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Information flow analysis of the Paper products transportation chain from Scandinavia and Finland to Germany

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					              TECHNISCHE UNIVERSITÄT HAMBURG-HARBURG

                  Arbeitsbereich 1-10 “Verkehrssysteme und Logistik

              Prof. Dr.-Ing. Eckhard Kutter / Prof. Dr.-Ing. Lars Sjöstedt



                                “STUDIENARBEIT”




   “Information flow analysis of the Paper products
transportation chain from Scandinavia and Finland to
                      Germany”
  „Analyse des Informationsflusses in einer Papierprodukt-Transportkette
           von Skandinavien und Finnland nach Deutschland“




Author:                      Eng. Norma Elizabeth Niño Pastrana

Matriculation number:        30701

First Examiner:              Prof. Dr.-Ing. Lars Sjöstedt

Supervisor:                  Dipl.-Ing. Axel Schönknecht



Hamburg, 27.02.2005
Eidesstattliche Erklärung

„Ich erkläre an Eides Statt, dass ich die vorliegende Arbeit selbständig und ohne fremde
Hilfe verfasst, andere als die angegebenen Quellen nicht benutzt und die aus benutzten
Quellen wörtlich oder inhaltlich entnommenen Stellen als solche kenntlich gemacht
habe.

Die Arbeit wurde bisher weder in gleicher noch in ähnlicher Form einer anderen
Prüfungsbehörde vorgelegt oder veröffentlicht.“




Norma Elizabeth Niño Pastrana

Hamburg, den 27 Februar 2005
Foreword

As student of the Master Degree: International Production Management, the author is
interested in researching Logistics of the forest sector by proposal of her supervisor; as
part of the requirements for concluding the master degree.

This topic has brought some ideas to the author who expects to contribute with a better
understanding of the information management within the transportation chain relevant
for paper products related to wood fibre.

The main interest of the author is to find out a suitable technique and to outline the
actual Information flow within the transportation chain of the forest products,
specifically paper products from Scandinavia (Sweden and Norway) and Finland to
Germany; also the information flow modification in case of inland navigation through
German rivers was implemented.

With her experience in Management and Logistics in the banking sector and with her
researching and analysis abilities the author expects to contribute not just in the data-
management scope of the industry but helping the nature for saving the forest and
environment in some way.




                                            I
Table of content
FOREWORD                                                I
1. TASK AND GOALS                                      1
      1.1 Goal and Task                                 1
      1.2 Problem Definition                            2
      1.3 Methodology                                   3
      1.4 Limitations                                   5
2. OBJECTS OF TRANSPORTATION CHAIN AND AREA RESEARCH   6
      2.1 Main export countries in Europe               6
            2.1.1 Overview                              6
            2.1.2 Finland                              11
            2.1.3 Norway                               11
            2.1.4 Sweden                               12
      2.2 Transportation Goods                         13
            2.2.1 Wood                                 13
            2.2.2 Pulp                                 16
            2.2.3 Paper and paper board                18
            2.2.4 Containerboard                       19
            2.2.5 Paperboard                           19
      2.3 Transportation boxes                         20
            2.3.1 Containers                           20
            2.3.2 Pallets                              23
      2.4 Means of transportation                      23
            2.4.1 Trucks and trailers                  23
            2.4.2 Rail                                 25
            2.4.3 Shipment                             25
      2.5 Organization and transportation chain        27
            2.5.1 Timber transportation chain          27
            2.5.2 Handling                             30
            2.5.3 Storing                              32
            2.5.4 Packaging                            34




                                        II
3. METHODS FOR MODELLING TRANSPORTATION CHAINS                              36
     3.1 Overview                                                           36
     3.2 Petri nets                                                         37
     3.2 ARIS                                                               40
     3.3 UML                                                                42
            3.3.1 UML Overview                                              42
            3.3.2 Comparison of UML modelling method                        45
4. UML APPLICATION                                                          47
     4.1 Diagrams used in UML                                               47
            4.1.2 Class diagram                                             47
            4.1.3 Use case Diagram                                          48
            4.1.4 Sequence Diagram                                          49
            4.1.5 Collaboration diagram                                     50
            4.1.6 State Chart Diagrams                                      52
            4.1.7 Composites states                                         53
            4.1.8 Concurrent transitions                                    55
     4.2 Application of UML to outline the Information flow of the paper
     products transportation chain                                          55
            4.2.1 Actual information flow                                   55
            4.2.1 Additional partner (s) in the transportation chain        58
5. SWOT ANALYSIS OF PAPER PRODUCTS TRANSPORTATION CHAIN 60
     5.1 Strengths                                                          60
     5.2 Weakness                                                           60
     5.3 Opportunities                                                      61
     5.4 Threats                                                            62
6. EXECUTIVE SUMMARY                                                        63
BIBLIOGRAPHY                                                                III
INTERNET LINKS                                                              IV
LIST OF ABBREVIATIONS                                                        V
EXPLANATION OF TERMS                                                         V
LIST OF FIGURES                                                             VI
LIST OF TABLES                                                             VIII




                                      III
1. Task and goals

1.1 Goal and Task

The main objectives of this research work are:

   •   To provide an overview of the paper supply chain situation,
   •   To provide a theoretical discussion of suitable techniques to model
       transportation chains,
   •   To identify the paper-products transportation chain from Scandinavia and
       Finland to Germany
   •   To apply one technique to model the actual information flow related with the
       paper products transportation chain from Scandinavia and Finland to Germany,
       as well as the future information flow by adding inland navigation, and
   •   SWOT analysis of the transportation chain

The paper-products transportation chain is one component of the whole “supply chain”,
there are diverse aspects that may be subject of being featured and evaluated; in this
work, the following aspects will be considered: documentation flow, material flow, and
infrastructure, for instance: vessels, containers, pallets, information, and eventually calls
and fax distribution.

In the course of time, documentation flow within the supply chains has achieved an
important role. Excessive electronic messages and faxes reflect complex and non
optimal communication between the entities of the transportation chain, also a lack of
analysis. Idle documentation also generates non value added activities and time losses,
what consequently increases the cost.

In such a manner, inadequate process and excessive / idle material handling also ends in
high cost, long time production processes, delays, and product damage.

Transportation means are determined by the kind of freight. The correct selection and
utilization of vessels, containers and routes determine a competitive advantage against
the competence and substitute products.

The Modelling of the paper-products transportation chain will serve to analyze the
actual information flow and its corresponding status in case of adding inland navigation
through the German rivers. The material flow within the transportation chain is showed
in the figure 1.1.




                                             1
  Saw mill   Pulp factory          rail     Harbor of       Harbor of     trailer      rail     Customer
                                transport    export          import     transport   transport    storage



   sorting                     unloading                                                         storage


              handling                        truck          loading                unloading



               packing                        sea                       unloading


               storage                                                   loading



               loading


                trailer



              unloading



               loading




                            FIGURE 1.1 PAPER-PRODUCTS FLOW CHART

1.2 Problem Definition

This work focuses on the information flow analysis of paper products from Scandinavia
(basically Sweden and Norway) and Finland to Germany to place them upon industrial
transportation chains. See cargo transportation routes (figure 1.2).




             FIGURE 1.2 CARGO TRANSPORTATION ROUTES TO GERMANY
                                                /www1/

The complex information exchange is managed by an intermediate entity called:
Logistics. It increases the total transportation chain costs. Logistics entity has the
responsibility of managing the total information flow. It coordinates the related with

                                                        2
damage management in financial terms (claims), as well as the transportation insurance
and costs management.

Nowadays the information flow within the transportation chain is complex; more than
100 different messages are shared between entities to support the paper products
(freight) transportation, there are no data bases or applications to support it.

Information flow is also not standardized. Depending on the size and information
technology systems of each entity (Mill, Hauler, Loading Port, Carrier, discharging Port
and Customer), the method of sending the appropriate messages required in the follow-
up of an order varies a lot. One company may send the same information in a more
advanced form than another.

The information exchange flowing in parallel with the material is no centralized; this
increases the risk of failures with the material flow and originates claims. There is no
data repository or an application to support the information exchange during the
transportation of paper products from Mill to customer.

At the moment, the information flow process is very costly; the present information
flow is based in EDIfact information. EDIfact messages are costly electronic messages
with a unitary cost. The present information systems and infrastructure don’t fix any
more with the actual needs. A new one should be implemented.

In Germany, a big investment to promote and improve the conditions of inland
navigation is carried out. The implementation of this project will increase the
information flow complexity and its cost.

With the actual information flow circumstances, it is very hard to add new entities to the
transportation chain. The addition of inland transportation activity will originate new
information and also will increase the flow of the actual one. There is a potential risk of
creating a chaos within the information flow.

The exchange of electronic messages within all entities of the transportation chain will
be carried out. Solutions to decrease the present information flow complexity.

The research in this scope will come up with a SWOT analysis concerning the present
paper products transportation chain.

1.3 Methodology

The Methodology to be followed includes:

An Overview of the sector. This work will present in first instance a brief research, with
the purpose of offering a general overview of the supply chain situation regarding:

   •   Final goods
   •   Transportation boxes
   •   Means of transportation
   •   Organization of the Supply chain


                                            3
A theoretical background. After the overview, this work will provide the theoretical
background of Logistics, Supply chain and transportation chain, production control
classification: ATO/MTO/MTS, etc.

Methods to model dynamic systems. This work will also describe different methods to
model dynamics systems as in the case of the paper transportation chain. After an
analysis, one suitable method will be selected and it will serve as a basis to model the
paper transportation chain.

Information flow of the paper transportation chain model. The exchange of electronic
messages within the paper transportation chain will be exemplified by the suitable-
selected model Method; in which the dynamism and different status, components, and
relations will be illustrated.

In order to bring to a close and based on the paper transportation chain model, this
research paper will present a SWOT analysis and will attempt to find areas of
opportunity. (See figure 1.3)

The research paper will be done with the information provided by European
organizations, networks organizations of scientist in the forest sector, also information
from the World Wide Web and interviews in companies involved in this sector. Other
research papers made by different people are of critical importance as well as databases
from Chambers of Commerce:



                                                   D     D                                                                                                                                                                                 D                  D

          Saw mill                   Road            Rail           Trucking to    Crane                                                         Transfer to     Road            Rail                                                                                                 Storaging
                       Loading                                                                  Sea transportation   Crane lift                                                                                                                                                                                                               Customer
                                 transportation transportation     the ship side    lift                                                          storage    transportation transportation
                                                                                                                                                                                                                                                                                                                                                lager




                                                                                                                                  Sawmill         Pulp Factory          The Road               Railroad           Harbour A        Shipment           Harbour B         The Road             Railroad            Customer
                                                                                                                                                                                                                                                                                                                 Storage



                                                                                                                                            Sorting,
                                                                                                                                            material
                                                                                                                                            handling
                                                                                                                                                             Trucking
                                                                                                                                                             Loading

                                                                                                                                                                                   Securing, trailer

  Literature                                                                                                                                                                       transport

                                                                                                                                                                                                          Discharge

   research                                                                                                                                                                                               Trucking
                                                                                                                                                                                                          Loading
                                                                                                                                                                                                          Securing Rail
                                                                                                                                                                                                          transport
                                                                                                                                                                                                          Discharge

                                                                                                                                                                                                                          Indoor/outdoor
                                                                                                                                                                                                                          storage
                                                                                                                                                                                                                          Trucking
                                                                                                                                                                                                                          Transfer
                                                                                                                                                                                                                          storage
                                                                                                                                                                                                                          Trucking to
                                                                                                                                                                                                                          shipside
                                                                                                                                                                                                                          Strapping
                                                                                                                                                                                                                          Crane lift


                                                                                                                                                                                                                                           Securing Covering
                                                                                                                                                                                                                                           Sea transport

  Interviews                                                                                                                                                                                                                               Uncovering Crane lift
                                                                                                                                                                                                                                                                 Transfer
                                                                                                                                                                                                                                                                 storage
                                                                                                                                                                                                                                                                 Trucking
                                                                                                                                                                                                                                                                 Loading
                                                                                                                                                                                                                                                                 Strapping


                                                                                                                                                                                                                                                                                   Trailer transport
                                                                                                                                                                                                                                                                                   Discharge
                                                                                                                                                                                                                                                                                   Securing



                                                                                                                                                                                                                                                                                                       Rail transport
                                                                                                                                                                                                                                                                                                       Discharge
                                                                                                                                                                                                                                                                                                       Packing off




                                                                                                                                                                                                                                                                                                                            Indoor/Outdoor
                                                                                                                                                                                                                                                                                                                            storage Packing
                                                                                                                                                                                                                                                                                                                            materials




   Internet                                                                                                                                                                                                                                                                                             Return freight of

  research                                                                                                                                                                                                                                                                                                  packing




  research
                                                                                                                                                                             Sequence diagram (UML)
                                                                   Data flow within the transportation chain




                      SWOT
                     ANALYSIS
                                                                                                                                              Data repository




                                                                 Paper products transportation chain sub process




                                                       FIGURE 1.3 METODOLOGY TRACKING

                                                                                                     4
1.4 Limitations

The limitations for this project are mainly time constraint to search for the necessary
information, also sources of information, those are not easily available due to the fact
that this research paper is focusing on Scandinavian enterprises and the availability of
information is restricted.

Another important point in the information accessibility is confidentiality. Some
enterprises could not share their information or publish it on the Internet. Language is
one of the most important restrictions due to the fact that in its majority the information
is available only in German even the author is learning, making the best effort but still it
is not enough to understand 100% the information. Contacts are also restricted due to
the lack of opportunities to travel, and visit the enterprises related with this topic like:
pulp production plants and paper plants, either in Scandinavia or in Germany. Research
information about business in the forest sector is also available by payment certain
amount of US dollars coming up with another important limitation.




                                             5
2. Objects of transportation chain and area research

2.1 Main export countries in Europe

2.1.1 Overview

The papermaking process stated since 105 A.D, when Ts'ai Lun, a Chinese court
official, invented the paper by using a simple process consisting of mixing mulberry
bark, hemp and rags with water, mashed it into pulp, pressed out the liquid, and hung
the thin mat to dry in the sun; that was the beginning of the humanity's great revolution
in communication. /www5/

Since then, paper production process has been continuously enhanced. In 1866, an
American named Benjamin Tilghman developed the sulfite pulping process. The first
mill using this process was built in Sweden in 1874; this was the dominant pulping
process until 1937. At that time, kraft (strong) pulping became the dominant chemical
pulping process and still is today. A German chemist, C. F. Dahl, developed the kraft
pulping process in 1879. /www6/

With the pass of the time, paper process was enhanced in such a way that the paper
production and its corresponding exportation began to play an important roll in the
Economy of several countries such as Sweden, Norway and Finland. Nowadays their
exportations represent more than the 40% of the total EU paper products exportations.

The information flow within the partners of the paper products transportation chain
(Mill, Hauler, Loading Port, Carrier, discharging Port and Customer) is at the moment
very complex. Depending on the size and information technology systems of each one,
the method of sending the appropriate messages required in the follow-up of an order
varies a lot. One company sends the same information in a more advanced form than
another.

In fact, there is no data repository or an application to support the information flow
within the transportation chain partners.

Now days, a big money investment with the purpose of promoting the inland navigation
through German rivers is carried out. This project may optimize the material flow at the
discharging port point and also may reduce the time delivery; however, the introduction
of a new partner within the transportation chain increases the complexity of the
information flow; and the risk of material flow failures.

This work presents the different components of the transportation chain (see figure 2.1),
analyzes its actual information flow and the one originated by the incorporation of
inland navigation through German rivers, what attach other entities (port of loading,
carrier-inland navigation and port of discharging) to the transportation chain.




                                           6
     Paper
     products
     process
                          Timber       Logs    Barker/Chipper                Incoming Chips / Sawdust / Urban-wood



                                   Timber            A
                                                                                                                        Chips
       Head Box                                     Paper Machine

                        Wire Section                                                              Dry End
   Wet End
                                              Presses                Dryers                                            Screens
     Converting                                                                                             Paper

                                                                                                                       Continuous
                                                                                                                        Digesters
     Box Making


     Bag Making           Consumers                      Outgoing Products                                  Loading


   Paper Rewinding
                                                                                                                                Blow
                                                                                                                                Tank
 Coating / Laminating
                                                          Recycled paper processed and converted into pulp

                                   Consumers



                                                                         A
                                                                                     Cleaners        Refining         Washing




                                       FIGURE 2.1 PAPER PRODUCTS PROCESS

Forest sector, has surprisingly high number of types of separate supply chains. Since
diversity of products constitutes many isolated chains. Only a few examples of those
types: /Sjö00, page 23/

                chain from timber supplier through wood industries to manufacturers of
                furniture and likes.
                chain to supply wooden materials for making transport units, such as pallets,
                frames and containers.
                chain to supply wooden materials to a construction site.
                chain from suppliers of machinery assembly to installation of saw mill
                facilities.
                chain from papermaker through publication press to an advertiser.
                chain to supply copy and writing paper materials to various offices in
                business etc.
                chain from wood pulp through special paper factories to customers of
                hygiene products.
                chain from paperboard mill through manufacturer of packages to vendor of
                some merchandise who needs to pack its wares.




