Setting up a Geographic Work Area

(Block, Tract, Job Site, etc)

The Block Setup Wizard takes you through all the steps necessary to set up a block (or any geographic work area)

Step 1.    Introduction

Step 2.    Select the company that owns the timber rights.  This company is often mill to which logs are delivered, but may be a private landowner whose forestry interests are limited to ownership of timber.

Note: This field is purely informational, and appears only in the block grid; it is not used anywhere else in the system.  If the block is owned by the mill that will be receiving the wood and paying you for it, that mill will already be set up as a customer, and you can indicate it as company that controls the timber rights.  If the block is owned by a major private land-owner for whom  you work, you will likely want to set that land-owner up as a customer.  If the blockis owned by a small private land-owner or wood lot, you may find it easiest to indicate your company as the controlling company (rather than setting up each new land-owner in the customer list).

Step 3.    Select Geographic Identifiers.  Geographic identifiers are larger areas than a block that can be used to group multiple blocks.  Such groupings can be helpful if, for example, you want to report on production from a group of blocks in the same timbermark, county, township, etc.  These identifiers are configurable in two ways.  First, if you have no need to identify blocks as belonging to a particular, larger geographic area, we can omit the groups from your block setup wizard entirely.  Second, if you do want to make use of geographic identifiers, the system can be configured to have as many as three levels of geographic groupings per block.  These groupings can be labeled however you'd like.  Common labels include:  'management area',  'working circle', 'timbermark', 'county', 'subdivision', 'forest', or 'compartment.'  For more information, see Geographic Levels of Aggregation.

In this example, we use two geographic identifiers:  Areas (Level I) and Compartments (Level II).  So, The Logger's Edge Software first asks you to select the Area:

 

Step 4.    Select Compartment

Next, The Logger's Edge Software asks you to select the Compartment:

Step 5.    Select the Revenue Contract to which the block is attached.  A "Revenue Contract" specifies the rates that you will be paid by a specific mill for wood delivered off the new block.  (See Main Menu | Contracts | Revenue Contracts | Setup for how to setup revenue contracts.)

Note:  If you deliver to multiple customers from a given block, you can assign multiple revenue contracts to that block.  Each revenue contract specifies one or more specific destinations so that wood delivered to one destination to one customer is paid at one rate and wood delivered to another destination to a different customer can be paid at a different rate. 

In general, we recommend users set up one revenue contract for each customer.  So, if you deliver to multiple customers from a given block, you will select multiple revenue contracts in this window (assuming you already have them set up.

Note:  if you have not yet set up the revenue contracts that pertain to this block, you can simply select Next, and skip this window.  You will have an opportunity to relate the blockto the relevant revenue contracts when you set the revenue contract up.

In the window below, we have selected a revenue contract with Smurfit-Stone -- meaning Smurfit-Stone will pay me for wood delivered from my new block.

Step 6.  Select the units of measure in which all loads from this block will be delivered.  This unit of measure should be the measure you will use when you enter the load slips  from this blockinto the system.  Often, this measure is a weigh scale measure, such as kilograms or pounds.  If you are not recording your loads by an actual weigh scale measure, you might use tonnes or tons;  if you are hand scaling your wood, you might enter a volume measure like Cubic Metres or Thousand Board Feet (MBF).

Note:  This list of units of measure is an administrative-user set-up list.  So, if you need different items in your list than you see, contact a support representative to assist in getting the list to contain the entries you want.

Step 7.  Select the units of measure in which you want to track production.  Often, this measure is a volume measure like Cubic Metres or Thousand Board Feet (MBF), but might be tons or tonnes depending on how you want to track production off a block.  The Logger's Edge Software uses this measure in order to measure the performance or workers and equipment on a standardized basis.

Note:  Although this unit of measure is commonly used as the basis to pay your own workers or subcontractors, the actual payment terms are setup elsewhere in the system (under Contracts | Payment Contracts | Contract Setup).  The purpose of the selection here is solely to define your standardized unit of measure for production and analytical reports.

