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1 HITMAN Sonic Technology for Improved Profitability North America – June 2007 Peter Carter – Chief Executive, Fibre-gen Nigel Sharplin – Director, Fibre-gen

The HITMAN system explained

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Page 1: The HITMAN system explained

1

HITMAN Sonic Technologyfor

Improved Profitability

North America – June 2007

Peter Carter – Chief Executive, Fibre-genNigel Sharplin – Director, Fibre-gen

Page 2: The HITMAN system explained

2

Contents

• Fibre-gen and sonic technology• Values and contribution to profit• The value chain – integrating the technology• Results and value models• Opportunity analysis and implementation• The tools and how they work• Conclusions

Page 3: The HITMAN system explained

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Financial values

What is stiffness worth – a couple of examples• Verified visual grading – batch pass/fail

– VSG8 lumber premium is NZ$100/m3 ($450 vs $350)– At 55% conversion, 80% structural, equates to $36/m3 log– At 600m3/ha, 70% sawlog, 27 yrs, 8%, equates to $1,893/ha

• MSG lumber – incremental benefit– MGP8 lumber premium is NZ$250/m3

– 0.1km/sec gives 5% more MGP8, worth $12.50/m3

– At 600m3/ha, 70% sawlog, 27 yrs, 8%, equates to $657/ha

Measuring and managing stiffness will increase profit

Page 4: The HITMAN system explained

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Financial valuesWhat is stiffness worth – more examples• Sitka Spruce – United Kingdom

– Structural £150, Industrial £100• Spruce – Sweden

– MSR 1,450kr, Visual structural 1,350kr• Douglas fir – Oregon, USA

– MSR $350, Visual structural $310– LVL $350, Ply $230

• Southern Yellow Pine – Arkansas– MSR $195, Visual structural $178

Absolute differences vary with market conditions – premiums remain

Measuring and managing stiffness will increase profit

Page 5: The HITMAN system explained

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Financial values

Other values are significant too• Microfibril angle

– R2 in range 0.8 – 0.9– MFA is key predictor of solid wood stability and fibre stiffness

• Pulp & Paper properties– Fibre length and paper strength– Coarseness and sheet quality– Energy consumption and yield

• Eucalypt stiffness • Ash group Eucalypt internal collapse

Measuring and managing stiffness will increase profit

Page 6: The HITMAN system explained

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Feasibility

Hitman ST300• New tools are quick, non-destructive, easy and efficient

– Less than 1 minute/tree for testing– Wireless, with no cables to tangle or fail– Quick and easy insertion and removal of probes– No cores needed– No significant damage to young trees

• Mechanical and software enhancements improve precision• Variability and heritability are high• Breeding program on 10,000ha/annum could deliver >$10m/annum

Measuring and managing stiffness will increase profit

Page 7: The HITMAN system explained

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Feasible and valuable - BreedingHitman ST300• Variability and heritability are

high• Example mean 3.2 km/sec with

SD 0.2• Top 10% mean is 3.5 km/sec• Top 2% mean is 3.63km/sec• With heritability of 60%,

delivered gain is 0.18 and 0.26 respectively

• MSG example values this at $1,180 and $1,700/ha NPV at time of planting

Normal Distribution

0%2%4%6%8%

10%12%14%

2.6 2.7 2.8 2.9 3 3.1 3.2 3.3 3.4 3.5 3.6 3.7 3.8

Velocity (km/sec)

Page 8: The HITMAN system explained

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Lo b lo lly p in e (m e a n 3 .2 , SD 0 .2 1)X <= 2 . 8 8 3 0

5 . 0%X <= 3 . 5 85 5

9 5 . 0 %

0

0 . 2

0 . 4

0 . 6

0 . 8

1

1 . 2

1 . 4

1 . 6

1 . 8

2

2 2 . 5 3 3 . 5 4 4 . 5 5 5 . 5 6

Operational segregation results – LVL veneer• Pacific NW veneer manufacturers using

tools extensively• Roseburg Forest Products adoption –

standing trees, logs in forest, logs at mill, specifying to green veneer suppliers