                                                                     7
                                          WOOD INDUSTRY
                                         Furniture and likes
             PACKAGE AND                                                 TRANSPORTATION
             MERCHANDISE                                                       INDUSTRY
                INDUSTRY                                                 Pallets frames,
           Packing ware                                                  containers



           NEATNESS                                                               CONSTRUCTION
           INDUSTRY                                                                  INDUSTRY
      Hygiene prodcuts                                                          Factory facilities



                                BUSINESS                          ADVERTISING
                               INDUSTRY                             INDUSTRY
                           Copy and writing paper              Publications
                                 materials



      FIGURE 2.2 APPLICATION OF FOREST PRODUCTS SEVERAL INDUSTRIES

Depending on what a saw mill is producing the demand will vary from saw mill to saw
mill. A clear trend is a focus on short-term demand. The end-users consumption
controls what the saw mill should produce and as a consequence what raw material the
forest owner should deliver to the saw mill. Currently the wood prices are negotiated for
longer period of time. The forest owner can then adjust his work to this. In the future a
more customer-oriented forestry can be assumed. Then the saw mill orders a given
product (type of tree), how much to deliver and when it should be delivered. The more
traditional way of organising the ordering system through the use of stock and
forecasting models will still exist (see figure 2.3).

Supply Chain Management in this sector involves activities related to demand handling,
production and transportation. Activities related to end-users, factories and some
transportation planning are for example not included.


Forest                   PULPING PLANT              PAPER MAKERS                         CUSTOMER
                                                                                          DELIVERY

             Debarking           Pulp                   Pulp            Paper
                and
              shipping             Production           Dry            Manufacturing


                                                                                         *Advertising
                                     Stock prepration                      Spooled and   *Hygiene products
                                                                             packaged    *Packing wares
                                                                                         *Copy material
                                                                                         *Writing material


                    GENERAL PAPER SUPPLY CHAIN


            FIGURE 2.3 SUPPLY CHAIN FOR PEPER PRODUCTS INDUSTRIES




                                                        8
Supply chain management deals with activities to ensure an efficient production from
raw material to finished products. From an overall point of view redundant activities in
a chain can be rationalised and the management improved. /Vau01, page. 26/

In the future, forest products industry will change to a customer driven production
where high quality, marginal utility and short delivery time for a specified product are
key factors. A trend is diversification in products groups, quality and price. The actual
demand will not be available on a long-term horizon, but will reflect the current
demand. (See table 2.1)

                                        Supply Chain Management


                     70´s & 80´s                           90´s clear sequential value adding perspective


   SCM. Management of the total flow from the supplier  SCM.      Management     of    upstream    and
   to the ultimate user                                 downstream relationships with suppliers and
                                                        customers to deliver superior customer value at
                                                        less cost to
                                     FIGURE 2.3 EVOLUTION OF SCMthe supply chain as a whole.


                                   TABLE 2.1 SUPPLY CHAIN EVOLUTION

From then to now, times have changed, they are more challenging today than perhaps
ever before, therefore the correct logistics and transport management for international
trade have received high importance, this implies: flexibility, cost effectiveness, and
efficiency, see figure 2.4. /Huy95/


             LOGISTICS
                                                                             Cost
            Management                                                     Reduction


            Procurement                 Flexibility
                                           Cost
            Storage                   effectiveness
                                        Efficiency

            Manufacturing
                                                            Quality                           Time
            Sales                                        Enhancement                        Reduction

            Transportation

           FIGURE 2.4 LOGISTICS CONTRIBUTION COST TIME AND QUALITY

Cost. Transport is one of the main component factors taken into account when
determining the final price of a product. Logistics is the process of planning,
implementation and control of both the physical and information flow, as well as the
storage of raw materials, semi-finished and finished products, from point of origin to the
end consumer in the most efficient and effective way possible.



                                                    9
Quality. Raw materials, procedures, equipment, tools technology and transportation are
the main component factors into account when determining the Quality of the product.

Time. The correct junction between all the components of the supply chain is the main
factor into account when determining the delivery time of the product. All the
components of the supply chain should be taken into consideration, such as the different
areas involved in the process: Procurement, Manufacturing, Storage, Transportation
etc., also machines, resources, tools, and procedures used to add value to the raw
materials in order to get final products. /www18/

Paper products production and exports in the EU

The meaning of Finland, Sweden and Norway as export countries within Western is
clear, they have supremacy in Europe; with values of 0.82, 0.80 and 0.70 for the year
1998 are Finland, Sweden and Norway in comparison with the Western European states
on the foremost place. The sequence with the total exports of 45,673,180 t of the
Western European states in 1998 reads as table 2.2

Country / Share               Country / Share               Country / Share
1. Finland 22.25%             7. Italy 4.39%                13. Portugal 1.53%
2. Sweden 18.19%              8. Norway 4. 29%              14. Denmark 0.51%
3. Germany 16.26%             9. Bel. / Lux. 3. 83%         15. Ireland 0.13%
4. Austria 7. 54%             10. UK 3.66%                  16. Greece 0.07%
5. France 6.19%               11. Switzerland 2. 71%
6. Netherlands 6. 18%         12. Spain 2. 28%
                    TABLE 2.2 PAPER PRODUCTS EXPORT SHARE IN EUROPE

In absolute numbers this corresponds to export quantities for Finland, Sweden and
Norway in the year 1995 of:

1. Finland: 10.161.000t Paper and Paperboard

2. Sweden: 8.306.000t Paper and Paperboard

3. Norway: 1.960.800t Paper and Paperboard

The three countries have together an export quantity of 20.427.800 t of Paper and
Paperboard. The total export of the three countries during 1995 is to be inferred table
2.5. /www17/

                           Paper and Paper board export share

                             Norway
                              10%

                                                                Finland
                                                                 49%

                Sweden
                 41%

                FIGURE 2.5 PAPER AND PAPERBOARD EXPORT SHARE

                                          10
According to The Swedish Wood Exporter‘s
Association over 65 % of the Scandinavian
timber export goes by sea. The efficiency in
the transport line for export, which includes a
lot of handling operations, is very important
for the saw mill industry profitability. The
capability to deliver on time at intended
destination with maintained quality as well as
keeping the operation cost efficient and
environmentally acceptable is included in this.
(See figure 2.6)

                                                        FIGURE 2.6 PULP MILL

2.1.2 Finland

Finland is with a production of 12.148.000 t in the year 1998 to Germany the second
largest producer of Paper and Paperboard within Western Europe. Based on the export
quantity of 10.161.000 t in the year 1998 Finland behind Canada and the USA is
situated in the third place worldwide.

For the year 1998 the following shares of the respective product groups of the Finnish
export of Paper and Paperboard result as the table 2.3

    Product groups                                 Share
    1. Printing and writing paper                  62.73%.
    2. Wrapping and packaging paper & board        24.67%
    3. Newsprint                                   11.92%
    4. Household and sanitary paper                0.54%
    5. Paper and paperboard not elsewhere          0.14%
    specified
                    TABLE 2.3 PAPER PRODUCT GROUPS SHARE OF FINLAND

The largest customers of Finland are Germany (14.4%), France (8%) and Great Britain
(15.5%) and Benelux States (9.3%). /www17/

2.1.3 Norway

On a production of 2.128.000 t in the year 1998 Norway a clearly smaller producer of
Paper and Paperboard than Finland and Sweden is based. Similar applies also to the
export. Here Norway with an export quantity of 1.960.800 t takes the 7th place within
Western Europe.




                                           11
The development of the export since the year 1970 shows the figure 48 (viz. table in
Annex). The product groups distribute for 1998 on the Norwegian export of Paper and
Paperboard as table 2.4.

    Product groups                                  Share
    1. Newsprint                                    42,56%
    2. Printing and writing paper                   33,23%
    3. Wrapping and packaging paper & board         21,25%
    4. Household and sanitary paper                 2,96%
    5. Paper and paperboard not elsewhere           < 0,1%
    specified
                    TABLE 2.4 PAPER PRODUCT GROUPS SHARE OF NORWAY

The influence of Norway in the total export of the three countries Finland, Sweden and
Norway is small in comparison with the rest because the 68.4% of the Norwegian total
export does not go to Western Europe. /www17/

2.1.4 Sweden

With a production of 9.779.000 t in the year 1998 Sweden is the third biggest producer
of Paper and Paperboard within Western Europe and is in the international comparison
on place 7. Based on the export quantity of 8.306.000 t in the year 1998 Sweden behind
Canada, the USA and Finland is situated on place 4 in the world.

For the year 1998 the following shares of the respective product groups of the Swedish
export of Paper and Paperboard result as table 2.5.

    Product groups                                  Share
    1. Wrapping and packaging paper & board         48,2%
    2. Newsprint                                    28,6%
    3. Printing and writing paper                   22,2%
    4. Household and sanitary paper                 0,9%
    5. Paper and paperboard not elsewhere           < 0,1%
    specified
                    TABLE 2.5 PAPER PRODUCT GROUPS SHARE OF SWEDEN

The largest customers of Sweden are: Germany (19.6%), France (6.7%), Great Britain
(21.2%) and Benelux States (9.5%). /www17/

Forestry products supply chain in Sweden

Especially in Sweden, the timber branch is characterised by fast response to fluctuations
on the market, the production is generally made on demand and the manufacturing is
direct for the customer, which usually requires intermediary stock keeping at sawmill or
on the terminals. Especially in Sweden there are many single producers operating on the
market. Together they supply a large international group of customers with goods
according to different requirements and demands. In Finland, sawmills within the big
forest industry groups are dominating while in Sweden there is a large share of smaller
sawmills, which are operating on the export market.


                                           12
A large number of smaller companies in Sweden are operating on the export market, of
the total of about 2,500 sawmills in Sweden about 200 are exporting.

The sawmill industry is traditionally divided into three categories: forest industry
sawmills, forest owners sawmills and sawmills buying their logs.

The seven Swedish industry sawmills are Assi Domän, SCA Timber, Stora Enso
Timber, Södra Skogsägarna, Graninge, Iggesund Timber, Korsnäs Timber, they produce
about a third of the Swedish production of sawn wood. (see table 2.6)

Over two thirds of the total Swedish exports are shipped by sea. Compared with other
products the loading and unloading in sea freight is not as rational. The handling
requires a lot of manual efforts, which makes it expensive. It also often brings about
work injuries and deteriorated product quality ./ww17/

 AssiDomän,
 Graninge,
                                               continent, north
                                               The European




 Korsnäs, MoDo,
                               Great Britain




                                                                  North Africa
                                               Spain, Italy,


 SCA, Stora and
                    Denmark,
                    Germany




                                                                                         Mid East
 Södra
                                               Grease




                                                                                 Egypt




                                                                                                    Japan


                                                                                                            Other
                                               west




 (1996)
 100 %              7          25              28       14        6              6       6          6       2
 2100 (x1000) m3    140        536             599      306       117            122     120        125     53
              TABLE 2.6 GEOGRAPHICAL DIVISION OF THE SEA FREIGHTS IN SWEDEN

2.2 Transportation Goods

2.2.1 Wood

Wood is not only a renewable material; it is also a highly versatile one, capable of being
transformed in different ways into a variety of products. Forestry products (wood
products) are classified according to the Standard International Trade Classification
(SITC).
SITC classifies codes and defines all products.

   1. Wood (see table 2.7)
         round wood
         fuel wood + charcoal
         industrial round wood
         sawn wood
         wood-based panels
   2. Wood pulp
   3. Paper and paperboard and
   4. Recovered paper (waste paper)

For all these product groups, Europe, as a producer, has the second position, followed
by East Asia and Other Asia-Pacific. /www7/




                                                        13
                                                                                                                     SAWLOGS +VENEERLOGS    1868   Sawlogs+Veneer Logs(C)   1601
                                                                                                                                                   Sawlogs+Veneer Logs (NC) 1604



                                                                                                                                                   Pulpwood (C)                  1608
                                                                                                                                                   Pulpwood (NC)                 1611
                                                                                                                     PULPWOOD + PARTICLES   1870   Pulpwood Trade                1614
                                                                                                                                                   Chips+Particles               1619
                                                                                                                                                   Wood Residues                 1620
                                                                                   INDUSTRIAL ROUNDWOOD       1865
                                                                                   INDUSTRIAL ROUNDWOOD ( C ) 1866
                                                         ROUNDWOOD          1861   INDUSTRIAL ROUNDWOOD ( NC) 1867
                                                         ROUNDWOOD ( C )    1862
                                                                                                                                                   Other Indust Roundwd (C)   1623
                                                         ROUNDWOOD ( NC )   1863                                     OTHER IND ROUNDWD      1871   Other Indust Roundwd Trade 1625
                                                                                                                                                   Other Indust Roundwd (NC) 1626


                                                                                                                                                   Ind Rwd Wir (C)               1651
                                                                                                                                                   Ind Rwd Wir ( NC ) Tropical   1657
                                                                                                                                                   Ind Rwd Wir ( NC ) Other      1670




14
                           /www7/
                                                                                                                                                   Fuelwood(C)                   1627
                                                                                                                     FUELWOOD + CHARCOAL    1864   Fuelwood (NC)                 1628
                                                                                                                                                   Fuelwood Trade                1629
                                                                                                                                                   Charcoal                      1630




                                                                                                                     SAWNWOOD + SLEEPERS    1872   Sawnwood (C)                  1632
                                                                                                                                                   Sawnwood(NC)                  1633




     TABLE 2.7 INDICATIONS OF WOOD PRODUCTS UNDER SITC
                                                                                                                                                   Veneer Sheets                 1634
                                                                                                                                                   Plywood                       1640
                                                                                                                                                   Particle Board                1646
                                                                                                                                                   Hardboard                     1647
                                                                                                                                                   Mdf                           1648
                                                                                   WOOD-BASED PANELS          1873

                                                                                                                                                   Fibreboard, Compressed        1649
                                                                                                                     FIBREBOARD             1874
                                                                                                                                                   Insulating Board              1650
Round wood

1863 Round wood refers to wood in its natural state as felled or otherwise harvested,
with or without bark, round, split, roughly squared or other forms (e.g. roots, stumps,
burls, etc.). It may also be impregnated (e.g. telegraph poles) or roughly shaped or
pointed. It comprises all wood obtained from removals, i.e. the quantities removed from
forests and from trees outside the forest, including wood recovered from natural, felling
and logging losses during the period - calendar year or forest year. Commodities
included are saw logs and veneer logs, pulpwood, other industrial round wood
(including pit props) and fuel wood. The statistics include recorded volumes, as well as
estimated unrecorded volumes as indicated in the notes. Statistics for trade include, as
well as round wood from removals, the estimated round wood equivalent of chips and
particles, wood residues and charcoal. /www16/

Fuel wood + charcoal

1864 Fuel wood + charcoal includes in this aggregation two mainly commodities: fuel
wood, coniferous and non-coniferous and the round wood equivalent of charcoal.
/www16/

1628 fuel wood      Wood in the rough to be used as fuel for purposes such as cooking,
                    heating or power production.
1630 charcoal       Carbonized wood by partial combustion or application of heat from
                    an external source, used as a fuel or for other uses.

Industrial round wood

1867 industrial round wood includes several commodities in this aggregation: saw logs,
veneer logs, logs for sleepers, pulpwood, chips, and wood residues. /www16/

1604 saw logs +     Logs whether or not roughly squared, to be sawn or chipped for
veneer logs         the manufacture of sawn wood or railway sleepers (ties).
1614 pulpwood       Wood in the rough other than logs, barked or unbarked, in the
                    form of round wood or split wood, it also may include wood
                    chips.
1619 chips refers   Wood that has been deliberately reduced to small pieces, suitable
                    for pulping, fibreboard production, fuel wood or for other
                    purposes.
1620 wood           Wood which have not been reduced to small pieces.
residues




                                           15
Sawn wood

1872 sawn wood includes the following commodities: sawn wood and sleepers,
coniferous or non-coniferous.

