Close to customers` business

I N T E R N A T I O N A L
F O R E S T R Y
M A G A Z I N E
Issue 1•2006 English
Close to
customers’
business
EUROPEAN FOCUS
I N V I S I B L E ‘ WAT C H D O G ’
FUTURE HARVESTING
2–3
F O R E S T R Y
M A G AZ I N E
Hannu Tuorila
INTERNAT I O N AL
Changing climate, changing
forest management
Violent changes in weather change also
demands on harvesting.
page 18
Zero room for error
Brothers McGee in Georgia, USA,
needed a machine they could rely on.
Paula Myöhänen
page 20
Invisible ‘watchdog’
TimberLink – a system automatically monitoring the forest machines
smoothless function – gives contractors a peace of mind during a break at
the fire – while productivity stays up. page 10
Balanced timber harvesting
When forest machines stay balanced
in any terrain, productivity boosts.
page 24
Editorial
4
In the European market
7
Intrac sells trust
10
Invisible watchdog
12
Lower emissions, higher performance
14
G-III Skidders received
Tier III Certification
15
TimberRite optimizes the value of timber
16
Changing climate, changing
forest management
18
Balanced timber harvesting
20
Zero room for error
22
German Nuhn & Co GmbH:
It’s all about quality
23
Dealer Conference
24
When going gets tough...
26
Brazil – setting sights on growth
28
In forest with simulators
30
European retail companies’ new direction
30
Mika Kallio battles for the MotoGP World
Championship
31
Dmitri Shmelyov the new area
manager of Siberia and Far East Russia
31
Trade fairs and exhibitions in 2006
Opportunities &
challenges in the
Russian forestry market
Studio Amanda
3
Russia is an immense country in
many senses. This also applies
to its forest resources, which is
estimated to be one fifth of the
world total. At the moment, only
a fraction of the annual growth
of one billion cubic meters is
harvested. We have estimated
that two or three times higher
volumes can be achieved, providing that investments in the forest
industry, infrastructure and, consequently, in harvesting equipment, is increased substantially.
Currently, 85% of harvesting
is done by the full-tree method,
with a high level of manual work
involved. However, new investments tend to focus increasingly on cut-to-length equipment. In addition to the technology shift, the market structure seems to be changing.
Company acquisitions and arrangements between large forest industry
companies and smaller harvesting companies are common.
John Deere has been an integral part of the Russian harvesting
equipment business for more than 30 years and is a definite market
leader. Over the years there have also been difficult times and conditions, but operations have continued without a break. The strong commitment to the Russian forestry industry is one of the reasons for our
strong foothold in the market.
The local production of full-tree equipment is decreasing rapidly.
New investment focuses mainly on foreign machines. John Deere can
offer technology, products and service for both harvesting technologies.
Supporting Russian forestry business and professionals is still a challenge. The immense distances and insufficient road network can create
logistical challenges.
The easy and fast availability of spare parts and service is one of the
key issues for customers’ productivity. We are investing heavily in the
network of service points. There are nine John Deere service points in
different parts of the country at the moment – from Petroskoi in the
west to Habarovski in the east. And there are plans under way to add
even more in important and growing areas. The feedback from customers has been encouraging.
Hannu Hietikko
General Manager in Europe and Russia
John Deere Forestry
IN THE FOREST is a copyright magazine published two times a year in English, French, German,
Portugese, Russian and Spanish. The magazine circulation is about 45,000. The opinions
expressed by the authors or persons interviewed do not necessarily reflect the views of John
Deere. Material may be reprinted with permission by contacting www.JohnDeere.com.
ISSN 1795-2573
PUBLISHER John Deere Forestry Group 1515 5th Ave. Moline, Illinois 61266-8806
www.JohnDeere.com FREE SUBSCRIPTION AND ADDRESS CHANGES See Continental
Divisions on page 31. EDITOR-IN-CHIEF Timo Salomaa CONTRIBUTORS We would like to
thank everyone who has contributed to the magazine EDITORS Compositor Oy LAY-OUT
Typeworks Oy Ltd PRINTING Libris, Helsinki, Finland COVER PHOTO Jyrki Vesa
4–5
INTERNATIONAL
FORESTRY
MAGAZINE
Europe
CUSTOMERS
don’t want forest
(just)
machines anymore
The European market for forest machines is challenging and changing.
The customers don’t want to buy just forest machines anymore. They
want to buy harvesting capacity, productivity and profitability.
J
ohn Deere’s forest machines have two
stable legs to stand on in the European
market. The first is Deere’s 50-year presence and solid reputation in the European
agricultural markets and the second the company’s expertise and edge in forest machines –
based on Timberjack’s excellent track record
in the field for decades.
Since 2000 when the two companies
merged, the competition in the European market has constantly intensified. “The traditional markets, such as Scandinavia and Germany, are quite saturated and business there
involves mainly equipment renewal and service sales. In France, there is some room for further mechanization,” says Mr. Timo Kyttälä,
Marketing Director for Europe and Russia.
In contrast, Poland and many EasternEuropean countries such as Romania, Slovakia
and Croatia have a very low level of mechanization automation, offering strong possibilities
of introducing new efficiency into harvesting.
The vast and promising market in Russia is
familiar to John Deere, with operations dating
back 30 years. “We are working very seriously
in Russia and due to our good personal relations in the industry, we have good potential
to develop the industry further.”
Uncompromised demand
for productivity and uptime
However, common to all the different countries within the European market is the need
for increased efficiency.
In practise this means advanced technol-
ogy, quality, customer service and commitment to the customers’ business success.
John Deere has the best offering in harvesting technologies – machines, automation and
service for both the cut-to-length and full-tree
technology. “To serve the versatile and vast
European market well, it is important that we
can offer the best solution for different harvesting needs,” says Kyttälä. “The well-proven
track record with customer solutions are now
even better with John Deere’s strong investment in technology, quality and genuine customer service.”
Shouldering responsibility
for customers’ success
Competition in the European market is
intense. Nevertheless, John Deere is the clear
market leader.
However, although the latest technology
and high-quality machines are important, that
is not enough on a mature market.
“What really counts is understanding the
customers’ business and commitment to providing good service at any time,” Kyttälä
points out. “Another important issue is good
relations with the customer. This business is
based on trust and the importance of personal
relations.”
Unlike the other John Deere businesses,
most of the forestry customers are small, family-owned businesses for whom the forest
machine either makes or breaks the business.
“Today our customers don’t buy just a
machine from us, they purchase harvesting
T O T H E N E X T PA G E
The European forest resources
from a satellite view.
(Compilation of a calibrated European
forest map derived from NOAA-AVHRR
data. European Forest Institute. EFI Internal Report. Schuck, A., Van Brusselen, J.,
Päivinen, R., Häme, T., Kennedy, P.and
Folving, S. 2002.)
6–7
I NTERNAT I O N A L
F O R ES T R Y
M A G A Z I N E
“Today our customers
don’t buy just a machine
from us but harvesting
capacity.”
–Timo Kyttälä
Juha Poutanen
Marketing Director
for Europe and Russia
F R O M T H E P R E V I O U S PA G E
capacity. To ensure constant productivity, the
customer expects full support for his business.
This is main focus for our network of own
companies and dealers throughout Europe,”
relates Kyttälä.
Focus on quality, customer service
and future services
One important area to meet these tough needs
is quality – ranging from product development
through production to daily operations. “It
is important that once the customer gets the
machine, it is working flawlessly and is productive from day one. There is extensive planning and testing carried out based on the customers’ specifications before the machine is
delivered,” says Kyttälä.
John Deere is also expanding its network of
service and spare parts centers to increase both
coverage and ease of business for customers.
“Our service centers will offer the same level
of service to all our customers throughout
Europe. A benchmark for this is the new customer center being built in Joensuu, Finland.”
And finding new ways to serve customers
is ongoing. One example of the future focus
is on automation and solutions that help the
customers even in remote areas. “We are creating services that allow us to diagnose, monitor and even repair our customers’ machines
remotely. This is increasingly important, since
some of our markets have enormous distances
to harvesting sites. For example, in Russia
today, a serviceman can travel 12 hours by
train, because there are not always roads, to do
just a small repair job!”
On the whole, growth is not forecast in the
European market. But John Deere has clear
plans to support the different customer groups’
business throughout Europe – both in mature
and growing areas. “The needs and services
vary, but we intend to always stay a step ahead
of customer expectations and provide the right
products and services to support and grow
their business,” concludes Timo Kyttälä.
Swedish super service
Innovation, quality, commitment and integrity have guided John Deere since 1837
and are still valid values to the company. Being close to the customer, John Deere
Forestry AB, the Swedish sales and service organization knows that providing prompt
and professional service along with high spare parts availability is what really counts.
“It gives our customers an advantage over their competitors”, states Håkan
Petersson, After Market Manager in Märsta, Sweden.
John Deere’s sales and service organization in Sweden employs almost 250 people
who work in 32 service outlets. Their 124 service men are backed up by 13 engineers and
product specialists who have the latest technical information and are thus able to keep
everybody up to date.
