The HITMAN system explained

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

2
Contents
• Fibre-gen and sonic technology
• Values and contribution to profit
• The value chain – integrating the technology
• Results and value models
• Opportunity analysis and implementation
• The tools and how they work
• Conclusions

3
Financial values
What is stiffness worth – a couple of examples
• Verified visual grading – batch pass/fail
– VSG8 lumber premium is NZ$100/m3 ($450 vs $350)
– At 55% conversion, 80% structural, equates to $36/m3 log
– At 600m3/ha, 70% sawlog, 27 yrs, 8%, equates to $1,893/ha
• MSG lumber – incremental benefit
– MGP8 lumber premium is NZ$250/m3
– 0.1km/sec gives 5% more MGP8, worth $12.50/m3
– At 600m3/ha, 70% sawlog, 27 yrs, 8%, equates to $657/ha
Measuring and managing stiffness will increase profit

4
Financial values
What is stiffness worth – more examples
• Sitka Spruce – United Kingdom
– Structural £150, Industrial £100
• Spruce – Sweden
– MSR 1,450kr, Visual structural 1,350kr
• Douglas fir – Oregon, USA
– MSR $350, Visual structural $310
– LVL $350, Ply $230
• Southern Yellow Pine – Arkansas
– MSR $195, Visual structural $178
Absolute differences vary with market conditions – premiums remain

5
Financial values
Other values are significant too
• Microfibril angle
– R2 in range 0.8 – 0.9
– MFA is key predictor of solid wood stability and fibre stiffness
• Pulp & Paper properties
– Fibre length and paper strength
– Coarseness and sheet quality
– Energy consumption and yield
• Eucalypt stiffness
• Ash group Eucalypt internal collapse

6
Feasibility
Hitman ST300
• New tools are quick, non-destructive, easy and efficient
– Less than 1 minute/tree for testing
– Wireless, with no cables to tangle or fail
– Quick and easy insertion and removal of probes
– No cores needed
– No significant damage to young trees
• Mechanical and software enhancements improve precision
• Variability and heritability are high
• Breeding program on 10,000ha/annum could deliver >$10m/annum

7
Feasible and valuable - Breeding
Hitman ST300
• Variability and heritability are
high
• Example mean 3.2 km/sec with
SD 0.2
• Top 10% mean is 3.5 km/sec
• Top 2% mean is 3.63km/sec
• With heritability of 60%,
delivered gain is 0.18 and 0.26
respectively
• MSG example values this at
$1,180 and $1,700/ha NPV at
time of planting
Normal Distribution
0%
2%
4%
6%
8%
10%
12%
14%
2.6
2.7
2.8
2.9
3
3.1
3.2
3.3
3.4
3.5
3.6
3.7
3.8
Velocity (km/sec)

8
Lo blo lly pine (m e a n 3 .2 , SD 0 .2 1)
X <= 2 . 8 8 3 0
5 . 0%
X <= 3 . 5 85 5
9 5. 0 %
0
0 . 2
0 . 4
0 . 6
0 . 8
1
1 . 2
1 . 4
1 . 6
1 . 8
2
2 2. 5 3 3 . 5 4 4. 5 5 5 . 5 6
Operational segregation results – LVL veneer
• Pacific NW veneer manufacturers using
tools extensively
• Roseburg Forest Products adoption –
standing trees, logs in forest, logs at mill,
specifying to green veneer suppliers
• D fir Log sorting trials split at
13,000ft/sec threshold
1. 62% G1&G2 compared against 47%
2. 60% G1&G2 compared against 45%
• At US$300/m3 for G1 veneer, 0.1 km
(300’)/sec is worth $16 on log volume, or
$4.8m for a 300,000 t mill
D o u g la s fir (M e a n 4 .0 , SD 0 .3 7)
X <= 3 . 4 3 1 8
5. 0 %
X <= 4. 6 3 4 8
9 5 . 0 %
0
0 . 2
0 . 4
0 . 6
0 . 8
1
1 . 2
2 2 . 5 3 3 . 5 4 4 . 5 5 5 . 5 6
Standing Harvesting Stem Log Log Deck Lumber or
Tree Processor to Mill Veneer
ST300 PH330 HM200 HM200 LM600 Grader
>>>>>>>>>>>>>> >>>>>>> >>>>>>> >>>>>>>

