d. l ä ngin, october 2008

Stellenbosch UniversityDepartment of Forest and Wood Science

South African Forestry South African Forestry Operations OutlookOperations Outlook

– the human factor as the major – the human factor as the major challenge for mechanization and challenge for mechanization and

outsourcing in our industryoutsourcing in our industry

D. Längin, October 2008

2

y o

u r

k n

o w

l e

d g

e p

a r

t n e

r


● Status quoStatus quo – 2008 – 2008

● Where are we heading?Where are we heading?

● Discussion and conclusionDiscussion and conclusion

OverviewOverview

3

y o

u r

k n

o w

l e

d g

e p

a r

t n e

r


Forest production factorsForest production factors

[Heinimann, 2000]

4

y o

u r

k n

o w

l e

d g

e p

a r

t n e

r


Harvesting methods/systems in SAHarvesting methods/systems in SA

[Warkotsch, 1986]

5

y o

u r

k n

o w

l e

d g

e p

a r

t n e

r


Harvesting Systems in SA 2007Harvesting Systems in SA 2007

Manual, 9.5%

Motor manual, 64.6%

Semi mechanised, 19.5%

Mechanised, 6.4%

[Längin, Oberholzer, Ackerman, 2007]

6

y o

u r

k n

o w

l e

d g

e p

a r

t n e

r


Mechanization in SAMechanization in SA

?

?

Mec

hani

zatio

n in

%

South Africa

Central EuropeScandinavia

South Africa

7

y o

u r

k n

o w

l e

d g

e p

a r

t n e

r


The VisionThe Vision

Vision of future semi-automated logging systems[Fryk & Kaarnametsa]

8

y o

u r

k n

o w

l e

d g

e p

a r

t n e

r


Outsourcing of operations in SAOutsourcing of operations in SA

25%

50%

30%

75%

50%

80%

97%

85%

88%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1988 1998 2007

Silviculture Harvesting Transport

% o

f out

sour

cing

in S

outh

Afri

ca

[Längin & Ackerman, 2007]

9

y o

u r

k n

o w

l e

d g

e p

a r

t n e

r


FTS 2007 survey resultsFTS 2007 survey results

Most pressing challenges and problems from a contractor perspective:

A. Rates, contracts, negotiation & costing B. Relationship grower & contractor C. Growers’ problems effecting contractors’ operational aspects D. Labour & workforce

10

y o

u r

k n

o w

l e

d g

e p

a r

t n e

r


11%

4%

21%

12%

8%

6%

15%

13%

5%

9%

13%

10%

0%

5%

10%

15%

20%

25%

Cape Highveld Lowveld Midlands Zululand Average

Labour turnover Absenteeism

The biggest challenge – labourThe biggest challenge – labour

[Längin & Ackerman, 2007]

11

y o

u r

k n

o w

l e

d g

e p

a r

t n e

r


Aldhouse, P. 2007, HIV’s killing fields. New Scientist 195(2612): 6-9

HIV infection in AfricaHIV infection in Africa

12

y o

u r

k n

o w

l e

d g

e p

a r

t n e

r


Strategic questionsStrategic questions

1.Who will log in future? (Outsourcing versus own operations)

2.Mechanization of forest operations?

3.Human aspects?(workforce, land ownership, social responsibility)


Where are Where are we heading?we heading?

14

y o

u r

k n

o w

l e

d g

e p

a r

t n e

r


Delphi studyDelphi study

2008 Delphi study:

A. Research and development needs in SA

B. Past and future drivers of change in FE

C. Future harvesting systems in SA

D. Future developments in outsourcing

15

y o

u r

k n

o w

l e

d g

e p

a r

t n e

r


Change factors in SA forestry until 2020Change factors in SA forestry until 2020

Environmental Climate Change Certification Water Issues

Economical Fuel costs Cost of labour and contractors Timber price

Policy Land Reform Role of Government in the sector (DWAF) Labour related aspects (e.g. wages)

Socio/cultural HIV & Aids Labour availability Poverty & unemployment

Technological Mechanization of operations New Technology (e.g. ICT, remote sensing) Productivity improvement

16

y o

u r

k n

o w

l e

d g

e p

a r

t n e

r


FE change factors during last 10 yearsFE change factors during last 10 years

South Africa International

Mean Mean±2*SE Mean±SD

0 2 4 6 8 10 12

T echnologica l advancements

Productiv ity improvements

Environmenta l demands

Labour costs

Capital costs

Labour availab ility

H ealth & Safety

Outsourcing

Mean Mean±2*S E Mean±SD

0 2 4 6 8 10 12


P roductivity improvements

Environmenta l demands

Labour costs

Capita l costs


Hea lth & Safety

O utsourcing

1 – factor of highest importance1 – factor of highest importance

17

y o

u r

k n

o w

l e

d g

e p

a r

t n e

r


FE change factors over next 10 yearsFE change factors over next 10 years

South Africa International

Mean Mean±2*SE Mean±S D

0 2 4 6 8 10 12


P roductiv ity improvements

Socia l pressure

Labour costs

Capita l costs


Labour suitab ility

Health & Safe ty

O utsourcing

Mean Mean±2*S E Mean±SD

0 2 4 6 8 10 12

T echnological advancements

Productiv ity improvements

Social pressure

Labour costs

Capital costs


Labour su itab ility

H ealth & Safety

Outsourcing

1 – factor of highest importance 1 – factor of highest importance

18

y o

u r

k n

o w

l e

d g

e p

a r

t n e

r


Mechanization – when?Mechanization – when?