”We have increased the number of service outlets by four this year in an effort
to improve service even further”, says Petersson. ”Next we will launch Forestry+. It
contains everything that gives our customers extra value: machine software that adds
productivity, improved SAFE and SAFE Plus service programs, Performance Plus parts
program, and even spare parts availability and delivery guarantee. Forestry+ is something totally new in the forestry business – we are leading the way. Our philosophy is
and has always been to be a partner to our customers; we are helping them to succeed
rather than just delivering machines.”
Top training in Czech
Cut-to-length harvesting is a fairly new method in Eastern European countries, such
as the Czech and Slovak Republics. This has provided contractors opportunities to
boost their business and income.
“The operators are migrating between the contractors to get better salary – however, the operators are paid substantially more than the average salary here. The
challenge is that the skills required are still developing and the level of salaries needs
to be balanced from the contractors’ view,” says Vlastimil Zeman, Managing Director
of Merimex s.r.o. Established in 1994, the company has been the John Deere Forestry dealer in the area since 2001.
Merimex decided to invest in a brand new training center equipped with John
Deere harvester and forwarder simulators to fulfill the need for operator training for
the cut-to-length method. There is also a classroom with modern audiovisual tools
and computers with simulators of operating and measuring systems for John Deere
machines. “We are expecting to increase the satisfaction of our customers through
more qualified operators in our area.”
“Training is carried out by our experienced personnel in cooperation with the
Mendel University of Agriculture and Forestry in the city of Brno and the Swedish
Skogstekniska Maskinskola in Alfta. Courses focus on the safety, working methods,
machine software, minor repairs and other skills. We start with the theory, proceed
through the use of simulators to real machines in the forest under the supervision of
trained operators,” relates Zeman.
Jyrki Vesa
Intrac’s Jaan Maasikas (left), Teet Suursild and Tauri Kakko work for the customer’s benefit. Intrac’s aim is for the mechanics to specialize in different areas,
Intrac sells TRUST
TEXT: Auli Packalen/ Compositor
Maintenance and spare parts services are a big part of the productivity
of timber harvesting in Estonia, Latvia and Lithuania. Intrac, John
Deere’s dealer in the Baltic countries, has strongly expanded its
network and diversified its service portfolio.
I
deally, of course, forest machines wouldn’t
encounter any unscheduled downtime. All
maintenance would be scheduled well in
advance and a sufficient number of wear parts
would be kept on hand.
But the fact is that no matter how high quality and reliable the machine, Murphy’s Law
eventually comes into play: Chains wear out,
a hidden rock ruins the day and damages the
crane… Humans are the ones that operate the
machines, and on a bad day accidents can hap-
pen to even the best operators.
These days the productivity expected from
logging is so high that downtime has an immediate impact on the operating costs and the
profitability of companies. Repairs must be
available quickly and spare parts must be at the
site preferably at a blink of an eye.
Customers’ expectations are the same regardless of which part of the world timber is being
harvested. In the Baltic countries, the availability of maintenance and service parts services is
a priority because many companies work three
shifts, even on weekends. Contractors want to
maximize their machine investments.
Intrac Group AB, the John Deere dealer for
Estonia, Latvia and Lithuania, has stepped up to
the challenge and invested a lot in recent years
in maintenance and spare parts services in the
region.
“We sell more than just machines, we also
sell trust and support. We do the utmost to solve
a customer’s problems,” Marketing Manager
Fredrik Brandhorst sums up Intrac’s business
philosophy.
He believes that fast and reliable services
have helped make John Deere the clear market
leader in the Baltic countries. Just a decade ago,
the green forest machines were the underdog.
T O T H E N E X T PA G E
8–9
–9
INTERNATIONAL
Dealer Excellence
Award 2005 for
Intrac Group
John Deere’s Dealer Excellence Award 2005 was
given to the Intrac Group in May in Moline, Illinois,
USA, at the John Deere conference for European
and Russian dealers.
John Deere’s forest machines are the clear
market leader in the Baltic countries. “Intrac Group
has demonstrated a strong commitment to investing in the forest machine sector and the development of the entire service network in the Baltic
region,” says Timo Ylänen, Marketing Manager,
John Deere Forestry Oy.
The Intrac Group’s head office is in Sweden
and it has subsidiaries in Estonia, Latvia and
Lithuania. In recent years, Intrac Eesti AS, SIA
Intrac Latviha and UAB Intrac Lietuva have invested
particularly in the development of maintenance and
spare parts services in the Baltic countries.
Intrac Group’s network of retail and service outlets in the Baltic countries includes 11 spare parts
and maintenance sites and 25 service vehicles. Additionally, the Group has eight forest machine repair
workshops. Intrac guarantees that John Deere forest
machine customers will receive the spare parts they
need within 24 hours of ordering them.
FORESTRY
MAGAZINE
Machine repairs –
in the workshop or the forest
The Intrac group of companies in its present
structure has been the John Deere forest
machine dealer in the Baltic countries since
the mid 1990s. The Intrac group of companies is the offspring from the Finnish trading
house Thomesto. Thomesto’s history with green
machines in the Baltic countries and Russia
counts back several decades.
For a long-term partnership to work, says
Brandhorst, both parties must be in tune with
each other.
“We share the same way of thinking with
John Deere. For both of us, the customer is
always at the heart of everything,” he emphasizes.
Customers have also been the driving force
behind Intrac’s investments. Over the course of
five years, the company has invested about
5 million euros in workshops, mobile service
vehicles and the development of spare parts
services.
Brandhorst points out that customers are
very different and their expectations regarding services vary widely. Many of them still do
most of their own maintenance and even some
big repairs. More and more customers, however,
have realized that it isn’t always cost-effective to
do the work themselves, and, in fact, it can turn
out to be very expensive in the long run. Rather
than doing the work themselves, they are buying services from an independent partner so
that they can focus on what is essential in terms
of their own business.
“The service hours sold by Intrac are increasing year by year, and we want to ensure that we
have enough service bays so that customers get
their problems resolved quickly,” Brandhorst
says and points out that they also offer service
on the weekends.
“And maintenance agreements are becoming more and more popular,” he adds.
Intrac’s flagships are the new sites in Tallinn,
Estonia, and Riga, Latvia. A similar service site
is scheduled to open in 2007 also in the Lithuanian capital of Vilnius. Intrac has a total of 11
outlets in the region, each with its own spare
parts inventories and eight of them with a workshop.
But it isn’t always feasible to transport a
machine long distances for maintenance or
repairs. Often times, it is much easier for the
customer if the mechanic can visit the forest
site. At the moment, Intrac has a total of 25
service vehicles in the three Baltic countries,
and most of those vehicles are fully equipped
right down to the welding equipment.
knowledge of the latest technology is important
especially because John Deere forest machines
are becoming more technologically advanced
all the time.
He says that Intrac’s investments are now
starting to pay off. Net sales have increased very
quickly and even profitability has remained at a
decent level in spite of the major investments.
He has a clear vision of what it will take for
Intrac and John Deere to keep their customers’
trust also in the future.
“First of all, we must be close to the customer; we must have a network of service sites
Attitude conditioning
In spite of a very strong growth – total sales
increased 65% last year – spare part sales
accounts for 15% of Intrac’s net sales. Availability of spare parts is a matter of pride for Intrac
employees, and that explains why Intrac maintains a relatively large inventory of spare parts.
Brandhorst says that customers in the Baltic
countries have learned to value high-quality
spare parts, fuel and oil.
“They’ve noticed that John Deere recommends a certain type of diesel or oil for a reason,” he says.
Attitude conditioning starts with the personnel’s know-how and the expansion of it. The
professional skills of the mechanics are kept upto-date through, e.g., training collaboration
with John Deere. Brandhorst emphasizes that
that is dense enough and enough service bays.
Secondly, the fleet of service vehicles must be
comprehensive. Third is flexibility in maintenance services; the customer decides what he
wants. One may want to service his machine
every 1000 hours, and another might want
something else. And the fourth thing, of course,
is spare parts services.”
The Baltic countries are not the only ones
that have been investing in the development
of maintenance and spare parts services. John
Deere’s goal is to further develop its maintenance and spare parts network, and good partners – like Intrac – play a key role in this.
Verno Õige (left)
and Tauri Kakko
have about 220
service jobs per
month.
Green Estonia
Intrac’s Sales Manager for Estonia, Tauri Kakko, doesn’t have
time to twiddle his thumbs at his desk in the Tallinn office. He
spends a lot of hours on the road because Estonia’s favorable
economical development is also being seen in logging – and in
the demand for green forest machines. Last year a record number
of John Deere harvesters and forwarders were sold in Estonia. Just
as in its neighboring countries to the south, Latvia and Lithuania,
practically 100% of the mechanized logging in Estonia is done
using the cut-to-length method.
