Using Material Flow Cost Accounting (Mfca) to Identify Benefits of Eco-Efficiency and Cleaner Production in a Paper and Pulp Manufacturing Organization (original) (raw)
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World Academy of Science, Engineering and Technology, International Journal of Social, Behavioral, Educational, Economic, Business and Industrial Engineering, 2015
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Jurnal Apresiasi Ekonomi
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Green Concepts and Material Flow Cost Accounting Application for Company Sustainability
Health equipment and furniture become a complementary factor for good health services to the communities. Management of health equipment and furniture is started by manufacturers within the industry scope and sustainable business processes. This study aimed to apply green concepts and MFCA at PT XYZ, and to analyze their effects on the dimensions of the company sustainability. To measure the effects of green concepts and MFCA on the dimensions of corporate sustainability, a multiple regression analysis was used. The analysis showed that they gave significant effects from the results of the F test, t test and probability test. From these results, a number of suggestions for improvement of production process performance as managerial implications for maintaining the stability of the company sustainability index were formulated. Keywords: efficiency and effectiveness of production cost, green concepts, the company sustainability, material flow cost accounting
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The purpose of this study is to determine the effects of green accounting and Material Flow Cost Accounting (MFCA) on environmental performance as indicated by PROPER rating. This study is conducted on cement manufacturing companies in Indonesia by using a descriptive quantitative research model tested on three variables: green accounting, MFCA, and environmental performance. The green accounting aspect is taken from the extent of Global Reporting Initiative (GRI) disclosure and MFCA is focused on the effectiveness of costs. The MFCA dimensions are production costs, size of production area, and production value. Environmental performance aspect is measured by the PROPER rating issued by the Ministry of Environment and Forestry. The study is conducted in several stages. First, a literature review of previous research related to green accounting, MFCA, and environmental performance is performed. Next, the research problems are formulated. After that, the data from the companies are collected and analyzed by using SmartPLS. Finally, it is concluded that green accounting affects environmental performance, whereas MFCA has no effect on environmental performance.
Sustainability
The pursuit of sustainable resource use by manufacturing companies is driven by resource scarcity, environmental awareness, and cost savings potentials. To address these issues, Material Flow Cost Accounting (MFCA) has been developed and applied as an effective environmental management tool. Within MFCA's general allocation, the accounts of products and losses are overrated by weight or volume. However, such a method is incompatible with Printed Circuit Board (PCB) manufacturing because of industry characteristics in which primary inputs and products are measured by area. Based on MFCA, this case study systematically established several linear cost calculation models along the production process for capturing the actual waste flows as well as performing cost-benefit analysis. The recognition of previously ignored losses offered the incentive to find appropriate indicators to conduct cost-benefit analysis on hotspots for losses. Loss identification and analysis indicated that machining and wiring are the necessities and priorities of process optimization for resource efficiency improvement measures. Therefore, this research could not only advance the achievement of a profitable and sustainable production while improving resource efficiency at the source but could also provide support for decision making in PCB manufacturing.
Journal of Cleaner Production, 2006
An Environmental Management Accounting (EMA) framework is applied to the 2000 year-end financial report for the Mackenzie Paper Division paper mill owned and operated by Abitibi-Consolidated Inc. of Montreal, Quebec. A conventional reading of the obvious environmental costs from this financial report is Cdn$2,196,838. This figure is derived from an analysis of effluent treatment costs and other line item environmental costs. There is no “environmental account” category that breaks out either costs or the mass balance of inputs and outputs. For the most part, environmental costs are rolled up into overhead accounts such as administration, infrastructure and materials accounts. Application of the EMA framework is based on assigning environmental costs to one of four categories for which a tentative breakdown is as follows: (1) waste and emission treatment costs ($3,348,902); (2) prevention and environmental management costs ($270,109); (3) material purchase value of non-product output costs ($946,799); and (4) processing costs of non-product output ($2 92,943). There is also a category called Environmental Revenues, of which none were reported. Conservative estimates thus place the total environmental costs at $4,858,753. What is significant about this result is that the environmental costs under EMA are at least twice as much as would normally be reported. This supports the view that environmental costs are much higher than generally considered and makes it clear that many important environmental costs as well as benefits are “hidden” in other accounts. More studies of a similar design are required to confirm the validity of the EMA methodology reported here. Keywords Environmental Management Accounting; Environmental costs; Environmental benefits; Hidden costs; Cleaner production; Waste and emission treatment; Pollution prevention and environmental management; Material purchase value of non-product output; Processing costs of non-product output