• D fir Log sorting trials split at 13,000ft/sec threshold 1. 62% G1&G2 compared against 47%2. 60% G1&G2 compared against 45%

• At US$300/m3 for G1 veneer, 0.1 km (300’)/sec is worth $16 on log volume, or $4.8m for a 300,000 t mill

D o u g la s fi r (M e a n 4 .0 , SD 0 .3 7)X <= 3 . 4 3 1 8

5 . 0 %X <= 4 . 6 3 4 8

9 5 . 0 %

0

0 . 2

0 . 4

0 . 6

0 . 8

1

1 . 2

2 2 . 5 3 3 . 5 4 4 . 5 5 5 . 5 6

Standing Harvesting Stem Log Log Deck Lumber orTree Processor to Mill Veneer

ST300 PH330 HM200 HM200 LM600 Grader

>>>>>>>>>>>>>> >>>>>>> >>>>>>> >>>>>>>

Page 9: The HITMAN system explained

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• At US$40/mbf price differential on lumber, 660ft/sec improvement in log velocity (0.2 km/sec) increases MSR out-turn by 10% which is worth $0.3m for a 300,000 t mill

• Sampling cost $4,000/annum• Tool cost $10,000

Lo b lo lly p in e (m e a n 3 .2 , SD 0 .2 1)X <= 2 . 8 8 3 0

5 . 0%X <= 3 . 5 85 5

9 5 . 0 %

0

0 . 2

0 . 4

0 . 6

0 . 8

1

1 . 2

1 . 4

1 . 6

1 . 8

2

2 2 . 5 3 3 . 5 4 4 . 5 5 5 . 5 6

Operational segregation results – MSR output

D o u g la s fi r (M e a n 4 .0 , SD 0 .3 7)X <= 3 . 4 3 1 8

5 . 0 %X <= 4 . 6 3 4 8

9 5 . 0 %

0

0 . 2

0 . 4

0 . 6

0 . 8

1

1 . 2

2 2 . 5 3 3 . 5 4 4 . 5 5 5 . 5 6

Standing Harvesting Stem Log Log Deck Lumber orTree Processor to Mill Veneer

ST300 PH330 HM200 HM200 LM600 Grader

>>>>>>>>>>>>>> >>>>>>> >>>>>>> >>>>>>>

Page 10: The HITMAN system explained

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Results• Over 150 HM200 tools in use• Many trials undertaken in NZ, Aus, N America, UK, Sweden• Tools predict stiffness (MoE) across all species tested• Extensive research supports commercial application

Veneer UPT vs Director velocity

R2 = 0.99

400

420

440

460

480

500

520

540

560

580

2.50 2.70 2.90 3.10 3.30 3.50 3.70 3.90

Director velocity (km/ sec average of log batches)

UPT

(mic

rose

c ave

rage

of l

og

batc

hes)

Softwood species (groups)

Power (Softwood species(groups))

Standing Harvesting Stem Log Log Deck Lumber orTree Processor to Mill Veneer

ST300 PH330 HM200 HM200 LM600 Grader

>>>>>>>>>>>>>> >>>>>>> >>>>>>> >>>>>>>

HM vs LM 2nd Hamonic

y = 0.9892xR2 = 0.9642

200220240260280300320340360

200 220 240 260 280 300 320 340 360

LM freq

HM fr

eq

Page 11: The HITMAN system explained

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Results – monitoring moisture content• Acoustic velocity can be used as an indicator of moisture content• Applications - fuel wood stockpiles, and pulp logs for mechanical and

semi-chemical pulps• Velocity increases as green density declines• Procedure

– Establish definitive MC start point – standard sample

Standing Harvesting Stem Log Log Deck Lumber orTree Processor to Mill Veneer

ST300 PH330 HM200 HM200 LM600 Grader

>>>>>>>>>>>>>> >>>>>>> >>>>>>> >>>>>>>

– Mark selected logs and record velocities using a fixed assumed average log length in HM200 tool

– Re-record velocities at later date– Velocity increase defines loss of water

such that reduction in green density is proportional to increase in V2

Page 12: The HITMAN system explained

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New tools for measuring stiffness

• Full range of tools now available to measure stiffness• Manage quality from forest to lumber or veneer• Comprehensive research programs support users

