• Material flow cost accounting


    Determine and quantify actual costs of material losses

Material flow cost accounting

With the help of material flow cost accounting (MFCA) the actual costs of loss of material from e.g. waste, junk and/or scrap, can be calculated. The extra costs that occur during production as a result, are usually not measured entirely, but are merely added to the disposal costs. Oftentimes it is not taken into account that these losses are resources that come in the form of materials, energy, transport or employment of machinery, which in turn are coupled with costs.

With material flow cost accounting these actual costs can be quantified and the resulting savings can be calculated. This way the economic value of the efficiency measures can be determined. The international standard for material flow cost accounting is set in the environmental management standard ISO 14051:2011 that aims to minimize inefficiencies. The standard describes the methodical procedure to perform a material flow cost calculation and organizes costs according to material costs, energy costs, waste costs, and system costs.

 

Sankey Diagram
Result of material flow cost calculation as a Sankey-diagram (Figure according to DIN EN ISO 14051:2011)