Material flow cost accounting

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The material flow cost accounting is a cost accounting approach to production management, to material and energy consumption to reduce by companies and enhance their environmental and cost-related performance.

Basics and goal

Material flow cost accounting was created at the end of the 1980s and was adopted as the ISO 14051 environmental management standard at the end of 2011 . It falls into the group of material and energy flow-oriented cost accounting approaches that are used when the operational material , ecological and cost efficiency is to be increased. Material flow cost accounting is about recording the material and energy flows. These physical quantities are then assessed in monetary terms. In this way, one can identify inefficiencies, thereby reducing resource consumption and improving environmental performance.

The aim of material flow cost accounting is to provide companies with an instrument so that they can reduce their material and energy consumption and increase their environmental and cost-related performance. This goal should go through

can be achieved.

Cost types

Four types of costs are recorded as part of material flow cost accounting:

material costs

Material costs should be calculated for each input that enters the quantity center and each output that leaves the quantity center. This can be based on historical acquisition costs , standard costs or replacement costs . The material costs are calculated by multiplying the physical units with the material unit costs. The change in material inventory must not be forgotten when calculating the output.

Energy costs

Energy costs should also be recorded for each quantity point; the calculation is again made by multiplying the energy consumption per quantity point by the costs per unit. If the energy costs cannot be determined, the total energy costs are allocated to the quantity centers by means of allocation.

System costs

System costs are costs incurred in handling material flows. These include B. Labor costs, depreciation, maintenance and transportation. This does not include material, energy and waste management costs. Here too, the system costs per quantity point should be recorded and recorded in monetary terms. If this is not possible, a cost allocation must be carried out with the total system costs.

Waste management costs

Waste management costs describe the effort that arises from dealing with material losses. They are always added to the material losses and not to the product. If the costs per quantity point are not available, the cost allocation is used again.

elements

The elements of a material flow cost accounting are:

  • Quantity point,
  • Material balance,
  • Cost accounting and
  • Material flow model

Quantity point

A quantity center consists of one part or several parts of a process. For this or these, the material and energy flows are first recorded in physical units in order to then be able to express the material, energy, system and waste management costs in monetary terms.

Material balance

A material balance should be created for each quantity point; this can be displayed graphically for assistance. The aim is to show which input goes into the quantity point, how high the inventory is before and after production, and which output is taken from the quantity point.

Cost accounting

In cost accounting, the physical units are converted into monetary costs. This means that the input results from the four types of costs, the initial and final material inventory is expressed in monetary terms and the output, which consists of product and material loss, also results from the four types of costs. However, the waste management costs of the output are only added to the material loss, not the product. If the output of one quantity point becomes the input of another quantity point, the costs for the output also result in the transfer price. If reconditioned materials are used as input, either the reconditioning costs (consisting of the four cost types without the acquisition costs for the material input, which became a material loss) or all costs associated with the reconditioned materials can be offset (consisting of the four cost types and the material acquisition costs for the material input that became the material loss).

As mentioned earlier, any cost per quantity point should be available. If this is not the case, cost allocation is used. In a first step, the total costs should be assigned to the various quantity centers and in a second step either the products or the material losses should be added.

Material flow model

The final and summarizing element of material flow cost accounting is the material flow model. This model graphically represents the entire material flow of material flow cost accounting and includes the input, the quantity places, the output and the material loss; connected by arrows showing the flow of products and losses.

implementation

The implementation of material flow cost accounting in the company is done with the help of ten points.

The individual steps are integrated into the PDCA cycle . PDCA stands for Plan (planning an improvement), Do (carrying out the planning), Check (reviewing the measures taken) and Act (constant implementation or adaptation) and is a cycle for constant improvement.

Table 1: Implementation process for material flow cost accounting

number PDCA content
1 plan Management participation
2 plan Determination of the necessary expertise
3 plan Determination of the system boundary
4th plan Establishment of quantity centers
5 do Determination of input and output for each quantity point
6th do Determination of the quantity of material flows in physical units
7th do Determination of the quantity of material flows in monetary units
8th Check Data summary and evaluation
9 Check Communication of the results
10 Act Determination and evaluation of improvement potential

Possible fields of application

Material flow cost accounting can be used in the following areas:

See also

literature

  • F. Brunner (Hrsg.), K. Wagner: Pocket book quality management. Guide to study and practice. 4th edition. Munich / Vienna 2008.
  • Environmental Industries Office, Environmental Policy Division, Industrial Science and Technology Policy and Environment Bureau, Ministry of Economy, Trade and Industry: Guide to Material Flow Cost Accounting. Ver. 1, Tokyo 2007. (PDF) ( Memento from September 27, 2011 in the Internet Archive )
  • K. Kokubu, M. Nakajima: Sustainable accounting initiatives in Japan: pilot projects of material flow cost accounting. In: J. Seiler-Hausmann, C. Liedtke, E. von Weizsäcker (eds.): Eco-efficiency and Beyond. Towards the sustainable enterprise. Sheffield 2004, ISBN 1-874719-60-8 , pp. 100-112.
  • Y. Moriguchi: Material Flow Accounting as a Tool for Industrial Ecology. In: EcoDesign 2001: 2nd International Symposium on Environmentally Conscious Design and Inverse Manufacturing. 2001, pp. 880-885.
  • OECD: Eco-Innovation in Industry. Enabling green growth. o. O. 2009. Free preview of the OECD
  • Austrian Standards Institute: Environmental Management - Material Flow Costing - General Framework (EN ISO 14051, draft). Vienna 2010.
  • Y. Onishi, K. Kokubu, M. Nakajima: Implementing Material Flow Cost Accounting in a Pharmaceutical Company. In: S. Schaltegger (Ed.): Environmental Management Accounting for Cleaner Production. (= Eco-Efficiency in Industry and Science. Volume 24). No. 2008, ISBN 978-1-4020-8912-1 , pp. 395-410.
  • The new DIN-EN-ISO 14051 material flow cost accounting. A sustainability product from the University of Augsburg goes around the world. ( Memento from December 6, 2011 in the Internet Archive ) University of Augsburg, 2011.
  • B. Wagner, M. Nakajima, M. Prox: Material flow cost accounting - the international career of a method to identify inefficiencies in production systems. In: Environmental Economic Forum. Volume 18, No. 3–4, 2010, pp. 197–202.

Web links

Individual evidence

  1. ↑ a b Wagner, Nakajima, Prox 2010, p. 197f.
  2. ↑ The new DIN-EN-ISO 14051 material flow cost accounting. A sustainability product from the University of Augsburg goes around the world. ( Memento from December 6, 2011 in the Internet Archive ) University of Augsburg, 2011.
  3. ↑ Austrian Standardization Institute 2010, p. 9.
  4. ↑ Austrian Standards Institute 2010, p. 16.
  5. ↑ a b c Austrian Standardization Institute 2010, p. 17.
  6. ↑ a b Austrian Standardization Institute 2010, p. 10.
  7. ^ Austrian Standardization Institute 2010, p. 11ff.
  8. ↑ Austrian Standards Institute 2010, p. 12.
  9. ↑ Austrian Standards Institute 2010, p. 13f.
  10. ↑ Brunner / Wagner 2008, p. 258.
  11. ↑ Austrian Standards Institute 2010, p. 14.
  12. ↑ Moriguchi 2001, pp. 881ff.