Standing Harvesting Stem Log Log Deck Lumber orTree Processor to Mill Veneer

ST300 PH330 HM200 HM200 LM600 Grader

Hand Automated Hand Hand Automated Automatedtool tool tool tool tool tool

Thinning Sorting Quality control Quality control Resourcing GradingPHA Log making Sorting Sorting Sorting

Genetics Sawing

VariousFibre-gen Suppliers

Timberlands

>>>>>>>

Processing

>>>>>>> >>>>>>> >>>>>>> >>>>>>>

Standing Harvesting Stem Log Log Deck Lumber orTree Processor to Mill Veneer

ST300 PH330 HM200 HM200 LM600 Grader

>>>>>>>>>>>>>> >>>>>>> >>>>>>> >>>>>>>

Page 13: The HITMAN system explained

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Portables for field application

Standing Harvesting Stem Log Log Deck Lumber orTree Processor to Mill Veneer

ST300 PH330 HM200 HM200 LM600 Grader

>>>>>>>>>>>>>> >>>>>>> >>>>>>> >>>>>>>

Page 14: The HITMAN system explained

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New development – processor head tool

Standing Harvesting Stem Log Log Deck Lumber orTree Processor to Mill Veneer

ST300 PH330 HM200 HM200 LM600 Grader

>>>>>>>>>>>>>> >>>>>>> >>>>>>> >>>>>>>

Page 15: The HITMAN system explained

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Hitman LG640 – automated log tool

• Test 100% of logs• Longitudinal or

transverse chain• Continuous operation• Sort logs for batch

processing• Alter processing to

maximise MSR or veneer out-turn

Standing Harvesting Stem Log Log Deck Lumber orTree Processor to Mill Veneer

ST300 PH330 HM200 HM200 LM600 Grader

>>>>>>>>>>>>>> >>>>>>> >>>>>>> >>>>>>>

Page 16: The HITMAN system explained

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HM200, LG640 – how they work• Stiffness = density x (velocity)2

• Velocity is derived from resonant frequency (2nd harmonic) and length

• Sensor/microphone detects frequency from hammer blow

• Green density is relatively constant

3.3

length

velocity = 2 x length / time

stiffness density x velocity≈ 2

Standing Harvesting Stem Log Log Deck Lumber orTree Processor to Mill Veneer

ST300 PH330 HM200 HM200 LM600 Grader

>>>>>>>>>>>>>> >>>>>>> >>>>>>> >>>>>>>

Page 17: The HITMAN system explained

17

Director ST300, PH330 – how they work• ‘Time of flight’ outerwood velocity measure – higher than

log measure• Ruggedised, waterproof, wireless, auto-distance, audible

and visual output, interface to PDA• Velocity correlates strongly with log velocity at stand

levelAcoustic speed - standing tree vs log

6000

7000

8000

9000

10000

11000

12000

13000

14000

6000 8000 10000 12000 14000 16000

ST300 prototype on tree (ft/s)

HM

200

on lo

g (D

irect

or) (

ft/s)

Sitka spruceWestern hemlockJack pineWhite birchPonderosa pine

R2 = 0.925

Source: X Wang et al, University of Minnesota

Juvenile Wood

15 yrs 25 yrs 35 yrs

Juvenile Wood

15 yrs 25 yrs 35 yrs

Standing Harvesting Stem Log Log Deck Lumber orTree Processor to Mill Veneer

ST300 PH330 HM200 HM200 LM600 Grader

>>>>>>>>>>>>>> >>>>>>> >>>>>>> >>>>>>>

Page 18: The HITMAN system explained

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Results – sales/business benefits• Capability to measure quality before processing

– On log supply– On harvest planned– On stumpage purchased

• Capability to forecast actual mill LVL or MSR lumber outturn (currently hard to predict)

• Improved ability to reliably fulfill sales orders• Potential to lower G1 & G2 veneer or MSR lumber costs• Customer satisfaction and improved profitability