1633 sawn          Sawn wood, unplanned, planed, grooved and tongued, sawn
wood NC            lengthwise, or produced by a profile-chipping process; e.g. planks,
                   beams and sleepers; it also includes planed wood which may also be
                   finger jointed, tongued or grooved, etc. Wood flooring is excluded.
                   With few exceptions, sawn wood exceeds 5 mm. in thickness.

Wood-based panels

1873 Wood-based panels include: veneer sheets, plywood, particle board and fibreboard
compressed or non-compressed./www16/

1634 veneer        Sheets of wood of uniform thickness, rotary cut, sliced or sawn, for
sheets             use in plywood, laminated construction, furniture, veneer
                   containers, etc. In production, the quantity given excludes veneer
                   sheets used for plywood production within the country.
1640   plywood     Plywood, veneer plywood, core plywood including veneered wood,
                   block board, laminboard and batten board; also other plywood such
                   as cellular board and composite plywood.

2.2.2 Pulp

Paper grade pulp is the raw material for
printing and writing papers (see figure
2.7), specialty papers as well as for
graphic     papers    and    packaging
paperboards. Paper pulp is classified
according with SITC according with the
table 2.3.

                                                      FIGURE 2.7 PULP PRODUCTION




                                           16
                               1654 MECHANICAL WOOD PULP

                               1655 SEMI-CHEMICAL WOOD PULP

                               1667 DISSOLVING WOOD PULP

                               1656 CHEMICAL WOOD PULP
       1875 WOOD PULP                 1660 UNBLEACHED SULPHITE PULP
                                      1661 BLEACHED SULPHITE PULP
                                      1662 UNBLEACHED SULPHATE
                                      PULP

                               1668 OTHER FIBRE PULP

                               1669 RECOVERED PAPER
                 TABLE 2.3 INDICATIONS OF WOOD PULP PRODUCTS UNDER SITC


1875 wood pulp refers also to an aggregation, it includes the following commodities:
mechanical, semi-chemical, chemical and dissolving wood pulp.

1654 mechanical wood pulp      Wood pulp obtained by grinding or milling: coniferous
                               or non-coniferous rounds, quarters, billets, etc into fibres
                               or through refining coniferous or non-coniferous chips.
                               It excludes exploded and defibrated pulp, and includes
                               chemi-mechanical and thermo-mechanical pulp.
1655 semi-chemical wood        Wood pulp, chemi-mechanical and semi-chemical Wood
pulp                           pulp obtained by subjecting coniferous or non-
                               coniferous wood to a series of mechanical and chemical
                               treatments, none of which alone is sufficient to make the
                               fibbers separate readily.
1667 dissolving wood pulp      Wood pulp, dissolving grades chemical pulp (sulphate,
                               soda or sulphite) from coniferous or non-coniferous
                               wood, or special quality, with a very high alpha-
                               cellulose content (usually 90% and over), readily
                               adaptable for uses other than paper making.
1656 chemical wood pulp        Sulphate (kraft) and soda and sulphite wood pulp except
                               dissolving grades, bleached, semi-bleached and
                               unbleached.
1668 other fibre pulp          Pulp of fibrous vegetable materials other than wood.
                               Including straw, bamboo, bagasse, esparto, other reeds
                               or grasses, cotton linters, flax, hemp, rags, other textile
                               wastes. Used for the manufacture of paper, paperboard
                               and fibreboard.
1669 recovered pulp            Waste and scrap of paper or paperboard. This includes
                               waste and scrap collected for re-use as a raw material for
                               the manufacture of paper and related products.




                                           17
2.2.3 Paper and paper board

                                 1671 NEWSPRINT

                                 1674 PRINTING AND WRITING PAPER

                                 1675 OTHER PAPER AND PAPERBOARD
       1876 PAPER AND
        PAPERBOARD               1675 OTHER PAPER AND PAPERBOARD
                                          1676 HOUSEHOLD AND SANITARY PAPER
                                          1681 WRAPG AND PACKG PAPER AND
                                          BOARD
                                          1683 PAPER ANDPAPERBOARDNES



            TABLE 2.4 INDICATIONS OF PAPER AND PAPER BOARD PRODUCTS UNDER SITC


1876 paper and paper board includes: Newsprint, printing and writing paper, other paper
and paper- board. Paper and paper board is classified according with SITC according
with the table 2.4.

1671    newsprint

        Uncoated paper, unsized (or only slightly sized), containing at least 60%
        (percentage of fibrous content) mechanical wood pulp, usually weighing not less
        that 40 g/square m and generally not more than 60 g/square m of the type used
        mainly for the printing of newspapers.

1674 printing and writing paper

        Other printing and writing paper. Paper, except newsprint, suitable for printing
        and business purposes, writing, sketching, drawing, etc., made from a variety of
        pulp blends and with various finishes.

1675 other paper and paperboard

        Includes construction paper and paperboard, household and sanitary paper,
        special thin paper, wrapping and packaging paper and paperboard and other
        paper and paperboard not elsewhere specified.




                                           18
2.2.4 Containerboard

Containerboard or corrugated boxes are solid fibre or
corrugated and combined board used in the
manufacture of shipping containers and related
products. Containerboard is also the component
material used in fabrication of corrugated board and
solid fibre combined board. The primary
containerboard products are linerboard and
corrugated medium, which are used to make
corrugated boxes. Linerboard makes up the outer and
inner shells, which contain the ruffled corrugated
medium (see figure 2.8).                                FIGURE 2.8 CONTAINERBOARD




                                      Corrugated containers in their most common
                                      form     are    boxes     manufactured     from
                                      containerboard-two layers of linerboard and one
                                      layer of medium (see figure 2.9).

    FIGURE 2.9 CORRUGATED
            CONTAINER



Linerboard is paperboard made on a
fourdrinier or cylinder machine and used as the
facing material in the production of corrugated
and solid fibre shipping containers (see figure
2.10).

                                                        FIGURE 2.10 LINERBOARD

2.2.5 Paperboard

Paperboard is made up of multiple layers of paper bonded together to make a sturdy,
board-like product. Paperboard weighs more than regular paper. It is thicker and more
rigid. As a result, paperboard is better suited to a variety of packaged products. Among
other things, paperboard is converted into packaging for crackers and cookies, cereals,
juice, and frozen foods, as well as laundry detergent, cosmetics, and personal hygiene
products.




                                          19
Bleached Paperboard. This type of paperboard is
most often used in manufacturing cartons and
boxes for milk and juice, non-carbonated drinks,
dairy products (ice cream and butter), meat
products, fast food, and frozen foods, as well as
cosmetics and pharmaceuticals, hardware, and
toys (see figure 2.11).

                                                                  FIGURE 2.11 BLEACHED
                                                                           PAPERBOARD

Recycled paperboard is made from a combination of 100 percent recovered fibre, which
may include newspaper, magazines, corrugated boxboard, paperboard folding cartons,
and telephone books.

Unbleached paperboard is made from
predominantly unbleached kraft fibre and may
contain some recovered fibre. Examples of this
type of paperboard are 6- and 12-pack beverage
carrying cases and folding cartons (see figure
2.12).
                                                               FIGURE 2.12 UNBLEACHED
                                                                           PAPERBOARD

2.3 Transportation boxes

2.3.1 Containers

ISO containers, also referred to as intermodal containers, they are used to
transport freight. ISO containers are designed for transportation by more than just one
mode: such as truck and rail, or rail and ship. These freight containers conform to the
International Organization for Standardization (ISO) container manufacturing
standards. ISO is an international standards organization headquartered in Geneva,
Switzerland.

ISO containers are produced in several standard configurations, including dry (or cube),
insulated, flat rack (or platform), open top, refrigerated, and tank

ISO containers are manufactured in standard sizes. The standard width of ISO
containers is 8 feet, the standard heights are 8 feet 6 inches, and 9 feet 6 inches, and the
most common lengths are 20 feet and 40 feet. Less common lengths include 24, 28, 44,
45, 46, 48, 53, and 56 feet. /www13/




                                            20
Containers components

The main components of a container are described below (see figure 2.13).




                       FIGURE 2.13 CONTAINER COMPONENTS
                                     /www13/

Container part    Description
Corner Post       Vertical frame components located at the corners of freight
                  containers and integral with the corner castings and floor structures.
Corner Castings   Fittings located at the corner of the freight container which provide
                  means for lifting, handling, stacking and securing the container.
Header and Sill   In way of door entrance with overhead horizontal header frame and
                  similar floor level threshold sill
Front-End         The structure at the front end of the container (opposite the door end)
Frame             consisting of top and bottom rails attached to the front corner posts
                  and the corner castings.
Top Rail          Longitudinal structural partners located at the top edge on either side
                  of the freight container.
Bottom Rail       Longitudinal structural partners located at the bottom edge on either
                  side of the freight container.
Cross-partners    A series of transverse beams at approximately 12 inch centres
                  attached to the bottom side rail and an integral part of the floor frame
                  support.
Floor             The floor may be hard or soft laminated wood, planks or plywood.
Roof              Roof bows are the under most structure of the roof and are usually
                  placed at 18 or 24 inch centres. The roof is the part of the container
                  most vulnerable to damage.
Doors             Doors may be ply-metal (plywood core with steel or aluminium
                  facings), corrugated, or combinations with fibreglass.
Security seal     Used in conjunction with locking mechanism in order to seal the
                  containers for security purposes. These seals are numbered and often
                  colour coded./www15/
                     TABLE 2.5 CONTAINERS COMPONENTS DESCRIPTION
                                       /www13/

                                           21
ISO Classification

The International Standards Organisation (ISO) has recommended a series of internal
and external dimensions for containers together with gross maximum weights, which
the container may carry. (see table no. 2.6)

Not all containers which are used by transport companies are ISO containers and under
no circumstances should they be accepted unless with special agreements.

Dry ISO            They are general purpose, totally enclosed; box type containers used
containers         for general purpose transportation. These containers are also called
                   cube containers. Standard heights for dry containers are 8 feet 6
                   inches. Dry containers are also manufactured with extended heights
                   of 9 feet 6 inches, and are referred to as high cube containers. Cargo
                   is loaded from the end of the container.
Insulated or       are used to transport of chilled and frozen goods. They are also used
thermal ISO        for temperature sensitive materials and products. The container
containers         walls are insulated, but the container does not have a refrigeration
                   unit.
Flat racks and     They have no side walls, but may have end bulkheads. They are
platforms          used to transport heavy machinery. Collapsible flat rack containers
                   are open sided ISO containers with end bulkheads that can be folded
                   down when the rack is empty.
Open top ISO       They are box type containers with no top. These containers can be
containers         used to carry heavy, tall or hard to load cargo, and bulk material,
                   such as coal or grain. Cargo can be loaded from the top or end of the
                   container.
Refrigerated, or   They are used to transport of chilled and frozen goods. They are
reefer ISO         also used for temperature sensitive materials and products where a
containers         steady temperature must be maintained during shipping.
Tank ISO           They have a cylindrical tank mounted within a rectangular steel
containers         framework. These containers are built to the same standard
                   dimensions as other ISO containers. They are used to transport
                   liquid or bulk materials.
                        TABLE 2.6 ISO CPMTAOMERS CLASSIFICATION
                                         /www14/




                                           22
2.3.2 Pallets

Currently, there is a wide product range of transportation and camp means e.g. euro
pallets, one-way pallets, lattice boxes, crates and wood put on framework (see figure
2.14).




                                                                                                                                                               Pallets




                                                                        FIGURE 2.14 PALLETS

Euro pallets

            The use of plastic pallets offers many advantages. They are durable and easy to
            handle, simple to clean and maintain a constant low tare weight. The pallets are
            UV and weather resistant.

One way pallet

                      •      800x1200 mm-5 Deckbretter, 18x78x1200 mm, 9 Klötze 78x78x78mm
                      •      800x1200 mm-7 Deckbretter, 18x98x1200 mm, 9 Klötze 98x98x78mm
                      •      600x800 mm, neu
                             5 Deckbretter, 18x78x600 mm, 6 Klötze 78x78x78mm. /www15/

2.4 Means of transportation

2.4.1 Trucks and trailers

Trucks (see figure 2.15) collect the timber from batches, which reside along forest
roads, and deliver their loads directly to pulp mills where once the pulp is processed and
ready to be transformed into the different paper products the next step is to transport the
product by trailer until the train that transports its load until the seaside where different
ships transport the product to the other harbour where again the product is transported
by train or trailer until reach its final destination.




                                        D     D                                                                                                 D      D


 Saw mill                 Road            Rail          Trucking to    Crane                                     Transfer to     Road              Rail        Storaging
            Loading                                                            Sea transportation   Crane lift    storage                                                  Customer
                      transportation transportation    the ship side    lift                                                 transportation   transportation
                                                                                                                                                                             lager




                                                      FIGURE 2.15 TRUCK TRANSPORTATION


                                                                                          23
The collection logistics of a pulp processing company constitute a major part of the
company’s operational costs. Different choices are made at different time levels: at the
strategic level, from a year up to several years, decisions have to be made about big
Logistics investments (such as railroad lines), locating the mills etc. At the tactical level,
from a few weeks up to one or two years, decisions have to be made regarding contracts
with transportation subcontractors, purchasing of timber etc. At the operational level,
decisions have to be made regarding transportation and inventory.

Transportation involves the activity to transport wood from the forest to a sawmill, then
the paper products from the sawmill to the loading port in the country of export.

The trucks unload their cargo at unloading sites, which are typically pulp mills or
sawmills, but may be floating sites on river banks or lakeshores, railroad stations etc.
The mills are the core of the wood-refining company‘s operation, and their production
schedules are usually planned independently of transportation considerations. Therefore
truck schedules have to conform to the production schedules of the mills, and the types
of timber they carry have to match the needs of the current production program (also
called delivery program).

Transportation planning can involve scheduling pick up and deliveries for every truck,
planning the utilisation of the transportation equipment over time or fleet dimensioning.
Even if harvested wood can be stored for a longer period of time, is it favourable to
decrease the lead-time from felling to arrival at the saw mill.

Operational plans are made at wood-referring companies for a time span ranging from a
few days to a few weeks. These plans contain visiting schedules for the mills, schedules,
routes and loading plans (what kind of timber to take and in what amount at each visited
batch) for trucks. /Sjö00, page 144/

Navigation

The enhanced productivity in forestry harvesting and the specialization of the saw mill;
which begins the processing chain, increase the complexity of transport flows. The
wood inventories located on roadside are quickly mobilised, the required qualities are
more precise, and the delivery periods must be short.

In these conditions, it is necessary to improve the control of supply logistics of sawing
and pulp mills, according to the regional environment in order to reduce transport cost,
to improve safety and to provide high quality services; therefore within logistical chain,
the data transmission between the mobile and the company office is essential.

In forestry the principal encountered
problem is the lack of cover of the
network. Digital maps give a good
representation of the roads and area
names and makes possible to reach the
woodpiles for more than 95 % (see figure
2.16). /Eme98, page 26/

                                                  FIGURE 2.16 TRANSPORTATION ROUTES

                                             24
2.4.2 Rail




                                      D      D                                                                                               D      D


 Saw mill               Road            Rail         Trucking to    Crane                                     Transfer to     Road              Rail        Storaging
            Loading                                                         Sea transportation   Crane lift    storage                                                  Customer
                    transportation transportation   the ship side    lift                                                 transportation   transportation
                                                                                                                                                                          lager




                                                    FIGURE 2.17 RAIL TRANSPORTATION

After the timber is transported by trucks to the pulp mills where is transformed into
paper products, the next step is to transport the product by trailer until the train that
transports its load until the seaside where different ships transport the product to another
harbour where again the product is transported by train or trailer until reach its final
destination (see figure 2.17)

2.4.3 Shipment

Five distinctive and customary used sea freight Systems have been identified. Freight
distance, product mix and volumes and to some extent the sea freight system used
separate the export markets. Type of ship and loading system mainly separate the sea
freight systems (see figure 2.18).




                                      D     D                                                                                                D      D


 Saw mill               Road            Rail         Trucking to    Crane                                     Transfer to     Road              Rail        Storaging
            Loading transportation                                          Sea transportation   Crane lift    storage    transportation                                Customer
                                   transportation   the ship side    lift                                                                  transportation
                                                                                                                                                                          lager



                                                             FIGURE 2.18 SEA NAVIGATION

The sea freight systems divided into the groups:

            Boxed LOLO-ships
            Conventional LOLO-ships
            Big bulk-ships
            RORO-ships
            Container ships

Boxed LOLO-ships

Boxed bulk ships have box shaped cargo holds with vertical walls and are easy
accessible for loading and unloading. Distinctive for boxed LOLO-ships are beside the
shape of the cargo hold the type of systematic transports they are used for in Western
Europe. In first hand these systematic transports are using ports in the Netherlands,
Great Britain, France and Germany. The cargo holds are covered, which is suitable for
the transportation of sawn wood. Cargo holds are possible to uncover completely on
top. Some of the vessels have cranes of their own which can serve the whole cargo
compartment (often-called geared ships) while others are dependent on cranes ashore.
                                                                                        25
This box type System is used for over 50 % of the sea freight to Western Europe from
Sweden.