Step 8.  Conversion Setup.

This part of the block setup is often confusing to new users, until they determine which selections are appropriate for their fact pattern.  Let's take a look at the options.

The first thing to understand is that a conversion factor is a factor used to multiply your delivery measure (Kgs or Lbs) by in order to calculate your production measure (Tons, Tonnes, MBF, M3, etc) or to calculate the units of measure in which your revenue or pay rates are expressed.

Example 1.  Wood from this blockis all hand scaled.  You enter loads in cubic metres and want to report in cubic metres.  You will receive payment and be paid in cubic metres for these deliveries.  Pick option A because you don't need conversion factors; you will enter all my volume data directly on each load slip.

Example 2.  Wood from this blockis all hand scaled, and also weighed.  You enter both the pounds and the MBF on each load from this block.  You receive payment from the mills based on MBF.  You pay hauling your  company by the ton, but everyone else is paid based on MBF.  Pick option A because you don't need conversion factors; you will enter MBF directly, and will only be relying on a generic pound-to-ton conversion factor (which is already set up as part of the base system).

Example 3.  Wood from this blockall crosses a weigh scale.  The delivery measure is KGs and you want to have all standard production reporting expressed in tonnes. Pick option B because the conversion from KGs to tonnes is always the same, regardless of the block. 

Example 4.  Wood from this blockall crosses a weigh scale.  The delivery measure is pounds and you want to have all standard production reporting expressed in tons. Pick option B because the conversion from pounds to tons is always the same, regardless of the block. 

Example 5.  Wood from this blockall crosses a weigh scale.  The delivery measure is KGs and you want to have all standard production reporting expressed in cubic metres.  Pick option C because the conversion from Kgs to Cubic Metres is based on statistical samples that vary depending on the quality of the wood delivered from a block. 

Example 6.  Wood from this blockall crosses a weigh scale. The delivery measure is pounds and the production measure is MBF.  You have an agreed upon ratio for wood delivered from the block.  Pick option C because the conversion from pounds to MBF is based on a fixed factor that might vary by block.

Example 7.  Some wood from this blockcrosses a weigh scale, and some is hand-scaled.  The mill pays you for the hand-scaled wood by MBF, and you pay your land-owner and logger by MBF.  If the wood is not hand-scaled, you rely on a fixed conversion factor for this block from pounds to MBF.  Otherwise, you use the hand-scaled MBF.  You pay the hauler by the ton. Pick Option C because you will need to set up the fixed conversion factor between pounds and MBF to be used for wood that is not hand-scaled.

The importance of this selection is that if you choose option C, you will be able to enter block-specific conversion rates.  If you choose option A or B, you are telling the system that you don't need block specific conversion rates and don't want to see the corresponding entry screens.

If your facts dictate that you need block -specific factors (Option C), click here (Use Block-Specific Conversions) and we'll take a look at the screens.

Otherwise, we'll move ahead...

Step 11.  Identify Activities (Phases) to be paid on the Block.

The Next Step is to specify which activities or phases you will pay on a load-by-load basis for deliveries from your new block.  (Steps 9 and 10 relate to setting up specific conversion factors; if you did not need to set up such conversions, you simply bypass steps 9 and 10.)

Examples of activities or phases include:

Depending on your operation, you may pay one or several of these phases. 

Note:  If you issue all payments for work performed in this blockon an hourly or daily basis (or any basis that is not dependent upon the system issuing payments on a load-by-load basis), you can simply click Next at this window, leaving all the check-boxes unchecked.

The setup wizard asks you to specify which activities will be paid on loads from your new block.

Let's take a look at the window:

The first part of this page asks:

Do you track employees/equipment on a load-by-load basis?

There are two possible answers:

A.   You do Track Activities, Employees, Equipment on Load Slips; and

B.    You do Not Track Activities, Employees, Equipment on Load Slips

If you have multiple pieces of equipment working in the same blockperforming the same activity (e.g., two bunchers in a block), you will likely choose Option A because you will need to track the buncher on the load slip in order to know which buncher to pay for each load.

