Material Flow Cost Accounting

(MFCA)
Kelompok 6

Ages (30) Shania (36)

Nindita (31) Sheiren (37)
Rizka (34) Yohanes (45)
Tujuan
 Mengapa menggunakan MFCA?

Cost Reduction Tool

Higher Material Management Tool

Higher Energ Management Tool

Enhancing Corporate Value Brand

Material Costs relatif sama di industri apapun,

sedangkan biaya lain (biaya karyawan) bervariasi
 Concept of MFCA
Dengan MFCA dapat memproduksi apel yang lebih besar dengan kulit yang lebih tipis

What are you producing?

Apple? orApple skin?
MFCA Konsep

Dengan MFCA kita dapat “memproduksi” keduanya

Apel? Atau kulit Apel?
Apa yang diproduksi?
MFCA lets us consider “producing” both.
MFCA potential y enables you to gain bigger apple
with thinner skin.
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http://www.acornadvisors.com/Kitchen%20Newslet ers/2007-09-20_Apples/Peeling_Apple.jpg
APA ITU MFCA? – TIGA DAMPAK
 APAWhat
ITU is MFCA?
MFCA?
Material Flow Cost Accounting

Material Flow Cost Accounting 

Material
Product

Material 
Product
loss
Material 
loss

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 ROLE
RoleOF MFCA
of MFCA

ISO 
14051
MFCA

Economic 
Environment
al aspects
and quality 
aspects

MFCA fulfills gaps between economic/quality aspects and

environmental aspects.
 MFCA and environmental performance
MFCA and Environmental Performances

High
Reduce

Focus of MFCA Reuse

8

Process efficiency
&
Environmental
Recycle performance

Thermal recycle/waste management

 MFCA and
productivity
management
 International trend of MFCA

▹ “
MFCA became international standard
in September 2011 (ISO 14051).
Increased employment of the
approach is expected.
▹ MFCA now became global standard.
Now, everyone can implement
anywhere.
▹ Further dissemination of MFCA is
expected.
▹ Many industries (e.g., Malaysia,
Vietnam, Thailand) start to apply
MFCA and gain significant
environmental and11 cost reduction.
 Structure of ISO 14051
Items Contents
Title Environmental management — Material flow cost accounting —
General framework
Content 1. Scope
2. Terms and definitions 12

3. Objectives and principles of MFCA

4. Fundamental elements of MFCA
5. Implementation steps of MFCA
Annex A Difference between MFCA and conventional cost
accounting
Annex B Cost calculation and allocation in MFCA
Annex C Case example of MFCA
 Scope
• ISO 14051 provides:
– general framework

• ISO 14051 (MFCA) can be: 13

– widely applied regardless of their products, size, etc.

– extended to supply chain

• ISO 14051 is:

– not intended for the purpose of third party certification
 Terms and definitions
G Term Definition
Terms quoted from From IFAC document: Environmental
otherCONCEP management accounting
standard/source From ISO 14040: 2006:process, product, and waste
T 14

TermsBring
definedthe
in attention
Cost accounting, cost allocation, energy cost,
ISO 14051
of your audience energy loss, environmental management
over a key conceptaccounting, input, inventory, material, material
using icons orbalance, material distribution percentage, material
illustrations cost, material flow, material flow cost accounting,
material loss, output, quantity centre, system cost,
waste management cost
 and Principle
ObjectiveEXTRA GRAPHICSof MFCA
Objective of MFCA is:
to motivate and support organizations’ efforts
to enhance both environmental and financial performance through
improved material and energy use practices
Financial
Objective of MFCA is accomplished by: performance

• increasing the transparency; Environmental

performance
• supporting organizational decisions in realms; and
• improving coordination and communication on material and energy
use practices.

15
 ISO 14051

Principles of MFCA
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Principles of MFCA
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Presentation that is beautifully
designed. Easy to change colors,
photos and Text. You can simply
impress your audience and add a
unique zing and appeal to your
Presentations. Get a modern
PowerPoint PresentationEnsure
that is
accuracy,
beautifully designed. Easy to change
Understand colors, photos and Text. You can
Link physical
simply completeness
impress your audience and add Estimate and
material flow
monetary
andPresentations. and
a unique zing and appeal to your
assign costs to
and energy Easy to change colors,
data photos and Text.comparability material loss
use
of physical
data

