Forest planning toolbox. A success story Francis Charette, FPInnovations

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1 Forest planning toolbox A success story Francis Charette, FPInnovations

2 Son of a sawyer 3rd generation, John wants to bring his company to the next level by applying pull management principle John Doe

3 John s challenges About John John and his team are responsible for ensuring a stable supply for many Canadian sawmills. John doe President, Forest Product 2025 It must also ensure that his sawmills are able to generate maximum benefit in terms of supply assigned to it. His team has just received the harvesting sectors available for the next 10 years John asked FPInnovations to assist in the implementation of decision support system to enable it to achieve its profitability targets 3

4 A story in 7 chapters Resource Forest Operations Sawmill Wood yard Sec. Processing Wood Value Network 4

5 The tools available for John FOREST TRANSPORT YARD SAWMILL KILN PLANER SHIPYARD FPInterface NCCruise - IGMap ForestPlan MaxTour Multi-facility optimization FPWoodValue Optitek Sort yard sim Mill yard sim 5

6 6 How to maximally enhance the resources?

7 Timber supply NCCruise Forest inventory compiler at the product level S3 S2 S1 7

8 Timber supply Enhance Forest Inventory (IGMap) Visual representation of the volume for each product Identify sector of the highest value product (peeler, large sawlog) Legend Peeler vol. (m3/ha) Prediction Map Legend [plots1_pr_txt].[plots_vol7.tx Peeler vol. (m3/ha) Filled Contours Prediction Map 0 21 [plots1_pr_txt].[plots_vol7.txt.pe Filled 21 Contours

9 What will be the supply cost? Which equipment to use? 9

10 Forest operations (harvesting) Optimal equipment Supply cost forecast Productivity drivers Site Stand attribute Productivity curve Harvesting system 10

11 Forest Operations (transportation) Predicting the transportation cost How to avoid cost fluctuation Backhaul opportunity 11

12 How to maximize yard management (wood handling and inventory)? 12

13 Wood yard Optimal wood yard equipment team Best yard design Overall evaluation of the wood yard management 13

14 Wood yard Benchmarking Different simulation wood and mill yard design Quantitative evaluation of the wood yard 14

15 Wood yard Remote sensing application for yard monitoring Wood pile volume calculation based on image analysis Biomass temperature monitoring through IR imagery 15

16 Does my mills have the right configuration in regard to the resources that we have and the market that we aim for? 16

17 Sawmills Is the sawmill equipment adapted for this type of log diet? Will the mill be well balanced with these new harvesting sectors 17

18 Sawmills Is it time to renew some equipment? Log breakdown Optitek TM Flow simulation Simul8 TM Optimal scenario ($) 18

19 How to optimize my secondary processing network? 19

20 Multi-facility Planning Optimization New optimization tool for lumber secondary processing Objective: Maximize secondary processing margin Demo prototype built, available at: Multiple Sawmills Processing Kiln Planer Sorter Resaw Finished Goods Bulk Barge Container 20

21 How to quickly value a woodlot from my mills point of view? MY VALUE? 21

22 Wood Value Integration and simplification of FPInterface and Optitek We kept only the most significant variable ($$$) Pre-simulation and database creation 22

23 Wood value Timber sales Unwanted change to the harvesting plan Weather Market fluctuation Mill constraint Prediction of the final basket of product 23

24 Wood doesn't have all the same value 1 m³ 1 m³ 24 8 $ 12 $

25 How to optimize the whole network? 25

26 Network (from the market to the stump) What to produce in which mill? Which bucking card to apply? Right wood, right mill, right time, right process(allocation) FPInnovations. All Tous rights droits reserved. réservés. Copying Reproduction and redistribution et diffusion prohibited. interdites. Les FPInnovations, marques et les its logos marks de and FPInnovations logos are trademarks sont des of marques FPInnovations. déposées de FPInnovations

27 Network (from the market to the stump) Use one metric to evaluate all decisions (profit) Integrate markets and sawmills into harvest planning Run numerous what-if scenarios 27

28 Conclusion FOREST TRANSPORT YARD SAWMILL KILN PLANER SHIPYARD FPInterface NCCruise - IGMap ForestPlan MaxTour Multi-facility optimization FPWoodValue Optitek Sort yard sim Mill yard sim

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