9
• At US$40/mbf price differential on lumber,
660ft/sec improvement in log velocity (0.2 km/sec)
increases MSR out-turn by 10% which is worth
$0.3m for a 300,000 t mill
• Sampling cost $4,000/annum
• Tool cost $10,000
Lo blo lly pine (m e a n 3 .2 , SD 0 .2 1)
X <= 2 . 8 8 3 0
5 . 0%
X <= 3 . 5 85 5
9 5. 0 %
0
0 . 2
0 . 4
0 . 6
0 . 8
1
1 . 2
1 . 4
1 . 6
1 . 8
2
2 2. 5 3 3 . 5 4 4. 5 5 5 . 5 6
Operational segregation results – MSR output
D o u g la s fir (M e a n 4 .0 , SD 0 .3 7)
X <= 3 . 4 3 1 8
5. 0 %
X <= 4. 6 3 4 8
9 5 . 0 %
0
0 . 2
0 . 4
0 . 6
0 . 8
1
1 . 2
2 2 . 5 3 3 . 5 4 4 . 5 5 5 . 5 6
>>>>>>>>>>>>>> >>>>>>> >>>>>>> >>>>>>>

10
Results
• Over 150 HM200 tools in use
• Many trials undertaken in NZ, Aus, N America, UK, Sweden
• Tools predict stiffness (MoE) across all species tested
• Extensive research supports commercial application
Veneer UPTvsDirector velocity
R2
= 0.99
400
420
440
460
480
500
520
540
560
580
2.50 2.70 2.90 3.10 3.30 3.50 3.70 3.90
Director velocity(km/ secaverage of logbatches)
UPT(microsecaverageoflog
batches)
Softwoodspecies(groups)
Power (Softwoodspecies
(groups))
>>>>>>>>>>>>>> >>>>>>> >>>>>>> >>>>>>>
HM vs LM 2nd Hamonic
y = 0.9892x
R2
= 0.9642
200
220
240
260
280
300
320
340
360
200 220 240 260 280 300 320 340 360
LM freq
HMfreq

11
Results – monitoring moisture content
• Acoustic velocity can be used as an indicator of moisture content
• Applications - fuel wood stockpiles, and pulp logs for mechanical and
semi-chemical pulps
• Velocity increases as green density declines
• Procedure
– Establish definitive MC start point – standard sample
>>>>>>>>>>>>>> >>>>>>> >>>>>>> >>>>>>>
– Mark selected logs and record
velocities using a fixed assumed
average log length in HM200 tool
– Re-record velocities at later date
– Velocity increase defines loss of water
such that reduction in green density is
proportional to increase in V2

12
New tools for measuring stiffness
• Full range of tools now available to measure stiffness
• Manage quality from forest to lumber or veneer
• Comprehensive research programs support users
Hand Automated Hand Hand Automated Automated
tool tool tool tool tool tool
Thinning Sorting Quality control Quality control Resourcing Grading
PHA Log making Sorting Sorting Sorting
Genetics Sawing
Various
Fibre-gen Suppliers
Timberlands
>>>>>>>
Processing
>>>>>>> >>>>>>> >>>>>>> >>>>>>>
>>>>>>>>>>>>>> >>>>>>> >>>>>>> >>>>>>>

13
Portables for field application
>>>>>>>>>>>>>> >>>>>>> >>>>>>> >>>>>>>

14
New development – processor head tool
>>>>>>>>>>>>>> >>>>>>> >>>>>>> >>>>>>>

15
Hitman LG640 – automated log tool
• Test 100% of logs
• Longitudinal or
transverse chain
• Continuous operation
• Sort logs for batch
processing
• Alter processing to
maximise MSR or
veneer out-turn
>>>>>>>>>>>>>> >>>>>>> >>>>>>> >>>>>>>

16
HM200, LG640 – how they work
• Stiffness = density x (velocity)2
• Velocity is derived from resonant
frequency (2nd harmonic) and length
• Sensor/microphone detects
frequency from hammer blow
• Green density is relatively constant
3.3
length
velocity = 2 x length / time
stiffness densityx velocity≈ 2
>>>>>>>>>>>>>> >>>>>>> >>>>>>> >>>>>>>

17
Director ST300, PH330 – how they work
• ‘Time of flight’ outerwood velocity measure – higher than
log measure
• Ruggedised, waterproof, wireless, auto-distance, audible
and visual output, interface to PDA
• Velocity correlates strongly with log velocity at stand
level
Acoustic speed - standing tree vs log
6000
7000
8000
9000
10000
11000
12000
13000
14000
6000 8000 10000 12000 14000 16000
ST300 prototype on tree (ft/s)
HM200onlog(Director)(ft/s)
Sitka spruce
Western hemlock
Jack pine
White birch
Ponderosa pine
R2
= 0.925
Source: X Wang et al, University of Minnesota
Juvenile Wood
15 yrs 25 yrs 35 yrs
Juvenile Wood
15 yrs 25 yrs 35 yrs
>>>>>>>>>>>>>> >>>>>>> >>>>>>> >>>>>>>

18
Results – sales/business benefits
• Capability to measure quality before processing
– On log supply
– On harvest planned
– On stumpage purchased
• Capability to forecast actual mill LVL or MSR lumber
outturn (currently hard to predict)
• Improved ability to reliably fulfill sales orders
• Potential to lower G1 & G2 veneer or MSR lumber costs
• Customer satisfaction and improved profitability
>>>>>>>>>>>>>> >>>>>>> >>>>>>> >>>>>>>