Conventional LOLO-ships

For freights in conventional LOLO-ships the destination as well as the size of the ship
varies a lot. In general the transport distances also are much longer. The conventional
LOLO-ship ship is not adequate for sawn wood as it is intended for many different
types of goods. Some units has to be taken sideways with special handling equipment
due to squares and top over ceilings which are found in the cargo hold on the middle
deck.

Big bulk-ships

It happens that big bulk-ships are used in freights
to the Middle East. They take large volumes of
dose to 30 000 m3. This makes it possible to offer
low freight charges. The ships are not adequate
for loading and unload of timber, which means
that they need long lying times in the ports to
handle the large volumes. During that time they
block quay places for other ships (see figure
2.19).                                                         FIGURE 2.19 BULK SHIP


RORO-ships

For transport in RORO-ships the timber
packages mainly are taken aboard by wheel
loaders and stowed in piles cross the cargo
compartment to a certain height. Also cassettes
are used but that type of handling is so far
relatively rare (see figure 2.20). /Sjö00, page
119/

                                                               FIGURE 2.20 RORO SHIP


By using RoRo-vessels (ships for roll on - roll off handling); the handling during
stowage and discharge of the container is not very practical but the goods protection
during the voyage is excellent. Shipment in RoRo-vessels is more expensive than by
bulk vessels but there are advantages in goods protection and loading speed. The
packages are usually taken by forklifts into the ship and stacked in several layers in the
hold. To some extent also preloaded cassettes are used in the same way as for other
forest products (see figure 2.21). /Sjö00, page 122/




                                           26
                         H=600           H=1000             H=1200



         FIGURE 2.21 PACKAGES ON QUAY SORTED ACCORDING TO HEIGHT

Container ships

For transport to the Far East the timber packages are stowed in containers and taken by
container ships. The product value in this case is usually high. In combination with the
relatively low container freight charges of today this type of freight system is possible.

2.5 Organization and transportation chain

2.5.1 Timber transportation chain

The chain of transportation is defined by DIN 30780 as the row of technically and
organisationally connected processes in which logistic objects are moved from a place
of acceptance to a place of destination. /www18/

Transportation modes

The single stage transportation chain is defined as an uninterrupted direct transportation
of a good without change of the means of transportation /Pfo00, page 164/. In contrast
to that, the multi-modal or intermodal transportation chain is repeatedly interrupted and
combines several means of transportation. The multi-modal transportation chain can be
further subdivided into multi-modal transportation with changing units and combined
traffic.

Multi-modal transportation with changing unit loads refers to the dissolution of the
cargo-vessel, container or case during the chain of transportation. The main cargo types
representing this transportation mode are bulk and break bulk commodities (see figure
2.22). /Sei82, page 79/




                                           27
                                 Transportation
                                     chain

                                          (criteria: number of transfers)



                   Uni-stage                          Multi-stage
                transportation                      transportation
                     chain                              chain

               = uninterrupted transportation              = interrupted transportation
               = direct transportation                     = combined transportation with
                                                             multipl means of transportation
                                                           (criteria: type of transfer)




                 Non continouse unit                                                Combined
                  load transportation                                             transportation

                             (with changing cases                                           ( without changing cases
                             or containers)                                                 or containers)
                             (criteria: type of cargo)                                      (criteria: type of unit load)




            Bulk                     Break bulk                      Piggy-back                          Container
        transportation             transportation                       traffic                        transportation

                                                                 transfer of the complete            transfer of the case or
                                                                 mean of transportation              container




              FIGURE 2.22 CHAIN OF TRANSPORTATION CLASSIFICATION
                                   /Sei82, page 79/

Efficiency measure and Logistics.

According to the Council of Logistics Management: Logistics management is the
process of planning, implementing and controlling the efficient effective flow and
storage of goods, services and related information from point of origin to point of
consumption for the purpose of conforming to customer requirements.

The above definition indicates clearly that when we speak about logistics we speak
about a system, a system that comprises hardware, software, people and procedures in
order to fulfil its objective. The efficient Organisation and controlling of a system
requires the adoption of a specific strategy.

The figure 2.23 shows the Logistics Pyramid, developed by Andersen Consulting,
Arthur Andersen & Co. /Ebe98, page 31/




                                                              28
                                               Customer
                                                Service


                                              STRATEGIC

                                        Channel           Network
                                        Design            Strategy

                                             FUNCTIONAL

                           Warehouse Design Transportation            Materials
                             & Operations    Management              Management


                                             FUNCTIONAL

                    Information      Policies and   Facilities and      Organization and
                      systems         procedures     Equipment        Change Management


                                          IMPLEMENTATION




                                  FIGURE 2.23 LOGISTICS CHAIN
                                         /Ebe98, page 32/

There are different modes of transportation of paper products by sea from Scandinavia.
The main characteristic for each transport mode is the type of vessel used; important
moments like loading, the sea freight and the unloading are present in this process (see
table 2.7).

The sea freight flows are valued regarding the potential for economical and technical
development.

                 Fraction Moments in the Transportation Process
                 Saw Mill              Sawing
                                       Sorting
                 Industry Premises     Materials handling
                 Dryer Works           Drying
                 Rectifying Works      Sorting
                                       Strapping
                 Packaging Works       Packing
                                       Strapping
                 Storage Premises      Trucking
                                       Indoor-outdoor storaging
                 Industry Premises     Trucking
                                       Loading
                 The Road              Securing
                                       Trailer transport
                 Industry Premises     Discharge
                                       Trucking
      D   D      The Railroad          Loading
                                       Securing
                                       Rail transport
                                       Discharge
                 Harbour Area A        Truck transport
                                       Indoor-outdoor storaging

                                                    29
                                        Trucking
                                        Transfer storage
                                        Trucking to the ship side
                                        Strapping
                                        Crane lift
                                        Stowing
             X
                   The Ship (LO-LO)     Securing
                                        Covering
                                        Sea transport
                                        Uncovering
                                        Crane lift
                   Harbour Area B       Strapping off
                                        Trucking
                                        Transfer storage
                                        Trucking
                                        Loading
                                        Strapping
                   The Road             Trailer transport
                                        Discharge
                                        Loading
                                        Securing
     D   D

                   The Railroad         Rail transport
                                        Discharge
                                        Packing off
                   Customer’s Storage   Indoor-outdoor storaging
                                        Packing materials bundling
                                        Return freight of packing
                 TABLE 2.7 FRACTION MOMENTS IN THE TRANSPORTATION PROCESS
                                      /Sjö00, page 134/

2.5.2 Handling

Over two thirds of the total Swedish exports are shipped by sea. Compared with other
products the loading and unloading in sea freight is not as rational. The handling
requires a lot of manual efforts, which makes it expensive. It also often brings about
work injuries and deteriorated product quality, which in the near future will be
unacceptable. The present, mainly manual, handling often requires occasional extra
personal in the ports. (See figure 2.24) /Chr88, page 90/




             FIGURE 2.24 PAPER DETERIORATION DUE TO WRONG HANDLING
                                    /Chr88, page 90/




                                            30
The work in cargo holds and on the quays is done openly without protection against
ram, snow, cold or wind. This gives rise to considerable risks for sliding accidents. It
happens that packages having varying dimensions and stacked over each other‘s in the
cargo holds slide apart and fall. The producers can not for long accepts microbiological
and mechanical defects occurring in the handling today regarded as relatively normal
and unavoidable when competition from other countries increases. The loading of ships
generally is prepared by stacking of the timber packages in long staples on the quay. In
cold weather it happens that ram and snow create spots of ice on the top layer of the
packages. This ice which follows the packages into the cargo holds expose the personal,
moving around on the packages, for big sliding risks. This problem, with ice on the
packages, remains when the ships call into ports in southern countries because the
temperatures are kept low in the holds during the voyage by the large timber volumes.

Besides of the previous disadvantages, since mid-sixties sawn wood has been bundled
into packages of about four cubic meters volume. The packages are generally wrapped
with moisture sealing plastic cover (see figure x). “Broom” packages as well as
packages with planks of the same length exist. The length of the packages is varying a
lot. /Dia97, page 31/




                   FIGURE 2.25 PLASTIC PAPER PACKAGES COVERS

On the other hand, in order to take more than one package at the time with a single
lifting system is difficult when the package height varies. Packages with varying heights
also make it hard to avoid uneven layers in cargo hold. Problem with the difference in
height may however be avoided by sorting the packages in different groups. Each group
containing packages with allowable deviation from the average in height. /Vau01, page
113/

By increased development and higher quality demands the value of sawn wood will get
higher and make it economically possible to rationalise the handling. The efficiency will
than get closer to what is practised for instance in the handling of paper products. Sea
freight in conventional bulk vessels with significant demand for manual handling will
probably soon be too expensive due to increased labour costs and long staying times for
the vessels by the quays. The long distance to the marketplace implies rational and cost
efficient transport systems for continuing successful exports which meets the customers
demand and changing requirements.

                                           31
2.5.3 Storing

                    Demand List                        Database




  FIGURE 2.26 ACTIVITIES OF DELIVERY PLANNING AND HARVEST CALCULATION
                                /Lam97, page 53/

After harvesting, timber is sorted according to species and quality, and collected to
batches on the roadsides. These batches serve as intermediary inventories from which
timber is transported to unloading sites: pulp mills, sawmills, railroad loading sites etc.
(see figure 2.26).

Information related to inventory on the roadside (parcel number, quality, and estimated
quantity of wood) is captured by forwarder driver or supervisor on an on board or band
held computer. These data are sent by radio to the company office. For every new
location the actual position is also automatically transmitted

Timber transport is primarily done by special-purpose trucks that are usually operated
by small- or medium-sized subcontractors. In Finland, a fairly comprehensive network
of roads for forestry purposes has been built, and is utilized throughout the year. The
size of the road network is huge: the public roads in the collection area of a single
company may compose a network of 500,000 road segments (a road segment is a piece
of road between two crossings), and the total number of road segments in Finland is
about 3 millions. /Vau01, page 114/

At the mills entrance, during the loading of wood, the truck drivers record parcel
number and quality by bar code. These data are recorded on database in company office
and the inventory calculation can be executed by difference between mills entrance and
roadside.



                                            32
Types of storing

Production is a basic activity in any supply chain. Production control assures the
profitability of the business and allows products to remain in the market, and implies
several solutions according with the own business situation. Production control may be
classified as make-to-order (MTO), assemble-to-order (ATO) and make-to-stock
(MTS).




             Raw                         Producsts                    Finished
            materials                    in process                   products


   Forest
                                                                                  Customer
                                                                                    lager
                MTO                           ATO                           MTS


            FIGURE 2.27 STORAGE LOCATION WITHIN THE PAPER PROCESS

Make-to-stock means that a customer order is filled from the finished goods inventory;
the products have to be delivered from the finished goods inventory to meet the delivery
time requirements. Production is controlled by more or less accurate demand forecasts,
it provides a fast customer service, therefore is not necessarily a bad idea, however, the
large number of end products enforce sizeable inventory investment.

Assemble-to-order means that the customer order is assembled from the sub-assemblies
inventory. When it is not feasible to plan the production flow by customer orders, there
could be a point in the production flow from which the full product range can be
planned, manufactured and transported to the customers within the delivery time.

Products are manufactured and delivery according to customer orders from a semi-
finished inventory which is held at this point, this control point should be set as early as
possible in the production process.

Make-to-order mans that the customer order is fully manufactured to the order from the
raw materials either on hand or to be ordered. The production can be directly controlled
by customer orders, and no finished goods inventory is needed.

In the forest industry, paper and/or paperboard are made with specific characteristics
and properties to adapt them to particular uses. Specialty papers are made-to-order to
customer specifications and, in most cases, are integral parts of finished industrial and
consumer products.

The limiting factor for production control choice in the implosive industries is the
length of customer acceptable delivery time compared to production planning and
manufacturing cycle time plus the transport time to the customer (see figure 2.28).




                                             33
     Base           Main        Jumbo         Reel        Reels       Sheet       Sheets
    Materials      Process       reels      Finishing               Finishing

        A       Paper machine     B      Supercalendars     C        Sheeters        D

                  Off coater                winders               Ream wrappers
                                                                    Packaging



       FIGURE 2.28 DECOUPLING STOCK IN THE PAPER PRODUCTION PROCESS
                                /Meh96, page 94/

In Nordic cases included shipping to European markets, JIT logistics may be applied by
increasing the present transport frequency. Increased transport frequency made a
significant reduction in delivery time, unless the present delivery time is not dominated
by the paper machine cycle. On the other hand, JIT logistics to central European may
not offer similar improvement potential.

In the case of sheet deliveries, the introduction of JIT practices depends on the
introduction of a WIP (Work-in-process) buffer (i.e. intermediate reel storage). In
addition to the obvious actions (i.e. decreasing the paper machine cycle length and
increasing delivery frequency), the introduction of an assemble to order point has a
decisive effect on supply chain performance; Thus JIT may be applicable in paper
industry logistics. /Meh96, page 94/

The trend in mills is towards leaner inventories. Therefore the faultless Operation of
timber delivery to them is of even more crucial importance than it used to be. Within the
constraints of delivering proper kinds of timber at the right time, there still remains the
problem of routing and scheduling the trucks in such a way as to minimize costs and
maximize truck entrepreneur satisfaction.

2.5.4 Packaging

The present industry and market situation for timber, consisting of many single
producers turned to a wide international group of customers, has brought about varying
dimensions and shapes for the timber packages without standardised modules. This has
probably contributed to the resistance against a rewarding development of the handling
methods. The variation in dimensions makes the use of loading capacity in volume
inefficient in sea freight but especially in road and rail transport.

The dimensions for the timber packages in many cases vary a lot from the normal
measurements 4.5-meter length, 1.10-meter width and 1.20-meter height (maximum
1.15 x 1.20 meter). (see Table 2.8)




                                             34
                                            299 package units totally in the shipment

                                  120


                                  100
               Num. of packages
                                  80


                                  60


                                  40


                                  20


                                   0
                                        400-500 500-600 600-700 700-800 800-900   900-   1000-   >1100
                                                                                  1000   1100
                                                             Height intervals (mm)



            TABLE 2.8 VARIATION OF PACKAGE HEIGHT IN THE PRESENTED EXAMPLE

For ship loads composed by freights from several different sawmills the variation in
package dimensions often are big. Significant variation in measurements is however
also common in shipments from some individual sawmills. In the table below one
example from Iggesund Timber shows the large variation in package lengths possible
also for one of the big industrial sawmills.

To take more than one package at the time with a single lifting system is difficult when
the package height varies. Packages with varying heights also make it hard to avoid
uneven layers in cargo hold. Problem with the difference in height may however be
avoided by sorting the packages in different groups. Each group containing packages
with allowable deviation from the average in height. /Sjö00, page 184/




                                                                 35
3. Methods for modelling transportation chains

3.1 Overview

In transportation chain, there is no a unique way to sketch the information and material
flow momentums, however the description of each step within the chain is very crucial
for the transportation tracking, perhaps the most used technique are Petri nets, UML
(unified modelling language) and ARIS.

Table 3.1 presents the basic elements that are needed for process mapping. Flows of
material, parts, or products are the essence of a process. The main purpose is to
transform these flows in a way that produces value for markets or customers. The
purposeful control of a process requires information on its state, on environmental
factors, and on disturbances that are processed to provide control input. Those basic
aspects of a process can be described by four building blocks: flows, buffers, links, and
converters.

Some use a more detailed systematic, dividing buffers and converters according to the
kind of object handled (goods, data, and control information). Process mapping models
are important tools to introduce an engineering approach into the design of companies.

 Building         Function          Symbol             Description
 blocks
 Flow             transport                            Change location of material,
                                                       parts, or products (“pipes”)

 Buffer           accumulate                           Store, pile, or pool materials,
                                                       parts, or products to bridge time
                                                       between                operations
                                                       (“reservoirs”)
 Link             transmit                             Provide information on the state
                                                       of a system (feedback), or to
                                                       control the behaviour of an
                                                       activity (“wires”)
 Converter        Transform                            1) Change share, composition, or
                                                       structure of goods or systems by
                                                       procedures        of      process
                                                       technologies (accumulation of
                                                       “work in progress”).