The increase and modernization of the forest machine base
have substantially boosted the number of personnel at Intrac’s
Estonian sales office. At the moment, there are close to 70
employees in Estonia, and recruiting is always under way for good
service mechanics.
“We have about 220 service jobs per month, three quarters
of them in the workshops and a quarter out in the field. Maintenance and spare parts services are available around the clock
because it isn’t unusual for companies to work 24 hours a day, 7
days a week,” Tauri Kakko says.
According to him, there can never be too many service bays
open in the workshops, so work efficiency and quality are key.
Intrac’s aim is for the mechanics to specialize in different areas,
some in diagnostics and some in basic maintenance and repairs.
Kakko’s colleague Kaido Kokk is in charge of Estonia’s spare
parts service. Spare Parts Manager Kokk is a quite the master of
optimization: The work is a balancing act between the size of the
spare parts inventory and economic reality. However, in tight
situations it is the customer who always comes first. Kokk would
rather overstock the fast-moving spare parts than have
to turn a customer away.
“We have a 24-hour service for our
customers: If the customer orders a
part before 3 pm, they’ll receive it
the next afternoon at the latest,”
Kokk says.
Also stocked are the strategically
important bigger parts, the demand
for which is naturally more difficult to
predict. Along with basic spare parts,
Intrac also sells e.g. anti-skid chains,
floatation tracks, hydraulic components
and oils, buckets and filters.
10–11
INTERNAT I O N AL
F O R E S T R Y
M A G AZ I N E
Operator Timo Turpeinen (left) and his colleague Sakari Isohanni have been testing TimberLink in Finnish forests this winter.
TimberLink
The invisible ‘watchdog’
TimberLink – performance and condition analysis system for harvesters – has been in tough pilot use this winter. The results are good –
logging is more economical and preventive maintenance is keeping
the harvester maximally at work.
A
t the turn of the 21st century, a basic
research project was launched at John
Deere Forestry’s R&D department in
Tampere. The R&D professionals involved in
the project were looking to optimize the performance of forest machines.
”All too often, the way the machine functions doesn’t become an issue until there is a
problem. So we started envisioning prevention,”
says Development Manager Arto Peltomaa.
With TimberLink moving into production
late last year, the dream has now become a
reality: the machine performance and condition monitoring system is already in trial use
in dozens of machines in different market
areas. One of the trial users is Marko Uusitalo’s
company, working in northern Finland.
A tool for economic operations
The M. Uusitalo Oy company bought its first
machine chain, a Timberjack 770 and 810B,
at just about the same time the designing of
the TimberLink got under way back in late
1999, early 2000. The company acquired its
second machine chain in December 2004, and
the third in the summer of 2005, two 1070Ds
and two 1110Ds.
In particular, Marko Uusitalo praises the
1070D as a good general-purpose machine in
the flat terrain of northern Finland, where the
trees in the pine-dense forests are not very big.
All his machines are run in two shifts by about
ten permanent operators. The timber goes to
local sawmills. Even during the slower periods,
there is plenty of thinning work – in Uusitalo’s own forests, if not elsewhere.
After reflecting on the significance of
TimberLink for the M. Uusitalo Oy company,
Marko Uusitalo says: ”For us, it is a tool for
economic operations.”
”A forest machine has many functions
that gradually change as the conditions vary
and the components age. If a hose breaks,
you notice it right away, but you don’t
notice a minor change in saw performance.
The change may be very, very small, but
when the same motion is repeated tens of
thousands of times, it can have a substantial
impact,” he says.
The same holds true for the monitoring of
fuel consumption. ”Of course previously too
we kept track of how much fuel was going into
the tank. But with TimberLink, fuel consumption can be monitored by each phase of work,
i.e. how much is used for sawing, feeding,
driving and loading. The data obtained gives
us a lot of insight: For instance, we can see if
the machine is too small or too big for certain
logging areas. The 1070D is ideally suited for
our 200-liter forests,” says Uusitalo.
The little things add up
Marko Uusitalo and operator Sakari Isohanni
offer a practical example of how TimberLink
brings savings.
”With TimberLink, we were able to see
that the grapple pressure had decreased
slightly, resulting in an increase in average
fuel consumption of 0.5 liters per hour. If the
machine is running 3,500 hours a year, that
adds up to more than 1,500 liters annually.
One thing for sure is that the price of fuel isn’t
dropping. Consumption was quickly returned
to normal by servicing the valve.”
Together with his operator colleague Tomi
Turpeinen, Isohanni compared the data provided by TimberLink about the performance of
different machines.
”Let’s say the chain becomes dull during
sawing. TimberLink immediately detects the
decrease in performance,” Isohanni says. ”It
is such an easy tool to use. The only problem
is that you seldom have enough time to go
as deep into the menus as you’d like to while
you’re out in the forest. So, for routine use,
the operator should check TimberLink mainly
for the most critical productivity and fuel
economy figures. And then the more detailed
data should be accessed when something isn’t
right with the machine.”
Everyone benefits
TimberLink produces accurate and detailed
information specifically about the machine’s
– not the operator’s – performance. In fact,
the operator’s impact is filtered out from many
of the measurements so that the technical
condition of the machine can be detected as
accurately as possible. With or without filtering, Sakari Isohanni doesn’t see TimberLink
as a disadvantage for anyone.
”If it takes one operator longer to use the
boom than another, there is room for improvement,” he says with genuine enthusiasm.
Marko Uusitalo points out that TimberLink also benefits the service technicians.
”There aren’t any major problems with
new machines, but after a while the parts start
wearing and have to be replaced. Thanks to
TimberLink, the worn parts don’t come as
a surprise to the contractor, operator or the
service technician. And it’s definitely nicer to
replace parts when you’re in a warm workshop
rather than out in the freezing forest.”
”The fact that John Deere has developed
this kind of performance and condition monitoring system indicates that the company’s
forest machines can hold up to rigid scrutiny”,
Uusitalo thinks.
Unique
software in
forest machines
”TimberLink is an add-on application to the
Timbermatic 300 control system”, explains
Development Manager Arto Peltomaa. ”It runs
in the background of the Timbermatic 300;
when you want to review the data it has collected and analyzed, you just click the user
interface open.”
In other words, TimberLink doesn’t require
any new sensors to be added to the harvester
because it utilizes the same data already being
used to control the machine’s various functions. It sounds like TimberLink is just a big
plus for forest machine contractors.
”TimberLink increases productivity, reduces
downtime and decreases operating costs,” Peltomaa confirms. It yields information about things
that cannot be pinned down even by the most
experienced operator – things like fuel economy. The machine might be running fine with
no obvious problems, but perhaps too much
fuel is being consumed. Thanks to TimberLink,
the malfunction can often be pinpointed to a
specific subsystem, and that makes the service technician’s work easier.”
In an ideal situation, a service technician
wouldn’t even have to be called to the site at
all, because the TimberLink monitoring system would warn the operator of changes in
the machine’s performance before it is too
late. That way, the causes of the change could
be checked out during routine maintenance.
When machine performance is optimized early
enough, downtimes decrease.
”TimberLink also helps to determine optimal settings and configurations, which help
save fuel and prolong the life of the components,” Arto Peltomaa adds.
All new John Deere harvesters are equipped
with the TimberLink interface, which can be
launched 40 times free of charge. Thus the
system can be tried out before a purchase
decision is made. In the upcoming months,
deliveries of the application will begin also
for existing D model harvesters that use the
Timbermatic 300 system.
12–13
INTERNAT I O N AL
F O R E S T R Y
M A G AZ I N E
Lower emissions,
HIGHER
PERFORMANCE
John Deere’s product development looked at the new emissions regulations for diesel engines and saw an opportunity: Lower the emissions
and increase the performance of non-road diesel engines.
S
lowly but surely the world is coming
to the consensus that environmental pollution and climate change must
be curbed or future generations will face serious problems, at minimum. The consumption
of fossil fuels and thus non-road diesel engines
are under the toughest scrutiny; restrictions on
the emissions of these engines have been phasing in since the mid 1990s.
The latest emissions regulations, called
Shared goal:
cleaner air
The use of fossil fuels is one of the biggest loads
on the environment all over the world. Burning
fossil fuel releases carbon dioxides, which cause
- among the other so-called greenhouse gases
- global warming and are a threat to the earth’s
climate.
Fossil fuels also contain impurities, like sulfur
and nitrogen. When burned, they form nitrogen
and sulfur oxides that are hazardous to the environment and humans. Burning fossil fuels also
generates, among other things, carbon monoxide
and particulates.
To control and curb the emissions of non-road
diesel engines, the goal of the US Environmental
Protection Agency’s Tier standards and the EU’s
respective Stage standards has been to restrict
the emissions of non-road diesel engines. In the
next Tier 4/Stage IV phase in 2011, the particulates
and nitrogen oxide emissions will be in effect
entirely eliminated and the “emissions bar” will
become virtually non-existent.
Tier 3/Stage III A, took effect at the beginning
of 2006 and are for >130 kW engines. The
regulations require the nitrogen oxide emissions of new engines to be 40 percent lower
than the previous engines. Starting next year,
the same regulations will apply also to <130
kW engines.
