A Study of Efficiency in the Australian Timber Industry

Efficiency factors in the economic survival in the Australian timber and manufacturing industry and possible industrial design solutions.

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Karl Vaupel student number 11024736 University of Technology, Sydney Major Project research report 84902 Research and Conceptualisation Student Number: 11024736

Abstract

The timber industry is one of few continuingly viable manufacturing industries in Australia, however it too is threatened by the increasing pressure from the international market. This report explores the major factors affecting the industry and problems which can be solved by a product developed as a one year industrial design project. Based on the designer’s available resources and commercial viability, a device which aids the movement and storage of stock has been found to be most likely to aid the industry and employee wellbeing.

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Table of Contents

1. Abstract 2. Table of Contents 3. Introduction 3.1. Personal Experience 3.2. Funding 4. Research Background 4.1. Threats to Australian Manufacturing 4.1.1. Australian Labour Costs 4.1.2. Shipping and geographic location 4.1.3. Relocating Australian Manufacturing 4.2. The importance of Australia’s manufacturing industry: 4.2.1. Employment 4.2.2. Resulting Research 4.3. Australia’s Economic Structure 4.4. Focus on the timber industry: 4.4.1. The Importance of Timber 4.4.2. In need of design 5. Investigative and literature review of the Australian Timber Industry 5.1. Research Objective: 5.2. Research Methodology 5.3. Foundations of Sawmilling 5.3.1. Subsystem 5.3.2. Timber Processing Subsystem Domestic Trade 5.4. Local Product 5.5. Local Market 5.6. International Market 5.7. Labor intensity 5.8. Rural Corporate Culture 5.9. Flexibility 5.10. Occupational Health and Safety 5.11. Wellbeing

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5.12. sustainability 5.13. Vic’s Timber case study 5.13.1. Overview 5.13.2. Production Line Stages 5.13.3. Waste 5.13.4. Human Resources 5.13.5. Adapting to changing markets 5.13.6. Power Consumption 5.13.6.1. Literature review: 5.13.7. Conclusion: 5.13.7.1. Worker motivation / well being 5.13.7.2. Pack Movement 5.14. Ecquality Timber case study: 5.14.1. Increasing Cost of labour 5.14.2. Kaizen 5.14.3. worker motivation 6. Issue of Greatest Need 6.1. Motivation and wellbeing 6.2. Power Generation 6.3. Pack Movement 7. Pack Movement Further Analysis 7.1. Walker Brothers Pack movement study 7.2. North Wyong Mill Pack movement study: 7.2.1. Conclusion 7.3. Market analysis 7.3.1. Custom Fabrication 7.3.2. Existing products 8. References 9. Dolly Brief 9.1. Aim: 9.2. Market: 9.3. Product objective: 9.4. Requirements: 9.5. Manufacturing 10. Design Research 10.1. Manufacture

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10.2. Component Options: 10.2.1. Footprint 10.2.2. Power 10.2.3. Lifting Mechanism Options: 10.2.4. Access to rear timber 10.2.5. Movement 10.2.6. Control 10.2.7. Fixing 10.2.8. Achieving minimum height 10.3. Embodiment 11. Business viability and setup 11.1. Company Tasks 11.1.1. Investment and Profits 11.1.2. Intellectual Property 11.1.3. Marketing Strategy 11.1.4. Management and external consultants 11.1.5. International Markets 12. Appendix 12.1. Email conversation with May Su 12.2. Email Conversation with Terry Newman

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Introduction

The decline of manufacturing is well documented in Australia (Conlon 1985) which has a large impact on industrial design practice locally (Bohemia 2003). I seek to directly impact this negative trend by selling a product which aids local manufacture. To have maximum impact with my given resources this report focus on the timber industry where the author has existing connections and will be able to achieve the most relevant research and realisation.

Personal Experience Between December 30th 2013 and February 22nd 2014 I was employed on contract at a timber processing factory in China, owned by an Australian national, Terry Newman. I was employed to make the factory more efficient in a range of areas including dust extraction, production line layout, waste management, storage, and stock movement. Most solutions were very specific to that facility (and often culturally specific to china). Newman initially wanted to open the factory in Australia but a cost made China the more viable option, even though major factors such as ideology, language, bureaucracy, and quality of life opposed this conclusion. He is now facing some issues common to Australia with rising labour costs in China compared to competing labour markets such as vietnam. (Newman 2014, pers.comm.) (statistical analysis in section 5)

Funding Manual handling of timber between machines was identified by Newman as the biggest labor inefficiency in his facility, prompting him to offer me funding to develop a solution. Newmans supplier in Australia (Vic Gersekowski) had shown interest in the same need, which if proven viable will be the basis of mass producing and distributing the same product in Australia, funded and facilitated by Mr. Newman. (Newman 2014, pers.comm.) This opportunity makes timber the market in which this project is most likely to have a tangible benefit to manufacturing in australia.

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Research Background

Threats to Australian Manufacturing Australian Labour Costs Manufacturing is a labour intensive industry with low to medium skilled employees making up the majority of the work force. Because of this countries with lower (minimum) wages are able to train and employ workers with minimal expense, negating disadvantages such as infrastructure and shipping to produce good at much lower prices than countries with higher wages.

Fig. 1 Minimum wages around the world (ConvergEx Group 2012)

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Shipping and geographic location The relative proximity to labour markets with much lower wages is a major factor in the economic pressure exerted on the industry. With increasingly efficient container transport world wide due to computerized ports, While the export of large amounts of minerals from the mining industry results in many empty ships traveling to Australia from asia, the are usually oil tankers or coal and gas specific vessels unable to import containerized goods.

The high import quantity of containerized manufactured goods to Australia aids the national manufacturing industry as well as harming it. The increased competition locally reduces prices however the returning ships must carry the same number of containers as on the inbound journey. This results in a much higher supply than demand for container freight from Australia to Asia creating lower shipping prices for exports than imports. (Newman 2014, pers.comm.). As international containerized shipping prices are dependant mostly on volume, smaller and high value items are less affected by the added expense compared to local goods. This results in products such as raw materials and agriculture remaining competitive well after electronics and auto manufacture are not.

During the global financial crisis of 2007-2008 ‘slow steaming’ shipping became popular to offset the steep increase in fuel costs (ca. 90%) as well as the lower demand for transport. The term refers to operating transoceanic cargo ships, especially container ships, at Reduced speeds (from 22-24 knots to 18 knots) An analyst at National Ports and Waterways Institute stated in 2010 that nearly all global shipping lines were using slow steaming to save money on fuel. (White 2010). The large container ship Emma Maersk can save 4,000 metric tons of fuel oil on a Europe-Singapore voyage by slow steaming. At a typical USD 600-700 per tonne, this works out to USD 2.4-2.8 million fuel savings on a typical one-way voyage. (Jorgensen 2010)

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Relocating Australian Manufacturing As Australian manufacturing faces increasing international pressure, a factory can either increase efficiency, close down or move offshore. Global companies have steadily been moving labour intensive processing offshore. (Fickling et. al. 2013) For independant local manufacturers however the decision is not as simple as moving production from one plant to another. Owner-operators often do not have experience in setting up, relocating or operating a business offshore. Barriers such as language, regulations, industry knowledge and the personal adjustment of moving internationally is a strong incentive for small business to stay in australia.

As the demand for international production increases however, assistive technologies and services are becoming more available. Websites such as alibaba.com, expat manufacturing communities, translation services and english speaking account managers in supply factories, along with the ever growing availability of business information and services online, make the process of starting a factory offshore easier than ever. ( Newman 2014, pers.comm.).

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The importance of Australia’s manufacturing industry:

Employment Despite many job losses, the manufacturing sector still employs around 8% of the total workforce. It also makes a substantial contribution to Australian living standards because its productivity, measured in terms of output per worker, is significantly above average (ABS Australian Industry 2011-12). Concurrently, it provides typically middle skill, middle wage, and full time employment. Retaining these jobs, and seeking areas for potential growth, therefore plays an important role in offsetting the dominant trend towards economic inequality.

Fig. 2. Australian Manufacturing Employment decile (Macrobusiness 2013)

“manufacturing is the critical part of all successful economies, so we cannot afford not to have it”. - Professor Roos, Chairman of South Australia’s Advanced Manufacturing Council.

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Resulting Research Manufacturing directly employs one in every five engineers and many more indirectly as consultants (according to the Institution of Engineers Australia, 2011) and is the basis for employment of industrial designers. Australian manufacturing businesses allocate $4.5 billion each year to research and development expenditure, which is approximately one quarter of total private sector expenditure. It is often suggested research and design could be separated from manufacturing outsourcing the manufacturing processes. There is a trend towards keeping the high value high skilled jobs in design and technology while relocating the actual manufacturing activity to countries with lower production. Separating conception from execution in production processes is however problematic because manufacturing production is inherently an iterative process: there are constant design changes and continuous challenges of problem solving. Second, there is the loss of intellectual property – a concern which is causing many western nations to reconsider their investments in China. In this case (explored in section 8) however the distribution rather than the production is seen as the threat to intellectual property.

