Laddawan Rianthakool, Nopparat Kaakkurivaara, Piyawat Diloksumpun, and Wanchai Arunpraparut Supply Chain Operations in Teak Plantation Department of Forest Engineering Faculty of Forestry, Kasetsart University Bangkok THAILAND
Bangkok, THAILAND Rotorua, New Zealand
Forest area 16,365,664 ha (2014) 31.62% of total area Goal of national forest policy 40% of total area o Conservation forest 25% o Commercial forest 15% Background Forest area 2014 Since the 1989, logging ban, timber production in Thailand has shifted from natural forests to planted forests. @Royal Forest Department 1:3,500,000 3
Background Forest plantation 1000 ha Rubber 2019 Teak 839 Eucalyptus spp. 443 Other 1526 Total 4827 Plantation area by species in 2000 Other, 32% Eucalyptus spp, 9% Teak, 17% Rubber, 42% FAO 2009 4
Teak Plantation Teak (Tectona grandis) The most valuable kinds of timber in Thailand Rotation 25-30 years Thinning and Clear cutting system Tree length method 5
FIO (Forest Industry Organization) :State enterprises FIO is an autonomous state corporation Today, FIO has 3,200 employees and 244 forest plantations covering 160,000 hectares (395,368 acres) all over Thailand. Most of the plantations in the north are for teak, but there is also Scotch pine. The plantations in the northeast are primarily eucalyptus, while those in the south are rubber trees for parawood. 6
The Harvesting of Teak The harvesting of teak in FIO s plantation has a long history from manual based to mechanization. Traditional tools such as chainsaw, elephant and a frame truck or wooden frame truck are still in used. 7
Objectives to investigate and analyze the teak harvesting in order to improve the efficiency of wood supply chains. Productivity (m 3 /h) and costs (USD/m 3 ) of each operation were calculated.
Logging System
Frame truck block Characteristics of frame truck cable winch
Methodology d) 1 Time study The study applied time study to determine the work cycle in each operation, by using continuous time technique. 2 Productivity Total effective time and log volume per work cycle were calculated, and then estimate the productivity. a) e) b) c) 3 Cost The cost of supply chain from felling to landing was calculated by FIO s guideline. A method of estimating the cost was based on machine usage cost in each operation previously.
Cost calculation Cost Factors Felling Extraction Transportation (Chainsaw) (Farm Tractor) (Elephant) (Frame truck) Processing at Landing (Chainsaw and manual) Purchase price (USD) 1,604.11 25,665.70 25,665.70 64,164.26 1,604.11 Economic life (year) 5 10 30 10 5 Depreciation (USD) 125.70 1,069.43 534.70 2,138.81 125.70 Fuel cost (USD) 1,032.24 2,807.19 1,203.08 3,742.93 1,032.24 Engine oil cost (USD) 458.77 256.66-256.66 458.77 Labor cost (USD) 2,752.65-12,030.80-8,257.94 Driver (USD) 2,566.57 2,566.57 Driver's assistant (USD) 1,924.93 3,849.86 Maintenance costs (USD) 1,376.32 1,924.93-3,849.86 1,376.32 Transportation cost (USD) 1,376.32 721.85 1,376.32 Equipment price (USD) 641.64 Others cost (USD) 917.55 401.03 1,122.87 917.55 Allowance cost (USD) 2,411.87 3,164.91 4,659.93 5,258.26 4,063.45 Total cost (USD) 10,451.42 13,714.60 20,193.03 22,785.81 17,608.30 Estimated cost per volume (USD) 3.48 4.57 6.73 7.60 5.87 Reasonable cost per volume (USD/m 3 ) 4.81 8.34 9.62 11.55 5.77 Note: exchange rate 1USD = 31.17 Baht (Mar 2018)