Some users do not actually pay their equipment contractors/operators based on the volume harvested, but still want to track the volume that each particular piece of equipment harvested so that they can "marry" the hours worked by a given piece of equipment in a block with the volume harvested by that piece of equipment.  In that case, Option A is still the correct option because you will still track the pieces of equipment on each load slip.

If you have only one piece of equipment performing a particular phase in a given block, and you want to pay that piece of equipment based on the load slip volume/weight, you can do that without tracking the equipment and activity (phase) on the load slip.  Choose Option B in this circumstance.

If you pay no activities (phases) on a load-by-load basis (e.g., you pay all workers/contractors hourly, by day, by kilometer, etc.), you can select Option B and leave all the checkmarks unchecked.

We we have selected option B as our first example because it is simpler and more common.  Of the activities listed, we have selected Trucking, Loading and Felling to be paid on a load-by-load basis.

Option B - Do Not Track Activities, Employees, Equipment on Load Slips

 We  have split this discussion of Option B into two sections: (1) trucking and (2) all other activities.

Trucking

The first column says: "Pay Truck Owner".  The checkmark indicates that you want to pay the owner of the log truck for all loads delivered off your new block.  In the event that the truck owner is your own company,  no pay will be calculated, but your own internal trucking cost will be accrued against the block. 

The second column says: "Pay Contractor Operator".  The checkmark indicates that you want to pay the operator (driver) of the log truck for all loads delivered off your new block.  This selection only applies to subcontractor operators (drivers).  The Logger's Edge will check to see the subcontractor who is the driver's employer and pay that contractor.  That is, the actual contractor driver will not be paid, but his/her employer will be the person who is paid.  In the event that the truck driver is your own employee,  no pay will be calculated. 

The third column says: "Pay Own Operator".  The checkmark indicates that you want to pay your own operator (driver) of the log truck for all loads delivered off your new block.  This selection only applies to your own operators (drivers).  In the event that the truck driver is a contract employee, no pay will be calculated. 

Whoa!  These are a complicated set of options.

I'll lay out some scenarios and let's see which fits your operation:

Scenario 1:  You only have your own trucks and own drivers and pay the drivers by the load (or load weight, volume).  Only check the box "Pay Own Operator"

Scenario 2:  You only have your own trucks, but have both your own drivers and subcontractor drivers.  You pay the drivers by the load (or load weight, volume).  Only check the boxes "Pay Own Operator" and "Pay Contractor Operator"

Scenario 3:  Contractors do all your hauling (note that the term "contractors" includes owner-operators).  You pay the contractors by the load (or load weight, volume).  Only check the box "Pay Truck Owner"

Scenario 4:  You have some of your own trucks and drivers, but contractors also do some of the hauling (note that the term "contractors" includes owner-operators).  This scenario assumes that your drivers only drive your trucks and the contract drivers only drive contractor-owned trucks.  You pay the contractors by the load (or load weight, volume).  Only check the the boxes "Pay Truck Owner" and "Pay Own Operator". Do not check  "Pay Contractor Operator".

Scenario 5: (Really Complicated):  You have some of my own trucks and drivers, but contractors also supply trucks and drivers (note that the term "contractors" includes owner-operators).  You pay the contractors by the load (or load weight, volume).  This scenario assumes that sometimes your drivers drive your own trucks and sometimes drive contractor trucks or contract drivers may sometimes drive contractor-owned trucks and sometimes drive your own trucks.  In this case, you need to check all three boxes.  Why?

1.    You need to check "Pay Truck Owner" in order to pay the truck owner for the use of the truck, regardless of who is driving.

2.    You need to check "Pay Own Operator" in order to pay your own driver, whether or not he is driving your truck or a contractor-owned truck.

3.    You need to check "Pay Contractor Operator" in order to pay contractor drivers, whether or not you are driving your trucks or contractor-owned trucks.