Australia’s Economic Structure With the decline of manufacturing, the shift to a dual economy is becoming more pronounced. The economy is splitting into two distinct industrial groups. (Davies et. al. 2009) There is a relatively small cluster, mainly comprising the resource extraction and finance sectors, characterised by high productivity and high wages. Then there is diverse group comprising activities like aged care, child care, retail, cleaning, security guards, transport, mechanical repair and education and training, which are generally low productivity and low wage industries. By their very nature they cannot be offshored and often depend directly or indirectly on government funding. Over the twelve years from 2000 to 2011, around 80% of net employment growth (adjusted for hours worked) was in industries that have below average productivity, measured in terms of value added per hour worked. (Toner et. al. 2003)

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Focus on the timber industry: This study focuses on the timber industry because of it’s importance to Australia and it’s need for better design to survive. Unlike industries dominated by large multinationals able to invest in ongoing development, timber is distinguished by small family run mills and factories focused on daily operations rather than detailed improvement strategies.(Sharma, et. Al. 2000)

The Importance of Timber Clusters of regional forestry processors located around the country turn each year’s local A$1.4 billion log harvest into forest products valued at more than A$18 billion. (D.A.F.F, 2005) The industry contributes seven and half per cent of the manufacturing output of the gross domestic product (2003). Overall the industry sector supports 674 hardwood mills and 268 softwood mills along with 30 panel board mills employing a total of 78 400 people in the 2000/2001 year (Australian Bureau of Agricultural and Resource Economics 2003). The forestry industry is of growing importance in Australia, as the overall manufacturing sector declines, and pressures mount to shift to a more sustainable economy.

In need of design The Australian timber industry is characterised, by two tiers. Tier 1 players are few in number, being global/national players well versed in strategy, management practices and information management systems. These corporations are comprised of many branch sites. Tier 2 players on the other hand tend to be small and medium enterprises (SMEs). SMEs are characterised by lower levels of resources generally, including financial resources as well as technical expertise and tend to focus on operational issues rather than taking a strategic view. In Australia, they also tend to be located in regional and rural areas (Sharma, et. Al. 2000). (Wayne 2005)

Australian manufacturing industry is currently classified by the OECD as being in the ‘medium-low and low technology’ category of nations, based on its R&D spending as a share of total value added. (OECD Science, Technology and Industry Scoreboard 2011: 68).

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Investigative and literature review of the Australian Timber Industry

Research Objective:

● Find a specific efficiency problem (focusing on but not limited to manual handling of timber) within Australian timber manufacturing, which is solvable by a product. ● Define the brief for this product as specifically as possible.

Research Methodology

● Literature review This will be conducted to find statistical evidence of presumed trends, research all background factors of influence on the industry and explore potential design directions.

● Interviews These will be conducted casually and formally with owners, operators and employees of relevant facilities. The information gathered will be treated as situation specific which may be more relevant to a particular situation but lack the greater industry relevance of academic or statistical research. The interviews will be conducted in person, by phone and E-mail. to gain as much information as possible interviews will be structured and held in a way which allows the interviewee to feel open about analyzing existing systems and considering possibilities outside of the normal context. Interviews will not be recorded digitally as this has been shown to reduce the freedom with which responses are give. (Lee 2004) All interviewees will be asked prior to interview regarding the use of their answers, as well as attribution to them personally. No statements or names will be included in this document without expressed permission of the interviewee.

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● Observation The Author will visit varying stakeholder business and observe the operations, culture and context of interviews. Observations made will be recorded photographically, by means of digital videos and written in detail immediately after the event. The observations made will assist in explaining the reasons for answers given in interviews, methods of doing business as well as gathering information on how various businesses solve similar problems

● Case Studies This report will research and analyse in depth, key examples of business stakeholders, as well as a key problem area found to be a potential are of improvement. The research into example businesses will explore the variance in the industry, while case studies into the problem areas will determine the common factors in the problem are.

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Foundations of Sawmilling

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Forestry Subsystem

● Harvesting is the process of selecting and felling a tree in the forest or plantation. this is generally done with the use of a . In Australia This is divided between plantation forestry where cleared land is planted with a single species of tree, in straight rows and managed for optimal harvesting. This is predominantly a fast growing softwood such Radiata Pine. The other main source of trees is the sustainable of public and private native bush land where a maximum of 30% of healthy trees can be felled per 7 year cycle. Fig. 3. Victorian native managed forest after harvesting. (Rodd 2004)

The details of plantation and natural harvesting is expanded upon in section 7 - sustainability.

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● Skidding is the process of dragging felled logs along the ground to the nearest road access point. This reduces the need for complicated lifting procedures in difficult to access areas.

Fig. 4. Example of skidding in pine forest. (Food & Agriculture organisation United Nations 1999)

● Processing & loading is done in a clearing with road access. Logs must be categorized, numbered and loaded onto trucks. Loading is done in various ways, most common being a front end loader with pincer forks.

● Transportation in Australia is done almost exclusively by road. This is due to a variety of factors including government policy intended to move all freight from rail to road.

The forestry components of the timber industry are classified as part of the resources sector, and as such this report will not explore this subsystem in any greater detail. Forestry is not under any threat due to the low cost of rural land in Australia, and the successful joint public, private system for forestry management and logging.

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Timber Processing Subsystem

● Log yard & sorting Logs are removed from the truck by various methods including dumping, pushing by front end loader, cranes and forklifts. They are then sorted by length, quality and diameter, numbered and stacked in groups. In many mills logs are unloaded from trucks with a central crane and stored in a circular fashion around the crane. More commonly however mobile loaders stack logs in long parallel lines.

● Bucking The process of cutting logs to length is done when felling, to ensure all logs meet trucking length restrictions, as well as at the mill. Hardwood mills cut lengths depending on their customers’ needs for flooring, furniture, pallets and other products. Soft mills tend to run to set set lengths due to a more homogenous log supply.

● Debarking Some hardwoods such as Cyprus is sawn with the bark on, other species however must have it removed to prevent machine clogging. Removing bark is generally done with one of three methodologies: A majority of hardwood mills use the rosser head debarker which rotates each log in a cradle while a spinning cutter head passes over the log and along its length. Softwood mills most commonly use a ring debarker. The log is passed through a rotating ring of knives, analogised to a large pencil sharpener. This is a continuous operation, ideally suited to high production mills. Drum debarkers use ribbed drums to rotate and tumble logs, removing the bark by abrasion as the logs rub against one another and the drum. Drum debarkers work well on large quantities of very small logs. (Froome, 2004)

● Head rig sawing

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A , most commonly a double bladed , is used to splice the log vertically. The head saw is operated by a head sawyer. The sawyer positions the log to the proper position for the initial cut while sizing up the log determining optimal usage. The offbearer is responsible for removing the cut boards. (Lucia, 1996) Plain sawn is by far the most common cut for commercial as it is much faster and produces less waste that other cuts such as quarter sawn .

If the timber is intended for plywood or veneer it is not head rig sawn, rather goes through a series of steps in a specific facility to become the end product. This report will not focus on that process. Fig 5. PLain and Quarter sawing. (Texmill 1952)

● Edging A lumber is a saw used to straighten and smooth rough lumber or by making a cut along the sides of the boards. The result of this process is dimensional lumber. The feed and press rollers on the edger are usually powered, passing the lumber through the machine. The length of feed and tables depends upon the lumber produced by the head saw. can be categorized as gang or shifting edgers. In gang edgers the remain stationary. In a shifting edger the saws can move left or right independently of one another. This allows setting the saws to best maximize the product that can be produced from a particular cant. (U.S. Department of Labor, 2010 )

● Cross cutting Also known as docking, is the last step in sawing timber. This final cut across the grain determines the final length of the rough sawn timber.

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● Air and Kiln drying Depending on the species and moisture content of the lumber, it may be Air or Kiln dried to remove moisture and prevent future warping and shrinkage.

The cut and dried timber is either sold in packs or processed further into floorboards, furniture parts, dressed posts and beams, decking, steaks and a variety of other timber products. This is the most labour intensive process and the most commonly outsourced. This Step will be investigated further on a case by case study in section 10.

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Domestic Trade Local Product The raw material is produced in Australia. Plantation and Native forest are a large and viable industry factors such as climate and land availability as well as growing legislation such as carbon credits and subsidies make this a viable industry for the foreseeable future. Processing timber close to where it is felled is advantageous because it reduces the volume, weight and handling concerns associated with transporting logs.

Fig. 6 Forecast Log Supply From Plantation in Australia (BRS 2002)

Local Market The demand for timber is strong in Australia. The construction of new buildings along with renovations and DIY requires a steady supply of soft and hardwood. The trend towards sustainable, local and high quality materials in construction and hardware is increasing. Energy ratings, efficiency requirements, carbon footprint analysis along with broader consumer trends toward appearing environmentally sustainable and using local materials will be a factor in the resilience of australian timber processing.

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International Market Approximately 12% of Australian annual forestry products’ (A$2.1 billion) earnings are from exports. This includes growing markets for Australian-grown plantation timber in Asia, where consumption of wood products is out-stripping production capacity by approximately 200 million cubic metres annually. (D.A.F.F, 2005) Many Australian native timbers are harder, stronger, and have qualities such as pest resistance which tropical imports can not match. Therefore native timber maintains a competitive advantage for premium flooring and structural beams.

Although Australian labour costs are high, the value added to the product is extreme. A value increase of over 1000% is achieved by the timber processing industry when comparing the A$1.4 billion log harvest A$18 billion end product value (D.A.F.F, 2005). An increasingly popular business model is for rough sawn timber to be shipped to countries with low wages such as vietnam and indonesia, processed into floor boards, parquet and other products for sale internationally, including back to Australia. (Gersekowski 2014 pers. com. ) Labor intensity High shipping cost in proportion to the labour costs are an added protection for the Australian Lumber Industry. Compared to machinery, electronics and clothing, timber is voluminous and heavy with low labour costs per unit - offsetting Australia’s higher wages with savings in shipping and logistics.