Standing Harvesting Stem Log Log Deck Lumber orTree Processor to Mill Veneer

ST300 PH330 HM200 HM200 LM600 Grader

>>>>>>>>>>>>>> >>>>>>> >>>>>>> >>>>>>>

Page 19: The HITMAN system explained

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Conclusions• HITMAN sonic technology available for use

in forest, yard, and mill

• Improved ability to meet orders, with higher grade out-turn and profit

• Assistance available with opportunity analysis and implementation

• For further information

[email protected]

www.fibre-gen.com

Page 20: The HITMAN system explained

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Further detail for implementation

Page 21: The HITMAN system explained

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Results – effect of temperature on velocityIn general• Acoustic velocity increases with lower temperatureBut• Rate of change not well defined• Moisture content changes may compensate on logs, but not in trees

Temperature Effect on Acoustic Velocity of Green Board

0200400600800

1000120014001600180020002200240026002800300032003400360038004000

-20 -15 -10 -5 0 5 10 15 20

Board Temperature (C)

Aco

ustic

Wav

e Ve

loci

ty (m

/s)

Stack 6 (50 boards)Stack 2 (50 boards)

V = 2365 - 17.69T (T ? 0 °C)

V = 2365 - 41.42T (T ? 0 °C)

Density (MC) adjusted acoustic speed

2

2.5

3

3.5

4

4.5

5

-25 -20 -15 -10 -5 0 5 10 15 20 25

Series1Series2Series3Series4Series5Series6Series7Series8Series9Series10Series11Series12

Source: L Bjorklund, VMR, SDCSource: P Harris, IRLSource: X Wang, University of Minnesota

Standing Harvesting Stem Log Log Deck Lumber orTree Processor to Mill Veneer

ST300 PH330 HM200 HM200 LM600 Grader

>>>>>>>>>>>>>> >>>>>>> >>>>>>> >>>>>>>

Page 22: The HITMAN system explained

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Results – log velocity within stem – butt to top• Acoustic velocity varies from butt to top although

greatest variation is between stems• Highest velocity logs are in mid section of stem• Variation follows pattern of microfibril angle

Source: X Wang et al, University of Minnesota

Radiata Pine - Log velocity within stem

2.50

3.00

3.50

4.00

0 5 10 15 20 25 30

Distance up stem (m)

Velo

city

(km

/sec

)

Average 3.2 km/ secAverage + 2 x SDAverage - 2 x SDStand Mean 3.2

Standing Harvesting Stem Log Log Deck Lumber orTree Processor to Mill Veneer

ST300 PH330 HM200 HM200 LM600 Grader

>>>>>>>>>>>>>> >>>>>>> >>>>>>> >>>>>>>

Page 23: The HITMAN system explained

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Location of boards in the log

Averagestiffness ofwood inboards upthe stems

Average stiffness of lumber cut from some 60 trees. Note the low stiffness at the base of the tree, in the butt logs.

Why not cut a short, 2.5 m butt log?

1st log 2nd log 3rd log

Ping Xu, 2002

Results – log velocity within stem – pith to bark

Source: J Walker, University of CanterburyStanding Harvesting Stem Log Log Deck Lumber orTree Processor to Mill Veneer

ST300 PH330 HM200 HM200 LM600 Grader

>>>>>>>>>>>>>> >>>>>>> >>>>>>> >>>>>>>

Page 24: The HITMAN system explained

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Results – velocity and MoE correlate with ageIn general• Acoustic velocity increases with increasing ageBut• Other factors affect velocity and MoE• Wide range of velocities within stands• Strategy - harvest highest V rather than oldest age (extra 0.06km/sec)

Log age vs. average acoustic velocity

R2 = 0.66

2.50

2.60

2.70

2.80

2.90

3.00

3.10

3.20

3.30

3.40

3.50

18 20 22 24 26 28 30 32 34

Log age (years)

StandLinear (Stand)

Velocity vs Stand Age

2.80

2.90

3.00

3.10

3.20

3.30

3.40

3.50

3.60

3.70

20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37

Age (years)

