Browsing by Author "Shaffer, Robert M."
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- An analysis of the capital budgeting sophistication of primary forest products firms in the Eastern United StatesBush, Robert J. (Virginia Tech, 1986-07-05)The investment decision-making techniques, financing methods and equipment needs of 1,818 sawmills and pallet manufacturers in the Eastern United States were studied. Information was gathered using a mail survey and 581 usable responses were received. It was found that discounted cash flow techniques have not been extensively adopted by the firms under study as primary methods of investment analysis. Undiscounted payback period was the most extensively used quantitative method. The majority of firms compared the expected return on an investment to a minimum rate of return but this minimum was often determined non-quantitatively. Firms most often accounted for the risk of an investment by subjective means.
- An analysis of workers' compensation insurance for the southeastern United States logging industryWilson, George Edward (Virginia Polytechnic Institute and State University, 1989)The objective of this research was to analyze the workers’ compensation insurance system for the logging industry in the states of Alabama, Florida, Georgia, Louisiana, Mississippi, North Carolina, South Carolina, Tennessee, and Virginia. Insurance rate components were fairly consistent among the nine states investigated. Approximately 72 percent of the workers’ compensation insurance rate is composed of loss components and components utilized to update and predict future losses of the year (time period) that the manual rate is in effect. The higher manual rates for the production based 2705 classification can be explained, in part, due to the different premium basis, i.e., production versus payroll. Upset factors based on 1) historical wage and productivity information and 2) a logging contractor survey, indicated that statewide upset factors were too low to equate production based payroll to actual payroll. Low upset factors provide a direct disincentive for contractors to move to an actual payroll basis. Experience modification, premium discounts and retrospective rating are used to customize premium to firm specific characteristics. The credibility test of the experience modification parameters indicated that a greater weight to firm specific characteristics is warranted for harvesting operations. The majority of logging injuries in North Carolina and Virginia occurred during felling and topping activities. An increase in lacerations as an injury type and topping as an occupation type in the coastal plain region may indicate that feller bunching and gate delimbing reduced neither the number or type of injuries. The high number of inexpensive losses contributes substantially to the logging industry’s poor safety image. A number of recommendations for improving the workers’ compensation system are presented. Recommendations which focused on system changes included eliminating numerical exemptions, establishing a $500 deductible clause, creating a mandatory retrospective rating plan for assigned risk policies, and designing greater credit and debit modifications based on firm characteristics. It was also suggested that a regional accident reporting system, funded from surcharged assigned risk policies, be established to provide actuarial data for rate hearings and loss control programs. Other recommendations included eliminating the 2705 "pulpwood only" classification, increasing and indexing the state’s upset factors, and determining the amount of premium slippage that occurs.
- Business-level competitive strategy in the United States hardwood lumber industryBush, Robert (Virginia Polytechnic Institute and State University, 1989)Three related aspects of competition in the U.S. hardwood lumber industry were investigated. First, product and supplier attributes that are determinant in hardwood lumber purchase decisions were investigated within four segments of the market for hardwood lumber: Millwork producers, hardwood dimension and flooring producers, wood household furniture producers, and wood kitchen cabinet producers. Attributes with the highest determinant scores were: grading accuracy, supplier’s reputation, freedom from surface checks, competitive pricing, and within-load thickness consistency. The least determinant attribute was the presence of the suppliers logo or trademark. The importance of various attributes was generally consistent across the market segments and producers were relatively well attuned to the needs of lumber users. Lumber users were least satisfied with lumber quality. Lumber producers perceived users to be least satisfied with the availability of certain species. Business-level intended competitive strategy in the industry was investigated through quantitative identification of strategic groups in a sample consisting of the 100 largest U.S. hardwood lumber producers. Factor and cluster analyses were used to define strategic groups along the dimensions of cost leadership, focus, and differentiation. Five strategic groups were identified and examined as to strategic orientation and intra-group homogeneity. The differentiation dimension accounted for the greatest portion of strategic variation. Empirical evidence of the use of hybrid Overall Cost Leadership/Differentiation strategies was found—suggesting that strategic typologies that do not account for this strategy may not be applicable to a mature industry. Predicted strategic change in the industry concentrated on increasing differentiation orientation. Qualitative data concerning competition in the industry was obtained via in-person interviews with executives at twenty of the largest companies in the sample. ln general, the largest and smallest companies in the industry were found to be the most production oriented. Companies self-typed their competitive strategies using Porter‘s (1980) strategic typology. Overall Cost Leadership strategies were the most common followed by Differentiation and Focus strategies. The majority of companies interviewed competed for customers based on quality, customer service, and price—in that order of importance. Proprietary grading was an important competitive tool for larger companies.
- A Checklist for Efficient Log TruckingShaffer, Robert M.; Stuart, William B. (Virginia Cooperative Extension, 2005-09-01)Today's logger must stress efficiency and safety in his trucking operations. To do otherwise will result in reduced revenue or even insolvency. The following checklist describes 10 steps that may help to improve log trucking efficiency. Some or all may apply to your operation.
- Decreasing the cost of hauling timber through increased payloadBeardsell, Michael G. (Virginia Polytechnic Institute and State University, 1986)The potential for decreasing timber transportation costs in the South by increasing truck payloads was investigated using a combination of theoretical and case-study methods. A survey of transportation regulations in the South found considerable disparities between states. Attempts to model the factors which determine payload per unit of bunk area and load center of gravity location met with only moderate success, but illustrated the difficulties loggers experience in estimating gross and axle weights in the woods. A method was developed for evaluating the impact of Federal Bridge Formula axle weight constraints on the payloads of tractor-trailers with varying dimensions and axle configurations. Analysis of scalehouse data found log truck gross weights lower on average than the legal maximum but also highly variable. Eliminating both overloading and underloading would result in an increase in average payload, reduced overweight lines, and improved public relations. Tractor-trailer tare weights were also highly variable indicating potential for increasing payload by using lightweight equipment. Recommendations focused first on taking steps to keep GVW’s within a narrow range around the legal maximum by adopting alternative loading strategies, improving GVW estimation, and using scalehouse data as a management tool. When this goal is achieved, options for decreasing tare weight should be considered. Suggestions for future research included a study of GVW estimation accuracy using a variety of estimation techniques, and field testing of the project recommendations.