An emerging factor in the Timber industry is the labour intensity of packaging. An increasingly popular method to substantially add value is packaging. By making the finished timber look more like a product rather than a raw material the buyer has been found to consider the product of higher quality. This applies to practical applications such as padding to reduce damage in transit - as well as aesthetic considerations such as straightness of straps on a pack or creases in plastic wrapping around posts. Particularly in export markets such as japan, where Australian timber is a premium product and quality is highly prized, labour intensive packaging is increasingly necessary to differentiate Australian product from competing, cheaper, manufacturers.

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Rural Corporate Culture As discussed in section 2, Australian timber is comprised of majoritively second tier small to medium enterprises (Sharma, et. Al. 2000), meaning most mills are focused on survival rather than relocation. This presents fertile market for design to solve the problems raised by shifting efficiency paradigms, which larger organisations respond to by moving offshore. Methodologies which in the past were considered quite efficient, such as forklifts and conveyor systems now often prove wasteful or inflexible. The response to these challenges is determined strongly by the industries rural context.

Australian timber mills and associated factories are categorized by a tendency to be far from major centers and closer to rural forestry. As a result differing management culture of mill operators must be taken into account. The ‘country way of doing things’ cannot be fully defined in the language of corporate goals and KPIs. A mill, such as Vic’s timber in Cecil plains may represent a significant portion of a towns economy and have a cultural relationship with the town closer to family than corporate enterprise. Outsourcing may be seen by the community as an affront to local workers and a prioritization of profit over community. The growing awareness of globalisation pressures is however slowly changing this attitude. Integrity and work ethic are core values of rural businesses and workers. Personal relationships between and within businesses hold predominant value as exemplified by the mutually respectful and entirely verbal ongoing lease agreement of the Cecil Plains timber mill - between Vic and the land owner.

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The research, as well as the design and sales process of any solution conducted in association with this report will need to fundamentally cater for the cultural context in which it is undertaken. ● Interview and case study candidates will need to be approached respectfully and honestly. A sense of academic over-complication or abstraction is to be minimised while avoiding condescension in any form. For primary research this will mean in-person interviews rather than emails and phone calls, building trust and personal connections with contacts, casual (if structured) interviews with minimal intrusive note taking, and iterative, testing based design. ● For sales a similar approach will need to be taken. As discussed above the industry does not have a research or development focus, meaning the need for improvement will first need to be outlined and the new manufacturing methodology and it’s benefits exalted to the purchasing agent (usually the owner). Interviews and observation (detailed in section 4) have found scepticism towards new products, especially when contacted by phone, and more so from older or less management focused workers.

Introduced with the right context however the enthusiasm for better design and the resulting industry benefit proves this is a viable market and appropriate means by which to support the Australian manufacturing industry.

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Flexibility The use of fixed configuration, mass-production machinery is increasingly seen as being a relatively high-risk option because of the constant threat of obsolescence. Modular production systems although initially more expensive (or difficult to design) and or less efficient are more amenable to change and reconfiguration. (Bohemia, 1997) An important consideration is that such systems must be designed at the outset to be reconfigurable and must be created from basic hardware and software modules that can be arranged quickly and reliably (Koren and Ulsoy, 2002)

Moving to an automated production line system is how most industrialised nation’s manufacturing compensates for higher labour costs. For small timber mills this has major problems:

Capital Costs are very high (millions of dollars for a basic setup. (Gersekowski 2014)) In a volatile market this kind of investment, and resulting payoff period, is very high risk as the market may become unprofitable before the machinery is paid off. (Gersekowski 2014)

There are some fully automated mills in Australia such as Ryan and McNulty's Timber, located in benalla Victoria. Aside from the initial capital investment and risk, full automation also greatly reduces the ability to produce small and varied runs, which is the main competitive advantage of small timber mills. Some timbers are also much better suited to automation than others. Plantation radiata pine for example is very regular, due to it’s controlled growth. Cypress however is much harder to process automatically as each log needs to be cut according to it’s bow, faults and thickness.

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Occupational Health and Safety The health and safety of workers is a contentious issue in the manufacturing industry. All parties involved desire the safest possible workplace, however many employers argue that current workcover legislation is overly bureaucrati and expensive. In an interview held at his mill in April 2014, Vic Gersekowski argued the workers would be much better served by having personal work insurance and being paid the amount it costs the business to insure them.

The work culture is one of the largest factors in the practical safety of a workplace. As explored in the Walker Brothers case study, workers pushing themselves to work hard not the employer can result in serious long term injuries. Even after these are acknowledged workers often still refuse to admit there is a problem with the system.

Fig. 7. Work related injury or illness rate by industry. ( A.B.S 2011)

Manufacturing had the fifth highest rate of injury per capita in the workplace in 2010, with 7.3% (ca. 5700 people) reporting an injury that calendar year 12 months. Sprains/strains were the most commonly reported work-related injury, followed by open wounds and chronic joint or muscle conditions. 61% of all reported workplace related injuries received financial assistance. ( A.B.S 2011) From these statistics as well as observation and interview it is clear that the movement of heavy objects is the most common cause of injury in the timber

26 industry. This may be due to social factors as discussed above, as well as a concerted effort to protect against obvious dangers such as exposed saws and falling from heights.

Fig. 8. Work related injury or illness rate by cause. ( A.B.S 2011)

The protection against strain from lifting is also much harder to implement than safeguards on machinery and heights. As movement of stock is a dynamic process, and large heavy timber must be lifted, turned levered and occasionally thrown there is no solution for all problems. Safe lifting techniques are taught, though this study has found that issues related to timber storage, specifically the depth of trolleys such as those used at Walker Brothers Timber Gosford regularly require the worker to bend their back, and turn while holding beams weighing from 3 to 10 kg.

Occupational health and safety is therefore a reason as strong as any to redesign the pack movement process. In addition to the issues stated above ( production line flexibility, increased efficiency, shorter lead times) reducing the strain and risk to the workers body will benefit the employees as well as the business by reducing compensation, turnover and medical leave problems for the business.

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Wellbeing The wellbeing of workers in manufacturing has a strong and positive impact on the quality and amount of work achieved. As shown in ‘well being in the workplace and its relationship to business outcomes’ (Harter 2003) a combination of workplace management as well as the equipment provided influences the well being, motivation, productivity and problem solving ability of staff and as a result profitability of the company. Statistics have also shown that on average workplace satisfaction is responsible for 20% to 25% of a persons overall satisfaction.

There is little academic disagreement over the importance of worker well being, however in the industry with the above stated “Rural Corporate Culture” well- being is considered a more personal responsibility. Workers are expected, and expect, to work hard. The physical nature of the work presumes some level of discomfort and research may be dismissed as trivial compared to a workers personal motivation. Vic Gersekowski stated that “what you’re talking about might be this much of the equation” gesturing about one inch, “when wages and the set up is this much”, holding his hands one yard apart.

The Author believes applying the large amount of conclusive research on the wellbeing and motivational research could have a very large impact on the timber industry. This would be largely a business management project, removed from the field of industrial design, and thus outside the initial realm of this report. Findings such as perceived quality of the used and ability to focus on the fundamental outcome of the given task must however be applied to any solution proposed by this report. sustainability To ensure this project benefits society at large, as well as the timber industry the sustainability impact of the industry and it’s ongoing trends must be assessed and aided by any solution proposed.

The largest most important sustainability factor of the timber industry is the sourcing of timber. There are two main sources, certified, managed forests and plantations. There are also un managed or certified forest from which timber is

28 sourced, this represents a small portion of australian timber but is of concern internationally, particularly with tropical hardwoods such as Balsa.

It has been estimated that around 40% of Australia’s forests and woodlands have been harvested for wood and timber at some stage over the past 200-years, but remain essentially intact (State of the Forests Report, BRS, 2003).

Forest certification is a voluntary process about 10% of the world’s forest under at least one certification program. (UNECE 2010)Today there are more than 50 certification programs worldwide addressing the many types of forests and tenures around the world. The largest international forest certification program is the Programme for the Endorsement of Forest Certification (PEFC). (Forestry Innovation Investment, 2013) Within PEFC-certified forests, managers must ensure that forest management activities maintain, conserve and enhance biodiversity. Government owned and managed forests comprise thousands of species of plants and animals. They are healthy, diverse habitats managed for long-term ecological and economic viability. The forestry management authority selects the specimens in the diverse native bushland which can be harvested. Of these a maximum of 30% percent of healthy adult trees are harvested by contractors. Certification organisations claim this method is significantly more sustainable than plantation because of the ecosystem supported in natural bushland, the clearing of old trees allows for the growth of healthy seedlings and prevention of energy intensive, damaging clearing and planting processes of commercial plantations. (Programme for the Endorsement of Forest Certification, 2013)

The comparison between plantation and forestry timber made above does not include old growth logging and un monitored logging which is common in developing nations. By supporting Australian mills, the sale of managed and certified, ecologically responsible timber is increased - reducing the harm on rainforests and endangered ecosystems. Harvesting Australian native species also means the use of longer lasting hardwoods rather than softwoods with a shorter life span, and therefore considerably reduced energy input per cycle of use.