                                                       2) Processes information by
                                                       using algorithmic procedures to
                                                       produce        control    input
                                                       (“intelligence”)
                     TABLE 3.1 BASIC ELEMENTS FOR PROCESS MAPPING
                                     /Sjö00, page 279/

The two principal classes of process mapping models are static and dynamic. They often
combine graphical representation with an algorithmic description of control
mechanisms, and conversion rules.

                                           36
Static models focus on structural features of processes, identifying activities, and their
interactions. Most of them are based on graphical representation, such as data flow
diagrams, context diagrams or structure charts. All of them have their roots in structured
analysis techniques used in Systems analysis and systems dynamics.

Flows are the essence of process mapping, linking buffers and converters in a network.
Information links are the basis for a purposeful control of the process.

3.2 Petri nets

Petri nets (PNs) were first introduced by C.A. Petri in 1962; they are a tool for
modelling communication between parallel processes. A PN is simply spoken a bipartite
graph, consisting of a set of nodes, called places P. and transitions T between the places.
The transitions (arcs) between the places can further be refined into input arcs and
output arcs. Each arc can be assigned a multiplicity n ≥1, which is a shorthand notation
for the corresponding number of arcs connection the same pair of nodes. If not
otherwise stated, the multiplicity of an arc is assumed to be one. Each place can contain
an arbitrary finite number of tokens that move through the network. A possible
assignment of all tokens in the network over all places is then called a marking state of
the PN. In order to refer to the number of tokens in place Pi, 1 ≤ I ≤ |Pi|, the notation #
(Pi, m) is used. /Reu90, page 39/

                 P1                P2         P1                 P2




                 t1                T2         t1                 T2




                 P3                P4         P1                 P4

    FIGURE 3.1 A SIMPLE PN BEFORE AND AFTER THE FIRING OF TRANSITION T1
                                /Gre01, page 11/

A transition can be either enabled or disabled. An enabled transition can fire by
removing one or more tokens from each input place (depending on the arc multiplicity)
and depositing one or several tokens in each output place (depending on the arc
multiplicity). The firing of a transition results in a new marking in the PN. With respect
to a given initial marking, the reach ability set “RS” is defined as the set of markings
that can be reached through a possible sequence of firings, starting with the initial
marking. A reach ability set can be either finite or infinite. The complexity of a PN does
usually give no hint to the number of possible markings in the net. Even small and very
simple systems can give rise to very large or even impossible RSs. If more than one
transition is enabled at the same time, we have a conflict that needs to be resolved (for
example on a priority scheme or according to the characteristics of the transition)
graphically; the places of a PN are usually depicted by circles and the transitions as
bars. Consider for example a simple PN with an initial marking mo= (2,0,0,0). The
                                            37
firing of transition t1 results in a new marking m1= (1,1,1,0), as shown in the following
figure.

Since transition t1 has only one input place P1, it is enabled in the marking mo and can
fire. Transition t2 on the other side is disabled in marking mo since place P2 contains no
token. Once t1 is firing, a token is deposited in pace P2 and P3. In the resulting new
marking m1 both transitions t1 and t2 are enabled and therefore we have a conflict
which needs to be resolved. By assigning priorities we can for example give t1 higher
priority than t2 to resolve the conflict. Altogether, the model consists of four possible
markings, namely (2,0,0,0), (1,1,1,0), (0,2,2,0). /Gre01, page 11/

An example of a dynamic behaviour of a three –stage supply chain is showed in the
figure 3.2. The physical configuration of a supply chain may be the same, however the
dynamic behaviour can differ totally. The design of the control structure is crucial
element to improve the overall performance of business processes.




      Harvesting      Stock      Transport     Stock      Processing    Stock       Delivery
                         1                        2                        3




                   FIGURE 3.2 THREE STAGE PROCESS MODEL (DYNAMIC)
                                     /Gir02, page 102/

Generalized Stochastic Petri Nets (GSPNs)

A GSPN is a generalization of the above introduced concept of PNs in the way that
transitions are assigned firing times. Transitions with exponentially distributed firing
times are called timed transitions while timeless transitions are called immediate. Any
GSPN that contains only immediate transitions is automatically a PN and therefore the
set of PN is a subset of GSPNs. With the introduction of timed and immediate
transitions, the reachibility graph “RG” of the GSPN is partitioned into vanishing
markings ν and tangible markings τ. The reachibility graph is therefore given by M= ν
+τ.

Vanishing markings results from the firing of an immediate transition that is, no timed
transition. Since vanishing markings are not kept for any non-zero finite time and firing
is performed instantaneously, immediate transitions have always higher priority than
timed transitions. In case there is a firing conflict between two or more timed
transitions, a strategy to resolve this conflict is needed, one strategy might be to resolve
the conflict by assigning a priority to a transition and the next transition to fire is the one
with highest priority. Another very often-used strategy is the so-called race model


                                              38
where conflicts are resolved implicitly. The next transition to fire is the one whose
firing time elapses first.

Over time, many extensions have been made to PN and GSPNs. These extensions are:

   •   Arc multiplicity
   •   Inhibitor arcs
   •   Priorities
   •   Guards
   •   Marking dependent firing rates, and
   •   Marking dependent arc multiplicity

Petri decision nets (PDN)

Condition/event nets (C/E nets) with the restriction that not more than one token is
allowed on each place, are suitable to represent decision networks.

Decision activities are modelled as places whereas transitions control the decision flow.
The marking of a place denotes the execution of the associated decision process.

Within PDN a slightly changed meaning of input and output vectors is used. Each place
within a PDN generates a Boolean output vector. The output vectors of the places
directly influence the firing of the transitions. Boolean firing conditions are defined for
each transition. They depend on the output vectors of the pre- and post places of the
transition. A transition fires if all its pre places are marked, all its post places are
unmarked and the Boolean condition evaluates to true. When a place is marked, the
attached decision process is performed and the output vector is set according to the
result of the decision. When a place is unmarked its output vector is set according to the
marking of its pre places to resolve possible conflicts in case of junction structures. An
example of a PDN to represent decision activities is shown in figure 3.3 /www10/




                            FIGURE 3.3 PETRI DECISION NET




                                            39
3.2 ARIS

Business process re-engineering is the key issue for companies to regain
competitiveness and profitability in increasingly volatile markets. Customer-focused
enterprises are to be structured along their core processes and have to be strictly value-
oriented. Workflow Management is becoming more and more based on cooperative,
distributed workflow applications that on the one hand need business process re-
engineering to be effective, and on the other hand use process models as a specification
for the control of the process execution.

ARIS Tool provides comprehensive support for business process modelling. It consists
of four modules. The four modules provide means for a computer-aided analysis,
planning and introduction of managerial information systems. The systematic approach
covers the entire modelling life cycle. The ARIS-Modeller focuses on system
modelling. Based on the meta-structure of the ARIS framework, view-specific
modelling methods are provided for computer based modelling. This includes extended
entity relationship modelling as well as process chain diagrams, stimulus-response
chains, and functional and organizational hierarchy charts. The ARIS-Modeller covers
the model construction and storage part of the model management activities mentioned
above.

The figure 3.8 shows the workflow diagram of paper manufacturing process.




                                           40
                                                                               Forest




                        ^



Wood yard           Debarking                Chipping



                                                                             Saw mill
                  Chips prepared


                        ^



Mechanical        Semi chemical         Chemical pulping
 pulping             pulping



                  Pulp produced


                        ^



      Pulp processing            Chemical
                                recovering



            Pulp
         processed


      Stock preparing




       Stock prepared


              ^



Pulp drying                    Paper
                            manufacturing



Dried pulp                  Paper made                     Water recycling


                                    ^



                     Spooling               Packaging


                                    ^


                                                                             Customer
                                Customer
                                 delivery



    FIGURE 3.8 WORK FLOW OF PAPER-MAKING PROCESS



                                             41
3.3 UML

3.3.1 UML Overview

In the past, “traditional” programming models and languages didn’t offer an integral
solution of the problematic of developing software, then it surged a new manner to face
complexity, especially in simulations. This focus was called “object oriented (OO)”.
(See figure 3.4)

                                          Software
                                         Engineering




                                                                 Advanced
                      Concepts             OO
                                                                   Topics
                         OO              Approach
                                                                     OO




                                         OO (UML
                                         Modeling)




                                 Tools
                                                       Process




                    FIGURE 3.4 GENERAL CONCEPTUAL MAPPING




UML is a language that was created with the general purpose of modelling objects, it
provides users with a ready-to-use, expressive visual modelling language to develop and
exchange meaningful models. The figure 1 shows the general conceptual mapping of
the Software Engineering

Object Oriented “OO” definition. OO it’s a manner of integrating data structures, it
represents the real world, it has very well defined behaviour, the objects make things
and know what to do through the interchange of messages.

UML works with models. A model is an abstraction of a physical system, with a certain
purpose. It describes the physical system from a specific viewpoint and at a certain level
of abstraction. A model contains the entire model elements needed to represent a
physical system completely by the criteria of this particular model. /Sta101, page 33/



                                             42
Cascade model.

The cascade model separates and differentiates the phases of specification and
development. (see figure 3.5) It has the disadvantage of being difficult to change once
the process is on the way. However it has the following advantages:

       It’s useful when the system has a moderate complexity
       There is no extreme urgency to submit results
       The requirements are pretty clear
       There is just one group of developers

       Analysis and
       requirements
       definition
                      System &
                      Software Design
                                        Implementation
                                        and units tests
                                                          Integration and
                                                          software tests
                                                                            Operation and
                                                                            maintenance




                              FIGURE 3.5 CASCADE MODEL

The Unified Modelling Language (UML) is a language for specifying, visualizing,
constructing, and documenting software systems, as well as for business modelling and
other non-software systems. The UML represents a collection of the best engineering
practices that have proven successful in the modelling of large and complex systems.
Important to consider when using UML is that it is not a Methodology, but just a
notation.

UML also combines notations from:

       Object oriented Modelling
       Data Modelling and Components Modelling
       Workflows Modelling

And UML gathers several OO approaches:




                                              43
                                               Rumbaugh
                               Booch                                    Jacobson

                      Odell
                                                                                  Meyer
                                                                                  Pre- and Post-
           Shlaer-Mellor                                                          conditions
         Object life cycles
                                               UML
                                                                                   Harel
                                                                                  State Charts
        Gamma et. al.
        Frameworks, patterns,
        notes         Embly                                              Wirfs-Brock
                         Singleton              Fusion                  Responsabilities
                         classes
                                       Operation descriptions,
                                       message numbering


                              FIGURE 3.6 UML – OO APPROACHES

UML notation and semantic

Class. A class is the descriptor for a set of objects with similar structure, and
relationships. The model is concerned with describing the intension of the class, that is,
the rules that define it. The run-time execution provides its extension, that is, its
instances. UML provides notation for declaring classes and specifying their properties,
as well as using classes in various ways.

Objects. They are abstractions of the real World, they are responsible of driving its
own private state and to offer services to others objects, they are also independent
entities. /Sta101, page 38/

    Class:Wood
    Furniture
    Cost                                              The object takes all the
    Dimensions
    Weight                                                 class attributes
    Place
    Color
                                                                                   Object: Table
    Sell                                                                         Cost: $75
    Purchase                                Object: Wood chair                   Dimensions:40 x 90 cm
    Transportation                                                               Weigh: 4 kg
    Weight                                Cost: $40                              Place: salón
                                          Dimensions:40 x 40 cm                  Color: Negro
                                          Weight: 2 Kg.
                                          Place: Lobby                           Sell
                                          Color: Brown                           Purchase
                                                                                 Transportation
                                          Sell
                                                                                 Weight
                                          Purchase
                                          Transportation
                                          Weight



                              FIGURE 3.7 CLASSES AND OBJECTS



                                                 44
Actor. An actor defines a coherent set of roles that users of an entity can play when
interacting with the entity. An actor may be considered to play a separate role with
regard to each use case with which it communicates.

An Actor may also have a set of Interfaces; each describing how other elements may
communicate with the Actor. An Actor may have generalization relationships to other
Actors. This means that the child Actor will be able to play the same roles as the parent
Actor, i.e. communicate with the same set of Use Cases, as the parent Actor.

Extend. An extend relationship defines that instances of a use case may be augmented
with some additional users defined in an extending use case.

In the meta model an Extend relationship is a directed relationship implying that a

Use case Instance of the base use case may be augmented with the structure and
behaviour defined in the extending use case. The relationship consists of a condition,
which must be fulfilled if the extension is to take place and a sequence of references to
extension points in the base Use case where the additional users fragments are to be
inserted.

UML has also several diagrams and systems oriented notations useful for laying out
dynamic systems such as the paper product transportation chain, searched in this paper
work. /Sta101, page 52/

3.3.2 Comparison of UML modelling method

UML was chosen to sketch the information flow of the transportation chain in chapter
number four because of their advantages, such as:

   •   UML has several diagrams useful for modelling such as: case, use- case,
       sequence, collaboration, state chart and composites states diagrams
   •
   •   UML provides a semi-formal meta model definition.
   •   UML provides extension mechanisms such as:
          o Stereotypes
          o Constraints
          o Tagged Values
   •   UML allows adopting modelling elements assigning a particular semantic.
   •   There exist already several tools that provide the UML notation.
   •   There are several books regarding UML notation.
   •   There are several courses, merchandising, congresses, etc, regarding UML.

UML has also several opportunities. UML may be the standard object oriented
modelling language in the following years because:

   •   Important Methodologists take part in the UML development
   •   Important Entrepreneurs take part also in the UML development
   •   OMG acceptance as standard notation


                                           45
Nevertheless there are some important weaknesses that a designer should consider
before using UML to sketch workflows, information flows, activity relationships, etc.

   •   UML is not a Methodology.
   •   There is a lack of integration with respect to other techniques such as design.
       Patterns, interfaces, documentation, etc.
   •   UML provide isolated examples.
   •   Concepts, techniques and methods Monopolies around UML.




                                         46
4. UML application

4.1 Diagrams used in UML

4.1.1 Generalities of the UML diagrams

In terms of the views of a model, the UML defines the following graphical diagrams:


                                            State
                                             State
                              Usecase
                                                Class

            Use                Use
                               Use
                                            Di
                                             Di
                                               Diagram
                                                             State
                                                              State
                                                                 Object
             Use
             Sequence
                                 C
                               Diagram
                                   C                         Di
                                                                Diagram
                 C
              Diagram
                  C                                           Di
       Scena
        Scena
        Collaboration                                        State
                                                              State
                                                               Components
               ii
          Diagram                        Model               Di Diagram
                                                              Di
             Scena                                 Compon
                                                    Compon
              Scena
                State chart                         Deployment
                                                        ent
                       ii
                 Diagram             Activity             ent
                                                     Diagram
                                     Diagram


                         FIGURE 4.1 DIAGRAMS USED IN UML

Although other names are sometimes given to these diagrams, this list constitutes the
canonical diagram names. These diagrams provide multiple perspectives of the system
under analysis or development. /Man97, page 62/

4.1.2 Class diagram

UML supports data flow diagrams. Activity diagrams and collaboration diagrams
accomplish much of what people want and are also useful for modelling workflow.

The UML and corresponding facility interface definition are comprehensive. However,
these specifications are packaged so that subsets of the UML and facility can be
implemented without breaking the integrity of the language. The figure 4.2 shows how
the UML semantics is packaged. /Man 97, page 90/




                                          47
         FIGURE 4.2 UML CLASS DIAGRAM SHOWING PACKAGE STRUCTURE
                                 /Man97, page90/

4.1.3 Use case Diagram

A use case diagram shows the relationship among use cases within a system or other
semantic entity and their actors. Use case diagrams show actors and use cases together
with their relationships.

A use case diagram is a graph of actors, a set of use cases, possibly some interfaces, and
the relationships between these elements. The relationships are associations between the
actors (partners in the transportation chain, such as Logistics, Loading Port, Mill, etc.)
and the use cases. In case of this case, use cases refer to all the responsibilities of the
partners during the delivery process from the country of export till the customer in the
country of import. The use cases may optionally be enclosed by a rectangle that
represents the boundary of the containing system or classifier.



