Cost Control in Forest Harvesting and Road Construction













Table of Contents


FAO
FORESTRY
PAPER
99

FOOD AND AGRICULTURE ORGANIZATION OF THE UNITED NATIONS
Rome, 1992

The designations employed and the presentation of material in this publication do not imply the expression of any opinion whatsoever on the part of the Food and Agriculture Organization of the United Nations concerning the legal status of any country, territory, city or area or of its authorities, or concerning the delimitation of its frontiers or boundaries.

M-30
ISBN 92-5-103161-4

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© FAO 1992

This electronic document has been scanned using optical character recognition (OCR) software and careful manual recorrection. Even if the quality of digitalisation is high, the FAO declines all responsibility for any discrepancies that may exist between the present document and its original printed version.


Table of Contents


INTRODUCTION

SUMMARY

1. PRINCIPLES OF COST CONTROL

1.1 Introduction
1.2 Basic Classification of Costs
1.3 Total Cost and Unit-Cost Formulas
1.4 Breakeven Analysis
1.5 Minimum Cost Analyses

2. UNIT COST AND COST EQUATIONS

2.1 Introduction
2.2 Example of Cost Equations
2.3 Applications of Cost Equations

3. CALCULATION OF MACHINE RATES

3.1 Introduction
3.2 Classification of Costs
3.3 Definitions
3.4 Fixed Costs
3.5 Operating Costs
3.6 Labor Costs
3.7 Variable Effort Cycles
3.8 Animal Rates
3.9 Examples

4. ESTIMATING ROAD CONSTRUCTION UNIT COSTS

4.1 Introduction
4.2 Surveying
4.3 Clearing and Piling
4.4 Earthwork
4.5 Finish Grading
4.6 Surfacing
4.7 Drainage

5. ESTIMATING LOGGING UNIT COSTS

5.1 Introduction
5.2 Felling and Bucking
5.3 Skidding
5.4 Loading
5.5 Truck Transport
5.6 Typical Stump to Mill Logging Systems

6. PACE - A COMPUTER PROGRAM FOR COST CALCULATIONS

6.1 Introduction
6.2 Starting PACE
6.3 Machine Rate Calculations
6.4 Road Construction Calculations
6.5 Production and Unit Cost
6.6 Sensitivity Analysis
6.7 Installing the PACE Program

7. ADVANCED APPLICATIONS OF PACE

7.1 Introduction
7.2 Shortcuts
7.3 Combining Road Sections
7.4 Combining Skidding Systems

APPENDICES

APPENDIX A - Machine Cost and Work Records
APPENDIX B - Field Production Studies
APPENDIX C - PACE Data Collection Forms

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