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Vic’s Timber case study

Fig. 9. Vic’s Timber mill (Vaupel 2014) Overview Vic’s Timber located in Cecil Plains, Queensland is a cypress which supply a range of cypress products to customers both domestically and internationally. Vic’s Timber was formed in 1999 with owner/director Vic Gersekowski having over 30 years experience in the cypress sawmilling industry. Associated with the sawmill there is also kiln drying and machining facilities. This enables the facility to supply customers with a product range of sawn timber including framing, posts and fencing as well as machined products such as flooring, decking, panelling and cladding. (Vics Timber, 2013) Of note here is the fact that all machining excluding moulding is outsourced to Equality Timber in china, due to Australian labor costs. This process is examined in greater detail in the following case study. All cypress logs milled at Vic’s are sourced from AFS Certified Forests. In 2010 the company achieved of Custody Accreditation through the PEFC process. “My emphasis has, and always will be, to supply customers with quality and service of their cypress requirements. The ability to supply both standard and non standard sizes and profiles with no job being too big or too small.” - Vic Gersekowski.

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Production Line Stages Observed during site visit April 2014 and explained by Vic Gersekowski on site 1. Trees are harvested by chainsaw in the managed reserves surrounding cecil plains, stripped of branches, docked and loaded onto trucks. 2. Trucks bring the logs to the mill where they are sorted by length and diameter and labeled with chalk.

Fig. 10. Vic’s Timber mill Log Storage (Vaupel 2014)

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3. The appropriate logs are selected based on the order to be filled and loaded onto the carriage by front end loader.

Fig. 11. Vic’s Timber mill Log Carriage (Vaupel 2014) 4. The first machine is a dual blade circular head saw which plain saws the log into 3 sections along it’s length. This is done by a single operator (usually Vic) from a booth. A mirror is used to look along the length of the log selecting the rotation and width of the blades to make the cut.

Fig. 12. Small sawmill layout (Texmill 1952)

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Attempts were made in the past by Gersekowski to use laser and other forms of automation however none proved to be reliable or flexible enough to withstand the demands of the environment and timber.

Fig. 13. Vic’s Timber mill head saw (Vaupel 2014)

5. Depending on the resulting pieces, one, two or all three pieces are sent to the edger. The machinery employed here results in plain sawn timber, which is employed because of ease of production and cost effectiveness. By rotating the head sawn pieces back sawn timber can also be produced 5.1. Unused sections are dumped on the ground at the end of the conveyor for eventual woodchipping.

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Fig. 14. Vic’s Timber mill Wood Chipper (Vaupel 2014) 6. The selected pieces are moved by chain drives to the edger. Once cut square the timber is classified as rough sawn.

Fig. 15. Vic’s Timber mill Rough Sawn Pack Storage. (Vaupel 2014) 7. It is stacked in packs up to 600mm tall 900mm deep and 2000mm - 8000mm long, depending on the order.

7.1. If the timber is to be sold as rough sawn it is strapped and loaded by forklift for trucking or containerisation.

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8. If further machining is required due to the order requirements, the pack is taken by forklift to the next shed (ca. 50m away) where the planks are individually fed into a moulder which gives the boards their finish. The pack is elevated by the forklift so that each piece does not need to be raised as it is loaded. Some workers prefer to raise the forks as the pack height diminishes while others leave it centred, preferring the extra lifting to the time taken to walk around and climb into the fork lift. It is this process which lead to Vic suggesting a dolly with a raisable bed, allowing easier height adjustment and use of the forklift elsewhere. Fig. 16. Vic’s Timber mill Moulder Loading Process (Vaupel 2014)

This process is one of the most labour intensive in the mill because each board must be individually moved and inspected. Products include basic 4 by 2 inch structural beams, weatherboard cladding and a the emerging and profitable market of 8” by 8” gazebo posts.

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9. The moulded beams are then stacked again into packs on thin sheet of

protective mdf raised off the floor by spacers. Fig. 17. Vic’s Timber mill Moulder Unloading Process (Vaupel 2014)

10. Once the pack has reached the full height (max. 600mm), it is covered in a thin sheet of plastic, cardboard corners are placed on the edges, and strapped with steel bands. Packing can take up to 20 minutes, 50% of the time taken to mould the pack excluding packing. This is due to the often fiddly task of feeding the strap under the pack while it is on the floor. Ensuring everything is in position and straight is also time consuming as the workers often must lay on the floor to inspect the underside of the strap.

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Fig. 18. Vic’s Timber Mill Pack Strapping Process (Vaupel 2014)

10.1. All boards are overcut, so that when being stacked in a pack one end is neat, while the other is trimmed with a chainsaw to give all boards an identical length. These packs are then stored and shipped to the customer by truck.. 10.2. The exception to step 10.1 are Gazebo posts. The unstrapped, moulded pack is taken by forklift to another facility 300m away for packaging. Fig. 19. Vic’s Timber Mill View of wrapping shed from Moulding shed (Vaupel 2014)

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The posts are placed on spacers by a forklift and lifted individually, by 2 workers onto the conveyor (build atop a 44 gallon drum)

Fig. 20. Vic’s Timber Mill Pack ready for wrapping (Vaupel 2014)

The post is rolled down the line, wrapped in a plastic bag, which is cut to length and secured with a branded sticker.

Fig. 21. Vic’s Timber Mill Post Wrapping Line(Vaupel 2014)

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The conveyor must be this long to allow the posts to lie fully flat before being fed into the bag. (this length could be replaced by a dolly at the right height in future designs)

Fig. 22. Vic’s Timber Mill Wrapped Post Storage Area (Vaupel 2014) The posts are heat sealed by the wrapping machine creating and attractive, protective wrapping. The plastic wrapping is almost exclusively for presentation, however it results in a higher profit margin and higher volume of sale. At the end of the line each post must again be lifted by two workers, and carried by method of sidestepping to be placed on storage spacers. This process is particularly labour intensive and key area of further exploration.

Waste Offcuts (averaging 45% by weight) are woodchipped and given away (to Vic’s Brother), to be sold as mulch . Vic estimates the uses as much electricity to run constantly as the rest of the mill combined. This issue was raised in conjuction with a high power bill, suggesting a method of converting wood to electricity. This is explored further in section 6.

Saw dust is sold as animal bedding.

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Human Resources The mill owner along with 4 managers are in charge of overseeing operations, and making decisions of quality of timber. the majority of manual handling and processing staff are Japanese work and travel visa holders employed on 3 month contracts. They are paid $20 per hour plus tax, and super which is usually paid to them on leaving the country. Vic estimates it costs $45 per hour including all expenses ($20/h + 9.25% tax, 10% work cover, 4 weeks annual leave, 10 days sick leave, superannuation & long service leave)

Japanese travelers are the main workforce because in the town of population 200 there is almost no willing or capable local workforce. The prefered work for locals is the much better paid mining sector. The well being of the workforce is a consideration, though Vic is convinced financial remuneration is 95% of the motivator for his workforce and “wellbeing” is not a priority. The conditions and morale of the staff observed was high, with personal freedoms including listening to music, short breaks, a reasonable pace of work and a collegial respectful management culture.

Performance based bonuses and commissions are prevented by collective bargaining agreements, however the assignment of well paid overtime is used to incentivise and reward workers with a good work ethic, attention to detail and initiative.

Adapting to changing markets As labor costs have risen and the price of offshore processing has fallen, the labour intensive lines have been closed in Vic’s mill. Machines which in the past were used to create polished floorboards, parquet, skirting boards and other products will be scrapped to allow the packing facility to be combined with the moulder. Due to the length of the shed, and more crucially the differing speeds of machines (the moulder operates at 5-12m/min while the shrink wrapping is much faster) the lines cannot be connected directly. The default solution will be similar to the current method: packing on spacers, moving by forklift and on packing onto the new line.

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Vic’s preferred solution would be a system of dollies able to stack the timber and move it betweens lines manually, without the needs for manual or fork- based lifting. (Detailed in section 9)

Power Consumption In interviews Vic raised a major concern of electricity bills in timber mills. $6000 monthly electricity consumption, half of which is the wood chipper. He discussed at length past methods of running the mill on steam, and industry discussion of generating electricity from offcut timber. It was decided steam is impractical due to all machines being electric.

Research was then conducted into power generation.

Required energy, based on power bill and QLD standard commercial power costs: (@ $0.25/kwh =120 000 kwh /month from 200m3 of cypress offcut) average consumption: 50kw

A concise overview of the process is provided by the Borealis explanation fact sheet, this process is fundamentally common to all generators assessed in this report. Summarised from the company website:

THE BOREALIS PROCESS The Borealis wood-power plant operates on the principle of wood gasification with the input of dry wood chips and the output of wood gas. The wood gas feeds the CHP unit (Combined Heat and Power) producing electric and thermal power.

The reactor is at the heart of the system, changing the wood chip fuel into wood gas. At the pyrolysis zone, the wood decomposes and begins reducing from its visible wood state. The fuel is then converted to a coal-like hydrocarbon and transported to the oxidation zone where part of the carbon is burned with injected air at approximately 800°C. As the gases move over the hot ember bed

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(oxidation zone) the tar and hydrocarbons are separated from the gas, resulting in a gas with very low tar.

Borealis Wood-Power Plant Overview Gasification Unit The plant consists of a gasification unit that processes wood chips to produce a wood gas and a CHP unit that generates electric and thermal power. Wood chip storage and handling facilities are required. The emissions are coal powder and exhaust gas that measure within acceptable emissions range of European laws. The plant operates on a carbon neutral basis. The residual ash is carbon and nitrogen that is used as fertilizer in Germany.

