ISO14051-based Material Flow Cost Accounting system framework for collaborative green manufacturing

Abstract

Manufacturers and other businesses are under increasing pressure to improve productivity while reducing environmental impact. An environmental management accounting approach, called Material Flow Cost Accounting (MFCA), was developed in Germany in late 1990s and, since then, was adopted widely in Japan and other countries. MFCA is a management information system specializing in tracing all input materials flowing through production processes and measuring outputs in finished goods and wastes. To standardize MFCA practices, working group (WG) 8 of ISO technical committee ISO/TC 207 has developed and officially announced ISO 14051 framework in 2011. InnoLux Corporation (InnoLux) is one of global manufacturers which first introduced MFCA in LCD and optoelectronic industry. InnoLux adopted MFCA in four collaborative factories located in Nanhai area, Guangdong Province, P.R. China. This research has two main goals. First, we develop the framework of ISO14051-complied MFCA information system. Second, the case study is carried out to analyze and compare the performance before and after MFCA implementation in InnoLux's Nanhai factories for InnoLux's pursuit of collaborative green manufacturing.