Factors for economic analysis of installing hardwood kilns

In developing a computer decision model for determining the economic feasibility of installing a steam kiln and wood-fired boiler at hardwood sawmills, the authors identified several important variables that must be incorporated into the analysis. The analysis must consider the product mix to be kiln-dried by comparing the prices of air-dried and kiln-dried lumber of each species, grade, and thickness in the mix. Analyses based upon a single species, such as red oak, are misleading. Also, kiln residence times must be considered for the entire product mix in order to accurately estimate productivity. In a survey of manufacturers of kiln equipment and boilers, the authors discovered a great deal of variability in both costs and capabilities. Therefore, the use of average or assumed values for equipment costs and efficiencies should be avoided. The feasibility analysis should include sensitivity analyses capable of determining the effects of changes in product or process variables upon the output of the program.

You must be logged in to download any documents. Please login (login accounts are free) or learn how to Become a Member