                   Cost management                       Shipper’s representation



                Transportation insurance                 General cargo flow
                                                         planning and steering


                                             Logistics
               Coordination and                           Total information
               transportation related with                management regarding
               damage, management in                      the transportation
               transportation chain




               IGURE 4.3 USE CASE DIAGRAMS OF LOGISTICS AND MILL


                                                48
                                                 Dispatch from the mill




                               Mill              Production and order
                                                 Management




                                                Information to sales,
                                                logistics & customer
                                                service



             FIGURE 4.3 USE CASE DIAGRAMS OF LOGISTICS AND MILL

The relationship between a use case and its external interaction sequences is usually
defined by an invisible hyperlink to sequence diagrams. Figure 4.4 shows with a use
case diagram the main responsibility and components of the Loading port.

                                               Forwarding
                 Stevedoring                                                 Handling

                                          <<include>>
                                                                   <<include>>
                            <<include>>
                                              Port operations
                                             Extension points:                          Warehousing
                        1             *     Additional requests       <<include>>
              Loading
               Port                                     <<extend>>
                                                          the customer
                                                          presents a claim
                                                                                 Claim
                                                                               management



              FIGURE 4.4 USE CASE RELATIONSHIPS OF LOADING PORT

4.1.4 Sequence Diagram

A sequence diagram presents an Interaction, which is a set of messages between
classifier roles within collaboration, or an interaction instance set, which is a set of
stimuli between Instances within a Collaboration instance set to effect a desired
operation or result. Figure 4.5 shows the instances during the calling process and their
sequence (see figure 4.5)




                                                     49
           FIGURE 4.5 SEQUENCE DIAGRAM WITH CONCURRENT OBJECTS
                                 /Sta01, page 113/

A sequence diagram has two dimensions: 1) the vertical dimension represents time and
2) the horizontal dimension represents different instances. Normally time proceeds
down the page. (The dimensions may be reversed, if desired.) Usually only time
sequences are important, but in real-time applications the time axis could be an actual
metric. There is no significance to the horizontal ordering of the instances.

4.1.5 Collaboration diagram

A collaboration diagram presents either a Collaboration, which contains a set of roles to
be played by Instances, as well as their required relationships given in a particular
context, or it presents a collaboration instance set with a collection of Instances and
their relationships. The diagram may also present an Interaction (interaction instance
set), which defines a set of Messages (Stimuli) specifying the interaction between the
Instances playing the roles within a Collaboration to achieve the desired result.

A collaboration diagram shows a graph of either Instance linked to each other, or
classifier roles and association roles; it may also include the communication stated by
an Interaction or interaction instance set. Because collaboration diagrams often are used
to help design procedures, they typically show navigability using arrowheads on the
lines representing Links or association roles. (An arrowhead on a line between boxes
indicates a Link or association role with one-way navigability. An arrow next to a line
indicates Stimuli or Message flowing in the given direction. Obviously such an arrow
cannot point backwards over a one-way line. /Sta01, page 116/




                                           50
            FIGURE 4.6 COLLABORATION DIAGRAM AT INSTANCE LEVEL
                                /Sta01, page 118/

A use of collaboration is shown as a dashed ellipse containing the name of the
collaboration. A dashed line is drawn from the collaboration symbol to each of the
symbols denoting classifiers that participate in the collaboration. Each line is labelled by
the role of the participant. The roles correspond to the names of elements within the
context for the Collaboration; such names in the Collaboration are treated as parameters
that are bound to specify elements on each occurrence of the pattern within a model.
Therefore, a collaboration symbol can show the use of a design pattern together with the
actual Classifiers and Associations that occur in that particular use of the pattern.




                        FIGURE 4.7 USE OF A COLLABORATION
                                    /Boo98, page 52/

The usual convention is used to show a collaboration instance set; that is, it is shown as
a dashed ellipse with the name underlined. The Instances and the Links that participate
in the collaboration instance set are connected to the ellipse with dashed lines. The
name of the role an instance is playing is shown close to the line and the instance. In
some cases it is convenient to show the static structure of a collaboration within the
collaboration icon (the dashed ellipse), see the figure 11.




                                            51
               FIGURE 4.8 STATIC STRUCTURE OF A COLLABORATION
                                  /Sta01, page 118/

A collaboration diagram presents a graph of class boxes or object boxes together with
connecting lines. These icons map onto classifier roles and association roles, or
instance, and links, respectively. However, a collaboration diagram may also contain
other elements, like different kinds of classifiers, generalizations, and constraints, to
express additional information.




                      FIGURE 4.9 A COLLABORATION DIAGRAM
                                   /Sta01, page 123/

4.1.6 State Chart Diagrams

A state chart diagram can be used to describe the behaviour of instances of a model
element such as an object or an interaction. Specifically, it describes possible sequences
of states and actions through which the element instances can proceed during its lifetime
as a result of reacting to discrete events (for example, signals, and operation
invocations).

The semantics and notation state charts with modifications to make them object-
oriented.




                                           52
                              FIGURE 4.10 STATE DIAGRAM
                                    /You88, page 73/

A state is a condition during the life of an object or an interaction during which it
satisfies some condition, performs some action, or waits for some event. A composite
state is a state that, in contrast to a simple state, has a graphical decomposition.
Conceptually, an object remains in a state for an interval of time. However, the
semantics allow for modelling “flow-through” states that are instantaneous, as well as
transitions that are not instantaneous. A state may be used to model an ongoing activity.
Such an activity is specified either by a nested state machine or by a computational
expression.

4.1.7 Composites states

A composite state is decomposed into two or more concurrent sub states (called
regions) or into mutually exclusive disjoint sub states. A given state may only be
refined in one of these two ways. Naturally, any sub state of a composite state can also
be a composite state of either type.

A newly created object takes its topmost default transition, originating from the topmost
initial pseudo state. An object that transitions to its outermost final state is terminated.

Each region of a state may have initial pseudo states and final states. A transition to the
enclosing state represents a transition to the initial pseudo state. A transition to a final
state represents the completion of activity in the enclosing region. Completion of
activity in all concurrent regions represents completion of activity by the enclosing state
and triggers a completion event on the enclosing state. Completion of the top state of an
object corresponds to its termination.

An expansion of a state shows its internal state machine structure. In addition to the
(Optional) name and internal transition compartments, the state may have an additional
compartment that contains a region holding a nested diagram. For convenience and

                                            53
appearance, the text compartments may be shrunk horizontally within the graphic
region. /Sta01, page 126/




                         FIGURE 4.11 SEQUENTIAL SUB STATES

An expansion of a state into concurrent sub states is shown by tiling the graphic region
of the state using dashed lines to divide it into regions. Each region is a concurrent sub
state. Each region may have an optional name and must contain a nested state diagram
with disjoint states. The text compartments of the entire state are separated from the
concurrent sub states by a solid line.

An expansion of a state into disjoint sub states is shown by showing a nested state
diagram within the graphic region. An initial pseudo state is shown as a small solid
filled circle. In a top-level state machine, the transition from an initial pseudo state may
be labelled with the event that creates the object; otherwise, it must be unlabeled. If it is
unlabeled, it represents any transition to the enclosing state. The initial transition may
have an action.

A final state is shown as a circle surrounding a small solid filled circle (a bull’s eye). It
represents the completion of activity in the enclosing state and it triggers a transition on
the enclosing state labelled by the implicit activity completion event (usually displayed
as an unlabeled transition), if such a transition is defined.




                         FIGURE 4.12 CONCURRENT SUB STATES
                                     /Sta01, page 146/



                                             54
4.1.8 Concurrent transitions

A concurrent transition includes a short heavy bar (a synchronization bar, which can
represent synchronization, forking, or both). The bar may have one or more arrows from
states to the bar (these are the source states). The bar may have one or more arrows
from the bar to states (these are the destination states). A transition string may be shown
near the bar. Individual arrows do not have their own transition strings.




                        FIGURE 4.13 CONCURRENT TRANSITIONS
                                     / You88, page 74/

4.2 Application of UML to outline the Information flow of the paper products
transportation chain

4.2.1 Actual information flow

An UML sequential diagram is used in this research paper to outline the information
flow of the transportation of paper products from Finland to the customer in Europe.

The transportation chain document flows were examined based on the final export
products only. No transportation within the mill areas is taken into account (e.g. products
like liquid packaging papers, which require warehousing before lamination. This often
takes place at the mill area.) The final customer order, which is followed in this report, is
established once it departs from the mill area. The message flow considers routes from
mills in Finland to EU-area, where no custom duties are paid. The partners involved in
the transportation chain and their responsibilities are described in the table 4.1

Partner            Responsibilities
Mill               Production and order management. Information to sales, logistics, customer.
                   Despatch from the mill.
Logistics          The shipper’s representative. General cargo flow planning and steering, cost
                   management, total information management regarding the transportation
                   chain. Co-ordination and transportation related damage management in
                   financial terms (claims). Transportation insurance.
Hauler 1           Inland transportation from the mill to the port
Loading port       Handling, stevedoring, forwarding, warehousing. All port operations. Claim
                   management.
Carrier            Shipping. Information of available voyages or shipping capacities
Discharging port   Handling, stevedoring, forwarding, warehousing, All port operations.
Sales              Information about the delivery instructions and call-offs.
Hauler 2           Final delivery to the customer’s premises
Customer
        TABLE 4.1 PARTNERS OF THE TRANSPORTATION CHAIN AND THEIR RESPONSABILITIES


                                              55
The information flow between the partners of the paper products transportation chain
(Mill, Hauler, Loading Port, Carrier, discharging Port and Customer) is at the moment
very complex. More than 100 different messages are shared between partners to support
the paper products (freight) transportation chain.

Depending on the size and information technology systems of a shipper, the method of
sending the appropriate messages required in the follow-up of an order in a
transportation chain varies a lot. Therefore in the sequence Diagram (figure 4.10) some
cases one message from a sender to a receiver is remarked twice, but in two different
colours. This is to illustrate that one company sends the same information in a more
advanced form than another.

At the moment, the information flow process is also very costly and is based in EDIfact
information messages. EDIfact messages are costly electronic messages with unitary
cost.

Figure 4.14 shows the information flow of the transportation of paper products from
Finland to the customer in Europe.

The Information flow changes when transportation is direct: Lorry or Rail
transportation. In a lorry transportation the only official document required is an
international freight document, CMR. The lorry company will produce this document
based on the shipper’s weight list. CMR is delivered to the customer with the order, and
the customer can then if necessary make appropriate corrections or notes to the CMR.

In the rail transportation the currently two railway companies providing direct rail
transportation to Europe, i.e. Kuehne & Nagel, which bought the Rail ship operations
from Finn lines and Sea Rail, which mainly operates in the Scandinavia, but also at
some level competes with Kuehne & Nagel.




                                          56
                              Message information flow of a transportation chain from a mill in Finland to a customer in EU-area
                               Mills                      Sales Department                      Distribution                            Logistics                        Haulier                          Loading Port                          Carrier                      Discharging Port              Haulier                          Customer
                                                                (Mill)                        Department (Mill)                                                     (country of export)                                                                                                               (country of import)

                                                                                                                                                                                 Voyage information                                           (Haulier)


                                                                                                                                                                                 Voyage information                                           (Haulier)


                                                                                                                                                                                 Voyage information                                           (Haulier)
        Preplanning
                                                                                                                                                                                                                   Voyage information
                                                                                                                                                                                                                                              (Haulier)

                                                                                                                                                                                                                                                          Voyage information
                                                                          Voyage information

                                                                                                              Voyage information

                                                                          Voyage information


                                                                                                                                                                                                                                                                                          Voyage information


                                                                                                                                                                                            Order

                                                                                                                                                                                           Order

                                                  Order

                                        Order acknowledgement

                                                                                                                                                                                 Order acknowledgement

                                                                                                                                                                                 Order acknowledgement
       Preplanning /
     Order management                                                         Booking request

                                                                                                                                                                                         Booking

                                                                                                                                                                                         Booking

                                                                                                                                                                                                                            Booking

                                                                                                                                                                                Booking confirmation

                                                                         Booking confirmation

                                                                         Booking confirmation                                                                                                                                                                Booking confirmation


                                                                          Transportation capacity
                                                                                restriction
                                                                                                                                                    Transport order


                                                                          (Pre-adv 24/48h)

                                                                                                                                                                                  (Pre-adv 24h/48h)

                                                                                                                                                                                  (Pre-adv 24h/48h)
   Mill-port transportation
          planning                                                      Real-time waybill
  (domestic transportation)
                                                                                                                                                Real-time waybill

                                                                                                                                                                                  Real-time waybill

                                                                                                                                                                                 Real-time waybill

                                                                                                              Real-time waybill

                                                                         Real-time waybill



         Road / Rail
       Transportation


                                                                                                                                                                                                                  Good received information

                                                                                                                                                                                 Goods received information

                                                                       Goods received informacion

                                                                                                                                                                                  Damage reporting

                                                                                                                                                                                 Damage reporting
      Port operations
      in loading port                                                                                                                                                                                              Damage reporting

                                                                         Damage reporting

                                                                               Wayend

                                                                                                                                                                                         Wayend

                                                                                                                                                                                        Wayend

                                               Wayend


                                                                                                                                                                                  Damage reporting

                                                                        Damage reporting
          Loading
                                                                                                                                                                                   Unitizing information

                                                                                                                                                                                                                   Unitizing information

                                                                        Unitizing information


                                                                                                                                                                                 Real time Port confirmation
                                                                                                                                                                                   & Logistics weight list
                                                                        Real time Port confirmation
                                                                          & Logistics weight list
                                                                                                              Real time Port confirmation
                                                                                                                & Logistics weight list
                                                                                                                                                                                Real time Port confirmation
                                                                                                                                                                                  & Logistics weight list



     Vessel´s departure                                                                                                                                                          Real time Port confirmation
                                                                                                                                                                                   & Logistics weight list
                                                                                                                                                                                     Vessel´s departure
                                                                                                                                                                                confirmation (ship´s wayend)
                                                                                                                                                                                                                       Vessel´s departure
                                                                                                                                                                                                                  confirmation (ship´s wayend)
                                                                Vessel´s departure confirm. (ship´s wayend)
                                                                                                                                                                                                                            Manifest

                                                                                                                                                                                                                                                           Stowage plan

                                                                                                                                                                                  Container/roro/storo lists



            Sea
       Transportation



                                                                                                                                                                                                                                                          Manifest confirmation

                                                                                                                                                                                                                                                          Landing confirmation
         Landing /
        Discharging                                                                                                                                                                                                                                       Damage reporting

                                                                                                                                                                                   Manifest confirmation

                                                                                                                                                                                   Landing confirmation
                                                                                                                                                                                                                                                                                                                     Landing confirmation
                                                                                                                                                                                     Damage reporting
                                                                                                                                                                                                                                                                                                                      Damage reporting


                                                                                                                                                                                          Call-off

                                       Delivery instructions
       Distribution /
     Delivery planning                                                      Delivery instructions

                                                                                                                                                                                  Transportation order

                                                                                                                                                                                  Transportation order


                                                                                                                                                                                   Loading instructions

                                                                                                                                                                                        Load status

       Final delivery                                                                                                                                                               Loading confirmation
      to the customer
                                                                            Delivery note

                                                                                                                                                                                    Consigment note

                                                                                                                                                                                                                         Consigment note

                                                                                                                                                                                  Commercial weight list




         Road / Rail
       Transportation



                                                                                                                                                                                                                                                                                                                   Unitizing information
    Arrival of the order to
                                                                                                                                                                                    Proof delivery
  the customer´s premises
                                                                             Proof delivery


                                                                                                                                                                                                                    Customer invoice

                                                                                                                                                    Service invoice

                                                                              Service invoice

                                                                                                                                                                                       Service invoice

                                                                              Service invoice

                                                                                                                                                                                      Service invoice
          Invoicing
                                                                              Service invoice

                                                                                                                                                                                      Service invoice

                                                                          Service invoice

                                                                          Service invoice

                                                                                                                                                                                      Service invoice

                                                                            Service invoice

                                                                            Service invoice


                                                                                                                                                                                    Unit status change

                                                                                                                 Unit status change
                                                                                                                                                                                                                                                                                                                                 Lines description and remarks
                                                                                                                 Unit status change                                                                                                                                                                                    EDIfact information
                                                                                                                                                                                                                                                                                                                       Other electronic information (in-company
        Post delivery                                                                                                                                                                Unit status change                                                                                                                messages, file transfers, etc.)
         operations                                                                                                                                                                                                                                                                                                    Other information flows (e-mail, fax, printouts
                                                                                                                 Stock reconciliation
                                                                                                                                                                                                                                                                                                                       Signature as a proof of delivery
                                                                                                                                                                                                                                                                                                                       *no custom duties are paid within this information
                                                                                                                Stock reconciliation
                                                                                                                                                                                                                                                                                                                       flow
                                                                                                                                                                                    Stock reconciliation

                                                                                                                                                                                    Stock reconciliation




FIGURE 4.14 INFORMATION EXCHANGE WITHIN THE TRANSPORTATION CHAIN


                                                                                                                                                57
4.2.1 Additional partner (s) in the transportation chain

At present, in Germany, a big investment to promote and improve the conditions of
inland navigation is carried out. The inclusion of at least 2 new partners in the
transportation chain is required. At the discharging Port in the country of import
(Germany) the freight would be discharged from the maritime vessels and loaded in the
river ships. The freight would be transported by inner German rivers till the river point
closest to the customer. After this procedure, the freight would be transported by trailer
or truck until the customer warehouse. The implementation of this project will increase
the information flow, complexity and cost. The actual risk of failures would also
increase.