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CHP Unit The generator is powered by a 5.7 l GM engine that produces 45 kW of electric power and 100 kW of thermal power for user consumption. The generator output is: 45 kW; 460 V; 60 Hz. The current generator model requires up to the grid as external power is required for initial start-up. The 45 kW of power must either be fully utilized on-site or off-loaded onto the power grid. In many jurisdictions there are preferential rates for alternative biogas energy sold to the grid. It is often more advantageous to sell all the electrical output to the grid.

Wood chips The wood chips should meet the following criteria to serve as optimum fuel for the generation of heat and electricity in a wood cogeneration plant: ● Wood chip size: 30mm – 40mm. ● Moisture content: max. 15 percent (water contents: approx. 13 percent). ● Fines: max. 30 percent (grain smaller than 3 - 4 mm). ● Easy flow material, i.e., with only a small percentage of longs.

The Borealis “wood power plant”, Detailed above produces 45kw at an efficiency of 1kg of g30 - g40 wood chip to ca.1kwh @400V No price specified.

For Comparison a similar machine from Guandong Honny Power Tech company Limited:

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“Water Cooled Gas Wood Power Generator”

Fig 23. Water Cooled Gas Wood Power Generator (Genset 2013 )

320-400kwh $8900-$11900 us a large amount of heat energy is also produced with this system, this could be used to direct drive the wood chipper and heat the timber drying kiln. At 1kg/kwh the offcuts produced would be sufficient to power the whole facility

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Further research: ● peak electricity use ● direct drive from heat (steam) ● direct drive from internal combustion engine ● Electricity storage ● installation and capital costs ● sawdust and whole boards as fuel

Literature review: there is a large body of research into this topic from very recent dating back to 1978, generally concluding this to be a viable business model.

“The value of the residues produced by the timber industry as an energy source are not being realised. However, the scene is changing with escalating costs for fuel, power and waste disposal.” - P.Y.H. FUNG, R.M. LIVERSIDGE and E.P. LHUEDE 1978 Why this did not widely eventuate 36 years ago is difficult to ascertain, factors may have included industry conservatism, reliability, difficulty of installation and knowledge of the technology and economic factors.

Increasingly however around the world, woody biomass is being harnessed in managed processes either from the forest or at processing centres (especially sawmills) to produce energy through controlled burning in furnaces to produce steam, or through gasification ( slow heating of wood pellets or chips in the absence of oxygen and under high pressure). In Europe and North America, it is becoming a preferred fuel source for heat and power plants, including gasification plants.With the new emphasis on renewable energy, and the introduction of new materials and technologies, wood is coming to the forefront as an important energy source. Within Australia’s forestry industry, some processing facilities are converting residue into heat energy, and a number of projects are underway to develop and expand larger scale production of electricity from biomass linked to forestry and timber processing facilities. (Forest and Wood Products Australia Ltd (FWPA) 2011)

Conclusion:

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Gas Wood Power Generation technology is viable and, depending on economic factors, should be implemented by Australian mills. However this area is not ideally suited to the development of a product as the technical solution already exists - more research can be undertaken as to the reasons for slow pickup and possible methods for changing this.

Worker motivation / well being Vic was asked about methods of motivation, the impact of design on worker well being and methods for increasing identification with the task at hand. After some discussion it was concluded by the mill owner that this issue was not a priority in this context and not worthy of further time investment.

Pack Movement the efficiency gains that would be made by the widespread application of a device facilitating the manual movement of stock, and reducing the need for lifting is very promising. further research will be conducted in section 11.

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Ecquality Timber case study:

Fig. 24. Ecquality Timber Factory, china. (Ecquality, 2010) Ecquality Timber Products Co., Ltd is a boutique producer of flooring, decking and other wood products located in Houzhou City, China. The company trades in Australian and European timber, processing it in China and exports it to various markets including Australia and Japan. They are focused on delivering “sustainable products of high quality at a reasonable price”

The Process in Huzhou differs from that in Cecil plains as it is not a Saw mill, rather it processes rough sawn timber into finished floor boards and the more labour intensive products that have been outsourced from Australia.

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Fig. 25. Eqcuality Timber Moulder (Vaupel 2014)

Here rough sawn timber from vic’s mill and others around the world (mostly germany and france) is docked based on density of knots and imperfection as well as customer required length and grading.

The newly selected timber is moved to the next facility by 3wheeler motorcycle truck and stacked on the floor or on a palate if it is under 2m long.

This timber is then lifted individually onto a table and has each knot super glued to prevent it cracking in the moulder. From here is stacked again on the floor and moved by forklift to the next machine where the timber is lifted individually and manually onto a bench the height of the planer.

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Fig. 26. Eqcuality Timber Safe Work Practice (Vaupel 2014)

A worker using improvised methods to prepare the planer for the next pack of boards.

The glued timber is then fed into the planer. On the outfeed of the planer one person guides the timber from the machine onto a bench. while one or two people place it from the desk on the ground or pallet.

A similar process is repeated for the moulder and then the end-matcher.

It is this constant lifting and stacking of timber which led the owner to suggest the development of a dolly which can be stacked directly from each machine. Maximum efficiency would be gained by the top height of the stack remaining the same as the height of the machine being loaded or unloaded.

Increasing Cost of labour As with facilities located in Australia the hourly rate of pay for workers is a major factor in the profitability of the company. Although the wages are much lower than in developing countries (ca. 11% of Australia’s) many factors are the same. The steep increase over recent years has made the traditional business model of outsourcing, one of more workers for less cost, increasingly inefficient.

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Fig. 26. Average hourly wage, China vs. Vietnam, Indonesia and India (US$ per hour) (Bacani, 2011)

Ecquality timber has been implementing a process of increasing the efficiency of the plant through a number of methods.

Kaizen a philosophy of continuous improvement of working practices that underlies total quality management and just-in-time business techniques Collins English Dictionary - Complete & Unabridged 10th Edition 2009

This management philosophy has been implemented at the facility, hiring the Author as part of a team of consultants and engineers to develop small and large scale improvements throughout the facility to begin a process of worker led pride and improvement. worker motivation The issue of how to encourage staff to work to their full potential is relevant to all businesses. Particularly in China this is an issue with seasonal workers who are not educated or planning to stay with the same employer after chinese new year. Terry newman, the business co-owner and manager, has conducted research into lean manufacturing, kaizen and different staff management techniques to increase the engagement with the process. Most research into this area led to management techniques and business model recommendations.

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The exception being a study by sliddery (2014) and Harter, Schmidt & Keys (2003) ‘Pride and wellbeing generated by quality tools and the feeling of an environment where the employee is given the best chance to do what they are good at has been shown to substantially improve business outcomes’

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Issue of Greatest Need

Broad investigation of the Australian Timber industry has led to a short list of issues which can be addressed by industrial design. To move forward and achieve a practical solution one need must be selected and a brief developed.

Motivation and wellbeing It has been found that the reason for which work is done and the psychology of the worker is a major factor in the quality, quantity and effectiveness of a business’s output. Industrial design is a major factor for success in this area, as shown by Newmans Kaizen approach. The innovation and dedication required by the business’s management, and the specificity of solutions required for each business makes this an issue best approached individually by a businesses.

The findings from research in this area can and must nonetheless be applied to any product developed for this industry. This will require detailed feedback from use of prototypes and discussion with those doing the work. Factors such as perceived quality of the solution, independance of the worker and quality of the work being done must be addressed to ensure the worker feels valued, motivated and gains satisfaction from doing his or her work.

Power Generation The issue found in Cecil Plains is undeniably an important and auspicious design opportunity. The research shows products in this market meet the design requirements well and the difficulty in implementing them relates more to technical issues such as peak current draw and conversion of the facility from it’s current business model. The author believes this to be an issue worthy of further investigation, which may lead to the development of a business modeled around design solutions and installation of existing power generation products. As with the wellbeing issue, innovation in this area will be specific to each facility and require great commitment from management involved. If nothing more, this should serve as a reminder that power consumption is an issue at the forefront of the industry’s attention and must be well resolved in any design to be implemented in Australian timber milling. Pack Movement

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This issue was raised by both Terry Newman in China and Vic Gersekowski in Queensland and as such must be treated as a genuine need with desire to resolve it. The difference between the case studies and similarity in need regarding this problem suggests a single well designed solution could be applicable to a large market domestically as well as internationally.Allowing small to medium enterprises to make a small increase in efficiency with a task done very often, while not sacrificing their market advantage of flexibility will genuinely aid the industry. The direct impact on workers is an opportunity for industrial design to have a positive influence socially as well as economically.

Confirming the market for such a solution is infact as large suggested will be the key to further development. There is danger of being limited to a very small niche market between large fully automated facilities and mills too small to invest in improvement. Internationally those with cheap labour may also not want to outlay capital or change their system for a (small) gain in efficiency. However research suggests most Australian mills fall into the tier 2 category perfectly suited to low cost devices aiding flexible manufacture, (Wayne, 2005) and anecdotally (Newman 2014) there is a growing market internationally as labour intensive factories cope with rising minimum wages in China. Replacing workers with machines is another issue to be researched in the Australian market where employment is a political issue. Information gleaned from interviews suggests this is more of a perception issue as conceivable solutions would most likely speed the process and make it safer whilst requiring the same number of workers to do most tasks. Additionally Gersekowski claims there to be a shortage of willing workers, rather than manufacturing employment in rural areas.