Cost calculation There were two workers in felling operation to fell 10,000 trees or about 3,000 m 3 within 143 days. Cost Factors Felling Extraction Transportation (Chainsaw) (Farm Tractor) (Elephant) (Frame truck) Processing at Landing (Chainsaw and manual) Purchase price (USD) 1,604.11 25,665.70 25,665.70 64,164.26 1,604.11 Economic life (year) 5 10 30 10 5 Depreciation (USD) 125.70 1,069.43 534.70 2,138.81 125.70 Fuel cost (USD) 1,032.24 2,807.19 1,203.08 3,742.93 1,032.24 Engine oil cost (USD) 458.77 256.66-256.66 458.77 Labor cost (USD) 2,752.65-12,030.80-8,257.94 Driver (USD) 2,566.57 2,566.57 Driver's assistant (USD) 1,924.93 3,849.86 Maintenance costs (USD) 1,376.32 1,924.93-3,849.86 1,376.32 Transportation cost (USD) 1,376.32 721.85 1,376.32 Equipment price (USD) 641.64 Others cost (USD) 917.55 401.03 1,122.87 917.55 Allowance cost (USD) 2,411.87 3,164.91 4,659.93 5,258.26 4,063.45 Total cost (USD) 10,451.42 13,714.60 20,193.03 22,785.81 17,608.30 Estimated cost per volume (USD) 3.48 4.57 6.73 7.60 5.87 Reasonable cost per volume (USD/m 3 ) 4.81 8.34 9.62 11.55 5.77 Note: exchange rate 1USD = 31.17 Baht (Mar 2018)
Cost calculation Fuel cost for elephant skidding means the average cost of food and medicine. The average of working days for elephant was 7.5 month in a year. Cost Factors Felling Extraction Transportation (Chainsaw) (Farm Tractor) (Elephant) (Frame truck) Processing at Landing (Chainsaw and manual) Purchase price (USD) 1,604.11 25,665.70 25,665.70 64,164.26 1,604.11 Economic life (year) 5 10 30 10 5 Depreciation (USD) 125.70 1,069.43 534.70 2,138.81 125.70 Fuel cost (USD) 1,032.24 2,807.19 1,203.08 3,742.93 1,032.24 Engine oil cost (USD) 458.77 256.66-256.66 458.77 Labor cost (USD) 2,752.65-12,030.80-8,257.94 Driver (USD) 2,566.57 2,566.57 Driver's assistant (USD) 1,924.93 3,849.86 Maintenance costs (USD) 1,376.32 1,924.93-3,849.86 1,376.32 Transportation cost (USD) 1,376.32 721.85 1,376.32 Equipment price (USD) 641.64 Others cost (USD) 917.55 401.03 1,122.87 917.55 Allowance cost (USD) 2,411.87 3,164.91 4,659.93 5,258.26 4,063.45 Total cost (USD) 10,451.42 13,714.60 20,193.03 22,785.81 17,608.30 Estimated cost per volume (USD) 3.48 4.57 6.73 7.60 5.87 Reasonable cost per volume (USD/m 3 ) 4.81 8.34 9.62 11.55 5.77 Note: exchange rate 1USD = 31.17 Baht (Mar 2018)
Cost calculation Due to the lack of labor in forest operation, FIO s compensation committees has been considered an allowance cost 30% of total basic cost in every operation. Cost Factors Felling Extraction Transportation (Chainsaw) (Farm Tractor) (Elephant) (Frame truck) Processing at Landing (Chainsaw and manual) Purchase price (USD) 1,604.11 25,665.70 25,665.70 64,164.26 1,604.11 Economic life (year) 5 10 30 10 5 Depreciation (USD) 125.70 1,069.43 534.70 2,138.81 125.70 Fuel cost (USD) 1,032.24 2,807.19 1,203.08 3,742.93 1,032.24 Engine oil cost (USD) 458.77 256.66-256.66 458.77 Labor cost (USD) 2,752.65-12,030.80-8,257.94 Driver (USD) 2,566.57 2,566.57 Driver's assistant (USD) 1,924.93 3,849.86 Maintenance costs (USD) 1,376.32 1,924.93-3,849.86 1,376.32 Transportation cost (USD) 1,376.32 721.85 1,376.32 Equipment price (USD) 641.64 Others cost (USD) 917.55 401.03 1,122.87 917.55 Allowance cost (USD) 2,411.87 3,164.91 4,659.93 5,258.26 4,063.45 Total cost (USD) 10,451.42 13,714.60 20,193.03 22,785.81 17,608.30 Estimated cost per volume (USD) 3.48 4.57 6.73 7.60 5.87 Reasonable cost per volume (USD/m 3 ) 4.81 8.34 9.62 11.55 5.77 Note: exchange rate 1USD = 31.17 Baht (Mar 2018)
Summary of productivity and cost of all operations. Results
Logging System Conclusions Bottleneck was found between felling and extraction process.
Traditional Teak Harvesting Work Flow Conclusions
Suggestions for improvement of supply chain operations Work Flow Conclusions 1 Increase resources
Suggestions for improvement of supply chain operations Introduce higher efficiency machine Work Flow Conclusions 2 Increase productivity : Machinery
Suggestions for improvement of supply chain operations Suitable roadside storage Optimum forest road network Hauling distance Work Flow Conclusions 3 Increase productivity : Reprocessing
Suggestions for improvement of supply chain operations Work Flow Appropriate machinery Conclusions? Cut-to-length method
Thank you Photo by Siriwut Theeratawatkul Laddawan Rianthakool fforlwr@ku.ac.th