- Farm Tractor Logging for Woodlot OwnersShaffer, Robert M. (Virginia Cooperative Extension, 2005-09-01)Farmers considering part-time farm tractor logging may also have justifiable concern over the issue of safety. However, with professional training, extensive use of personal protective equipment (such as hard hat, saw chaps, and steel-toe boots) and a healthy respect for the dangers inherent in logging, a properly equipped farmer could develop a profitable part time farm tractor logging operation for use on his own forest land.
- In-woods weighing systems for southern logging(Virginia Cooperative Extension Service, 1989)Discussion of weighing systems for the southern logging industry
- A Logger's Guide to Harvest PlanningShaffer, Robert M. (Virginia Cooperative Extension, 2005-09-01)Today's logging contractor must comply with numerous laws and regulations affecting every facet of his business. Best Management Practices, or BMP's, are recommended operation guidelines for logging that are designed to minimize environmental impact and maintain water quality.
- Loggers' perceptions of the costs of best management practices on timber harvesting operations in VirginiaWorrell, E. Glen (Virginia Tech, 1996)Water quality practices can have a financial impact on the cost of harvesting timber in Virginia. Two hundred seventy-two timber harvesters were surveyed to determine the estimated cost for implementing best management practices (BMPs) on harvested sites. BMPs analyzed in this study are pre-harvest planning, road construction, broad base dips, water turn-outs, water bars, streamside management zones, stream crossings, and site stabilization. Loggers provided an estimate of the cost or expense for constructing each BMP. They gave an indication of how costly these practices were to implement. The responses for each BMP were then stratified by region to determine if there were regional differences in the unit costs. With the exception of haul road construction costs, the data showed no regional differences in the unit BMP costs across Virginia. Forty-six harvested sites in Virginia were visited to determine the number of BMPs constructed for the harvesting operations. The total cost of following BMP guidelines was calculated using the state median cost, regional road construction costs, and number of practices installed on the site for each tract. The BMP cost per acre was reported by region.
- A Markov process methodology for modeling machine interactions in timber harvesting systemsHassler, Curt C. (Virginia Polytechnic Institute and State University, 1985)Recent advancements in timber harvesting systems analysis have been almost exclusively simulation based. A similar degree of effort in developing analytic models has been conspicuously absent. That part of timber harvesting analysis where simulation plays its most vital role is the study of machine interactions. The importance of machine interactions lies in determining the proportions of delay, idle and productive time for the interacting machines. This in turn, is important for balancing productivity so that no single component of the interaction is accumulating excessive amounts of delay or idle time. The objective of this study was to determine the feasibility of applying Markov process theory to the analysis of timber harvesting systems and components. Through modeling the interaction between a fixed location slasher and a grapple skidder, it is shown how a Markov model can be used to obtain proportions of delay, idle and productive time. Unlike the statistical solutions derived from simulation models, the Markov model improves upon this by providing an analytic solution. The Markov model also avoids the problems of correlated output data from simulations by explicitly recognizing that any possible future state is dependent only on the current state of the system and is conditionally independent of the past history of the system. The methodology for building a Markov model requires dealing with only two probability distributions, the Erlang and mixed Erlang, for modeling time based activities (such as cycle times) of the interacting machines. These probability distributions in turn, provide the necessary data for developing a system of algebraic equations for solving the Markov process model. While this is the first step in applying stochastic process theory to timber harvesting analysis, the results of this study indicate that the technique has considerable potential for application in timber harvesting system modeling.
- A timber supply model and analysis for southwest VirginiaClements, Stephen E. (Virginia Polytechnic Institute and State University, 1987)A model was developed to estimate the economic stock supply of primary wood products. Two hardwood products were recognized: logs and bolts. The supply model was used to evaluate the impacts of shifting primary product demands and increasing supply costs on delivered prices and quantities in southwest Virginia. Homogeneous supply response cells, identified from Forest Service forest survey data, were used to generate log and bolt supplies. Response cells define blocks of forest land with similar biologic, physiographic, and landowner characteristics. Yield equations estimate the volume of logs and bolts available. Harvesting and hauling costs depend on a response cell's physiographic characteristics. Stumpage owners set reservation price as a function of expected stumpage prices, future timber yields, and an alternative rate of return. Recovery cost per unit in a response cell equals the sum of harvesting and hauling costs and reservation price. The quantities of logs and bolts supplied are determined by comparing harvest revenues to recovery costs. If revenues are greater than or equal to costs in a particular response cell, then timber is harvested The demands for logs and bolts are derived from the demand for manufactured products. Log and bolt demand equations in the model were statistically estimated. For each time period, the model determines the delivered log and bolt prices which equate the quantities of logs and bolts supplied to the quantities demanded. The solution technique is iterative. The quantities demanded and supplied of logs and bolts are determined for the given delivered prices. If quantities supplied do not equal the quantities demanded, then delivered prices are adjusted, and the quantities are recalculated. Primary product supplies in southwest Virginia are price elastic because of extensive hardwood resources and relatively constant recovery costs. Expansions in primary product demands expected over the next 15 years should have little direct impact on delivered prices. Delivered prices, however, will be sensitive to production costs. These costs will rise if factor input prices, such as fuel prices, wage rates, or machinery costs, increase.