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 Simple Portfolio
Designed
Fundamental
elements of MFCA
Get a modern PowerPoint
Presentation that is beautifully
designed. Easy to change colors,
photos and Text. You can simply
impress your audience and add a
unique zing and appeal to your
Presentations. Get a modern Material
Quantity Material Cost
PowerPoint Presentation that is
flow
centre balance calculation
beautifully designed. Easy to change
colors, photos and Text. You can
simply impress your audience and add
model
a unique zing and appeal to your
Presentations. Easy to change colors,
Set measurement point Check balance Set up a model
photos and Text. Calculate cost
between that links
Products and loss multiple quantity
(material loss) centres

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Simple Portfolio
Designed
Get a modern PowerPoint
Presentation that is beautifully
designed. Easy to change colors,
photos and Text. You can simply
impress your audience and add a
unique zing and appeal to your
Presentations. Get a modern
PowerPoint Presentation that is
beautifully designed. Easy to change
colors, photos and Text. You can
simply impress your audience and add
a unique zing and appeal to your
Presentations. Easy to change colors,
photos and Text.
 Simple Portfolio
Designed
Get a modern PowerPoint
Presentation that is beautifully
designed. Easy to change colors,
photos and Text. You can simply
impress your audience and add a
unique zing and appeal to your
Presentations. Get a modern
PowerPoint Presentation that is
beautifully designed. Easy to change
colors, photos and Text. You can
simply impress your audience and add
a unique zing and appeal to your
Presentations. Easy to change colors,
photos and Text.

Reproduction of any information given on this page is strictly prohibited without written permission of the author.

Propharm Japan Co., Ltd. All Rights reserved. 12

Propharm Japan Co., Ltd. All Rights reserved.
 Simple Portfolio
Designed
Get a modern PowerPoint
Presentation that is beautifully
designed. Easy to change colors,
photos and Text. You can simply
impress your audience and add a
unique zing and appeal to your
Presentations. Get a modern
PowerPoint Presentation that is
beautifully designed. Easy to change
colors, photos and Text. You can
simply impress your audience and add
a unique zing and appeal to your
Presentations. Easy to change colors,
photos and Text.

Reproduction of any information given on this page is strictly prohibited without written permission of the author.

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Propharm Japan Co., Ltd. All Rights reserved.
Implementing steps of
MFCA in
manufacturing industry
 Firsty, it should be “aggresive support
Cara mengimplementasikan MFCA from
Top Management “ then follow by “bottom u
di organisasi
approach on site”
Untuk Bottom Up Top Down
mengimplementasikan
MFCA, harus ada
dukungan dari atas
(aggresive support from
Top management) lalu
diikuti oleh bagian bawah
(bottom up approach on
site)
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Bagaimana cara mengimplementasikannya
dalam Perusahaan

1. Membagikan pengetahuan ini kepada manajemen

puncak
2. Secara berkelanjutan meyakinkan manajemen puncak
untuk mengimplementasikan konsep MFCA ini
3. Membentuk team cross-functional yang memiliki
pemimpin yang agresif dan berpandangan ke depan
4. Melakukan uji coba dengan sumber daya yang minimal
untuk membuktikan manfaat
5. Untuk menamai projek ini dan
6. Membagikan pengetahuan ini dan mengedukasi MFCA
23
ini dengan anggota tim
Langkah Langkah mengimplementasikan
MFCA

PLAN ACT

1. Melibatkan manajemen 10. Mengidentifikasi dan menilai peluang

2. Penentuan perilaku yang sesuai improvement
3. Spesifikasi batasan
4. Pembentukan quantity centers

DO
CHECK
5. Identifikasi input dan output untuk
8. Komunikasi hasil dari MFCA
seluruh quantity center
9. Interpretasi dan merangkum data
6. Kuantifikasi aliran material dalam unit
MFCA
fisik
7. Kuantifikasi aliran material dalam unit
monetary
24
Langkah Langkah mengimplementasikan
MFCA

Pelibatan Manajemen meliputi

✢ Memimpin implementasi
✢ Menugaskan aturan dan tanggung jawab
✢ Menyediakan S.daya
✢ Mengawasi perkembangan (progress)
✢ Mereview hasil
✢ Memutuskan pengukuran improvement berdasarkan
hasil MFCA

25
Langkah Langkah mengimplementasikan
MFCA

Penentuan dari keahlian yang seharusnya

✢ Keahlian operasional
✢ Keahlian teknis dan mesin
✢ Keahlian Quality Control
✢ Keahlian lingkungan, dan
✢ Keahlian akuntansi dalam data dan praktik akuntansi biaya

