Coast Lean Log Handling Project 11/10/2017 TOPFN Division 1 WHAT - PowerPoint PPT Presentation

Coast Lean Log Handling Project 11/10/2017 TOPFN Division 1

WHAT IS LEAN? • LEAN is a philosophy that focuses on fostering and enabling a continual improvement culture by encouraging efficiency 11/10/2017 through the elimination of unnecessary rules, processes and non-essential steps. • LEAN helps us: TOPFN Division - Deliver services that meet customer’s needs first -Build internal capacity as we focus on higher value work -Save employee time and resources 2

Coast Lean Log Handling Project Background • In 2015 the BC government made a commitment to work with 11/10/2017 industry to assess the forest sector’s competitiveness. • As a part of this commitment the Competitiveness Strategy Steering Committee agreed to conduct a “Lean” project focused on streamlining log handling on the coast. TOPFN Division • This is the first BC government Lean project to jointly involve both government and industry. Ministry of Forests and Range Act (excerpt from Sect.4) The purposes and functions of the ministry are …: (d) encourage a … world competitive (i) timber processing industry, (e) assert the financial interest … in a systematic and equitable 3 manner.

Coast Lean Log Handling Project Discussion Industry and government team mapped out the process and 11/10/2017 landed on four projects to move forward on in the following order: • Alternate Scaling: a 5-day workshop was held late July 2015; TOPFN Division • Export Process: a 5-day workshop was held late October 2015; • Cruise Based Billing: a 4-day workshop was held early March 2016; • Log Grading: workshop -date TBD. The workshop groups focussed on improvements to some elements and on changes that could be accomplished in the short and medium terms. 4

Alternate Scaling TOPFN Division 11/10/2017 5

Alternate Scaling Key Recommendations (July 2015): Piece Scaling 11/10/2017 • Reduce check load to a smaller "Commit Parcel“ (As of July 2017 26 scale sites have implemented the TOPFN Division fluid check-parcel process. Four of these sites are in NICC District, 8 in Campbell River, 11 in South Island 2 in Chilliwack and 1 in Sunshine Coast). • Improve accountability of scalers • Increase use of roadside scaling 6

Alternate Scaling Key Recommendations (July 2015): Weight Scaling • Engage biometrician to form recommendations for optimized 11/10/2017 sampling (Kim Iles). -The short-term recommendations were communicated and implemented for the 2017 sampling plans. -The implementation of the medium and long term recommendations TOPFN Division may require HBS and regulation changes. There is no target date for implementation of medium & long-term recommendations at this time. Significant estimated future annual savings for the coast; approximately $5-6/m 3 for volume that is weighed instead of piece- scaled. • Check Load pilot (reduce the requirement to leave a check load for both piece and sample scaling at the same location; implemented at a number of scale sites). • Review scaling requirements for export 7

Alternate Scaling Other Recommendations (July 2015): • Streamline administration processes (eg. LDS, Scale Site 11/10/2017 Authorisation Documentation). • Continue work on log scanner - (In 2016 Interfor carried out pilot project and scanner scaled 21,000 m 3. Future savings on coast TOPFN Division estimated at $1.1M based on scanner scaling 100,000 m 3 per year). • As of Oct.2017 approx. 4,000 m 3 scanner scaled this year at Acorn. Added Projects after July 2015 workshop: • Automated Scales (several licensees considering this) • Water scaling (Test#1-June 2016 & Test#2 October 2017) • Mark/Site Designation - Sept.2017 – New Scale Site Designation 8 Notice was put into implementation on the Coast. • Scaled Timber Brand Notice- Sept.2017 Implementation

Alternate Scaling – Check Load 11/10/2017 TOPFN Division 9

Check Load-Ladysmith 10 TOPFN Division 11/10/2017

Check Load- Quatsino 11 TOPFN Division 11/10/2017

Check Load-Hemming Bay 11/10/2017 TOPFN Division 12

Water scaling – Burleith (Ladysmith) 11/10/2017 TOPFN Division 13

Water scaling (Safety SOP) 11/10/2017 TOPFN Division 14

Water scaling 15 TOPFN Division 11/10/2017

Water scaling – Burleith 2017 (Barge Off-Load) 11/10/2017 TOPFN Division 16

11/10/2017 TOPFN Division Water scaling – Burleith 2017 2017 Water Scaling Pilot tested out the feasibility of safely 17 and accurately scaling on the water while maintaining bundle integrity

