Using

Material Flow Cost Accountingfor

Resource Efficiency AssessmentMichael Hauke

Member of iPoint Group www.ipoint-systems.com

Stands for...

Institute for Environmental IT Hamburg

Founded : 1992

Software for material flow visualization and analysis

• Standard software: e!Sankey and umberto

• Customizing: specialized applications and interfaces

Location: Hamburg, about 25 employees

Sustainability consulting

• Consulting on Carbon Footprinting, Life Cycle Assessment, and

Resource Efficiency

• Sustainability workshops, methodological training

Corporate development

The basic principle

Increased system transparency leads to increased energy and material

efficiency.

Little transparency

Energy

Losses

Material

client benefit

Energy

Losses

Material

client benefit

Sankey diagram creation

✔ Visualize material and energy

flows

✔ Create convincing Sankey

diagrams

✔ Used for presentations and

reports

Material flow

management and material flow analysis

✔ Increase material and energy

efficiency

✔ Calculate carbon footprints

✔ Conduct life cycle assessments

(LCAs)

✔ Analyze the eco-efficiency

Sustainability experts

through experience

✔ Competent partner for

sustainability management

✔ Sustainability workshops

✔ Consulting on carbon footprints,

LCAs, eco-efficiency analyses,

and energy and resource

efficiency

Our portfolio

Our consulting services

Waste management costs

Material costsLogistic costs

Production costs

Labour costs

Investment costsEnergy costs

System costs

Hidden Costs(often 7 times ashigh as waste

management

costs)

MFCA: All costs are also allocated towards losses in the systembased on the physical relations (DIN EN ISO 14051)

MFCA view on costs of material losses

MFCA: All costs are also allocated towards losses in the systembased on the physical relations (DIN EN ISO 14051)

MFCA view on costs of material losses

Source: DIN EN ISO 14051

Material Flow Cost Accounting (MFCA; ISO14051)

Material and

Energy Flows

Traditional

CostAccounting

MFCA

Calculation of the hidden costs of material losses

MFCA in multi-process systems

• MFCA is usually applied to multi-process systems on-site, but can be applied to supply chains and life cycle models, too

• Efficiency increase in a downstream process causes huge financial savings and environmental improvements upstream

Figure: Wastage- and product-related flows in a life cycle model (Source: Viere)

Case study: textile company

Company produces yarn fromcotton and fabrics thereof

Complex material and energy flow model to inventory the

production and identify causes of costs

Holistic information on entireproduction process based on

consistent data.

MFCA example: textile company – combed yarn waste sold • Goal: Identification of all waste-related cost → inefficiency costs

MFCA example: textile company – combed yarn waste sold

The yarn waste from combing, is purchased with the cotton

expenses of combed

yarn waste

Value of purchasedmaterial and energy

used embodied in

combed yarn waste

MFCA example: textile company combed yarn is waste sold

for 38,038 € ➔ loss 31,152 €

Additional benefits through holistic approach

• Efficient motors can reduce energy consumption for

spinning

• Amortisation > 5 years does not justify investment

• Additional reduction in air

conditioning, through reduced

off heat from motors• Net amortisation < 2 years

• Resource efficiency improved!

P1:Rohstoffe

T1:Reaktor T2:Destillation T3:#P5#-Synthese

T4:#P1#-Anlage

T5:#P6#-Anlage

T6:#R2#-Synthese

T7:#R3#-Destillation

P4

P5

P6

P7

P8

31319.28 t

73078.31 tT9:#P2#-Anlage

P12:Verkauf #ZP4#

T10 P14

P15T11:#ZP3#-Anlage

T12 P16

P17:#ZP3#-Folgeprodukte

T13:Umwandlung

P18

T16:#ZP4#-Anlage

P24

P28:#R4#

P29:#R2#-Zukauf

P30:#P1#

P31

P32:#P1# chem. Veredelung

T17 P33

P34:#R1#

T18:#ZP5#-Synthese

P35:#P6# und #P7#

P36

P37

P38

P40

P19

P3

T20:#ZP5#-Destillation

P39

85000.00 t

P41

7213.68 t

2008.10 t

12022.79 t

9858.69 t

5200.00 t

5415.00 t

5230.34 t

5251.81 t

6000.00 t

P42:Verlust

104397.59 t

1481.93 t 987.95 t

987.95 t

T21

P43

77211.59 t 10743.58 t

4207.98 t

500.00 t

3551.81 t

0.00 t

2000.00 t

P25

2800.00 t

P263200.00 t

10439.76 t

1000.00 t

P27

2600.00 t

6800.00 t

T22 P44

P45

P47:#P2# Nünchritz

0.00 t

P48: aus BGH

8351.81 t

4000.00 t

0.00 t

P2:

Zukauf #ZP4#

P49

P50:

Unterdeckung #ZP4#

P51:Überschuss #ZP4#

P54:Transport #R2# nach BGH

2009.12 t

73351.01 t

50000.00 t

silicon

methanol

HCl

elastomers

fluids

silanes

resins

emulsions

pyrogenic silicas

Identify your improvement potentials

DEIN

BILD

Thank you very much for your attention!

Michael Hauke | Resource efficiency, LCA

+49 (0)40 48 0009 – 53m.hauke@ifu.com

ifu Hamburg GmbHMax-Brauer-Allee 5022765 Hamburg

Any questions concerning theimplementation of MFCA?

Please Contact us!

... also if you are interested in ourproducts and services!