and 'workability', arguing that it was important to identify each as conditions for one may exist without the other. Trafficability was defined as: the capacity of soil to support and withstand traffic; whereas, workability is concerned with seedbed operations and production of a tilth. As with Godwin & Spoor (1977) both concepts require that soil structural damage affecting crop yield should not occur. Rounesvell argued that a soil could be trafficable without being workable, but this is clearly dependant upon a large number of factors relating to the soils condition and the nature of the loading. It is the shear strength of the soil that determines whether a soil is workable or not. The main factors influencing shear strength as detailed by Godwin & Spoor (1977) are: Moisture content or suction Packing density 5
6 Section 10 Page 6 Texture (particle size) Organic matter content. The main variable function is soil moisture content which has a major affect on determining workability. In terms of trafficability the greater the soil bulk shear strength the greater the capacity to resist sinkage. Low shear strength could lead to sufficient sinkage and slippage so as to lead to mechanical damage of the soil. Referring to workability clod shear strength becomes important as in some seasons the surface layer of the soil can become very dry through evaporation making it difficult to produce a seedbed. Again Godwin & Spoor (1977) defined these as : Bulk shear strength: the resistance offered to movement by a relatively large volume of soil aggregates or clods. Clod shear strength: the resistance offered by the individual clod or aggregate Shear Strength kn/m Lower Plastic Limit Upper Plastic Limit Moisture Content % by Weight Figure 1 Relationship between clod strength and moisture content. Redrawn from Godwin & Spoor(1977). Godwin & Spoor (1977) characterised the relationship between clod strength and moisture content as illustrated in Figure 1. The soil is workable at moisture contents below the lower plastic limit, working at or above that limit risks structural damage to the soil. It can be seen that the clod shear 6
7 Section 10 Page 7 strength rapidly increases as the soil dries out indicating the importance of cultivating at the correct time in order to reduce energy inputs and produce better results. As well as moisture content the bulk density of the soil has a direct effect on trafficability and workability. Figure 2. shows that given the loading condition τ 1 and τ 2, greater soil bulk density could support; a) the same shear loading at greater moisture content, or b) a higher shear loading (τ 2 ) at the same moisture content. Figure 2. also highlights the importance of selecting tractor implement combinations that will avoid excessive loading of the soil and selecting appropriate ballast and tyre equipment for tractors. One of the major effects of primary tillage is to reduce bulk density of the cultivated layer, reducing shear strength. Again this must be considered by the farmer in terms of machinery selection and cultivation practices. Bulk Shear Strength Tau 1 Tau b b Moisture t t a a Higher density soil Lower density soil Figure 2 Relationships between bulk shear strength and moisture content for two soil densities. (Redrawn from Godwin and Spoor 1977) Soil Machine Interactions Soil-machine interactions are in themselves complex and dynamic. Within the very short cultivation season which is now the norm for arable producers, a huge variety of conditions can exist. When examining soil-machine interaction, it is important to look not only at the action of the implement but also at the traction ability of the soil in different conditions. In many cases it is the reduction in traction with increased soil moisture content that stops work rather than the action of the implement. This is particularly true after the soil has been partially worked and is in a relatively weak condition, as after ploughing for example. In conditions where a draught implement is being used, the mobility of a tractor is related to the reduction in draught and changes in the effectiveness of the implement due to increased moisture content (within limits) compared to the greater loss of traction over the same moisture range. In conditions where powered implements are used, tractor mobility and the potential for soil damage is still an issue; the soil must be capable of supporting the weight of the implement and tractor combination, as indicated in Figure 2. 7