The project of “Inland transportation through German rivers” adds new partners
to the transportation chain and makes more complex the information as well as
the material flow. The actual challenge represents a good opportunity to
reconsider the present information flow and evaluate the implementation of
more sophisticated techniques of communication.

The exchange of electronic messages within all entities of the transportation chain by
adding a partner involved in the inland navigation through German rivers, is showed in
the figure 4.15. it shows the actual situation.

A data repository or a systems application is urged to implement. A system application
may support both the physical material flow by means of checklists allowing the change
of the material status and shooting automatically the corresponding message to the
corresponding partners within the supply chain.

No need of making calls and manual tracking would be needed. Also the information of
freights, quantities, dates, delays, claims and all kind of data related with the
transportation of paper products from the Mill to the customer may be stored and used
in future analysis.

A systems application makes possible a real time tracking, reduces costs, and enhances
communication between the partners. It also reduces the activities without a value added
within the transportation chain




                                           58
                                   Message information flow of a transportation chain from a mill in Finland to a customer in EU-area
                       Mills                 Sales Department           (Mill)                 Distribution Department                                                 Logistics                                             Haulier                                                              Loading Port                                                              Carrier                                          Discharging / Loading                                                         Carrier                                                Discharging Port            Haulier                                          Customer
                                                                                                         (Mill)                                                                                                         (country of export)                                                                                                                                                                                 Port (inland navigation)                                                 (Inland navigation)                                         (Inland navigation)     (country of import)
                                                                                                                                                                                                                                                                                                                                                                       (Haulier)
                                                                                                                                                                                                                                                                     Voyage information


                                                                                                                                                                                                                                                                     Voyage information                                                                                 (Haulier)


                                                                                                                                                                                                                                                                     Voyage information
  Preplanning                                                                                                                                                                                                                                                                                                                                                           (Haulier)


                                                                                                                                                                                                                                                                                                                                 Voyage information
                                                                                                                                                                                                                                                                                                                                                                        (Haulier)

                                                                                                                                                                                                                                                                                                                                                                                                            Voyage information

                                                                  Voyage information


                                                                                                                               Voyage information


                                                                  Voyage information


                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  Voyage information


                                                                                                                                                                                                                                                                                                                                                                                                                                                                                Voyage information


                                                                                                                                                                                                                                                                                                                                                                                                                                                                             Voyage information


                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     Voyage information



                                                                                                                                                                                                                                                                                Order

                                                                                                                                                                                                                                                                                Order



                                        Order


                               Order acknowledgement


                                                                                                                                                                                                                                                                       Order acknowledgement


                                                                                                                                                                                                                                                                      Order acknowledgement
 Preplanning /
                                                                             Booking request
    Order
 management                                                                                                                                                                                                                                                                  Booking


                                                                                                                                                                                                                                                                             Booking


                                                                                                                                                                                                                                                                                                                                               Booking


                                                                                                                                                                                                                                                                    Booking confirmation


                                                                          Booking confirmation


                                                                                                                                                                                                                                                                             Booking


                                                                                                                                                                                                                                                                             Booking


                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        Booking


                                                                                                                                                                                                                                                                    Booking confirmation


                                                                         Booking confirmation                                                                                                                                                                                                                                                                                                                Booking confirmation




                                                              Transportation capacity                  restriction



                                                                                                                                                                                       Transport order



                                                                               (Pre-adv 24/48h)

                                                                                                                                                                                                                                                                        (Pre-adv 24h/48h)


                                                                                                                                                                                                                                                                       (Pre-adv 24h/48h)
    Mill-port
 transportation                                                            Real-time waybill


    planning                                                                                                                                                                      Real-time waybill

                                                                                                                                                                                                                                                                      Real-time waybill


                                                                                                                                                                                                                                                                      Real-time waybill


                                                                                                                                                Real-time waybill



                                                                             Real-time waybill



                                                                                                                                                                                                                                                                      (Pre-adv 24h/48h)


                                                                                                                                                                                                                                                                      (Pre-adv 24h/48h)
    Mill-port
 transportation                                                            Real-time waybill


    planning                                                                                                                                                                                  Real-time waybill


                                                                                                                                                                                                                                                                      Real-time waybill


                                                                                                                                                                                                                                                                      Real-time waybill


                                                                                                                                              Real-time waybill


                                                                             Real-time waybill




   Road / Rail
 Transportation

                                                                                                                                                                                                                                                                                                                                  Good received information


                                                                                                                                                                                                                                                                     Goods received information


                                                                       Goods received informacion


                                                                                                                                                                                                                                                                      Damage reporting


                                                                                                                                                                                                                                                                      Damage reporting
Port operations
in loading port                                                                                                                                                                                                                                                                                                                        Damage reporting
                                                                          Damage reporting



                                                                                    Wayend


                                                                                                                                                                                                                                                                             Wayend


                                                                                                                                                                                                                                                                             Wayend


                                Wayend



                                                                                                                                                                                                                                                                      Damage reporting



                                                                           Damage reporting
    Loading
                                                                                                                                                                                                                                                                        Unitizing information


                                                                                                                                                                                                                                                                                                                                       Unitizing information



                                                                           Unitizing information



                                                                                                                                                                                                                                                  Real time Port confirmation                            &
                                                                                                                                                                                                                                                                       Logistics weight list

                                                          Real time Port confirmation                                    &
                                                                              Logistics weight list

                                                                                                                             Real time Port confirmation                   &
                                                                                                                                               Logistics weight list

                                                                                                                                                                                                                                                    Real time Port confirmation                          &
                                                                                                                                                                                                                                                                        Logistics weight list




   Vessel´s                                                                                                                                                                                                                                        Real time Port confirmation
                                                                                                                                                                                                                                                                        Logistics weight list
                                                                                                                                                                                                                                                                                                         &



   departure                                                                                                                                                                                                                                   Vessel´s departure
                                                                                                                                                                                                                                                                          (ship´s wayend)
                                                                                                                                                                                                                                                                                                   confirmation


                                                                                                                                                                                                                                                                                                                  Vessel´s departure                                 confirmation
                                                                                                                                                                                                                                                                                                                                            (ship´s wayend)

                                                                Vessel´s departure confirm. (ship´s wayend)

                                                                                                                                                                                                                                                                                                                                           Manifest


                                                                                                                                                                                                                                                                                                                                                                                                                Stowage plan


                                                                                                                                                                                                                                                                     Container/roro/storo lists




      Sea
 Transportation


                                                                                                                                                                                                                                                                                                                                                                                        Manifest confirmation, landing confirmation, damage reporting
   Landing /
  Discharging                                                                                                                                                                  Manifest confirmation, landing confirmation, damage reporting

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               Landing confirmation, damage
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         reporting


                                                                                                                                                                                                                                                                                                                                                                                                                                                                       Good received information


                                                                                                                                                                                                                                                                                                                                                                                                           Goods received information


                                                                       Goods received informacion


                                                                                                                                                                                                                                                                                                                                                                                                             Damage reporting


                                                                                                                                                                                                                                                                                                                                                                                                             Damage reporting
Port operations
in loading port                                                                                                                                                                                                                                                                                                                                                                                                                                                              Damage reporting


     (inland                                                              Damage reporting



                                                                                    Wayend


                                                                                                                                                                                                                                                                                                                                                                                                                    Wayend


                                                                                                                                                                                                                                                                                                                                                                                                                    Wayend


                                       Wayend




                                                                                                                                                                                                                                                                                                                                                                                                         Damage reporting



                                                                           Damage reporting
Loading (inland
transportation)                                                                                                                                                                                                                                                                                                                                                                                            Unitizing information


                                                                                                                                                                                                                                                                                                                                                                                                                                                                             Unitizing information


                                                                           Unitizing information




                                                                                                                                                                                                                                                                                                                                                                                      Real time Port confirmation                               &
                                                                                                                                                                                                                                                                                                                                                                                                           Logistics weight list

                                                             Real time Port confirmation                             &
                                                                              Logistics weight list

                                                                                                                              Real time Port confirmation              &
                                                                                                                                               Logistics weight list

                                                                                                                                                                                                                                                                                                                                                                                        Real time Port confirmation                             &
                                                                                                                                                                                                                                                                                                                                                                                                            Logistics weight list




                                                                                                                                                                                                                                                                                                                                                                                        Real time Port confirmation                            &
Ship´s departure                                                                                                                                                                                                                                                                                                                                                                                           Logistics weight list

                                                                                                                                                                                                                                                                                                                                                                                    Vessel´s departure                                   confirmation
                                                                                                                                                                                                                                                                                                                                                                                                             (ship´s wayend)

                                                                                                                                                                                                                                                                                                                                                                                                                                                        Vessel´s departure                                confirmation
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  (ship´s wayend)

                                                                Vessel´s departure confirm. (ship´s wayend)

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                 Manifest


                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                               Stowage plan


                                                                                                                                                                                                                                                                                                                                        Container/roro/storo lists




     Inland
 Transportation


                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         Manifest confirmation, landing confirmation, damage reporting
   Landing /
  Discharging                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                            Manifest confirmation, landing confirmation, damage reporting

    (inland                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   Landing confirmation, damage
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        reporting


                                                                                                                                                                                                                                                                             Call-off


                                Delivery instructions
  Distribution /
Delivery planning                                                              Delivery instructions


                                                                                                                                                                                                                                                                      Transportation order


                                                                                                                                                                                                                                                                      Transportation order




                                                                                                                                                                                                                                                                      Loading instructions


                                                                                                                                                                                                                                                                             Load status



 Final delivery                                                                                                                                                                                                                                                         Loading confirmation


to the customer                                                      Delivery note

                                                                                                                                                                                                                                                                         Consigment note


                                                                                                                                                                                                                                                                                                                                           Consigment note


                                                                                                                                                                                                                                                                        Commercial weight list




   Road / Rail
 Transportation


Arrival of the order                                                                                                                                                                                                                                                   Proof delivery
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                      Unitizing information


to the customer´s
     premises                                                          Proof delivery




                                                                                                                                                                                                                                                                                                                                        Customer invoice


                                                                                                                                                                                                      Service invoice



                                                                                Service invoice

                                                                                                                                                                                                                                                                           Service invoice



                                                                                Service invoice

                                                                                                                                                                                                                                                                           Service invoice
    Invoicing
                                                                                Service invoice


                                                                                                                                                                                                                                                                          Service invoice



                                                                  Service invoice


                                                                 Service invoice

                                                                                                                                                                                                                                                                          Service invoice



                                                                     Service invoice


                                                                     Service invoice



                                                                                                                                                                                                                                                                         Unit status change


                                                                                                                                               Unit status change


                                                                                                                                               Unit status change

                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                           Lines description and remarks
  Post delivery                                                                                                                                                                                                                                                          Unit status change
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  EDIfact information
   operations                                                                                                                                 Stock reconciliation
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  Other electronic information (in-company messages, file transfers, etc.)
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  Other information flows (e-mail, fax, printouts
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  Signature as a proof of delivery
                                                                                                                                             Stock reconciliation                                                                                                                                                                                                                                                                                                                                                                                                                                                                 New information flow by adding inland navigation in Germany
                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  *no custom duties are paid within this information flow
                                                                                                                                                                                                                                                                         Stock reconciliation



                                                                                                                                                                                                                                                                         Stock reconciliation




FIGURE 4.15 FUTURE INFORMATION EXCHANGE WITHIN THE TRANSPORTATION
                                 CHAIN



                                                                                                                                                                                                                                                                                                                  59
5. SWOT analysis of paper products transportation chain

5.1 Strengths

Production is made on demand. The timber branch is characterised by fast response to
fluctuations on the market. Production is generally made on demand and the
manufacturing is direct for the customer, which usually requires intermediary stock
keeping at the sawmill or on the terminals.

Large exportation of paper products. Especially in Sweden there are many single
producers operating on the market. Together they supply a large international group of
customers with goods according to different requirements and demands. In Finland,
sawmills within the big forest industry groups are dominating while in Sweden there is
a large share of smaller sawmills, which are operating on the export market.

Storing and on time delivery. In connection with the most important destination ports
Finland and Sweden mills usually have stores and terminals for direct distribution of
products to the end users. Such terminals are located in the Netherlands, France, Great
Britain and Germany. The capability to deliver on time at intended destination with
maintained quality as well as keeping the operation cost efficient and environmentally
acceptable is include in this.

Integration of computers to inside the harvest activities. The other objective beside
reduction of costs is the implementation of value-added concepts. New generation
harvesters with their efficient onboard computers are able to do more than crosscutting
trees into two or three different lengths of saw logs and one pulpwood assortment on a
schematic basis, which is the standard procedure for harvester Operations in Germany.
The onboard Computers Can also buck logs according to special demand lists from a
sawmill and differentiate quite a number of different assortments

5.2 Weakness

The information flow between the partners of the paper products transportation chain
(Mill, Hauler, Loading Port, Carrier, discharging Port and Customer) is at the moment
very complex. More than 100 different messages are shared between partners to support
the paper products (freight) transportation chain.

Information flow is not standardized. Depending on the size and information technology
systems of each one, the method of sending the appropriate messages required in the
follow-up of an order varies a lot. One company sends the same information in a more
advanced form than another.

In fact, there is no data repository or an application to support the information flow
related with the material flow within the transportation chain partners. The actual
situation increases possibilities of failures in the material flow and also may originate
claims.

The information flow process is costly. The present information flow is based in
EDIfact information. EDIfact messages are electronic messages with cost every time
they are used.

                                           60
Variation in the dimensions and shapes of timber packages. The present industry and
market situation for timber, consisting of many single producers turned to a wide
international group of customers, has brought about varying dimensions and shapes for
the timber packages without standardised modules. The variation in dimensions makes
the use of loading capacity in volume inefficient in sea freight but especially in road and
rail transport.

Non standardised tools for packages handling. To take more than one package at the
time with a single lifting system is difficult when the package height varies. Packages
with varying heights also make it hard to avoid uneven layers in cargo hold.

Openly work at Port. The work in cargo holds and on the quays is done openly without
protection against ram, snow, cold or wind. This gives rise to considerable risks for
sliding accidents. It also happens that packages having varying dimensions and stacked
over each other‘s in the cargo holds slide apart and fall.

Poor handling rationalisation. A thorough rationalisation of the handling of timber
products in sea freight is needed in order to improve the economy and to make port
operations more efficient. Improvement of the handling is also important in order to
reduce the occurrence of damage to goods, which in the near future will be
unacceptable.

In general the profitability in the saw mill industry is low. Only the big industry saw
mills have been able to initiate developed changes like the changeover to package
handling as result of their broad economy within the forest industry

5.3 Opportunities

Rational and cost efficient transport chain. By increased development and higher quality
demands the value of sawn wood will get higher and make it economically possible to
rationalise the handling. Sea freight in conventional bulk vessels with significant
demand for manual handling will probably soon be too expensive due to increased
labour costs and long staying times for the vessels by the quays. The long distance to
the marketplace implies rational and cost efficient transport systems for continuing
successful exports which meets the customers demand and changing requirements.

Customer orientation. In Sweden, the forest products industry is changing to a customer
driven production where high quality, marginal utility and short delivery time for a
specified product are key factors. A trend is diversification in products groups, quality
and price. The actual demand will not be available on a long-term horizon, but will
reflect the current demand.

Integration of economies of scale. One of the factors that determines the potential for
economies of scale is the trade-off between reduced production costs and increased
transport costs.




                                            61
5.4 Threats

Competition. The competition on international round wood and sawn timber markets
requires the implementation of new concepts and strategies. Significant changes in the
current wood supply-chain are urgently needed.

Forestry has low mechanized systems. Forestry is urged to further develop mechanized
harvesting systems, and to reduce the number of loggers working in chain saw
harvesting Systems in softwood stands. Economically sound thinning operations, the
reduction of harvesting costs, and the optimization of bucking as well are only possible
with the use of harvesters. This requires moreover the adequate education of technical
staff and harvester operators.