0%

10%

20%

30%

40%

50%

60%

70%

80%

Before 2010 Before 2020 After 2030

When will mechanization in forestry operations become dominant in SA?

19

y o

u r

k n

o w

l e

d g

e p

a r

t n e

r


Impact of mechanization?Impact of mechanization?

What will be the impact of mechanization on ..

9%

9%

28%

27%

82%

27%

27%

45%

73%

18%

73%

55%

45%

18%

18%

18%

19%

9%

0% 20% 40% 60% 80% 100%

Poverty alleviation

Outsourcing

BEE / SMME

Environmental

Product quality

Productivity & costs

Highly beneficial beneficial neutral adverse

20

y o

u r

k n

o w

l e

d g

e p

a r

t n e

r


Required action for mechanizationRequired action for mechanization

Action required to make mechanization work in SA?[1 – highest importance]

0

2

4

6

8

10

12

Rates

, wag

es

Supp

ort a

nd bac

kup fr

om su

pplie

rs

Opera

tor t

raini

ng

Fore

stry e

xper

tise

Plannin

g and s

trate

gy

Value

chain

/ supp

ly ch

ain op

timiz.

..

Safet

y

Infra

struc

ture

Macro

econ

omics

Cont

racti

ng

Median Rank

21

y o

u r

k n

o w

l e

d g

e p

a r

t n e

r


Outsourcing trendsOutsourcing trends

25%

50%

80%

75%

70%

30%

75%

80%

64%

55%

50%

80%

97%95%

90%

85%85%

88%

20%

30%

40%

50%

60%

70%

80%

90%

100%

1988 1998 2007 2012 2017 2027

Silviculture Harvesting Transport

% o

f out

sour

cing

in S

outh

Afri

ca

22

y o

u r

k n

o w

l e

d g

e p

a r

t n e

r


How will the role of harvesting and transport contractors evolve during the next decade?

Developments in outsourcingDevelopments in outsourcing

19%

12%

34%

35%

Contractors asforest managers

Contractors asmediators betweenprocessing companyand land owners

Contractors as astrong partner

Contractors asservice providers


ConclusionConclusion

24

y o

u r

k n

o w

l e

d g

e p

a r

t n e

r


Human challenges for mechanizationHuman challenges for mechanization

Productivity drivers in mechanized harvesting systems:

• compartment conditions (e.g. slope)• tree size• ..• operator skills• operations management

25

y o

u r

k n

o w

l e

d g

e p

a r

t n e

r


Education, training and skills ..Education, training and skills ..

Foresters:● Harvest planning for mechanized operations● Management of contractors● Harvesting Systems costing

Forest Contractor:● Contractors mind shift required (from manual to mechanized operations management)● Sound operator training approach● Active and improved management of productivity drivers ● Shift systems design● Remuneration of operators

Machine operators:● High skills level required for machine operators● Operator wellness

26

y o

u r

k n

o w

l e

d g

e p

a r

t n e

r

D. Längin, October 2008April 24, 2023 NAME OF PRESENTATION

• Single shifts

• Multiple shifts– Better utilisation of capital, but the number of shifts in 24 hours is the

big question?

– Nightshift – productivity 50% below day shift (SA Mining research)

• Split shift (two operators sharing one shift)– higher labour costs

– 20% higher production (Canadian research)

• Job rotation– Taking responsibility for own work quality, e.g. Harvester / Forwarder

Shift systems designShift systems design

27

y o

u r

k n

o w

l e

d g

e p

a r

t n e

r


Outsourcing of operationsOutsourcing of operations

Human resource / labour force

Forest Contractor

Forest Grower

controlregulate

deliver

- Research- Innovation

- Development- Training

28

y o

u r

k n

o w

l e

d g

e p

a r

t n e

r


How to meet current challangesHow to meet current challanges

• Invest in innovative harvesting systems and encourage contractors to buy in.

• Own operations .. • Improve harvest planning.• Match harvesting systems with logging chance

factors (not the other way round).• Take responsibility and initiative to reinstate Forest

Engineering research, development & capacity building in South Africa.

29

y o

u r

k n

o w

l e

d g

e p

a r

t n e

r


How to meet current challangesHow to meet current challanges

• Encourage application of technological advanced innovations in forest operations.

• Reassess productivity in current operations.• Ensure a sound understanding of productivity and

cost drivers in mechanized operations.• Ergonomics and labour aspects (wages, health and

safety, training & skills development)• Focus on improving the supply chain, from stump

to mill.

30

y o

u r

k n

o w

l e

d g

e p

a r

t n e

r


Thank You !

d. l ä ngin, october 2008

Documents