Machine Rate Estimates and Equipment Utilization

As mechanization increases, the percentage of total cost logging operation due to equipment purchase and increases. This makes assumptions about machine life, maintenance costs, fuel consumption more critical in understanding costs operations. For many years rate calculations have followed a fixed format based on concept scheduled productive hours. When utilization is less than 100%, traditional calculation assumes that continues depreciate wear occurs during non-productive time at same as time. can lead overestimates hourly by effectively shortening lifetime hours decreases. The use inflated rates distort comparisons systems, strategies, replacement perhaps viability operation. We propose adjusting life account for time: should be increased with decrease utilization, while cumulative remains same. Once has been adjusted, procedure carried out normally done. provided an example shows method 50% yielded per hour nearly 30% higher our modified method. Our sample analysis showed consistently any lower yielding progressively increasing overestimates. believe approach yields accurate estimates would contribute improved forest