Water scaling – Burleith 2017 11/10/2017 TOPFN Division 18

Automated Scale- Kelsey Bay 11/10/2017 TOPFN Division 19

Automated Scale- Kelsey Bay 11/10/2017 TOPFN Division 20

Automated Scale- Kelsey Bay 11/10/2017 TOPFN Division 21

Log Scanner- 2016 Pilot 11/10/2017 TOPFN Division 22

Log Scanner – Interfor Acorn Mill 11/10/2017 TOPFN Division 23

Roadside Scaling – Jeune Landing 11/10/2017 TOPFN Division 24

Roadside Scaling 25 TOPFN Division 11/10/2017

Export Process Workshop (Oct.2015) Current State Mapping 26

Weekly Advertising Process Process (prior to April 2016) Wk0 Wk1 Wk2 Wk3 Wk4 Wk5 Application Process 1 Advertisement Application Process 2 Advertisement 4 weeks New Process Wk0 Wk1 Wk2 Wk3 Wk4 Wk5 Application Advertisement Process 1 Application Advertisement Process 2 Application Advertisement Process 3 27 2 weeks

Log Export Key Changes  Marking: Mixed marks now allowed in export bundles for all scale types and the same scaling & marking standards for domestic and export (a communication note was sent to stakeholders Jan.20, 2016). Estimated on-going annual savings of $2.75M.  Weekly surplus test advertising schedule (implemented Apr.6, 2016). Estimated one-time $10.2M savings to industry. On-going annual savings of $1.4M.  New 2.5% volume tolerance of incidental aggregate prohibited species and grades for export (implemented Jun.1, 2016)  Clarification note regarding method of describing the location of advertised parcels (sent out Feb.16, 2017). 28

Log Export Moving Forward 2017  Mixing Timbermark Types Within a Bundle (pilot tested from April - October 2017)  Implement changes in LEXIS (to provide more detail info – in progress)  Mixing Sort Descriptions within a bundle (no agreement to pilot or implement) 29

11/10/2017 TOPFN Division Mixing Timbermark Types Within a Bundle Part of the pilot involved completing boom inspections to determine the 30 percentage of Provincial timbermarks versus Federal timbermarks.

11/10/2017 TOPFN Division Mixing Timbermark Types Within a Bundle 31 Paint colour distinguishes Provincial mark from Federal mark

Cruise Based Billing Workshop Summary

Proposed Cruise Based Billing Standards Use CGNF Cruising for CBB 10% Standard Error on Cutting Permit Cruise OR For CPs less than 40 ha - 2 plots per ha, (all full or 1 Full and 1 Count) per ha For CPs over 40 ha - 1 Full Measure per ha Any polygon < 5 ha - 2 plots per ha Maximum 100m X 100m square grids 33

Roll Out of CBB – Step 1  Use CGNF with updated cruise standards (Cruising Manual updated-June 15, 2016)  No adjustments to cut control reporting  No change to the cruise volume for pricing purposes 34

Roll Out of CBB – Step 2  Use CGNF with updated cruise standards  Review and implement adjusted pricing model  No adjustments to cut control reporting There is no expectation that an amended Cut Control volume will be agreed upon during this phase. 35

Roll Out of CBB – Step 3  Use CGNF with updated cruise standards  Implement adjusted pricing model  Review and Implement adjusted Cut Control Volume Reaching agreement on any adjustment to cut control volumes will require the involvement of Timber Pricing, Timber Tenures and the Chief Forester’s Office. 36

Lean Project Coast Lean Project Manager (since Jan.9, 2017) Erich Geddert 11/10/2017 Timber Measurements Project Manager Erich.Geddert@gov.bc.ca TOPFN Division 250-286-9406 (office) 250-203-3984 (cell) Coast Lean Project Manager (May 2015 – Mar.31, 2017) Steve Laberge, Senior Project Manager Steve.Laberge@gov.bc.ca 250-217-4433 (cell) 37