8 Section 10 Page 8 Reference: Godwin, R.J; Spoor, G. (1977) Soil Factors influencing work days. Agric. Eng. 32(4): Roundswell (1993) 10.4 Machinery Purchasing (Text derived from Choosing and Using Farm Machines, By B. Witney Chapter 8, Tractor Choice) (Although it is based on farmer s behaviour other land based industries are not considered to be significantly different.) There is wide range of choice of tractors and agricultural machinery on the market. In many instances identical equipment is dressed in different liveries so that a number of suppliers can extend their product range. Specialised items are often made by a particular manufacturer and incorporated into different machines. Tractors are an example where transmission components and front axles are often produced by a specialist and fitted to different makes of tractor. Engines are a further example, Perkins, for example supply engines to a range of tractor manufacturers and self propelled equipment as well as materials handlers. Thus economies of scale are achieved. Factories can be re-fitted more frequently and research and development effort can be maintained. Fuel injection equipment is another example where a specialist manufacturer supplies for a number of makes of tractors. This situation came about mainly because of the huge costs involved in assembly line production. Even where most of the tractor components are built in-house manufacturers will attempt to save costs by offering a range of tractors made up a more limited range of main components. For example a range of five power ratings of engine may be offered using the same cylinder block, by changing fuel injection equipment piston assemblies and offering turbo charging different power outputs can be achieved. The basic determinant in driving the farmer to choose a particular machine is price. However brand loyalty does exist, brand loyalty is not a factor in itself, but occurs because other attributes of the machine are found to be satisfactory. This is partly what drives manufacturers to offer as wide a range of machines as possible. The main marketing tactic is to give some degree of individuality to their machines through special features that make it different or improved when compared to the rest of the market. This individuality creates a marketing opportunity. This process is important particularly in relation to innovation. 8
9 Section 10 Page 9 Identifying the best buy involves the consumer not only in bargaining but also in evaluating the product in terms of its technical specification as well as various economic, social and psychological factors in order of importance. A farmer survey indicated that when selecting a medium powered tractor the main reasons for purchase were: Performance Dealer reputation Value for money Dealer proximity, specification, previous ownership of same make. The difference between items is often small and the actual contents of the list is more important than it s order, as in the list above where 3 items are equally ranked 4 th. It is sometimes also difficult to distinguish between factors and they are often inter-related. Performance for example is affected by a large number of factors, not just raw power at the engine. Types of engine can be important, as can transmission type, hitch arrangements etc. The importance of local dealer proximity is changing as service intervals are increasing and manufacturers themselves are offering comprehensive spare parts services where delivery is guaranteed within a specified period. There is greater distinction between dealer reputation and dealer proximity, farmers are becoming far more concerned with quality of service. This is of varying importance according to how time dependant the operation is. Harvesting machinery is extremely time-dependant and whenever the harvester has stopped the whole system comes to a halt. Clearly in this example it is vital to get the machinery going again as quickly as possible. (Read: Calculating Tractor Operating Costs, I.Yule, Farm Management, Vol 9, No. 3 Autumn 1995) An example is given where the cost of parts and labour make up only half of the cost of the breakdown. The remainder is attributed to timeliness costs from operations not completed. Discounts offered on the purchase price, trade-in allowances and the availability of cheap finance have a greater influence on buying behaviour rather than variation in annual operating costs. Other 9
10 Section 10 Page 10 factors such as cost of spare parts and fuel economy where significant differences exist have less impact BUYING BEHAVIOUR Farmers buying behaviour is classed as industrial rather than final consumer purchasing, because they are concerned with the accumulation of capital equipment. Industrial buying behaviour is more strongly linked to technical characteristics, after sales service, negotiation and bargaining, whereas final consumer buying behaviour places greater emphasis on the social and psychological elements of the marketing mix. All purchases involve a blend of influences which are conditioned by personal attitudes and images. The image of a farmer is one of being independent, rational and economically motivated. The measure of a good farmer is one of farming ability and economic success. Farmers desire social status through economic success which is sometimes reflected in the purchase of over sized farm machinery, such as tractors and harvesters. This desire for prestige often leads to earlier machinery replacement than technical and economic factors would indicate to be necessary. Thus part of the optimisation is the farmer s need for satisfaction in how he/she perceives their business is progressing. Marketing organisations need to be aware of certain features of the agricultural market that make it distinct from other industrial sectors. These influences are: lag and fluctuation in incomes; personal role in purchasing; resistance to extrovert marketing; dealer and brand loyalty; 10