19
Conclusions
• HITMAN sonic technology available for use
in forest, yard, and mill
• Improved ability to meet orders, with higher
grade out-turn and profit
• Assistance available with opportunity
analysis and implementation
• For further information
peter.carter@fibre-gen.com
www.fibre-gen.com

20
Further detail for implementation

21
Results – effect of temperature on velocity
In general
• Acoustic velocity increases with lower temperature
But
• Rate of change not well defined
• Moisture content changes may compensate on logs, but not in trees
Temperature Effect on Acoustic Velocity of Green Board
0
200
400
600
800
1000
1200
1400
1600
1800
2000
2200
2400
2600
2800
3000
3200
3400
3600
3800
4000
-20 -15 -10 -5 0 5 10 15 20
Board Temperature (C)
AcousticWaveVelocity(m/s)
Stack 6 (50 boards)
Stack 2 (50 boards)
V = 2365 - 17.69T (T ? 0 °C)
V = 2365 - 41.42T (T ? 0 °C)
Density(MC) adjustedacousticspeed
2
2.5
3
3.5
4
4.5
5
-25 -20 -15 -10 -5 0 5 10 15 20 25
Series1
Series2
Series3
Series4
Series5
Series6
Series7
Series8
Series9
Series10
Series11
Series12
Source: L Bjorklund, VMR, SDCSource: P Harris, IRLSource: X Wang, University of Minnesota
>>>>>>>>>>>>>> >>>>>>> >>>>>>> >>>>>>>

22
Results – log velocity within stem – butt to top
• Acoustic velocity varies from butt to top although
greatest variation is between stems
• Highest velocity logs are in mid section of stem
• Variation follows pattern of microfibril angle
Source: X Wang et al, University of Minnesota
Radiata Pine - Log velocity within stem
2.50
3.00
3.50
4.00
0 5 10 15 20 25 30
Distance upstem(m)
Velocity(km/sec)
Average 3.2 km/ sec
Average + 2 x SD
Average -2 x SD
Stand Mean 3.2
>>>>>>>>>>>>>> >>>>>>> >>>>>>> >>>>>>>

23
Location of boards in the log
Average
stiffness of
wood in
boards up
the stems
Average stiffness of lumber cut from
some 60 trees. Note the low stiffness at
the base of the tree, in the butt logs.
Why not cut a short, 2.5 m butt log?
1st log 2nd log 3rd log
Ping Xu, 2002
Results – log velocity within stem – pith to bark
Source: J Walker, University of CanterburyStanding Harvesting Stem Log Log Deck Lumber or
>>>>>>>>>>>>>> >>>>>>> >>>>>>> >>>>>>>

24
Results – velocity and MoE correlate with age
In general
• Acoustic velocity increases with increasing age
But
• Other factors affect velocity and MoE
• Wide range of velocities within stands
• Strategy - harvest highest V rather than oldest age (extra 0.06km/sec)
Log age vs. average acoustic velocity
R
2
= 0.66
2.50
2.60
2.70
2.80
2.90
3.00
3.10
3.20
3.30
3.40
3.50
18 20 22 24 26 28 30 32 34
Log age (years)
Stand
Linear (Stand)
VelocityvsStand Age
2.80
2.90
3.00
3.10
3.20
3.30
3.40
3.50
3.60
3.70
20 21 22 23 24 25 26 27 28 29 30 31 32 33 34 35 36 37
Age (years)
Velocity(km/sec)
Mean Velocity (50% oldest age) = 3.43
Mean Velocity (50% highest V) = 3.37
Benefit = 0.06km/sec
>>>>>>>>>>>>>> >>>>>>> >>>>>>> >>>>>>>

25
Standing tree sampling – single trees
• Measure is a single sample of outerwood velocity
• Sampling procedure and intensity must match need
• Single tree - intensive sampling
– Variation around stem
– Knot location
– Transverse
– Compression wood
– Hit variability
• 3 sets of 3 hits, in each of 2-4 locations around stem
• High productivity (>60 sample sets/hour) – faster than
density coring
>>>>>>>>>>>>>> >>>>>>> >>>>>>> >>>>>>>

26
Standing tree sampling – single trees
• Eyrewell study – radiata pine, age 28
• Correlation between standing tree and log velocity
improves as sample intensity increases
Location/s on tree taps R
2
Upper side 3 0.44
Upper side 3 0.48
Upper side 3 0.43
Upper side (A) 9 0.50
Lower side (B) 9 0.45
Random side (D) 9 0.60
Mean A+B 18 0.61
Mean A+D 18 0.62
Mean A+B+D 27 0.67
>>>>>>>>>>>>>> >>>>>>> >>>>>>> >>>>>>>