The willingness of industry to support the research and implement the result is vital to having an impact at all. Offers of development and manufacturing assistance From Mr. Newman in China and enthusiastic feedback and desire to test prototypes from Vic Gersekowski in Cecil Plains confirms pack handling is the issue best suited to further design. An appropriate solution would reduce lead times, costs, worker injury, insurance and lead to increased efficiency industry wide. Pack Movement Further Analysis

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To confirm the need, as stated above, detailed case studies of pack movement was done at two further types of australian timber processing facility.

Walker Brothers Pack movement study

Fig. 28. Walker Brothers Mill (Vaupel 2014) Walker Brothers timber is a family run timber and building supply company located in Gosford, New south Wales. It began by selling locally felled hardwood in 1930 and has since expanded to a wide range of building products. The local saw mill has closed and been replaced by cypress mill next to Vic’s in Cecil Plains.

Contact was first made by phone, receiving an unenthusiastic response. The employee stated the business had no need for any stock movement improvements as they used forklifts and were not a saw mill. He suggested I contact North Wyong saw mill.

The author visited the facility which is open to the public as a sales office. He spoke to Ben at front counter who was happy to give an explanation of the current process for dressing timber at Walker Brothers: The batch is loaded onto a forklift from the storage shed, driven to the machining shed and placed on a timber dolly. From there Ben either lifts, or leavers it into the dresser. This can require the use of his body weight and

54 bending over to reach and lift heavy hardwood beams up to 4 metres long. He rarely asks for help, preferring to get a forklift if he cannot manage alone.

Fig. 29. Walker Brothers moulder infeed (Vaupel 2014) The timber beam is then fed into the thicknesser and brushed for stones and excess bark. When the beam is ca. 50% through the next beam is levered up and butted against the end to prevent splintering. The timber being fed out of the moulder slides onto a bench from where it is stacked by a single worker onto another wooden dolly.

Fig. 30. Walker Brothers moulder outfeed (Vaupel 2014) The timber dollies are ca. 400mm off the ground meaning the the first or last beam has to be lifted considerably to the machine. Depending on the size of the pack, the last beam often has to be lifted onto the top of the pack.

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Ben had recently returned from medical leave, after having a shoulder reconstruction caused by pulling a docking saw in the mill. The surgery cost ca. $30 000 and 3 weeks paid leave. Despite admitting the work severely endangered his health, Ben did not consider the lifting and twisting action required in the current system an issue.

The author then spoke with Harrison, a second year forestry and machinist apprentice working with Ben. Harrison was much more enthusiastic about improving the current system. He was more likely to get a colleague to help when a piece of timber was particularly heavy. He was more aware of health and safety as well as efficiency concerns with the current system. When described a concept for a high adjusting dolly he was immediately enthusiastic.

In a previous position at a kitchen factory Hayden had used a similar device. A scissor bed was used to lift bench tops to the correct height for docking. He said this was bought as a finished product, but would not have been large or mobile enough for use in the timber industry.

The author also spoke with the machinist supervisor Hayden. He brought up a dolly they had had custom made some time ago by the welder who does maintenance for the mill. The new dolly was welded from large steel sections and was simply too heavy to move around. The reason for building a metal dolly was simply the aesthetics and wear to the timber dollies.

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Fig. 31. Walker Brothers steel dolly (Vaupel 2014) After some discussion about possible uses, such as storage and forklift replacement Hayden also became enthusiastic about the idea. One scenario in particular appealed to him, loading the dolly by hand in the storage shed while the forklift is in use, then using the forklift to tow the dolly up a small incline to the machining shed. He began working out methods to use many dollys, allowing stacking, storage and movement quickly without a forklift.

Conclusion: Marketing, along with work of mouth will be the key to making this product commercially successful. No matter how well the dolly were to function, or how reasonably it were priced it could not have been sold over the phone. Only after asking the right questions did the workers decided they needed to improve the current system.

Specifically for the design key factors found were: light weight, the ability to be towed by a forklift and fast operation.

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North Wyong Saw Mill Pack movement study:

Fig. 32. North Wyong Saw Mill (Vaupel 2014) When spoken to by telephone the response from Noel at North Wyong Saw Mill was sceptical and unenthusiastic. A visit was arranged nonetheless.

Fig. 33. North Wyong Saw Mill Swamp (Vaupel 2014)

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The operations observed in north wyong were a very simple, smaller version of those in cecil plains. The author spoke to the mill owner Bob, who did not seem overly enthusiastic about the research concept.

When asked about feeling pressure on the industry from cheap imports or other factors he responded “not yet”. As he is the only saw mill in the area he has steady business from local buyers.

When asked about continuous improvement or ways in which he is increasing efficiency he claimed with steady business he has been doing the same thing almost unchanged for the past 30 years. When asked specifically about the dolly concept he explained that he everything was as efficient as it could be. The ground was mostly mud and rough earth from the use of a 3 tonne front end loader to move whole logs as well as packs of rough sawn timber.

Fig. 34. North Wyong Saw Mill Carriage (Vaupel 2014)

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Fig. 35. North Wyong Saw Mill Steak Sharpening (Vaupel 2014) One of the main products sold from North Wyong Saw Mill is concrete steaks. This is a thin steak of hardwood ca. 20mm by 20mm by 700mm with one end cut to a point, used in the construction industry to assist pouring concrete. To make a concrete steak the thinnest offcuts of larger beams are cut and docked in the one quite efficient process. Pallets of rough sawn steaks are then moved by front end loader to the sharpening station, where they are lifted from the ground onto a table, from the table they are sharpened and then strapped in bundles and repacked on a pallet.

Bob was aware of the inefficiency of this and planned to move the sharpening station directly to the end of the rough sawing line, and thus found no need for

60 any pack movement product.

Fig. 36. North Wyong Saw Mill Palleting (Vaupel 2014)

Conclusion: There is a certain degree of industrialisation required before a dolly is viable. Since the simple infrastructure such as a level floor was not in place, and the whole structure was so rudimental, it is perceived as easier to move a machine and roof than create a floor and purchase a dolly. To determine the most efficient solution in this scenario is complicated. The cost of disrupting business, rebuilding an improvised structure and rebuilding the set up, compared to maintaining the current system or improving it with more efficient stock transfer.

Conclusion The conclusion drawn must be that not all mills are seeking to improve their process. With a well functioning product and personal sales tactic, as well as attractive financing a sale and genuine improvement may be possible in situations such as this.

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Market analysis There are a variety of options for a company to pursue to acquire a device for the movement of timber within the facility.

Custom Fabrication Due to the nature of the industry the most common is custom fabrication. Here there is usually a very brief design phase and in house or outsourced fabrication of a simple solution. Walker brothers first built their own dollies from timber, with a reasonable degree of success. These are still in use and are found to be adequate if not ideal by employees. Problems include wear, height adjustment and weight.

To improve on this design the company designed and had a welder fabricate a steel version. This iteration however was found to be too heavy for use and is not used at all.

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Existing products Not a single facility was found (with exception of anecdotal reference to kitchen factory (Hayden pers. Com. 2014)) used an off the shelf solution. This was due to factors such as size, ergonomics and cost.

The “small electric scissor lift” manufactured by 3G lift is the closes competing product (not distributed in Australia). It achieves the key function of transport and lifting however the obstruction of the handle, need for power, cost and size negate the efficiency gained. The description also states : “The small electric scissor lift must never be loaded whilst the platform is in a raised position” this fundamentally rules out the main purpose of the device in the specified application.

Fig. 37. Small Electric Lifter (3Glift 2013)

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Item# 2772E

Measurements Metric US Raised height 2000 mm 78.7 in Lowered height 400 mm 15.7 in Tabletop thickness 50 mm 2 in Wheel dimensions Φ125 mm Φ5 in Overall size(L/W/H) 1480/500/980 mm 58.3/20/38.6 in Packing Size(L/W/H) 1400/520/420 mm 55/20.5/16.5 in Productivity

Load capacity 200 kg 440 lbs Platform Size(LxW) 1300 x 500 mm 51.2 x 20 in Lifting speed 80 mm/sec 3.2 in/sec Power

Power source AC 220V/50Hz

Weight

Net weight 185 kg 408 lbs Ship weight(In carton) 189 kg 417 lbs

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The next closest product available for sale in Australia is a manual version of the same type of product. Produced by weir and harrod, and distributed through www.forthewarehouse.com The “movable lifting trolley” is considerably more mobile and cheaper, however the fundemental issues remain the same as the electric version. The size is too small for long length of timber. The weighted lift capacity is far below that of a large pack. The manual effort required to raise a loaded stage is more than the efficiency gained by the dolly’s use.

A more comperable product is inteded for a different market. The “low profile scissor lift” sold by Jinhua pty. ltd. is low enough to allow a full pack to sit below a machine in- feed and is large and strong enough to lift a whole pack. It is however not at all movable and unsuitable for the timber industry in it’s current format. This machine Fig. 38. Car Lifter (jinhua 2012) can however serve as a good referance to the design of a hibrid between the dollies above and the jack below.

Prices range from $100 to $5000 (indicative quote only). The product is delivered only as far as Qingdao Port, China.