At John Deere, the premise of engine
development has been that customers don’t
have to sacrifice ”achieved benefits.” Cleaner
emissions and improved performance aren’t
exclusionary of each other. The PowerTech
Plus engines going in to John Deere forest machines not only comply with the new,
tougher emission requirements, they also perform better, respond better, and have better
low-speed torque.
The first 1270D and 1470D harvesters equipped with the new PowerTech Plus
engines will roll out of John Deere Forestry’s
Joensuu factory in May, and the first 1710D
forwarders in June.
The plan is to first equip the bigger forest
machines with the new engines, followed by
the smaller models, and by the end of 2007 all
new John Deere forest machines will have Tier
3/Stage III A-compliant engines.
Focus on combustion,
not on after treatment
At John Deere, the focus of reducing engine
emissions is on combustion technology and on
understanding combustion – on what happens
inside the cylinder. The aim is to treat the
emissions before they are even created. The
lower emissions and improved performance of
the PowerTech Plus engines are the result of
many technological innovations.
The emission regulations
on non-road diesel engines
have been effective, and the
particulate matter (PM),
hydrocarbon (HC) and
nitrogen oxide (NOX)
emissions have decreased
substantially.
“The increased output in the >130 kW
engines is a result of the switch from the 8.1liter engines to the 9-liter engines and the
four-valve cylinder heads. In emissions control technologies, the two biggest areas are the
cooled exhaust gas recirculation (EGR) and
the variable geometry turbocharger (VGT),”
lists Henry Palonen with John Deere Forestry’s product development. He heads the design
team for cooling systems and engines.
Going with the 4-valve cylinder head
improves the flow of gases and makes opti-
Don’t rev the
engine for
nothing!
The new John Deere forest machines take
advantage of the PowerTech Plus engine’s better
low-speed torque to reach desired driving speed
with lower engine RPMs. The benefit of the ECO
III characteristics (economy and automated working RPMs) is that the maximum RPMs are not
used at low speeds since they are not needed.
The impact of the engine’s lower RPMs on fuel
consumption is clear.
One ECO III characteristic is designed for
economical driving with a light load on easy terrain, or for moving from one site to another on a
logging road. It is an added feature of the normal
driving power transmission and enables a bigger
transmission ratio with lower engine RPMs. With
the separate percentage adjustment scale, the
operator can adjust driving speed to increase
faster than normally, so the gas pedal doesn’t
have to be pushed quite as far down as usual.
Another ECO III characteristic is the added
feature of the crawling gear in the forest
machines, which reduces the RPM range used
by the engine when driving at low speeds.
When driving slowly in a small crawl range, the
engine’s RPM range is narrower. And when the
crawl area is expanded, also the RPM range
increases as the driving speed range increases.
So the characteristic decreases the RPM range
used by the engine, thus avoiding the use of
unnecessarily high RPMs and engine revving.
With AutomaTED WORKING RPMs, it is possible to avoid running the engine at working RPMs
unnecessarily. When the work is stopped, the
engine’s RPMs automatically drop to an idle level
and are stored once work is resumed. The delay
can be adjusted by the operator.
mized nozzle placement possible. Consequently, burning is cleaner, the use of energy is
more efficient, and the output is better.
Meanwhile, the cooled exhaust gas recirculation (EGR) affects the combustion heat;
the lower temperature means fewer nitrogen
oxides created by the combustion and better
fuel consumption. In other words, the same
output is achieved with less fuel – and fewer
emissions.
”Another advantage of the lower temperatures is that it enables more variable injection
timing, allowing for better efficiency. Moreover, the injection can be divided into several
phases, reducing noise,” Palonen says.
Perhaps the biggest source of pride in John
Deere engine development is the use of the
variable geometry turbocharger in the nonroad diesel engines. According to Palonen, the
new kind of turbo actually makes the cooled
exhaust gas recirculation possible and also
brings a lot of other good things.
”The variable geometry turbocharger
enhances the low-speed torque and brings a
faster response for power demand, i.e. faster
availability of power during loading. Additionally, engine efficiency is better and fuel consumption is lower.”
The enhanced low-speed torque makes it possible to integrate eco-friendly features into the
new engines (read more on the following page).
What’s more, the communication between
the engine and the machine’s control systems has been significantly improved. There
are many more sensors in the engine, enabling
much more careful monitoring of the differT O T H E N E X T PA G E
14–15
INTERNAT I O N AL
F O R E S T R Y
New in PowerTech
Plus engines
Cooled exhaust gas recirculation (EGR)
decreased NOX and particulate emissions,
reduced fuel consumption and engine noise
Variable geometry turbocharger (VGT)
Better low-speed torque, faster response for
power demand, better efficiency and lower fuel
consumption
4-valve cylinder head
better fuel economy and performance
New generation common-rail fuel system
more efficient combustion
Higher fuel injection pressure
Electronically calibrated nozzles
better combustion, reduced fuel consumption,
and steadier operation
Electric feed pump
enables automatic bleeding
Added engine sensors
more accurate diagnostics, more accurate
monitoring of engine condition, and shorter
downtime
F R O M T H E P R E V I O U S PA G E
ent areas of the engine. The more detailed
the information available to the operator and
the service technician, the better the engine’s
condition can be monitored and preventive measures performed when needed. This
increases machine uptime.
“Most innovative engine of the year”
John Deere’s 9.0 liter PowerTech Plus engine
has recently received a couple of different
awards.
The engine received the Diesel of the Year
2006 award, which Diesel magazine awards
for the most innovative diesel engine of the
year. The magazine is the only one in Europe
specializing in diesel engines. The panel issuing the award is made up of engine industry
experts from 16 countries.
Another recognition came from Construction Equipment magazine, which gave the
engine a Top 100 Product of the Year award.
The list includes the one-hundred best innovations related to construction industry machines.
According to the magazine, the purpose of the
list is to give the year’s most significant new
products the attention they deserve.
M A G AZ I N E
G-III Skidders received
Tier III Certification
T
he muscle behind the updated 648G-III Grapple Skidder and 640G-III Cable
Skidder is the new PowerTech Plus™ diesel engine manufactured by John Deere
Power Systems (more information on previous page). This field-proven 6.8L
engine runs cleaner without sacrificing power.
Exhaust gas recirculation (EGR) cools and mixes measured amounts of exhaust gas
with incoming fresh air to lower peak combustion temperatures and reduce NO2 emissions. This is the most efficient way to reduce emissions without timing retard. The
engine’s four-valve design, with high-pressure common rail fuel injection, provides
greater low-speed torque and better transient response.
Temperature contolled fan runs quieter
The enhanced cooling system developed for the 600 Series Skidders features a new
sucker fan design. Air is drawn in the front, through the cooling package and out the
sides. It’s a more efficient way to reduce the temperature of the air surrounding the
engine. The fan runs noticeably quieter, too.
The hydraulically driven cooling fan is temperature controlled, so it runs only as
needed, minimizing horsepower use and drag. The fan is fully reversible to automatically blow debris off the grill screen. The combination of the reversing fan and increased
perforations around the grill housing provides optimum airflow into the engine.
Other updates include a larger fuel tank on the single- and dual-arch 648G-III
Skidders. The transmission features internal oil flow for the bearing to the front housing,
which gives a more consistent flow and eliminates easily damaged external lines.
TimberRite optimizes the
VALUE OF TIMBER
I
n Europe, optimizing measuring systems are
generally used in the logging of timber; elsewhere in the world, however, optimization
has been left up to the operator. But this is about
to change: Waratah’s TimberRite is a measuring
system designed for tracked forest machines.
”If a forest machine doesn’t have an optimizing measuring system, it is up to the operator to
determine the length of the logs and the cutting
points,” says Product Marketing Manager Juha
M. Järvinen from Waratah. ”This has been the
case particularly in the southern hemisphere
where trees grow quickly. Perhaps because of
that, the utilization of raw materials hasn’t
received the same kind of attention that it has
elsewhere, especially in the Nordic countries.”
In recent years, however, Australian and
New Zealander forest companies and land
owners have started focusing on maximizing the
return on their investments. Optimizing the use
of raw materials brings in a better return; this
requires the use of an optimization system.
”There is clearly a demand for TimberRite
measuring system – the engineers didn’t have
to push the product, the demand was marketdriven,” Järvinen notes.
From calculating length-combinations
to control quality
Matti Tarkka has been responsible for the
technical development of TimberRite since the
beginning of 2005. For the past year now, he’s
been part of a three-person team dedicated on
the development of TimberRite at Waratah’s
factory in New Zealand.
”TimberRite is based on the Timbermatic
300 measuring and control system. 90 percent of the software is shared, so as measuring
system they are almost identical. There are no
differences in the equipment, PC, electronic
modules, menus and displays,” he says.
