Modelling the economics of extended shift and 24/7 forest harvesting

Authors: Glen Murphy, Michael Vanderberg
Publication: New Zealand Journal of Forestry, Volume N.Z.J.For. 2007, Issue N.Z.J.For. 52(2) 2007, pp 15-19, Aug 2007
Publisher: New Zealand Institute of Forestry

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Abstract: Extending the amount of time allotted to the harvesting process (e.g., working longer periods within shifts, or adding shifts) has become more common in forest operations in some parts of the world in order to meet the growing demand for increased production efficiency and overall monetary returns. However, there are many factors that must be considered when analysing the effectiveness of extending the amount of time in which harvesting operations are active if the overall goal is maximising production efficiency for an increased profit margin.

Using the best information available in the literature related to the forest industry as well as other industries, a model was constructed that allowed the evaluation of the economic impacts of altering shift lengths and total number of hours worked per year for ground-based mechanised harvesting and cable harvesting operations. The model takes into consideration the effects of these on both human-related performance and equipment performance. Production impacts, equipment impacts (e.g. depreciation, interest costs, and maintenance costs), value recovery impacts, and accident impacts are modelled. Sensitivity analysis was carried out to determine the relative importance of some of the key variables.

The research provides insight into how extending the working annual hours of harvesting operations is likely to affect overall production economics. It also highlights deficiencies in knowledge related to this area and where further research needs to be undertaken.

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