Ok, there are plenty of information, approaches and devices that help you measure and quantify your emissions (i.e., energy consumption) and material use (e.g., water consumption). But there are not so much when it comes to an effective approach that “HELPS YOU ACTUALLY REDUCES” EMISSIONS.
Today, I would like to talk about one of the effective approaches called Material Flow Cost Accounting. At this time, I would like to talk about a basic concept behind Material Flow Cost Accounting and how you can use this on site. Material Flow Cost Accounting is generally abbreviated to be MFCA.
MFCA is simple in that they have three simple steps, that says everything you can do through MFCA:
1. MFCA’s main focus is emission from your process (e.g, carbon dioxide emissions, physical waste, waste heat)
2. Profit is hidden in these emissions “identified” in your process
3. MFCA finds out a chance to gain these hidden profit
Generally, people do not care about the “cost” of wastes generated but do care about cost to make “products” because “products” are a source for profit (of course!). But MFCA suggests that you should handle both products and wastes in same way; both are products generated from a given process.
In other words, both carry same costs that includes cost for materials and energy used (to make both products), labor devoted to making these products and machine-related cost (depreciation cost (if we use “big” word)).
What will happen if you follow what MFCA suggests?
Please see the following:
As you can see, following MFCA, you can find out how much you spent on making waste (loss). As name of MFCA (Material Flow Cost Accounting) suggests, we first pay attention to material; we pay attention to how much flows to product and how much flows to waste in terms of weight (in this case, 7kg for product and 3kg for waste). This proportion tells you how much you spent on “making” waste. This is reasonable way of thinking, isn’t this? But this cost for waste can not be unfortunately spotlighted by usual way of cost calculation; this is a basics of MFCA.
So how can MFCA lead to carbon emissions and reduction!? Hold your horses, I will post more later.
We provide tailor-made, practical MFCA consulting service. If you are interested in any further detailed information and/or practical consulting support. Please feel free to e-mail us anytime at “firstname.lastname@example.org” .