But the differences in the remaining ten percent are quite substantial. In a tracked harvester,
which frequently is an excavator converted to
forest use, the controls for the booms and the
power train e.g. are ready. Also the harvester
head top saw is a rather common option. This,
can relax when it comes to calculating the various length combinations, he doesn’t tire nearly
as quickly. For the same reason, an inexperienced operator blossoms more quickly,” Juha M.
Järvinen says.
Multipurpose TimberRite
and the fact that the controls are different from
wheeled harvesters, had to be taken into consideration also in the measuring system.
”For a contractor, TimberRite naturally
involves an initial investment, but the benefits
quickly become clear. When the operator can
focus on cotrolling the quality of the logs and
Before deliveries began at the beginning of
the year, TimberRite was tested for a year in
Australia and New Zealand.
”The feedback was encouraging and supportive. The functions that worked so well in the
Timbermatic 300 also worked well on the other
side of the globe,” Matti Tarkka notes.
TimberRite won’t remain an application
exclusive to Australia and New Zealand: May
saw the launch of deliveries to South America
and the rollout will continue to Europe, Russia
and North America.
”South America is an outstanding example of TimberRite’s multipurpose capabilities.
In South America, primarily eucalyptus is
logged for use as pulp, so you don’t really need
optimization. But TimberRite is valuable also in
the monitoring of production: The operator can
email production and other data right from the
forest machine. TimberRite’s map applications
are also useful in all market areas,” Tarkka says.
Unveiled in New Zealand
TimberRite’s official unveiling was in New Zealand from March 9-11, 2006 at the Forest Industries
Show. It is the most important forest sector event in New Zeeland, attracting all the major manufacturers
and nearly 10,000 visitors. The event was held in the city of Rotorua, which is located in the central part
of New Zealand’s North Island.
”Rotorua is a volcanic area and at the heart of the Maori culture,” Matti Tarkka describes his
adopted hometown. ”Its geysers make it one of the most popular tourist destinations in New Zealand.”
Tourism and forestry are, in fact, the two most important industries in this forested region. Visitors to the
Waratah exhibit got to tour a plantation typical to the region and see TimberRite in action: The images on
the display were transmitted wirelessly to a big screen on which visitors could watch TimberRite operate
in real-time.
”Waratah’s global sales organization was present. The launching of TimberRite will begin in all market
areas, so the show was a good opportunity to learn more about the product,” Juha M. Järvinen says.
One of the biggest attractions at the show was a virtual simulator of a tracked harvester. Read more
about that on page 28 of this magazine. The next Forest Industries Show will be held four years from now.
16–17
INTERNAT I O N AL
F O R E S T R Y
M A G AZ I N E
CHANGING
climate, changing
forest management
Violent natural catastrophes have made the headlines in recent
years. As an example, the 1999 storm in Western Europe blew
down 180 million m³ of wood, corresponding one fourth of the
annual felling increment.
I
t is common to blame climate change for
such extreme phenomena. However, there
is no statistical evidence yet that storms
have become more frequent and more violent.
“If the present trend continues, we may
face more devastating storms in the future,”
says Marcus Lindner, a program manager for
Forest Ecology and Management in the European Forest Institute.
Statistics do prove that forest fires have
become more frequent due to global warming and the subsequent droughts. Heavy rains
will also become more common. The wet
soil makes the trees less stable and as a result
stands can easily be uprooted by a storm.
Assuming that climate change is a phenomenon that must be taken into account,
forest management can have a significant
impact in reducing forest vulnerability.
“Damage has increased, but the reason can
also be that there are more trees, the trees are
more productive and they are planted on a
risky, often wet site,” Lindner points out.
“And economically attractive conifers
have outnumbered the more resistant broadleaved species,” adds Gert-Jan Nabuurs, a
senior researcher in European Forest Scenario
Studies.
Challenges to harvesting
The downed timber must usually be recovered from the forest immediately. If it is left
in the forest, the risk of fungi and insects will
increase.
“Harvesting is more dangerous because
storm-felled trees fall across each other and
there is a lot of tension in the stems. Costs
increase because of the difficult working conditions and because some of the damaged
wood is sparsely distributed over many stands,”
explains Lindner.
“The logistic challenge arises from inventorying the damage, timing the recovery operations in such a way that losses are minimized,
avoiding insect pests and deciding where it
makes economic sense to recover and where it is
better to leave the trees on site,” says Lindner.
The impact of storms on the global harvest
and growing stock is not very significant. The
local impacts can be severe, though.
“The wood market normally recovers in a
couple of years. But natural disasters can be
very detrimental for livelihood at the regional
level, and particularly for an individual forest
owner,” Nabuurs points out.
A contention is that manufacturers of forestry equipment should take the changing cli-
As natural disturbances
become more common,
the appearance of future
forests will probably
change in the future.
mate into account. Acceding to and operating in the damage forests is a challenge. Flexible machinery will be needed for small-scale
harvesting.
”With an increasingly frequency of heavy
rains, equipment must be able to operate on
wet soil. In addition, the increase in mixed
stands poses a challenge for sorting,” according to Nabuurs.
Recommended: a good mixture
of species adapted to the site
Natural catastrophes are impossible to predict
so there are no straightforward recommendations for protecting the forests. Some general
rules apply.
Cutting should be planned so that vulnerable stands are not exposed to full wind speed.
Secondly, planting on a wet site should be
avoided since the rooting may remain shallow.
Thirdly, planning for cutting cycles should
be adjusted every year. “Even-aged stands of
coniferous species seem to be more vulnerable to natural disturbances,” says Lindner. “A
mixture of species is often recommended, but
spruce is economically more attractive,“ he
explains.
After the 1999 storm, French and German
forest owners did replant a mixture of species.
In Canada, forest owners have been encouraged to plant aspen with spruce to make the
forest more fire resistant.
Smaller scale, new species
As natural disturbances are likely to become
more common, the appearance of future forests will probably change in the future.
“There is a trend towards small-scale forestry which might be more resilient to storms.
In addition, new species will probably be
Recent natural
catastrophes and
their consequences:
The 1999 storm in Western Europe:
180 million m³ of downed timber.
The 2005 storm in Southern Sweden:
80 million m³ of downed timber
Bark beetle damage in Germany in the late 1990s:
4,000 hectares (9,880 acres) of forest destroyed.
Hurricane Katrina in Southern US in 2005:
66 million m³ of downed timber.
Forest fires in Southern EU countries in 2003:
800,000 hectares (1 980,000 acres) of destroyed
forest.
imported. It is difficult to estimate when a forest owner should change species, however,
because the existing trees are tolerant to some
climatic changes and may even adapt genetically,” Lindner says.
Global warming has positive impacts at
least in northern countries: warmer temperatures stimulate growth and rotation periods
will be shorter.
Forests are important in mitigating the
impacts of climate change as they can be used
for carbon sequestration. In addition, forests
can be used to produce bio-fuels, which could
reduce consumption of fossil fuels.
Again, new forestry equipment will be
needed for extracting and transporting the
logging residue for biomass production.
18–19
Paula Myöhänen
INTERNAT I O N AL
F O R E S T R Y
M A G AZ I N E
BALANCED
timber harvesting
Balanced bogies in a forest machine improve operational
efficiency and comfort in demanding terrain.
B
alanced bogies have been a standard feature in most John Deere harvesters and
forwarders for years. By optimizing the
weight distribution on all the bogie wheels,
the balancing unit ensures the best stability,
grip and traction. This allows the machine
to maneuver more easily and more safely in
rough or steep terrain.
A balanced bogie also minimizes the
swaying of the loaded machine by maintaining support and ground contact with all the
bogie wheels in all conditions. This enables
higher driving speed with a load and higher
productivity.
Bogies help in Finnish terrain
Over the years, , forest machine operators in Finland have become
accustomed to the comfort and efficiency offered by balanced bogies.
Jorma Myller has been a forest machine operator for nearly 20 years.
The bogies in Myller’s John Deere 1110D forwarder have been a great
help in his work.
“Especially when I back down a hill and there is a rock or a mound in
the way, the bogies ensure balance and traction,” notes Myller.
Heikki Yijälä has been operating forest
machines equipped with balanced
bogies since 1997. His company uses
Jorma Myller
1270D and 1070D harvesters and 1410
and 1110D forwarders. Compared with conventional machines,
Heikki Yijälä finds the balanced bogies on the John Deere machines
to be a clear advantage. “I would never go back to a machine that
didn’t have these bogies,” says Yijälä. “The work gets done more
quickly when you have balanced bogies that provide agility when
climbing slopes.”
Heikki Yijälä
Less impact on terrain
Because the balancing units in the bogie axle
distribute the total weight optimally to all
bogie wheels, it also allows all the wheels to
transfer their fair share of the traction force to
the ground. With an unbalanced bogie, it may
happen that only one bogie wheel stays on the
By optimizing the
weight distribution,
the machine cab and
load remain stable
ground and has to do all the work alone. Distributing the weight and traction force evenly
over a larger area minimizes ground damage
due to less ground pressure and tearing force
from each wheel.
