Abstract
In the context of designing modern, competitive production processes, companies face the challenge of integrating the growing ecological demands of customers and other stakeholders as well as resource scarcity on one hand and the dominant need for economic success on the other hand. An approach to meet ecological and economical goals is the improvement of the material and energy productivity. This is strongly supported by the method of material flow cost accounting (MFCA). It aims at the identification of processes’ material and energy related inefficiencies and the (monetary) quantification of their effects on the overall process chain. This chapter firstly introduces the basic methodology of MFCA. Afterwards, refinements and enhancements concerning the modeling of loops and stocks, the integration of energy and the design of a prospective MFCA are proposed. Concluding, aspects of MFCA’s practical implementation are discussed.
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Notes
- 1.
The German industry spent 45 % on average for input materials in 2009 (Statistisches Bundesamt 2011).
- 2.
The definition of the specific processes may vary with the relevance of the respective ‘area’. So, a single production process can be limited to one very resource intensive production step or include a whole assembly line affecting the total resource demand only marginally.
- 3.
- 4.
ISO’s (2011) definition of a quantity center additionally includes the demand for a monetary quantification of the in- and outputs. However, as the following explanations will demonstrate, the monetary valuation of in- and output flows is based on their physical quantification which, therewith, is the sole requirement for defining a quantity center.
- 5.
Here, only the directions and the characteristics (desired or undesired) of the flows are determined. The quantification of flows follows in the second step.
- 6.
For the intended analysis, the mass of materials can be presumed as constant. So, the inputs, outputs, and changes in stocks of the quantity centers can be listed in form of a material balance.
- 7.
For reasons of simplification the quantity center structure can also be derived from that of the cost centers. But, it has to be ensured that every quantity center is attributed to only one superior cost center, if the quantity center structure is more differentiated than that of the cost centers. In case of the cost center structure is more detailed in some areas, subordinate cost centers must be attributed to the superior quantity centers correspondingly.
- 8.
In this regard, it has to be noted again that the model records the material quantities flown within a defined time period. Since in Fig. 4 the product flow is the only flow leaving the loop, all occurred system costs are finally assigned to it.
- 9.
In case the material loss is not fully recycled and there is an undesired material output flow leaving the loop, the criticism still concerns the share of loop costs assigned to the raw material substitute flow.
- 10.
The value includes 50 € of the production process’ system costs (assigned to the material loss flow) and the system costs of the recycling process, 50 € as well. The flow of the raw material substitute is valued by its material costs only.
- 11.
For example, Volkswagen recently communicated its strategy for decreasing production’s CO2 emissions including the concrete goal of reducing the energy demand by 25 % until 2018 (Viehmann 2012).
- 12.
In the strict sense, the approach is enhanced to a material and energy flow cost accounting. For reasons of simplification, the name material flow cost accounting (MFCA) is still used in the following.
- 13.
For quantifying the energy content of ‘material based’ energy carriers, such as gas or coal, the specific heating value can be used.
- 14.
Alternatively, ITO-models of the underlying technical processes and, if needed, of sub processes can be used for the analysis. For reasons of simplification, in the following, quantity centers and processes are considered as equal.
- 15.
For details about the methods of investment appraisal mentioned in this chapter see e.g., Götze et al. (2008).
- 16.
For a detailed description of LCC’s methodology see e.g., Horngren et al. (2012).
- 17.
For instance, future techniques of recycling (end-of-life phase) may be unknown today.
- 18.
An overview of the methodology is given by ISO (2006).
- 19.
Recent approaches like the carbon footprint and the carbon accounting (see e.g., Bowen and Wittneben 2011) refer to this indicator only and can be considered as simplified or carbon specific LCA approaches.
- 20.
It has to be noted, that at least some Japanese companies successfully utilize MFCA as a technique of daily operational management and benefit from this practice (Nakajima 2010).
- 21.
The high consistency arises in particular from the uses of in- and output balances for every quantity center (see Sect. 2.2).
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Acknowledgments
The authors like to thank the European Union (European Regional Development Fund) and Germany’s Free State of Saxony for funding the Cluster of Excellence ‘Energy-Efficient Product and Process Innovation in Production Engineering’ (eniPROD®) as well as the Deutsche Forschungsgemeinschaft (DFG) for funding this work within the Collaboration Research Centre ‘SFB 692’.
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Sygulla, R., Götze, U., Bierer, A. (2014). Material Flow Cost Accounting: A Tool for Designing Economically and Ecologically Sustainable Production Processes. In: Henriques, E., Pecas, P., Silva, A. (eds) Technology and Manufacturing Process Selection. Springer Series in Advanced Manufacturing. Springer, London. https://doi.org/10.1007/978-1-4471-5544-7_6
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