A new cost model for the calculation of loggings costs

The new model was developed to make user-friendly international cost comparisons possible.

There are a multitude of different logging cost models in use around the world. A European Cooperation in Science and Technology (COST) Action group was established that developed a spreadsheet-based model to carry out transparent and simple logging costs. The spreadsheet consists of two sheets. The first explains the operation of the model and the second is where the input data in inserted and where the calculations take place and the output can be viewed. The following input variables are considered (quoted from the spreadsheet):

 

 

  • Machine type: Specifying the type of equipment being examined in the model.
  • National currency: Specifies the national currency on which all currency values will be based.
  • Unit of costing: the unit of production of  the costs are expressed in (e.g. m3, hectare).
  • Fixed cost inputs: Fixed or standing costs are costs that need to be recovered by machine operators irrespective of the amount of work a machine does or the revenue it earns and are concerned only with owning the machine.
  • Variable cost inputs: Variable or running costs are incurred when the machine is working, whether carrying a load or travelling empty, or at least when the engine is running.
  • Operator: The total cost of employing the operator, including wages, benefits and overhead costs.
  • Productivity: Contains aspects of productivity, Machine Utilization (MU), working days or hours and profit margin.


More information on the model and its use can be obtained by accessing the International Journal of Forest Engineering, Vol. 25(1) of 2014. The model can also be downloaded from this site. The authors of the journal article are P Ackerman, H Belbo, L Eliasson, A de Jong, A Lazdins and J Lyons. Source: http://www.tandfonline.com/doi/full/10.1080/14942119.2014.903711

 

 

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