This scenario allows you to split your contractor hauling rates between the use of the truck itself and the use of the driver (contractor versus your own).

Other Activities (Non-Trucking)

The first column says: "Pay Activity".  The checkmark indicates that you want to pay one subcontractor for all loads delivered off your new block for that activity.  In the window, you have checked Loading, meaning you want to pay one subcontractor for Loading for all loads off my new block.  For example, if you have your own employees that you pay on an hourly basis for logging, skidding and delimbing, you should NOT check the boxes for those activities.  Only check the boxes for those activities for which you pay subcontractors.  If you have a contractor that performs another activity, say Felling, you would check that box.

Important Note:   If you have two or more subcontractors that perform the same activity, you cannot use Option B.  You must use Option A: "Track Activities, Employees, Equipment on Load Slips."  

Why?  In order to pay two different contractors for the same activity on any given load from a given block, The Logger's Edge must be able to distinguish which contractor performed that activity on a load-by-load basis.  The Logger's Edge makes this distinction based on the owner of the equipment that is entered on the load -- meaning you must track the equipment (and/or operator) that performed the activity on a load-by-load basis.

So let's see what Option A is all about.

Option A -- Track Activities, Employees, Equipment on Load Slips

Trucking

The first column says: "Track Data".  The checkmark indicates that you want to track the truck on your loads, but that you do not necessarily want to pay the owner or the driver of the truck.  By leaving the other check boxes unchecked, you can track your trucking data for reporting, but you are saying: "I do not pay trucking on a load-by-load basis."

The second column says: "Pay Contractor Equipment".  The checkmark indicates that you want to pay the owner of the log truck for all loads delivered off your new block.  In the event that the truck owner is your own company,  no pay will be calculated, but your own internal trucking cost will be accrued against the block. 

The second column says: "Pay Contractor Operator".  The checkmark indicates that you want to pay the operator (driver) of the log truck for all loads delivered off your new block.  This selection only applies to subcontractor operators (drivers).  The Logger's Edge will check to see the subcontractor who is the driver's employer and pay that contractor.  That is, the actual contractor driver will not be paid, but his/her employer will be the person who is paid.  In the event that the truck driver is your own employee,  no pay will be calculated. 

The third column says: "Pay Own Operator".  The checkmark indicates that you want to pay your own operator (driver) of the log truck for all loads delivered off your new block.  This selection only applies to your own operators (drivers).  In the event that the truck driver is a contract employee, no pay will be calculated. 

These are basically the same set of choices listed under Option B above.

Other Activities (Non-Trucking)

The first column says: "Track Data".  The checkmark indicates that you want to track the equipment (and/or employees) on your loads, but that you do not necessarily want to pay the owner or the operator of the equipment.  By leaving the other check boxes unchecked, you can track your equipment and activity data for reporting, but you are saying: "I do not pay this activity on a load-by-load basis."

The second column says: "Pay Contractor Equipment".  The checkmark indicates that you want to pay the owner of the equipment for all loads delivered off your new block.  In the event that the equipment owner is your own company,  no pay will be calculated. 

The second column says: "Pay Contractor Operator".  The checkmark indicates that you want to pay the operator of the equipment for all loads delivered off your new block.  This selection only applies to subcontractor operators.  The Logger's Edge will check to see the subcontractor who is the operator's employer and pay that contractor.  That is, the actual contractor operator will not be paid, but his/her employer will be the person who is paid.  In the event that the operator is your own employee,  no pay will be calculated. 

The third column says: "Pay Own Operator".  The checkmark indicates that you want to pay your own operator of the equipment for all loads delivered off your new block.  This selection only applies to your own operators.  In the event that the operator is a contract employee, no pay will be calculated. 

I'll lay out some scenarios and let's see which fits your operation:

Scenario 1:  You only have your own equipment and own operators and pay the operators by the load (or load weight, volume) -- not by the hour.  Check only the boxes "Pay Own Operator" and "Track Data".  In the screen above, for example,  we have checked Felling - "Pay Own Operator".  This indicates that we want to pay our employee loggers by the load (e.g. M3, MBF, tons, etc.) and will enter the name of the logger on each load slip.