The design of the John Deere balanced
bogie is streamlined by placing the portals
inside the wheel rims. This makes the bogie
ends smaller and widens the ground clearance
between the bogie beams. Wider ground clearance reduces the need to steer the machine
to avoid contact with rocks and stumps. The
main benefits of this feature are lower fuel
consumption, faster driving speed and less risk
of getting stuck on obstacles.
20–21
INTERNAT I O N AL
F O R E S T R Y
M A G AZ I N E
Zero
room
for error
Brothers Clint and Brian McGee in Georgia, USA, were looking for
a tracked feller-buncher with a leveling system. John Deere 759G
proved to be the right choice.
B
rothers Clint and Brian McGee work
in all types of terrain. The breadth of
assignments for their company, McGee
& Sons Logging, in Fairburn, Georgia, goes
from working in a swamp to clearing timber
on the side of the interstate for a deceleration lane. As Clint McGee said, “It’s probably
about a 60-degree slope, with traffic. There’s
zero room for error. We needed a machine we
could rely on in any kind of situation.”
What they were looking for was a tracked
feller-buncher with a leveling system. After
extensive research and conversations with
other loggers, they went with the John Deere
759G. The list of features met their tough
demands.
The main feature was how the leveler positioned the cab to the front or rear of the tracks,
which makes it much more stable. What they
discovered on some of the other machines was
that the cab stays in the center of the track
frame, causing it to slide backwards.
The control over the tree with the 759G
has proved excellent. “The way the saw head
is able to hold the tree even on steep terrain,
with the tree leaning back out of the head
or leaning away from you, is outstanding,”
McGee says.
The McGee brothers have been pleased
with the fuel efficiency of the feller-buncher,
too. They are running it up to two and a half
days on one tank of fuel.
‘Something worth having’
The new reversing fan that automatically
blows off debris has been helpful in their operation. The operator doesn’t have to get out
every 30 to 45 minutes to clean off the screen
by hand. And those five to ten minutes really
add up at the end of a shift. And as McGee
says, “Any time you can keep the operator in
the cab, you’re going to be better off from a
productivity standpoint.”
He continues, “With the other machines,
you practically needed a set of ear plugs to sit
in the cab, but the 759G is one of the quietest
cabs I’ve ever been in, and it’s more comfortable. And that’s a lot easier on the operator.”
The 759G can be lowered below 14 feet,
which allows the McGees to transport it
themselves, saving them a thousand dollars
every time they move it.
But maybe the feature that was most decisive on the John Deere feller-buncher was that
John Deere was willing to provide a warranty
that was much longer than other manufacturers. And, according to Clint McGee, if someone is willing to stand behind its equipment
like John Deere, then they must have something worth having. “To be honest, that’s
what pretty much sold us on the machine,”
he says.
After 200 hours, Clint McGee thinks the
759G has saved them about four or five days of
chainsaw work. “Deere has great equipment,
it’s affordable and their parts availability is
outstanding. And in my opinion, the 759G is
the best buncher out there.”
“Any time you can keep
the operator in the cab,
you’re going to be better
off from a productivity
standpoint.”
From left: Brian and Clint McGee
22–23
INTERNAT I O N AL
F O R E S T R Y
M A G AZ I N E
Andreas Peter (left) and Jörg
Nuhn (right) in front of a new
John Deere 1410D forwarder. It is
the 20th machine Peter’s company
bought from Nuhn & Co GmbH.
It’s all about QUALITY
“The customer is the king. This motto of ours has proven to be right.
We are successful, when the customer keeps coming back to us - not
the machine”, states Jörg Nuhn, General Director of Nuhn & Co
GmbH.
A
ccording to Jörg Nuhn, General Director of John Deere’s German distributor
Nuhn & Co GmbH, any manufacturer
of forestry machines failing to focus on crucial
issues from the customer point of view, will
miss the market. “Forestry businesses have
to pay particular attention to productivity,
technical availability and company costs.
Only machines that fully meet these demands,
will be able to survive in the future, and will
remain in demand”, he says.
The economic situation in Nuhn’s main
markets isn’t the best possible but, on the
other hand, it could be worse. Turnover in the
German timber industry increased by around
0.8% to 16.1 billion in 2005, indicating a
continuation of the positive trend, albeit on
a small scale. The increased turnover was
noticeably marked amongst the manufacturers
of wood packaging, at the sawmills and with
the manufacturers of timber-based materials.
A reduced turnover was noted among the
manufacturers of timber buildings and their
components as well as in the timber-processing industry.
In this light, there is particular development potential for forest machines in the area
of hardwood harvesting. When overall quality
is the key, Nuhn & Co GmbH’s customers are
in good hands: John Deere Forestry is strongly
committed to developing technology in the
industry further.
Established position gives
edge in challenging markets
Jörg Nuhn has thought a lot about quality
from dealer’s viewpoint. In addition to the
technical composition of the forest machines,
quality is also a result of follow-up support and
top level customer service.
The company, established in 1978, is the main
distributor for John Deere forestry machines
in Germany and Austria. Nuhn’s most popular
machine models are 1110D forwarder and
1270D harvester, which together amounted
to almost 50 % of all their sold new machines
in 2005. In the long run, the used forestry
machinery will probably be as much in
demand as the new machines.
At the moment, Nuhn & Co GmbH has
seven sales and service points in Germany
and Austria employing over 60 people. The
customer service is taken care by specialized
instructors or technicians.
John Deere products have the leading
market position In Germany and Austria; it
has been a familiar and trusted brand for years,
also due to a considerable part of the forestry
business sharing its roots with agriculture.
Quality products require quality service
From forestry machine manufacturers’ point of
view ensuring lasting customer loyalty and satisfaction are top priorities. And in Jörg Nuhn’s
opinion, there is only one way to succeed in
this mission.
”In a challenging market situation manufacturers must first and foremost set state-ofthe-art standards in their production, research
and development, followed up by prompt
and effective customer service. We have to
place ourselves in the customer’s position to
think over, whether we have provided enough
information and service”, he says. “When the
answer is yes, we will stay on the right path.”
Three years,
three steps
A young Indonesian harvesting company with young energetic
management, took the company to new levels of efficiency by
automating harvesting in just three years.
T
he founders of timber harvesting company
C.V Acrassia Tri Mandiri, are a young
and energetic group of entrepreneurs
- Atan Malik, 31, is the Chief Executive Officer,
his wife Nancy Chief Financial officer and a
brother-in-law Agus Wanto, 26, is the Managing
Director and runs the infield operations.
What is amazing about this young dynamic
team is that they harvest and transport 1.2 million m³ of timber each year. Based in Riau province of Sumatra Island in Indonesia, with a office
in the city of Pekanbaru, they contract for two of
the biggest growers in the country.
In 2001 when Atan Malik started the
business, the operations were all manual. Just
to give an indication of the amount of work
involved - they needed some 2,100 people to
handle the harvesting volumes. “Just organizing
the 50 tons of rice required to feed the employees each month was a challenge”, says Agus.
Mechanization – and productivity
– stepping up
In 2003 the company started to look for alternative ways of harvesting the timber to become
more efficient in supplying the customers
requirements.
Atan Malik says: "At the time we were
already buying excavators for loading from Hexindo, the John Deere Forestry Dealers in Indonesia. Our salesman, who still works with us today,
Ali Afrizal, started convincing us about the
advantages of skidders to us - so we got our first
John Deere "PackJack" skidder." This changed
operations drastically as they could pre-bunch
by hand the 4-metre-long lengths into roughly 4
ton bundles required for the skidders. This way
they would produce on average 7,000 m3 per
month. Today they have 16 skidders of which
nine are either John Deere or Timberjack.
In 2004 Atan Malik and Nancy visited the
Nancy & Atan Malik and Agus Wanto (right) run a fast growing harvesting business.
Richard Wilson (left), Service Manager for Dealer
Hexindo region II, operator, Djonggi, Regional Manager region II for Dealer Hexindo and Ali, salesman.
forestry expo held in Albury, Australia. "We
were talking to Atan Malik at the time about
harvesters and forwarders so we thought it would
be an excellent opportunity for him to visit
Australia and see some other methods of harvesting", says Dody Zainudin General Marketing
Manager for Hexindo.
Final step to automation
When back in Indonesia they ordered a harvester attachment and mounted it onto an
excavator to do mechanical debarking and
processing. Although the harvester functioned,
unfortunately its reliability was not where they
expected it to be. So late last year the company
invested in a Waratah HTH616 mounted onto a
Hitachi ZX210 excavator base carrier.
"This machine has proved very reliable
and we were very pleased with the professional
hand-over and training that took place when
the unit was delivered" say Agus.
So the next step was to buy a professional
forwarder as they already had two locally built
units. "Again Ali managed to secure our order for
the first John Deere forwarder into Indonesia, a
1710D. We have had the machine working now
for 500 hours and it’s a great machine. Currently
it is producing around 9,000 m3 per month. Our
company has now truly embraced mechanization"
adds Agus. "We are pleased with the John Deere
products although we have had some small issues
with the skidders. But we get regular visits from
John Deere people who support Hexindo, and
appreciate their efforts to ensure that our machines
give us good production and availability."