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Capacity 3.2Ton Min height 96mm Max height 1950mm Total width 2020mm Release model electrical Motor 2.2kw Power 380v/220v Speed 60s References

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68 http://webcache.googleusercontent.com/search?q=cache:http://sres- associated.anu.edu.au/fpt/nwfp/woodres/woodres.html

Fung, Liversidge and Lhuede, 1978,Timber Industry Residues as an energy Source.

Blake, Jacqueline and Pease, Wayne (2005) The e-readiness of the Australian timber and wood sector. In: ITS 2005: ICT Networks - Building Blocks for Economic Development, 28-30 Aug 2005, Perth, Western Australia.

Image References

Fig. 1 Minimum wages around the world, ConvergEx Group 2012, Accessed march 12th 2014 http://www.stats.oecd.org/

Fig. 2. Australian Manufacturing Employment declined. Macrobusiness 2013 accessed March 12th 2014, http://www.macrobusiness.com.ao/data/view/emplyment/manufacturing

Fig. 3. Victorian native managed forrest after harvesting, Rodd 2004, Accesed May 1st 2004 http://www.flickr.com/photos/tony_rodd/5648253584/

Fig. 4. Example of skidding in pine forest. Food & Agriculture organisation United Nations 1999, Accessed May 1st 2014 www.unstats.un.org/pics/3521613

Fig 5. PLain and Quarter sawing. (Texmill 1952) Accessed May 2nd 2014 http://www.texasbeyondhistory.net/aldridge/logging.html

Fig. 6. Forecast Log Supply From Plantation in Australia, BRS 2002, Accessed March 4th 2014 http://www.brs.gov.au/plantations

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Fig. 7. Work related injury or illness rate by industry, A.B.S 2011, Occupational Health and SAfety statistics 2011 Australian Bureau of Statistics

Fig. 8. Work related injury or illness rate by cause, A.B.S 2011, Occupational Health and SAfety statistics 2011 Australian Bureau of Statistics

Fig. 9. Vaupel 2014, Vic’s Timber mill

Fig. 10. Vaupel 2014, Vic’s Timber mill Log Storage

Fig. 11. Vaupel 2014, Vic’s Timber mill Log Carriage

Fig. 12. Small sawmill Layout. (Texmill 1952) Accessed May 2nd 2014 http://www.texasbeyondhistory.net/aldridge/logging.html

Fig. 13.Vaupel 2014, Vic’s Timber mill head saw

Fig. 14. Vaupel 2014, Vic’s Timber mill Wood Chipper

Fig. 15. Vaupel 2014, Vic’s Timber mill Rough Sawn Pack Storage.

Fig. 16. Vaupel 2014, Vic’s Timber mill Moulder Loading Process

Fig. 17. Vaupel 2014, Vic’s Timber mill Moulder Unloading Process

Fig. 18. Vaupel 2014, Vic’s Timber Mill Pack Strapping Process

Fig. 19. Vaupel 2014, Vic’s Timber Mill View of wrapping shed from Moulding shed

Fig. 20. Vaupel 2014, Vic’s Timber Mill Pack ready for wrapping

Fig. 21. Vaupel 2014, Vic’s Timber Mill Post Wrapping Line

Fig. 22. Vaupel 2014, Vic’s Timber Mill Wrapped Post Storage Area

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Fig 23. Water Cooled Gas Wood Power Generator (Genset 2013 ) viewed May 3rd 2014 www.ensetpower.alibaba.en.com

Fig. 24. Vaupel 2014, Ecquality Timber Factory, china. (Ecquality, 2010) Accessed MArch 22nd 2014 http://www.ecqualitytimber.com/Ecquality/About_Us.html

Fig. 25. Vaupel 2014, Eqcuality Timber Moulder

Fig. 26. Vaupel 2014, Eqcuality Timber Safe Work Practice

Fig. 27. Bacani, 2011 Average hourly wage, China vs. Vietnam, Indonesia and India (US$ per hour)accessed march 31st 2014 www.globalstats.org/minwage

Fig. 28. Vaupel, 2014, Walker Brothers Mill

Fig. 29. Vaupel, 2014, Walker Brothers moulder infeed

Fig. 30. Vaupel, 2014, Walker Brothers moulder outfeed

Fig. 31. Vaupel, 2014, Walker Brothers steel dolly

Fig. 32.Vaupel, 2014, North Wyong Saw Mill

Fig. 33.Vaupel, 2014, North Wyong Saw Mill Swamp

Fig. 34. Vaupel, 2014, North Wyong Saw Mill Carriage

Fig. 35. Vaupel, 2014, North Wyong Saw Mill Steak Sharpening

Fig. 36. Vaupel, 2014, North Wyong Saw Mill Palleting

Fig. 37. 3Glift, 2013, Small Electric Lifter Accessed May 7th 2014 www.3glift.com

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Fig. 38. Jinhua 2012, Car Lifter Accessed May 7th 2014 www.jinhua.alibab.com/products/21613

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Dolly Brief

Aim: Design and test a dolly to aid the movement, storage and handling of rough sawn and finished timber products in sawmills and timber processing facilities.

As mills and processing facilities vary greatly, the dolly must have maximum flexibility to be viable in the largest possible range of applications. The design should not prescribe a specific methodology of use, rather it should be a allowing any user or facility manager to create a flexible production line around it.

Market: The primary market will be Australian timber processing facilities which need to load packs of rough sawn timber in and out of moulding machines. The use of the dolly must be flexible enough for future markets to include any industry which requires stacks of product to be moved in a flexible manner.

Product objective: ● To increase the viability of the timber manufacturing industry in Australia by increasing efficiency of production. ● To increase the well being of timber mill employees through safety and quality of work, for the benefit of employees as well as employers.

Requirements: ● transport a max 1.5ton pack ( 60mm*90mm*3000mm) from a forklift to be unloaded into a moulder, end matcher or similar. The top plank layer must be at the correct feeding height and subsequent plank layers should be risen to the same height when needed.

● Safety must be of primary concern. There must be minimal chance for the operator to injure themselves by use of the machine, as well as reducing risk of strains or injury caused by nature of the task.

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● lowest height must not exceed 200mm, this would result in the later layers of timber needing to lifted onto the pack, negating any efficiency gained by the dolly.

● The dolly must be freely movable in all directions, allowing a single operator to move a whole pack over flooring with obstructions as tall as 20mm. An attachment for assisted movement by forklift or similar vehicle may also be beneficial for longer distances or steeper surfaces. Stability of the dolly must minimise any chance of tipping or the load falling.

● The dolly must lock into position, either to the machine or floor, preventing any accidental movement.

● The Dolly must allow for reach into pack, minimising any need for the operator to lean over the edge to retrieve timber towards the back. This can be achieved by allowing the operator to step into the pack or by moving the timber forward.

● When a pack is complete the dolly must facilitate fast, ergonomic and quality packing and or strapping.

● The unit must clearly communicate all operating functions. No training, text or signage should be required to illustrate use as language, culture and literacy levels vary greatly by user.

● The time required by the operator to lower or raise the dolly must be substantially less that gained having the timber at the correct height.

● The time taken to recharge/refuel, lock, maintain, or otherwise service the dolly must be minimal, being substantially less than the time saved by using the dolly.

● The return on investment should not exceed industry averages of 2-4 years, ensuring the lifetime of the product far exceeds the pay

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back time. Reducing initial cost, even at the expense of efficiency may be beneficial to increase the range of applications.

● The dolly must be visually attractive, exuding an image of quality, durability and functional design. This will greatly assist sales as well as encourage operators to use, maintain, respect and enjoy using the product.

● Any product sold for commercial use in Australia must be certified by a registered Engineer. This must be accounted for throughout the design phase.

Manufacturing Factories in Australia should be considered first, in support of the aim to assis local manufacturing. If necessary design modifications may need to be made to facilitate production domestically. Advantages of local production would include fast turn around, lean business strategies without warehousing and advanced production, ease of communication and testing as well as quality assurances.

If manufacture in Australia proves non-viable offshore production will still benefit the main goal of creating a product to assist the local market. China offers low wages, existing infrastructure and a compatible market for testing. India offers even lower wages, allowing for undercutting of aftermarket copies from china however production set up would be considerably more difficult in a nation with less manufacturing infrastructure.

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Design Research

Pricing: 3-5 year capital payback period is common on machines in the industry. If the time taken to strap and move one pack is reduced by 10 minutes (sliding strap on floor, straightening, getting forklift, pausing machine while one pack is strapped) this would be a saving of $7 per pack ($20per hour x 2 people / 60 minutes per hour x 10 minutes saved). at 4 packs per day a $5600 expenditure would be paid back in 1 year. This does not include the cost of tax and insurance ontop of wages the savings made on forklift hire.

In other applications such loading gazebo posts where the job of two can be done by one the payback period is much shorter as an entire wage can be saved.

Manufacture

As the dolly must be sold at prices as low as possible, to a market which is unproven and will require many functional prototypes, the incorporation and modification of existing products will increase reliability, reduce tooling costs and allow faster production.

Component Options: To ensure no novel idea or combination is excluded, a comprehensive list of all component options has been created. Each option should be researched and evaluated in the following design phase. A dynamically interrelated and cross referenced matrix can then be developed to compare each combination to outcomes established in the design brief.

Footprint I shape with telescopic middle: Two height adjustable spacers supporting the pack perpendicular to the timber, connected with a length adjustable beam.

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Forks mounted on rising wall (single sided access): A stable unit mounted to the side of the pack with cantilevered forks supporting the timber’s weight perpendicular to the direction of feed.

