process design in forest biomass procurement chains - cif · pdf fileprocess design in forest...
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Technische Universität München
J. Windisch
Process design in forest biomass procurement chains
Johannes Windisch
Munich Technical University
Technische Universität München
J. Windisch
Technische Universität München
J. Windisch
…they are about people
Technische Universität München
J. Windisch
What does a common supply chain view reflect?
Production
Technische Universität München
J. Windisch
What this view does not reflect
Production
Finding and acquisition of stands
Finding and acquisition of stands
Interaction of actors and stakeholders
Interaction of actors and stakeholders
Assessment/monitoring of fuel quality
Assessment/monitoring of fuel quality Coordination/
management of operations
Coordination/management of operations
Information and data exchange
Information and data exchange
Technische Universität München
J. Windisch
Model of the procurement process
PlantForest ownerForest service
providerContractorsForest authority
Finding stand
Negotiations and completion of contract
Negotiations and completion of contract1
Preparation of loggingPreparation of
logging
Logging
Manual
measurement of
removal
Logging follow-up
Evaluation of
quality and
purchase
Preparation of chipping
Supervision
Chipping follow-up
Accounting of raw
material and
chipping
Payment forest
owner and logging
contractor
Supervision
Chipping
Technische Universität München
J. Windisch
Business process map of the current as-is process Forest owner
Forest
authority
Forest service
provider
Logging contractor
Timber broker
Logistics manager
Chipping contractor
Hauling contractor
Technische Universität München
J. Windisch
Staff costs
Mileage allowances
Contractors’ opportunity costs
Costs of inefficient business processes
Technische Universität München
J. Windisch
Creates process awareness
Clarifies the process structure
Pictures all activities performed
Shows all actors in the chain
Makes visible who does what in the process
Benefits of process mapping
Technische Universität München
J. Windisch
Reengineering of inefficient practices
Elimination of superfluous and redundant activities
Rationalisation of data collection and transfer
Applying proven good practices
Process improvement measures
Technische Universität München
J. Windisch
0
2
4
6
8
10
12
As-is To-be
€/m
3 Contractors
Organisation andmanagement
Costs of organisation and management
Technische Universität München
J. Windisch
Machine utilisation and opportunity costs
1500 PMH/a
1560 PMH/a
Opportunity costs: 113 CAD/h
35385 CAD/year
42161 CAD/year
+ 4 % + 19 %
1200 PMH/a
1260 PMH/a
Opportunity costs: 186 CAD/h
47040 CAD/year
58212 CAD/year
+ 5 % + 24 %
Technische Universität München
W. Warkotsch
Challenges in process improvement
Traditions
Lack of professionalism
Changing customers and suppliers
Lack of trust
Lack of drivers
Technische Universität München
J. Windisch
Thank you for your attention