11 Section 10 Page 11 adoption behaviour; information sources; investment appraisal and risk aversion; after sales service Lag and fluctuation in incomes Fluctuations in farm income make it difficult to meet demand on occasions when windfall profits result in a surge in demand for machinery. Manufacturers are holding less and less stock, due to the cost, therefore it is important to be able to predict demand. Machinery buying usually lags behind farm income, so to some extent it is predictable. If machinery demand surges and can no longer be satisfied by domestic suppliers imports will be sucked in, resulting in domestic suppliers loosing market share PERSONAL ROLE IN PURCHASING; Farmers tend to buy smaller general items from the nearest or most convenient supplier. The shopping area is enlarged for machinery due to dealer reputation, brand of equipment and distribution network. Dealers can be a major source of credit to the farmer and therefore the dealer s reputation for honesty and reliability has a strong influence on dealer selection. The brand of the equipment is more important to farmers who already own a large amount of equipment, the price variable is most important to middle aged farmers and service is vital for all farmers. From the dealers/manufacturers point of view it is worth noting that it costs a lot of money to hold stocks of spare parts, etc. Sometime a manufacturer will have to assist the dealer in setting up an adequate spares supply RESISTANCE TO EXTROVERT MARKETING Farmers are highly suspicious of advertiser s claims about products and extrovert marketing techniques. They believe both cover deficiencies in the product. They also tend to disregard 11
12 Section 10 Page 12 manufacturers claimed output figures as unrealistic. As a result many manufacturers tend to concentrate on the virtues of the product such as product reliability and range of options available DEALER AND BRAND LOYALTY There is a definite reluctance to change brands or dealers too often and the level of brand loyalty is quite high. Loyalty tends to decline with experience and time to a point where a machinery inventory will consist of a number of brands of machine. Lower levels of loyalty tend to be displayed with higher gross income, higher levels of education, larger farm sizes and more expensive purchases. The average time that a farmer may be in the market for a machine is about a month, during which time they will have two or three contacts with two or three dealers ADOPTION BEHAVIOUR Farming is no different from any other industry when it comes to the adoption process. It is generally acknowledged that people accept new products and practices in a series of four steps. 1. AWARENESS 2. INTEREST information search feasibility study conviction decision, 3. ACTION trial adoption 12
13 Section 10 Page CONFIRMATION The period taken to complete the adoption process is very varied and provides an opportunity to distinguish between six different personality types: Innovators Early adopters Early majority Late majority Laggards Non-adopters Innovators make up about 2 per cent of the population and they adopt new ideas when they are first introduced. Early adopters are usually a highly respected group of opinion leaders who are still in the vanguard but wait until the innovation has proved its worth. A much larger group which adopts the idea at a subsequent time can be classified as the early and late majority. The last grouping of laggards will adopt the idea when it becomes out of date and non-adopters are unlikely to adopt the new practice at all. The length of adoption period will vary with each idea, where a very direct economic benefit can be achieved and the idea is simple, easily tested and compatible with previous experience it is likely to be taken up much more quickly than a complex idea INFORMATION SOURCES Farmers are exposed to a variety of sources of information, including technical press, media, field days and manufacturers literature. It is often difficult for a farmer to get impartial advice. The role of each will vary according to the adoption stage. 13
14 Section 10 Page INVESTMENT APPRAISAL AND RISK AVERSION Farmers use few formal methods to help them determine the amount of capital which can be invested profitably in the farm business. The success of the investment in farm machinery is judged primarily according to its contribution to farm output and not in terms like satisfaction or styling. This means that farmers are wary of major change and are looking for proven reliability rather than innovation. Farmers often tend to have a negative approach to buying, pointing out what they don t like identifying what appeals to them. This conservatism is a form of risk aversion AFTER SALES SERVICE The most crucial aspect of selling to farmers is their insistence on good parts and servicing operations because any delay in repairing a breakdown during critical field operation can incur severe penalties through loss of yield. The big problem for companies is to supply this in a cost effective way. Better servicing can be a factor, less frequent oil changes etc, through higher manufacturing standards. 14
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