24–25
INTERNAT I O N AL
F O R E S T R Y
M A G AZ I N E
When the
going gets T
tough...
When it comes to working in steep-slope
and rough-ground applications, the new John
Deere J-Series feller-bunchers feature the
four-way tilting system that provides stability
with performance.
hrough the Total Machine Control™ (TMC) system, the
operator is able to set speed and acceleration of the tilt, to
match application, terrain and capabilities, while getting constant leveling position and machine feedback.
These new feller-bunchers feature increased tractive effort compared
to the non-leveling tracked feller-bunchers. This provides the stability and performance loggers need in difficult terrain. The redesigned cab
features a floor window for a clear view of the ground conditions below.
Operating costs reduced
Under the hood is 294 peak horsepower, with
a high-capacity attachment circuit, providing
multi-functioning capabilities. The hydraulically driven cooling fan optimizes horsepower
use and maximizes fuel efficiency by running
only when needed, reducing daily operating
costs. The TMC-controlled fan is fully reversible and automatically blows out debris for better airflow into the engine so it runs much
cooler and more efficiently.
A productive new crank and link boom
offers versatility, with a boom cross-section
that’s built to perform under tough conditions
to maximize uptime. Easy access from cab to
engine, with repositioned doors and added
walkways, keeps daily operating costs low.
The 909J and 959J tracked feller-buncher
models are available with three head
options—FS22B, FR22B and FR24B—to
match each logger’s specific application.
Dealer training through discussions
When John Deere introduces a new product
into the field, the company ensures that dealers are up-to-date on all of the new technological features and benefits for their customers. A forestry training team of John Deere
sales managers, engineers, product specialists and expert operators make the rounds to
ensure that all forestry dealership personnel
are updated on new products.
Training sessions focus on specific detailed
analysis of new equipment features and benefits, and round-table discussions of customer
and industry challenges. Dealer personnel are
then taken out to the woods to “kick the tires”
and see the machines at work.
“These new feller-bunchers are going to
be big for loggers. And it’s important for our
sales people to know the equipment inside and
out,” says Keith Wilson, manager of the marketing support, John Deere Forestry Division,
USA.
26–27
I NTERNAT I O N A L
F O R ES T R Y
M A G A Z I N E
Brazil
– setting sights on growth
Brazilian company VCP harvests eucalyptus year-round. Productivity
is maintained at a favorable level and even increased using the latest
forestry equipment and taking excellent care of the operators.
G
rupo Votorantim is one of the largest privately owned industrial complexes in
Latin America. It operates in several different markets, including cement, pulp, paper,
metallurgy and even processed orange juice.
However, all these businesses have one common denominator: the companies owned by
Grupo Votorantim are either leaders or have
performed brilliantly in the markets in whích
they operate. This is true also for Votorantim
Celulose e Papel (VCP), a Brazilian company
operating in the pulp and paper industry.
VCP harvests eucalyptus on a sandy
area of 280,000 hectares. The planted area
covers 190,000 hectares and an average of
20,000 hectares is reforested annually in
the State of São Paulo. In fact, VCP is recognized as the top company in the State of
São Paulo in adopting the best practices in
reforestation.
In 1996 the company started a modernization process by replacing old harvesting systems with all new Timberjack equipment. In
2002, sharp industrial expansion provided an
extra boost to the modernization program: the
number of machines needed to be increased,
harvesting systems developed and operators
trained.
VCP chose 45 machines that delivered
higher production capacity and mechanical
efficiency as well as better ergonomics – the
latter is highly important since the eucalyptus
is harvested 24 hours a day and each shift lasts
for 12 hours.
“Timberjack’s and John Deere’s machines
were born and raised in the forest,” says VCP’s
operational development manager José Eduardo Paccola and makes it sound pretty clear
why John Deere was chosen. “They really
have a vocation for the field and together we
have a good relationship regarding warranty
matters and technical assistance.”
High quality machines and fast service
ensure uptime and efficiency
Weather conditions in Brazil vary widely. The
average temperature is 23 degrees Celsius, but
it can range from 2 degrees to 40 degrees. The
annual rainfall is between 1,200 to 1,600 mm.
Rain or shine, the machines are busy with harvesting eucalyptus all year long.
The Timberjack machines the company is
using at the moment, including 19 1270Ds and
ten 1710Ds, have all worked 10,000 to 18,000
hours. They are equipped with debarking heads
and barked trees are harvested using the cut-tolength method. The full-tree method and infield chipping are also applied.
The uptime and efficiency of the equipment
is without a doubt a very important factor for
VCP. How is that achieved?
“The most important thing is that Timberjack and John Deere machines are of high quality, also regarding safety issues,” responds harvest
coordinator Luiz Sérgio Coelho de Cerqueira
Filho.
“And if something goes wrong, John Deere
services it in 24 hours,” adds harvest coordina-
The eucalyptus is harvested 24 hours a day and each shift lasts for 12 hours.
tor Emir Piccinato. “The same applies for most
spare parts. A few components must be imported
and it takes a few days – local production could
be answer to this,” he suggests
With motivated operators,
machines work even better
Another important factor in achieving high
uptime and efficiency – in addition to the
machines and service – are the operators.
“We try to motivate them the best we can,”
says Emir Piccinato.
The operators are, for example, given quite a
lot responsibility. The company has a total quality system that spurs the operators to participate
in analyzing the problems, identifying the solutions and implementing as well as following the
results. This process is helped by VCP’s ERP
system (Enterprise Resource Planning), which
illustrates the state of stock, production, maintenance programs and technical information about
parts durability. All harvesting operations are
integrated into the same system.
Moreover, since 1999 VCP has had a training center aimed at training operators in compliance with best practices. This involves such
resources as TV, video, projectors and two Timberjack simulators.
There are permanent instructors In the training center who constantly check whether someone needs training or re-training. For specific
machines or system training, VCP relies on John
Deere experts.
Partners sharing a common goal
VCP and John Deere share a common goal for
the future: to minimize harvesting costs. This is
because the major plan for VCP is to continue
growing in the pulp and paper industry and, due
to international competition, the competitive
edge must be retained by maintaining the product at competitive standards.
“John Deere advices us how we can improve.
Many of John Deere’s field tests are carried out
together with VCP, which is another indicator of John Deere’s commitment, not only to the
forestry market, but also to the customer,” says
Luiz Sérgio.
“And every productivity improvement is
always considered in relation to sustainable
management and environment matters,” continues José Eduardo Paccola.
With efficient machines, skilled operators
and continuous improvements, VCP is able to
produce 1,350,000 tons of pulp annually.
28–29
INTERNAT I O N AL
F O R E S T R Y
M A G AZ I N E
Almost real
John Deere supports its customers’ business in several ways. One important area is operator training.
T
he mechanization of logging has led to
the emergence of a new profession. As
the number of harvesters and forwarders
continues to increase, more and more forest
machine operators are also needed. In France,
for example, almost 500 lumberjacks retire
every year; this loss of productivity is being
replaced with harvesters, which are expected
to double in number by 2010.
To maintain the profitability of businesses
in the forest industry, skilled forest machine
operators are needed. One of the ways in
which John Deere supports its customers’ business is by developing simulators that forestry
schools can use to train future operators.
“Operating today’s forest machine simulators feels as real as operating a real forest
machine,” notes Jorma Eschner, Product
Development Manager responsible for concept
designing and simulators at John Deere. “The
simulators have all the boom and engine control components, measuring system calibration, and even dynamic simulation that enables the software to know when the harvester
head touches a tree – the head stops there.”
A range of simulators
The simulator history of John Deere and its
predecessor Timberjack starts in 1993, when a
German forestry school asked the company to
report on what could be done with the technology that was available back then.
“Essentially, we were able to connect a
big video screen to a big computer,” Eschner
recalls. “The design work on the 3-D graphicsbased virtual simulators we have today started
back in 1995. LCD displays have allowed us to
introduce a new option in the placement and
mobility of the equipment from one training
site to another.”
John Deere currently makes three kinds of
simulators. The harvester simulator is the most
versatile of the solutions because it functions
also as a forwarder simulator and contains
all the control technology that is also found
in our harvesters. A lighter solution is the
forwarder simulator, which supplements the
use of the harvester simulator. The harvester
simulator’s logging site can be moved to the
forwarder simulator after the trees are felled,
and then the forwarder can take over by
Simulator modeled after
tracked forest machine
In late 2005, John Deere started a design project aiming for a version of a harvester simulator
modeling a tracked forest machine. According to Product Marketing Manager Juha M. Järvinen, the
development work continues – there can never be too much reality.
Compared to a simulator modeling a conventional wheeled harvester, the tracked version has two
special characteristics: boom is controlled with two big levers commonly found in excavators, and the
visual view corresponds to what the tracked harvester operator faces when inside the cab. The bottom
of the display shows the tracks, the boom is to the right of the cab – not in front as in wheeled harvesters – and the harvester head is bigger than normal. And, the simulator is driven using pedals, just as
with tracked machines.