26
Langkah Langkah mengimplementasikan
MFCA
Material Flow Model

27
Langkah Langkah mengimplementasikan
MFCA
Spesifikasi dari hambatan

MFCA Boundary

28
Langkah Langkah mengimplementasikan
MFCA
Spesifikasi dari hambatan

MFCA Boundary

QC A QC B QC C
(Process (Process
QC D
(Group of
(Inventory)
) ) Processes)

29
 Implementation stepssteps
mplementation of MFCA-7
of MFCA-7
entification of inputs and outputs for each quantity
centre
Identification inputs and outputs for each quantity center

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 Implementation steps of MFCA-8

• Quantification of the material flows in physical units

• Quantification of the material flows in monetary units
• Interpretation of MFCA results and
consideration/implementation of improvement measures
View of Production Processes in MFCA

Quantity Center
(A Production Process)
Input Materials Products
Production Process of
　 　 Product and Material loss (Output as Good products)

Mass Balance
& Product Costing
Material Loss
( Output as Wastes)　　　　　　　　　　　　
 Approach of MFCA
Case Study : Approach of MFCA
Electricity

Input Output Product

Material
Factory (70 ton)
(100 ton)
Printed material

Output

Material loss
Wastewater 30 ton

Waste Carbon emissions Emissions to air

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 Solving Analysis
Conventional management Point of MFCA evaluation

Processing cost: Electricity

$350,000
Input Output Input Output
Product: 70 ton Product 70 ton
Material Material cost: $650,000
Material Factory
QC-2
(100 ton) QC-1 Factory
QC-2 QC-3 Processing cost: 100 ton
$ 350.000
$650,000 --------------------------------
Total $ 1,000,000

Equivalent cost
evaluation
Material loss 30 ton

Material loss: 30 ton

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 Cost calculation based on MFCA-1

Energy cost: $50,000 System cost

Electricity: 10 kW $250,000

Input Output
Product: 70 ton
Material Material cost: $520,000
(100 ton) QC-1 Factory
QC-2 QC-3 System cost: $ 175.000
Energy cost: $ 35,000
$650,000 --------------------------------
Total $ 730,000

Material loss: 30 ton

Material cost : $130,000
System cost: $75,000
Energy cost： $15,000
Waste management cost：$50,000
------------------------------------------
Total $270,000
 Cost calculation based on MFCA-2

Energy cost: $50,000 System cost

Electricity: 10 kW $250,000

Input Output
Product: 70 ton
Material Material cost: $520,000
(100 ton) QC-1 Factory
QC-2 QC-3 System cost: $ 175.000
Energy cost: $ 35,000
$650,000 --------------------------------
Total $ 730,000

Key for improvement

Material loss: 30 ton
Material cost : $130,000
System cost: $75,000
Wastewater Energy cost： $15,000 Emissions to air
Waste management cost：$50,000
------------------------------------------
Total $270,000

Waste Carbon emissions

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Analisis Material Loss

Theoretical Loss

Normal Loss

Abnormal Loss
Benefit of MFCA

Manajemen yang
lebih berkualitas

Reputasi lebih baik

Pengurangan biaya
sebagai perusahaan
go green
 - Impact of MFCA-
lens-manufacturing process

Before After
Conventional lens material Near-shaping lens material

80% reduction of
shaved portion

Shaved portion Shaved portion

Source: Japanese Ministry of Economy, Trade and Industry (METI) (2011)

Material Flow Cost Accounting: MFCA Case Examples 2011, METI
 Impact of CMFA – proses molding

Dari penemuan MFCA, perkembangan aktivitas berikut telah diimplementasikan ke dalam proses:

Untuk menjadwal ulang rencana produksi untuk meminimalisasi

perubahan model produk dan selagi demikian, merevisi instruksi
kerja untuk proses pembersihan

Untuk mengurangi lead time pengantara dengan melokalisasi

pemesanan spare part dan perbaikan alat kepada pemasok lokal
dalam rangka mengurangi waktu produksi

Untuk mengenalkan proses tambahan atas pengecekan

kekuatan magnet untuk proses deteksi dini atas masalah
kualitas
 - Impact of MFCA-
printing process
• Reduction of sheet losses (test printing etc.: register and color
adjustments) through countermeasures implemented over a 5
year period from FY 2003:

Source: Japanese Ministry of Economy, Trade and Industry (METI) (2011)

Material Flow Cost Accounting: MFCA Case Examples 2011, METI
MFCA secara signifikan berkontribusi
Kesimpulan
terhadap performa berkelanjutan

MFCA menjadi standar internasional

(ISO 14150) dan sudah diterapkan ke
banyak negara

MFCA terbukti menghadirkan efisiensi

di perusahaan, melalui Kaizen dan
supply chain bagi perusahaan