Velo

city

(km

/sec

)Mean Velocity (50% oldest age) = 3.43Mean Velocity (50% highest V) = 3.37

Benefit = 0.06km/ sec

Standing Harvesting Stem Log Log Deck Lumber orTree Processor to Mill Veneer

ST300 PH330 HM200 HM200 LM600 Grader

>>>>>>>>>>>>>> >>>>>>> >>>>>>> >>>>>>>

Page 25: The HITMAN system explained

25

Standing tree sampling – single trees• Measure is a single sample of outerwood velocity• Sampling procedure and intensity must match need• Single tree - intensive sampling

– Variation around stem– Knot location– Transverse – Compression wood– Hit variability

• 3 sets of 3 hits, in each of 2-4 locations around stem• High productivity (>60 sample sets/hour) – faster than

density coring

Standing Harvesting Stem Log Log Deck Lumber orTree Processor to Mill Veneer

ST300 PH330 HM200 HM200 LM600 Grader

>>>>>>>>>>>>>> >>>>>>> >>>>>>> >>>>>>>

Page 26: The HITMAN system explained

26

Standing tree sampling – single trees• Eyrewell study – radiata pine, age 28• Correlation between standing tree and log velocity

improves as sample intensity increases

Location/s on tree taps R2

Upper side 3 0.44Upper side 3 0.48Upper side 3 0.43

Upper side (A) 9 0.50Lower side (B) 9 0.45

Random side (D) 9 0.60Mean A+B 18 0.61Mean A+D 18 0.62

Mean A+B+D 27 0.67

Standing Harvesting Stem Log Log Deck Lumber orTree Processor to Mill Veneer

ST300 PH330 HM200 HM200 LM600 Grader

>>>>>>>>>>>>>> >>>>>>> >>>>>>> >>>>>>>

Page 27: The HITMAN system explained

27

Standing tree sampling - stands• More extensive sampling procedure to match need• Stand average measure

– Link sampling to pre-harvest assessment– Cover the stand – plots of 5+ trees– Cover diameter range– Variability between trees > within– Sample as many trees as possible in least time

• 1 set of 3 hits/tree on 35+ trees/stand• Productivity dependent upon terrain and vegetation

Standing Harvesting Stem Log Log Deck Lumber orTree Processor to Mill Veneer

ST300 PH330 HM200 HM200 LM600 Grader

>>>>>>>>>>>>>> >>>>>>> >>>>>>> >>>>>>>

Page 28: The HITMAN system explained

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Standing tree velocity• Correlation with log measures good• Absolute conversion varies primarily with velocity

Data Bank - Director HM200 vs ST300 Velocities

y = 0.7965x + 469.14R2 = 0.92

0

2000

4000

6000

8000

10000

12000

14000

16000

0 2000 4000 6000 8000 10000 12000 14000 16000

Standing tree velocity (Scopemeter or Director ST300 - ft/s)

Log

velo

city

(Dire

ctor

HM

200

- ft/s

)

Sitka SpruceRadiata Pine NZ 8 year oldRadiata Pine NZ 16 year oldRadiata Pine NZ 25 year oldRadiata Pine Aus 10 year oldRadiata Pine Aus 20 year oldRadiata Pine Aus 28 year oldRadiata Pine Aus 37 year oldD fir A OregonW HemlockJack PineBirchPonderosa PineSlash Pine ASlash Pine BLoblolly PineD fir B OregonD fir C OregonRadiata Pine Canterbury age 8Radiata Pine Canterbury age 28Wisconsin Red PineIdaho Ponderosa PineRadiata Pine NZ CNI 26 year oldRadiata Pine NZ CNI 26 year oldRadiata Pine NZ CNI 26 year old

Standing Harvesting Stem Log Log Deck Lumber orTree Processor to Mill Veneer

ST300 PH330 HM200 HM200 LM600 Grader

>>>>>>>>>>>>>> >>>>>>> >>>>>>> >>>>>>>

Page 29: The HITMAN system explained

29

Standing tree velocity• Green density adjustment of log measure appears

usefulData Bank - Director HM200 (Green Density Adjusted) vs ST300 Velocities

y = 0.5887x + 2570.4R2 = 0.9624

0

2000

4000

6000

8000

10000

12000

14000

16000

0 2000 4000 6000 8000 10000 12000 14000 16000

Standing tree velocity (Scopemeter or Director ST300 - ft/s)