Scenario 2:  You only have your own equipment (no contractor equipment), but have both your own operators and contractor operators.  You pay the operators by the load (or load weight, volume).  Check only the boxes "Pay Own Operator" and "Pay Contractor Operator".  In the screen above, for example,  we have checked Delimbing - "Pay Own Operator" and "Pay Contractor Operator".  This selection indicates that you want to pay your employee and contractor operators for delimbing by the load (e.g. M3, MBF, tons, etc.) and will enter the name of the delimber on each load slip.

Scenario 3:  You have multiple contractors working (note that the term "contractors" includes owner-operators) on the same activity.  You pay the contractors by the load (or load weight, volume).  For example, let's say you have two different loading contractors that will work in the block.  You need to tell The Logger's Edge which contractor worked on which loads. By checking the box "Pay Contractor Equipment",  you am saying that you will enter the loader unit (equipment code) on each load so that The Logger's Edge will pay the owner of each loader accordingly.

Important Note:   If you have only one subcontractor that performs each activity within a block, and (2) pay your own employees only on an hourly basis, you should use Option B (from above): "Do Not Track Activities, Employees, Equipment on Load Slips"  

Scenario 4:  You have some of your own equipment and operators, but contractors also do work for you (note that the term "contractors" includes owner-operators).  This scenario assumes that your operators only operate your own equipment and the contract operators only operate contractor-owned equipment.  You pay the contractors by the load (or load weight, volume).  Check only the boxes "Pay Contractor Equipment" and "Pay Own Operator". Do not check  "Pay Contractor Operator".  You will then set up one pay rate for the contractor equipment (that embodies the cost of the equipment with the use of the operator) and another pay rate for your own operator (and only embodies the cost of your operator).

Scenario 5: (Really Complicated):  You have some of your own equipment and operators, but contractors also supply equipment and operators (note that the term "contractors" includes owner-operators).  You pay the contractors by the load (or load weight, volume).  This scenario assumes that sometimes your operators operate your own equipment and sometimes they operate contractor equipment.  It also assumes that contract operators may sometimes operate contractor-owned equipment and may sometimes operate your own equipment .  In this case, you need need to check all three boxes.  Why?

1.    You need to check "Pay Contractor Equipment" in order to pay the equipment owner for the use of the equipment, regardless of who is the operator.

2.    You need to check "Pay Own Operator" in order to pay your own operator, whether or not he is operating your equipment or a contractor-owned piece of equipment.

3.    You need to check "Pay Contractor Operator" in order to pay contractor drivers, whether or not they are operating your equipment or  contractor-owned equipment.

This scenario (skidding in the above example) allows you to split your contractor rates between the use of the equipment itself and the use of the operator.  As noted above, when we indicate that the contractor-operator will be paid, The Logger's Edge will not actually pay the operator, but will pay the operator's employer.

Step 12.  Select Applicable Pay Contracts.

The setup wizard next presents a list of "Pay Contracts" that can be assigned to the block.  (See Main Menu | Contracts | Payment Contracts | Setup for how to setup pay contracts.)  For example, if you have an existing contractor that will be working in the new block, you can select his contract.  In the window below we have selected "FAIRFAX-CON" and "2BROS - TRK" as two contracts with subcontractors that will be working in the block.  If you don't yet know (or don't have any subcontractors) who will be working in the block, you can skip over this screen.

This screen is especially useful if you have a fixed set of contractors that work multiple blocks for you and whose rates do not vary from block to block.  You can then add them to the block when you set it up and do not have to go and edit each pay contract cover the your newly established block.

Step 12. Name the Block

Your last (finally!) step is to provide a Name for the Block.

This form also asks for:

Note:  if you need additional information fields on your block, a support representative can enable additional fields.

Step 13.  Save

You MUST click on Finish to save your block information, otherwise your prior selections will be Lost.


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