Material flow cost accounting needs to collaborate with data science to establish sustainable management

Abstract

Material Flow Cost Accounting (MFCA) is a Environmental Management Accounting tool, targeting simultaneously to increasing profit and at the same time reduce environmental impacts. In 2011, the fundamental framework of MFCA was published by the International Organization for Standardization (ISO) within the 14000ff family on Environmental Management [3]. The MFCA analysis shows material loss in production processes by using the instrument of mass balances. Material loss means the loss of input materials that do not end up in good product as output from production process. Usually material loss is qualified as waste and/or emission to be treated in waste management. By reducing material loss a company is able to also reduce the volume of input materials per a unit of product and reduce manufacturing product costs. In order to reduce material loss the improvement or the innovation of a company's production system will be required. When the company targets such improvements or innovations, the company needs an adequate data base for efficient decision making. In the present MFCA projects, the improvement or change of the manufacturing system mostly is based on practical experiences and knowledge of managers and workers. For a sound improvement of material efficiency in production processes a profound data base and data analysis of MFCA data is necessary. This paper explains why MFCA needs computer science and engineering to establish sustainable management in practice.