Log

velo

city

(Dire

ctor

HM

200

- ft/s

)

Radiata Pine NZ 8 year oldRadiata Pine NZ 16 year oldRadiata Pine NZ 25 year oldRadiata Pine Aus 10 year oldRadiata Pine Aus 20 year oldRadiata Pine Aus 28 year oldRadiata Pine Aus 37 year oldD fir BD fir CD fir ARed Pine WisconsinRadiata Pine NZ CNI 26 year oldRadiata Pine NZ CNI 26 year oldRadiata Pine NZ CNI 26 year old

Standing Harvesting Stem Log Log Deck Lumber orTree Processor to Mill Veneer

ST300 PH330 HM200 HM200 LM600 Grader

>>>>>>>>>>>>>> >>>>>>> >>>>>>> >>>>>>>

Page 30: The HITMAN system explained

30

Verified Visual Grading – NZ example• Consultation and introduction in NZ in 2006 –

December deadline for adoption • Visual graded lumber sample will be proof tested

– 1 in 1000 boards sampled– Static bending and breaking tests– 30 sample rolling average must exceed standard

for MOE and MOR - average and minimum– Self-run with independent auditing

Result: Stiffness of supply is critical

Standing Harvesting Stem Log Log Deck Lumber orTree Processor to Mill Veneer

ST300 PH330 HM200 HM200 LM600 Grader

>>>>>>>>>>>>>> >>>>>>> >>>>>>> >>>>>>>

Page 31: The HITMAN system explained

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Verified Visual Grading – NZ exampleCharacteristic stresses for

visually graded timber (GPa)

3.24.83.011.07.5No 1 Framing1

4.46.54.012.011.7VSG102

VSG82

G82

Radiata Pine & Douglas Fir

2. Moisture condition – Green2 (m/c = 25%)

4.06.04.015.010.0No 1 Framing1

6.75.4

10.08.0

8.06.0

20.018.0

20.014.0

VSG10VSG8

Radiata Pine & Douglas Fir

LowerBound

Modulus of Elasticity Elb

(GPa)

Modulusof Elasticity

E (GPa)

TensionStrength

ft

CompressionStrength

fc

BendingStrength

fb

GradeSpecies

1. Moisture condition – Dry (m/c = 16%).

Standing Harvesting Stem Log Log Deck Lumber orTree Processor to Mill Veneer

ST300 PH330 HM200 HM200 LM600 Grader

>>>>>>>>>>>>>> >>>>>>> >>>>>>> >>>>>>>

Page 32: The HITMAN system explained

32

Verified Visual Grading – NZ example• Acoustic velocity from standing trees or green log velocity

measures offer a guide to absolute stiffness • Stiffness = density x (velocity)2

• Adjustments required for– Green density and moisture content– Increase in stiffness from 30% moisture content to ‘dry’

• Dynamic MOE of 8GPa is indicative of VSG8 production and would require– Average log velocity 2.8km/sec (allowing 0.1km/sec for SE

of mean)– Green density 1000kg/m3

– Moisture content 150%• 8GPa target velocity could vary 2.70 - 3.00

Standing Harvesting Stem Log Log Deck Lumber orTree Processor to Mill Veneer

ST300 PH330 HM200 HM200 LM600 Grader

>>>>>>>>>>>>>> >>>>>>> >>>>>>> >>>>>>>

Page 33: The HITMAN system explained

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Example program - Scotland• Preliminary tests to familiarise with tools• Forest survey – map acoustic speed at stand level across

topography, altitude, soils, age, silviculture (>50 stands)• Confirm relationship between average

standing tree velocity and average log velocity. Confirm velocity pattern up tree (>15 stands)

• Saw sample of logs and confirm static MOE and MOR of lumber, and grade out-turn, relative to log velocity

• Correlate static MOE with predicted MOE from commercial testing devices (x-ray density, acoustic, mechanical bending)

Standing Harvesting Stem Log Log Deck Lumber orTree Processor to Mill Veneer

ST300 PH330 HM200 HM200 LM600 Grader

>>>>>>>>>>>>>> >>>>>>> >>>>>>> >>>>>>>