Harvester operations have limitations. As long as harvesters are not equipped with laser
or ultrasonic measurement tools, forestry will, for accounting purposes, be dependent on
log measurement at the sawmill‘s log station. Furthermore, forestry has to accept the
sawmilling industry as a trading partner, not as an opponent struggling for round wood
prices.

Sawmills face cost pressure and low market prices. The sawmilling industry suffers
from cost pressures and low market prices of its products. Sawmills have to analyse
their flow of material and formulate their raw material demand in a way foresters can
deal with.




                                          62
6. Executive Summary

Now days the paper products exportation plays an important roll in the economy of
several European countries. The paper products exportations of Scandinavian countries
such as Sweden, and Norway gathered with the exports of Finland represent more of
42%, of the total exportations of Europe.

Competence is especially high in this area, Baltic countries such as Lithuania, Latvia
and Russia may offer in the near future better trading conditions related with cost-
benefice. An efficient and enhanced transportation chain between Sweden, Finland and
Norway and the countries of import is crucial in order of conserve and increase the
present Market share.

The Scope of the forest sector contains the following: wood harvesting, energy wood,
wood processing, pulp and paper making, mechanical industries such as sawmills and
making wood-based panels or boards, further processing such as carpentry, packages or
paperboard converts, and all relevant sourcing from the customer branches, such as
building, packaging, printing & office, furniture and from Graphic Arts Industries such
as advertising and publication houses, as well as logistical flows with supporting
branches, such as machinery builders, chemicals merchants, maintenance companies
and energy suppliers.

This paper work focuses in the transportation chain of the paper products from
Scandinavia (Norway and Sweden) and Finland to Germany and the information
systems.

In transportation chain, there is no a unique way to sketch the information and material
flow momentum, however the description of each step within the chain is crucial for
the transportation tracking, perhaps the most used technique are Petri nets, UML
(unified modelling language) and ARIS.

UML was chosen to sketch the information flow of the transportation chain because of
their several advantages, such as: semi-formal meta model definition; it is a extension of
mechanisms like: stereotypes, constraints, tagged Values.

UML also allows adopting modelling elements assigning a particular semantic. There
exist already several tools that provide the UML notation and there are several books
regarding UML notation.

The information flow of the paper products transportation chain between Finland and
Germany was analysed by using a sequence diagram. It was very useful to understand
the present situation of the information exchange.

The information flow between the partners of the paper products transportation chain
(Mill, Hauler, Loading Port, Carrier, discharging Port and Customer) is at the moment
very complex. More than 100 different messages are shared between partners to support
the paper products (freight) transportation chain.

Information flow is also not standardized. Depending on the size and information
technology systems of each one, the method of sending the appropriate messages

                                           63
required in the follow-up of an order varies a lot. One company sends the same
information in a more advanced form than another.

In fact, there is no data repository or an application to support the information flow
related with the material flow within the transportation chain partners. The actual
situation increases possibilities of failures in the material flow and also may originate
claims.

The information flow process is also costly; the present information flow is based in
EDIfact information. EDIfact messages are electronic messages with cost every time
they are used.

In Germany, a big investment to promote and improve the conditions of inland
navigation is carried out. The inclusion of at least 2 new partners in the transportation
chain is required. At the discharging Port in the country of import (Germany) the freight
would be discharged from the maritime vessels and loaded in the river ships. The freight
would be transported by inner German rivers till the river point closest to the customer.
After this procedure, the freight would be transported by trailer or truck until the
customer warehouse. The implementation of this project will increase the information
flow, complexity and cost. The actual risk of failures would also increase.

A sequential diagram developed within the chapter 4, figure 4.14 shows the actual
situation. A data repository or a systems application is urged to implement. A system
application may support both the physical material flow by means of checklists allowing
the change of the material status and shooting automatically the corresponding message
to the corresponding partners within the supply chain.

No need of making calls and manual tracking would be needed. Also the information of
freights, quantities, dates, delays, claims and all kind of data related with the
transportation of paper products from the Mill to the customer may be stored and used
in future analysis.

A systems application makes possible a real time tracking, reduces costs, and enhances
communication between the partners. It also reduces the activities without a value added
within the transportation chain.

The project of “Inland transportation through German rivers” adds new partners to the
transportation chain and makes more complex the information as well as the material
flow. The actual challenge represents a good opportunity to reconsider the present
information flow and evaluate the implementation of more sophisticated techniques of
communication, such as an application development to support the information and
material flow within the whole transportation chain.




                                           64
Bibliography

/Sjö00/   Sjöström K.   Logistics in the Forest Sector, Helsinki, 2000
/Chr88/   Christopher M.Logistics and Supply Chain Management: Strategies for
                        Reducing Cost and Improving Service, second Edition,
                        1988
/Boo98/ Booch G.        The Unified Modeling Language User Guide, Addison
                        Wesley, 1998
/Gir02/ Girault C.      Petri nets for systems Engineering, 2002
/Lam97/ Lambert D.      Fundamentals of Logistics, 1997
/Sto00/ Stock J.        Strategic Logistics Management, third Edition, 2000
/Sta01/ Starke, P.      OMG-UML, v1.4 Sequence Diagram, 2001,
/You88/ Yourdon, E.     Object-Oriented Analysis and Design with Applications
                        (2nd Edition), 1988
/Dia97/ Twede D. and    "Distribution packaging for Logistical Systems: A
        Parsons B.      Literature Review", Pira, UK, 1997
/Pfo00/ Pfohl , H.C.    Logistiksysteme, 2000
/Gre01/ Greiner S.      Modelling and Analysis of Operating Systems Using
                        Extended QN Techniques and Petri Nets, Band 34, num
                        9, Juni 2001, Gruner Druck GmbH
/Sei72/ Seidenfuß, H.S. Der Stellenwert des kombinierten Verkehrs in der
                        Verkehrswirtschaft, 1972
/Reu90/ Reutenauer, C. The mathematics of Petri nets, Prentice Hall, 1990
/Man97/ Mandrioli, D.   A note on UML languages, information and control,
                        1997
/Vau01/ Without Autor Växjö University School of Industrial Engineering, and
                        Timber Logistics, Supply Chain Management for Paper
                        and Timber Industries
/Huy95/ Huynh. T.F.     Complexity of the word problem for commutative semi
                        groups of fixed dimensions, 1995
Kei00/  Keino Ulla      The VIPRO-project final report, interview
                        /Kaukoaarela,Transportation anager,Stora-Enso
                        Transportation and Distribution.
/Dem00/ Dennis E        "Testing and evaluation of transport packaging: a view to
        Young           the future", Packaging Technology and Science vol 13,
                        nr 1, 2000
/Hen98/ Lars            "Packaging requirements in the Swedish retail trade",
        Henriksson      Lund Institute of Technology, Lund, Sweden 1998.
/Fit01/ Bone K. and "Package graphics and consumer product beliefs",
        France K.       Journal of Business and Psychology vol 15, nr 3, 2001
/Fri77/ W F Friedman "Distribution packaging", Krieger, New York, 1977
        and J Kipnees
/Cha96/ Changfeng Ge "Efficient packaging design in logistics", Packaging
                        Technology and Science vol 9., 1996
/Ebe90/ C W Ebeling      "Integrated packaging systems for transportation and
                        distribution", Marcel Dekker, New York 1990.
/Fie98/ C Field          "Changing retailing logistics and the implications for
                        packaging", Paper & Packaging Analyst nr 33, 1998



                                        III
Internet links

/www1/     http://www.balticom.org, date of last consult 20.02.05
/www2/     http://www.timber.asdo.com, several , date of last consult 10.02.05
/www3/     http://www.timber.sca.com, date of last consult 22.02.05
/www4/     http://www.sodra.com/, date 22.09.04
/www5/     http://partners.surfeu.fi/otaniemi/network.htm, Wood Logistics Research
           Networking, date 10.12.04
/www6/     http://www.sun.de, date 22.09.04
/www7/     http:// www.efi.fi/news/ 2001/timbertrade.html/, date 7.10.04
/www8/     http://www.iggesundtimber.com/, date 22.09.04
/www9/     http://www.korsnas.se, date 22.09.04
/www10/    http://www.efi.fi/news/2001/timbertrade.html, date of last consult 09.11.05
/www11/    http://www.arcasys.com/products/pallets/euro/pl_euro.html, date of last consult
           22.02.05
/www12/    http://www.nowepaletten.de/html/about_us.html, date of last consult 22.02.05
/www13/    http://www.ponl.com, 16.02.05
/www14/    http://www.globalspec.com/LearnMore/Material_Handling_Packaging_Equipm
           ent/ISO_Containers, date of last consult 22.02.05
/www15/    http://www.alvandcer.com/specification.htm, date of last consult 19.02.05
/www16/    http://www.fao.org/waicent/faostat/forestry/products.htm#2, date of last consult
           22.02.05
/www17/    http://www.storaenso.com, date of last consult 23.02.05
/www18/    www.ebsi.ie/itfunda2.html, 27Aug2004




                                          IV
List of abbreviations

RG                      reachibility graph
RS                      reachibility set
M                       Exponential distribution
UML                     Unified modelling Language

Explanation of terms

Real-time waybill       Package detail information to LP operator
Wayend                  Mill’s confirmation on dispatching completed
Vessel’s departure      Ship’s wayend
confirm.
Manifest                Vessels manifest documentation
© Coniferous.           All woods derived from trees classified botanically as
                        Gymnosperm – e.g. fir (Abides), parana pine (Araucaria),
                        deodar (Cedrus), ginkgo (Ginkgo), larch (Larix), spruce
                        (Picea), pine, chir, kail (Pinus), etc. These are generally
                        referred to as softwoods.
(NC) Non-Coniferous     All woods derived from trees classified botanically as
                        Angiospermae – e.g., maple (Acer), alder (Alnus), ebony
                        (Diospyros), beech (Fagus), lignum vitae (Guiaicum), poplar
                        (Populus), oak (Quercus), sal (Shorea), teak (Tectona),
                        (Casuarina), etc. These are generally referred to as
                        broadleaved or hardwoods.
NC(TROP) Non-           Non-coniferous woods originating from tropical countries.
Coniferous Tropical

NC(OTHER) Non-          Non-coniferous woods originating from countries other than
Coniferous Other        tropical.




                                       V
List of figures

FIGURE 1.1 PAPER-PRODUCTS FLOW CHART...............................................................................2
FIGURE 1.2 CARGO TRANSPORTATION ROUTES TO GERMANY ............................................2
FIGURE 1.3 METODOLOGY TRACKING...........................................................................................4
FIGURE 2.1 PAPER PRODUCTS PROCESS ........................................................................................7
FIGURE 2.2 APPLICATION OF FOREST PRODUCTS SEVERAL INDUSTRIES .......................8
FIGURE 2.3 SUPPLY CHAIN FOR PEPER PRODUCTS INDUSTRIES ..........................................8
FIGURE 2.4 LOGISTICS CONTRIBUTION COST TIME AND QUALITY.....................................9
FIGURE 2.5 PAPER AND PAPERBOARD EXPORT SHARE..........................................................10
FIGURE 2.6 PULP MILL .......................................................................................................................11
FIGURE 2.7 PULP PRODUCTION.......................................................................................................16
FIGURE 2.8 CONTAINERBOARD.......................................................................................................19
FIGURE 2.9 CORRUGATED CONTAINER .......................................................................................19
FIGURE 2.10 LINERBOARD.................................................................................................................19
FIGURE 2.11 BLEACHED PAPERBOARD.........................................................................................20
FIGURE 2.12 UNBLEACHED PAPERBOARD...................................................................................20
FIGURE 2.13 CONTAINER COMPONENTS......................................................................................21
FIGURE 2.14 PALLETS .........................................................................................................................23
FIGURE 2.15 TRUCK TRANSPORTATION.......................................................................................23
FIGURE 2.16 TRANSPORTATION ROUTES.....................................................................................24
FIGURE 2.17 RAIL TRANSPORTATION ...........................................................................................25
FIGURE 2.18 SEA NAVIGATION ........................................................................................................25
FIGURE 2.19 BULK SHIP......................................................................................................................26
FIGURE 2.20 RORO SHIP .....................................................................................................................26
FIGURE 2.21 PACKAGES ON QUAY SORTED ACCORDING TO HEIGHT...............................27
FIGURE 2.22 CHAIN OF TRANSPORTATION CLASSIFICATION ..............................................28
FIGURE 2.23 LOGISTICS CHAIN .......................................................................................................29
FIGURE 2.24 PAPER DETERIORATION DUE TO WRONG HANDLING ...................................30
FIGURE 2.25 PLASTIC PAPER PACKAGES COVERS ...................................................................31
FIGURE 2.26 ACTIVITIES OF DELIVERY PLANNING AND HARVEST CALCULATION .....32
FIGURE 2.27 STORAGE LOCATION WITHIN THE PAPER PROCESS......................................33
FIGURE 2.28 DECOUPLING STOCK IN THE PAPER PRODUCTION PROCESS .....................34
FIGURE 3.1 A SIMPLE PN BEFORE AND AFTER THE FIRING OF TRANSITION T1............37
FIGURE 3.2 THREE STAGE PROCESS MODEL (DYNAMIC).......................................................38
FIGURE 3.3 PETRI DECISION NET ...................................................................................................39
FIGURE 3.4 GENERAL CONCEPTUAL MAPPING .........................................................................42
FIGURE 3.5 CASCADE MODEL ..........................................................................................................43
FIGURE 3.6 UML – OO APPROACHES..............................................................................................44
FIGURE 3.7 CLASSES AND OBJECTS ...............................................................................................44
FIGURE 3.8 WORK FLOW OF PAPER-MAKING PROCESS.........................................................41

                                                                     VI
FIGURE 4.1 DIAGRAMS USED IN UML ............................................................................................47
FIGURE 4.2 UML CLASS DIAGRAM SHOWING PACKAGE STRUCTURE ..............................48
FIGURE 4.3 USE CASE DIAGRAMS OF LOGISTICS AND MILL.................................................49
FIGURE 4.4 USE CASE RELATIONSHIPS OF LOADING PORT ..................................................49
FIGURE 4.5 SEQUENCE DIAGRAM WITH CONCURRENT OBJECTS......................................50
FIGURE 4.6 COLLABORATION DIAGRAM AT INSTANCE LEVEL ..........................................51
FIGURE 4.7 USE OF A COLLABORATION.......................................................................................51
FIGURE 4.8 STATIC STRUCTURE OF A COLLABORATION ......................................................52
FIGURE 4.9 A COLLABORATION DIAGRAM .................................................................................52
FIGURE 4.10 STATE DIAGRAM..........................................................................................................53
FIGURE 4.11 SEQUENTIAL SUB STATES ........................................................................................54
FIGURE 4.12 CONCURRENT SUB STATES ......................................................................................54
FIGURE 4.13 CONCURRENT TRANSITIONS...................................................................................55
FIGURE 4.14 INFORMATION EXCHANGE WITHIN THE TRANSPORTATION CHAIN .......57
FIGURE 4.15 FUTURE INFORMATION EXCHANGE WITHIN THE TRANSPORTATION
       CHAIN .............................................................................................................................................59




                                                                          VII
List of tables

TABLE 2.1 GEOGRAPHICAL DIVISION OF THE SEA FREIGHTS IN SWEDEN .................................... 13
TABLE 2.2 INDICATIONS OF WOOD PRODUCTS UNDER SITC .......................................................... 14
TABLE 2.3 INDICATIONS OF WOOD PULP PRODUCTS UNDER SITC ................................................. 17

TABLE 2.4 INDICATIONS OF PAPER AND PAPER BOARD PRODUCTS UNDER SITC .......................... 18

TABLE 2.5 CONTAINERS COMPONENTS DESCRIPTION................................................................... 21
TABLE 2.6 ISO CPMTAOMERS CLASSIFICATION ............................................................................. 22
TABLE 2.7 FRACTION MOMENTS IN THE TRANSPORTATION PROCESS ......................................... 30
TABLE 2.8 VARIATION OF PACKAGE HEIGHT IN THE PRESENTED EXAMPLE ............................... 35
TABLE 3.1 BASIC ELEMENTS FOR PROCESS MAPPING ................................................................... 36
TABLE 4.1 PARTNERS OF THE TRANSPORTATION CHAIN AND THEIR RESPONSABILITIES ........... 55




                                                      VIII

				
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Description: Information flow analysis of the Paper productstransportation chain from Scandinavia and Finland toGermany