Browsing by Author "LeBel, Luc"
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- Performance and efficiency evaluation of logging contractors using data envelopment analysisLeBel, Luc (Virginia Tech, 1996-12-14)Nonparametric data envelopment analysis (DEA) models were coded and used to measure radial and non-radial technical efficiency for a sample of logging contractors. Firms were evaluated in regards to the efficiency with which they converted inputs—dollars of capital, consumables, and labor—into output— tons of wood. Overall, for the period between 1988 to 1994, the logging contractors were efficient, but some were considerably less efficient than their peers. Loggers tended to move from period of high efficiency to period of lesser efficiency, although some were considerably more stable than others. Of those contractors who displayed the most stability in regard to technical efficiency, a majority could be considered as enjoying a preferred-suppliers status. Of the least stable loggers, none were identified as operating under a preferred-suppliers agreement. There was strong evidence that low capacity utilization had a negative impact on technical efficiency, quarters when capacity utilization was high were more likely to have a high technical efficiency ratio than quarters with a low capacity utilization. Operating scale also influenced technical efficiency. For the sample, the most productive scale size (mpss) was estimated to be somewhere between 60,000 to 80,000 tons per year. Up to that size, increasing return to scales were observed, afterward decreasing returns to scale settled in. Approximately one quarter of all inefficiencies were scale related. The relationship between overall technical efficiency and unit and total margin was explored using scale efficient loggers (pure technical efficiency). For these observations the mpss corresponded to the point of minimum average cost. Loggers producing at a size below the mpss could increase total and unit margin by increasing production. Once past the mpss, loggers could decrease their unit margin but still increased their total margin up until marginal costs equaled marginal revenue. The rate paid by a procurement organization influence fhe size at which loggers can produce profitably, and determine the level of production elasticity available.
- Production capacity utilization in the southern logging industryLeBel, Luc (Virginia Tech, 1993-08-01)Daily production data were obtained from 22 independent contractors. The collected information included the contractors' estimates of their maximum production capacity and the actual production achieved. Explanations were requested to explain any difference between actual and achieved production. Most frequent causes of lost production were: 1) adverse weather, 2) quotas,3) moving. Other reasons for delays included mechanical problems, and labor problems. Median capacity utilization for the study period was 70%. The region of operation had a significant influence on capacity utilization: Contractors from the Piedmont had the highest capacity utilization (median of 81%), Coastal Plain (70%), and southern Appalachian (63%). Rain had the most impact on contractors. Above average rainfall occurred over much of the region during the study period. Stricter environmental regulations are suspected to have increased the impact of rain on harvesting operations. Production quotas affected a number of loggers during the study, especially in the southern Appalachians. Capacity losses accounted for six to nineteen percent for these contractors. Overall, weather proved much more significant than quota. A model was developed to estimate the cumulative cost of extra capacity in relation to the risk of wood outage at the consuming mill. The model could serve as a starting point for a better understanding of stump to mill wood flow. Quality control statistical methods were adapted to analyze logging operations systems. Run charts, control charts, and cusum charts were used to measure variability in systems' production. Variation in production levels appear to be increasing with increased regulation. Elasticity has become essential for contractors to maintain profitability. High production during the relatively short periods of good weather and no quotas generated the margin necessary to sustain the contractors during periods of little or no production. Findings suggested that long term production record should be maintained for a selected group of contractors. Better knowledge on the southern wood supply system sustain ability and adaptability could be developed for use in operation and inventory management planning. An increased knowledge and a broader use of quality management tools should be considered in wood procurement.