Like the other simulators, this version is used for training sales reps, service techs, operators and
customers, and for demonstrations at exhibitions. The simulator is also used for testing new versions of
the TimberRite measuring system. Read more about TimberRite on page xx.
transporting the felled logs into piles sorted by
species alongside the logging roads. This simulator consists of a PC and a forwarder hand
panel, and, because it is easier to use, it is also
well suited for those who have less experience operating forest machines as well as for a
variety of public events.
“One of the newest development steps is
the possibility to change the grapple in the
harvester simulator,” Eschner says. “We have
also invested a lot into the ergonomics of the
simulators, because a training session can last
as long as an operator’s work shift.”
Simulator offers feedback
on the work done
Using simulators to train people is ingenious
for two reasons: It provides a safe environment
in which to practice skills without damaging
natural resources. And, the training is more
effective when the same information and
examples can be shared with several students
simultaneously; in a real forest machine,
T O T H E N E X T PA G E
When forest
machine schools
speak, John Deere
listens
John Deere is actively involved with universities and educational facilities in the forestry
sector all around the world. The latest project is
being carried out in collaboration with Finnish
universities. The goal is to develop simulator
training as part of product development and
the actual simulator programs to improve the
equipment’s functions by using the best experts
and software.
“The university is studying training methods,” says Jorma Eschner. “Based on the
study, we’ll see how we should develop our
products.”
It is exactly this kind of cooperation that led
to the development of the simulator monitoring
program that tracks the student’s progress and
reports their results.
Eschner says that just as important as the
university collaboration is listening to forest
machine schools and other simulator users.
“They know where we should target our
technological know-how. The technology itself
is, in fact, already very sophisticated.”
John Deere’s investment in the training of forest machine operators is resonating well with
the schools. For example, a simulator studio
was opened at the turn of the year at the Pori
Forestry College in western Finland.
“It is an open learning environment that
welcomes students from other schools as well
as forest machine manufacturers and their
customers,” says the Director Juha-Pekka
Koivusalo from the Pori Forestry College.
“Right from the start, John Deere was serious
about building and developing the simulator
studio. Even the placement of the lighting was
reviewed with the interior designer.”
30–31
INTERNAT I O N AL
F O R E S T R Y
“Operating today’s forest
machine simulators feels
as real as operating a
real forest machine.”
F R O M T H E P R E V I O U S PA G E
there’s only room for one student and the
trainer.
“Another way in which the simulator
differs from a real machine is that it also provides feedback on the work done,” says Osmo
Luoto. “The simulator program tracks the
operator’s use of time, the efficiency of boom
use, the amount of timber produced and transported, and the carefulness of the operator
– does he bump into trees to be saved, does he
let the saw hit the ground, or does he damage
the wrong trees.”
With the virtual GPS signal, a student
operating a simulator works at a real location
that is on the map. The instructor can select
the terrain that is suitable for the exercise,
mark the location of the machine and the
sight direction of the operator, and create a
variety of different conditions. Some of the
trees can be marked as seed trees and some as
rotten. The operator must remember to leave
the seed trees standing and to cut off the bad
end of the rotten trees.
“The simulator really thinks it is in the
forest,” Osmo Luoto confirms.
This is precisely what makes practicing
with the simulator feel so real and why there
are sure to be highly skilled forest machines
operators also in the future.
M A G AZ I N E
European dealer companies’
new direction
John Deere Forestry has revised its strategies for the
forest machine business worldwide. In the European market, there are challenges in new emerging
markets as well as the mature markets.
John Deere Forestry Oy has its own dealer
companies in Finland, Sweden, Norway, the UK
and Ireland. “These markets are not, however,
homogenous,” says Maija Strandberg, Director for
the European dealer companies since March 2006.
“The biggest market areas are for us Finland and
Sweden, where the competition is intense. Despite
that we are a clear market leader. In the other
countries we enjoy a more pre-eminent position.”
“Though growth is modest and the industry size
may even decrease in the main European markets, we are looking for profitable, sustainable growth,” Strandberg emphasizes. “We are taking a new look at our strategies
– including marketing, delivery and service strategies and the operations of our dealer
companies. Success in our core market areas will fuel and enable the growth possibilities in the emerging markets.”
Special emphasis is being placed on taking customer service to a new level
– expanding the network of customer service outlets and the services offered.
These markets and companies are not new to Maija Strandberg. She has been with
Timberjack since 1995 in a number of management positions in finance, most recently
as Director of Finance for European and Russian operations.
“I appreciate having a new angle and viewpoint of the business now. It is a great
advantage to shift focus from time to time. It encourages new ideas.”
“I think that with small, consistent changes, we will put on a new gear in our business to fill the John Deere Forestry vision,” she states.
Mika Kallio battles for the MotoGP
World Championship
Driving his fifth full season in the motorcycle world championship MotoGP,
last year Finland’s Mika Kallio took the
spotlight in the motor sport world. After
fierce competition, the four wins and 10
podium positions were enough to win
the silver medal. The eight pole positions are also an indication of the speed
of 23-year-old Kallio.
In summer 2005, Mika Kallio entered
into an extensive cooperation agreement
with John Deere Forestry. The interna-
tionally revered world-class rider and one
of the world’s most recognized brands
complement each other well.
For the 2006 season, Kallio and his
KTM team set high goals in the 125cc
class: The aim is to take the championship in both the rider and the manufacturer’s category. “The intention is to fight
for the world championship and to win
races. After last year’s silver, the goal for
this year can only be gold,” Kallio notes.
Trade fairs and exhibitions
In 2006 John Deere Forestry and its dealers will take part in several trade exhibitions and product demos around the world. For
more information, contact your John Deere Forestry dealer. For
detailed dealer contact information, visit. www.JohnDeere.com
Dmitri Shmelyov the new
area manager of Siberia and
Far East Russia
Dmitri Shmelyov is appointed the new Area Manager in
Siberia and Far East Russia of John Deere Forestry (JDF)
equipment, starting from May 1st 2006. Dmitri Shmelyov joined the company in 1999 and recently worked as
an Area Service Manager for Eastern Russia. Dmitri will
report to Hannu Hietikko, JDF Oy General Manager
for Russia. Information concerning the fulfilment of the
Area Service Manager position will follow in near future.
Dmitri Shmelyov replaces Victor Boldakov, who will
continue his career as General Director at Timbermash
Baikal LLC (formerly Timberjack Baikal), John Deere
Forestry dealership in Siberian part of Russia. Besides
the position of General Director at Timbermash Baikal,
Victor will continue to act as an external Board member
at Daltimbermash Ltd (formerly Dallesprom-Timberjack
Ltd, JDF dealer in Far East Russia).
Europe
May 30–June 1, World Bioenergy, Elmia in Jönköping, Sweden
June 15–17, SkogsNolia, Umeå, Sweden
July 12-16, Interforst 2006, München, Germany
August 31–September 2, Metko 2006, Jämsänkoski, Finland
August 31–September 3, Intern. Holzmesse 2006, Klagenfurt, Austria
North America
April 6-8, Atlantic Heavy Equipment Show, Moncton, New Brunswick, Canada
April 20-22, ILA Show, Kamloops, British Columbia, Canada
May 12-13, Northeastern Forest Products Expo, Essex Junction, Vermont
May 19-20, Expo Richmond, Richmond, Virginia
June 1-3, Forest Expo 2006, Prince George, British Columbia, Canada
June 1-3, Mid-South Show, Starkville, Mississippi
June 10-11, Deming Logging Show, Deming, Washington
July 6-8, American Loggers Council Board Meeting, Moline, Illinois
September 7-9, Lake States Logging Congress, Green Bay, Wisconsin
September 20-23, Pacific Logging Conference, Clatskanie, Oregon
September 28-30, American Loggers Council Annual Meeting, Kalispell, Montana
South America
Red Bull KTM
20-22 August, XIV Seminar on Wood Harvesting Systems and Forestry Transportation,
Curitiba, Brazil
Contact information
John Deere Forestry Group – continental divisions
Europe and Russia
John Deere Forestry Oy
P.O. Box 474
FIN-33101 Tampere
Finland
Tel. +358 20 584 162
Fax +358 20 584 163
South America
John Deere
Equipamentos do Brazil Ltda
298 Tamboré
06460-110 Barueri
Sao Paulo, Brazil
Tel. +55 11 4196 3999
Fax +55 11 4191 1762
www.JohnDeere.com
North America
Worldwide Construction
& Forestry Division
1515 5th Ave.
Moline, Illinois 61266-8806
USA
Fax +1 309 765 1859
Asia Pacific
John Deere Construction
& Forestry (Asia-Pacific) Pte. Ltd.
2 Pioneer Walk #03-03
Singapore 627856
Tel. +65 6262 0778
Fax +65 6262 3678
ECO III ad