Multiple smaller supports: A flexible arrangement of height adjustable forks connect ad hoc whilst maintaining a common height.

Power The Power required to lift the stage as timber is removed from it, and control the descent as it is loaded can come from a variety of sources. key factors are availability on site, charge time, and convenience.

Potential Energy Conservation It is theoretically possible to conserve the potential energy released when the pack is lowered from the forklift and use this at a later time to raise the pack as it is fed into the machine. If the pack is loaded onto the dolly at full height, then lowered storing the energy, the weight which needs to be lifted is less than that which was lowered (as each layer is unloaded before the rest is raised). A loss of 50% energy would still allow the machine to function. This equation only applies when the dolly is being loaded or unloaded by a forklift. When both sides of operation are manual e.g. the dolly is being stacked from one machine and unloaded into the next by hand 100% efficiency (aka net energy input to compensate for heat loss) is required. The descent and raising needs to be quantified, and a mechanism such as a spring would produce bounce without a control mechanism. The control mechanism could be mechanical and require manual energy input to compensate for heat loss. Ideally this would be done in a way that is unobtrusive, such as a foot pedal which controls the adjustment while receiving manual energy input.

The control mechanism as well as the net energy input could be electric. This would result in very small and potentially accurate control. Electricity opens the possibility of computerising the dolly. Height scanning could keep the dolly at the correct height automatically, intelligent weight sensors could learn which product is being used and adjust the height, wireless control, data logging and

77 many other features are thereby made possible. All extra features however add cost and complexity, both to be avoided.

Pneumatics are an alternative to mechanical and electrical energy input. A piston fed from a small on board pressure tank could raise the stage, and work in reverse as a pump to re pressurize the tank when the stage is lowered. Pneumatics has the benefit of immediate recharge from compressors found in most timber facilities.

Lifting Mechanism Options: Scissor Lift The most immediately viable technology, and that used by most competing products is a hydraulic powered scissor lift. The example below uses a single cross, which increases the size of the base but also allows for a very low profile. Empire Double Cylinder Hydraulic Lift, F.O.B: US $700 - 800 / Set

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1. Lift Capacity: 2800kg/6000lb 2. Max. Height without Adapters: 1200mm/47'' 3. Max. Height with Adapters: 1360mm 4. Min. Height: 120mm 5. Shipping Dimensions: 2060mm x 1050mm 6. Power Supply: 220v/110v 7. Machine Weight: 420kg

Rolling Lobe Air Spring An air spring is flexible sack which rises in height as the pressure of air inside it is increased. This may allow the lifting mechanism and actuator to be the same device. This option would not be viable with off the shelf options as air springs are built specifically for vehicles and have a travel to short for the dolly. A similar device may however be possible offering the advantage of a single moving part.

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Large flexible wheels This unconventional option could combine the motion, height adjustment and potential energy retention in the same mechanism. A wheel similar to the one below, however without an outer ring could adjust in height (and circumference) based purely on weight of the load.

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In the exploratory sketches above, the expanding wheel is attached to the stage by axles on telescopic rods, the height of which could be controlled with servos to prevent the stage from bouncing. In the compressed position the wheels will press against the underside of the stage, which is why small rollers are needed.

The drawback of this method are prohibitive: The expanded wheels in the raised position prevent the operator from stepping into the dolly to retrieve timber further back in the pack. Rotating and manoeuvring this design will also be a major design hurdle. The addition of very small wheels on the tread of the larger wheel could facilitate lateral movement, however inefficiently.

Access to rear timber Step in: A gap in the stage allowing the operator to move closer to the rear timber. Tilt and slide: A mechanism by which the stage can tilt, sliding the remaining timber forward Conveyor: A mechanised system for moving the remaining pack closer to the operator. Rollers: Friction reduction to allow the remaining pack to be moved forward manually

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Movement Castors: Standard swivel castors as found on existing trolleys Bovine Eye: An omnidirectional spherical wheel in a socket housing Omni Wheel: A fixed castor with multiple smaller rollers mounted laterally on the wheel Stair Wheels: Three or more wheels mounted on a rotating plate to overcome uneven surfaces

Control Digital: A computerised interface with full control given to the operator. Weight based: Digital or mechanical scales lowering/raising the stage based purely on weight Manual (pedal or button): Direct, analogue control of the electric or mechanical lift mechanism Robotic: digital sensor and algorithm based autonomous control Height scan: A digital sensor based reading of pack height controlling the lift. Time based: a digital or analogue system raising/lowering the stage automatically. Mechanical height detection: A lever or arm resting on the top of the pack to determine the current height of the pack and control lift.

Fixing Depending on the procedure being completed and the amount of friction provided by the wheels and ground a method may be required to hold the dolly in position as it is loaded and unloaded. Mr. Newman suggested the dolly should be secured to the machine in use. Latching: The simplest option to do this may be a mechanical latch. This could engage automatically when the dolly is rolled into position and be unlatched manually or by virtue of a mechanism connected to the dolly handle. Drawbacks include increased handling time, the need for a

Magnet: A permanent magnet could replace the latch. This would prevent the need for modification to the machine.

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Breaks: By manually or automatically preventing the wheels from turning the dolly will be fixed.

Friction: The innate friction of the wheels may negate dolly drift without any design features.

Retracting wheels: As discussed below retracting the wheels to lower the dolly height, resting the lower frame on the floor would prevent drift as well as lower the minimum height.

Achieving minimum height To achieve the core requirement of minimum height under 200mm as many components must be next to each other rather ontop of each other as possible. In existing designs the stage sits above the lifting mechanism, which sits on a lower support which sits atop a wheel.

It may be possible for the overall height to be hardly taller than the collapsed height of the lifting mechanism (scissor lift pictured)

Countersunk Mechanism By housing the scissor lift inside u shaped stage and lower frame beams their height does not raise the stage.

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Offset Beams: To allow the timber pack to be placed onto and removed from the dolly there must be a gap of at least 100mm between the bottom of the timber and the top of the stage. To achieve this gap in the centre, without raising the sides further the centre beam of the stage must be lowered. To not interfere with the lower centre beam at minimum position one or both must be off centre. As illustrated below this could be achieved by doubling the lower beam and sinking the upper beam between them. An issue to be observed here is the width, as this will reduce the ability of the operator to step in and retrieve beams towards the back of the pack.

Offset Wheel: Housing the wheel next to (as pictured above), rather than under the lower frame (as is conventional) means the wheel can be larger (able to roll over larger obstructions) while only raising the stage by the clearance height.

Retracting Wheels: Even the above height reduction can be improved by retracting the wheels (lowering the frame) while the dolly is parked. There should be no need to move the dolly while timber is being placed on at the highest level meaning this same mechanism can act as the break.

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Embodiment The next steps in the design process will be analysis of each of the above options, creation of a dynamically interrelated and cross referenced matrix to compare each combination to outcomes established in the design brief. Then creation of a single design which offers the best combination, with input from mill employees and managers, marketing research and engineers is necessary. A prototype must then be developed, tested and improved. This will be repeated as often as the budget and timeline permit. Manufacturing options must be explored concurrently to the design process as the price of manufacture many vary greatly based on solutions chosen.

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Business viability and setup

Concurrently to the design process the commercial aspect of the project must be managed. The advantages of not waiting for the development process to conclude will include making the most of contacts approached as part of the design process (e.g. starting with a survey and ending with a sale), reducing the time before a return on investment, securing funding for manufacturing and preventing patent / secrecy problems.

Commercial viability must be confirmed before substantial investment is made. The development of a design and costing for production will allow a market survey to determine if the concept is a sound investment. If this is found to be the case a company must be created to distribute the product. This entity will allow for investment, tax payment and legal protection as well as hiring staff if necessary in the future. This company will be the owner of the intellectual property and may or may not be the name under which the product is sold to the public.

Company Tasks

1. Investment and Profits A contract must be agreed upon between the designer, owner, investors, and other parties which may lay claim to intellectual property such as The University of Technology, Sydney. This contract must stipulate the terms of investment, intellectual property ownership and management structure of the company.

2. Intellectual Property Securing protection for intellectual property will be crucial, as the first to market with this product will no doubt have a great advantage. In Australia this will most likely involve an innovation patent. Internationally this may invol nation by nation patenting as well as a strategy such as not distributing in China due to rampant patent infringement.

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3. Marketing Strategy Develop a comprehensive marketing strategy. This may or may not include paid advertising, however effective communication with the target market will be vital to convert interest into sales. Detailed analysis of the market will be key, not just to assess how to best solve the physical problem, but also to determine a marketing strategy, release timing, and manufacturing options and generate investment. This will influence the price range, aesthetics and communication of the dolly as well as potential advertising.

4. Management and external consultants Due to the complex nature of the product and diversity of the market hiring an experience manager may be necessary. This will require more capital investment, however may prevent serious mistakes and allow the designer to focus his or her skills on the product. Key requirements for candidates will be trust, an understanding of the design process, experience in small scale international business, management experience and ideally knowledge the Australian or international timber and construction market.

5. International Markets Ideal markets to expand into will be those similar to Australia, with rising labour prices and small to medium sized enterprises in a large timber industry. Examples include Germany, Turkey and scandinavia. China will have to be assessed, as it has a very large amount of relevant factories and sharply rising labour prices, however the difficulty in pursuing rampant patent infringement may make this market an unwise investment.

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