27
Standing tree sampling - stands
• More extensive sampling procedure to match need
• Stand average measure
– Link sampling to pre-harvest assessment
– Cover the stand – plots of 5+ trees
– Cover diameter range
– Variability between trees > within
– Sample as many trees as possible in least time
• 1 set of 3 hits/tree on 35+ trees/stand
• Productivity dependent upon terrain and vegetation
>>>>>>>>>>>>>> >>>>>>> >>>>>>> >>>>>>>

28
Standing tree velocity
• Correlation with log measures good
• Absolute conversion varies primarily with velocity
Data Bank - Director HM200 vs ST300 Velocities
y = 0.7965x + 469.14
R
2
= 0.92
0
2000
4000
6000
8000
10000
12000
14000
16000
0 2000 4000 6000 8000 10000 12000 14000 16000
Standing tree velocity (Scopemeter or Director ST300 - ft/s)
Logvelocity(DirectorHM200-ft/s)
Sitka Spruce
Radiata Pine NZ 8 year old
Radiata Pine Aus 10 year old
D fir A Oregon
W Hemlock
Jack Pine
Birch
Ponderosa Pine
Slash Pine A
Slash Pine B
Loblolly Pine
D fir B Oregon
D fir C Oregon
Radiata Pine Canterbury age 8
Radiata Pine Canterbury age 28
Wisconsin Red Pine
Idaho Ponderosa Pine
Radiata Pine NZ CNI 26 year old
>>>>>>>>>>>>>> >>>>>>> >>>>>>> >>>>>>>

29
Standing tree velocity
• Green density adjustment of log measure appears
useful
Data Bank - Director HM200 (Green Density Adjusted) vs ST300 Velocities
y = 0.5887x + 2570.4
R
2
= 0.9624
0
2000
4000
6000
8000
10000
12000
14000
16000
0 2000 4000 6000 8000 10000 12000 14000 16000
Standing tree velocity (Scopemeter or Director ST300 - ft/s)
Logvelocity(DirectorHM200-ft/s)
D fir B
D fir C
D fir A
Red Pine Wisconsin
>>>>>>>>>>>>>> >>>>>>> >>>>>>> >>>>>>>

30
Verified Visual Grading – NZ example
• Consultation and introduction in NZ in 2006 –
December deadline for adoption
• Visual graded lumber sample will be proof tested
– 1 in 1000 boards sampled
– Static bending and breaking tests
– 30 sample rolling average must exceed standard
for MOE and MOR - average and minimum
– Self-run with independent auditing
Result: Stiffness of supply is critical
>>>>>>>>>>>>>> >>>>>>> >>>>>>> >>>>>>>

31
Characteristic stresses for
visually graded timber (GPa)
3.24.83.011.07.5No 1 Framing1
4.46.54.012.011.7
VSG102
VSG82
G82
Radiata
Pine &
Douglas
Fir
2. Moisture condition – Green2 (m/c = 25%)
4.06.04.015.010.0No 1 Framing1
6.7
5.4
10.0
8.0
8.0
6.0
20.0
18.0
20.0
14.0
VSG10
VSG8
Radiata
Pine &
Douglas
Fir
Lower
Bound
Modulus of
Elasticity Elb
(GPa)
Modulus
of Elasticity
E (GPa)
Tension
Strength
ft
Compression
Strength
fc
Bending
Strength
fb
GradeSpecies
1. Moisture condition – Dry (m/c = 16%).
>>>>>>>>>>>>>> >>>>>>> >>>>>>> >>>>>>>

32
• Acoustic velocity from standing trees or green log velocity
measures offer a guide to absolute stiffness
• Stiffness = density x (velocity)2
• Adjustments required for
– Green density and moisture content
– Increase in stiffness from 30% moisture content to ‘dry’
• Dynamic MOE of 8GPa is indicative of VSG8 production and
would require
– Average log velocity 2.8km/sec (allowing 0.1km/sec for SE
of mean)
– Green density 1000kg/m3
– Moisture content 150%
• 8GPa target velocity could vary 2.70 - 3.00
>>>>>>>>>>>>>> >>>>>>> >>>>>>> >>>>>>>

33
Example program - Scotland
• Preliminary tests to familiarise with tools
• Forest survey – map acoustic speed at stand level across
topography, altitude, soils, age, silviculture (>50 stands)
• Confirm relationship between average
standing tree velocity and average log
velocity. Confirm velocity pattern up tree
(>15 stands)
• Saw sample of logs and confirm static
MOE and MOR of lumber, and grade
out-turn, relative to log velocity
• Correlate static MOE with predicted
MOE from commercial testing devices
(x-ray density, acoustic, mechanical
bending)
>>>>>>>>>>>>>> >>>>>>> >>>>>>> >>>>>>>

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