Using

Material Flow Cost Accounting

for
Resource Efficiency Assessment
Michael Hauke

Member of iPoint Group www.ipoint-systems.com

Corporate development
Stands for...
Institute for Environmental IT Hamburg
Founded : 1992

Location: Hamburg, about 25 employees

Software for material flow visualization and analysis

• Standard software: e!Sankey and umberto
• Customizing: specialized applications and interfaces

Sustainability consulting
• Consulting on Carbon Footprinting, Life Cycle Assessment, and
Resource Efficiency
• Sustainability workshops, methodological training
The basic principle

Energy Energy

Material Material

Little transparency

client client
benefit benefit

Losses Losses

Increased system transparency leads to increased energy and material

efficiency.
Our portfolio
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 consulting services
MFCA view on costs of material losses

Waste management costs

Material costs
Logistic costs
Hidden Costs
Production costs
(often 7 times as
Labour costs
high as waste
Investment costs
management
Energy costs
costs)
System costs

MFCA: All costs are also allocated towards losses in the system
based on the physical relations (DIN EN ISO 14051)
MFCA view on costs of material losses

Source: DIN EN ISO 14051

MFCA: All costs are also allocated towards losses in the system
based on the physical relations (DIN EN ISO 14051)
 Material Flow Cost Accounting (MFCA; ISO14051)

Material and
Energy Flows

Traditional
Cost
Accounting

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 from

cotton and fabrics thereof

Complex material and energy

flow model to inventory the
production and identify causes
of costs

Holistic information on entire

production 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
MFCA example: textile company combed yarn is waste sold
for 38,038 € ➔ loss 31,152 €

Value of purchased
material and energy
used embodied in
combed yarn waste
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!

 P50:
Unterdeckung #ZP4#
P2:
Zukauf #ZP4#

50000.00 t
104397.59 t 85000.00 t
T1:Reaktor T2:Destillation T3:#P5#-Synthese
31319.28 t

P1:Rohstoffe
P5 P7 P38

T9:#P2#-Anlage
73078.31 t
6800.00 t 4000.00 t

8351.81 t P47:#P2# Nünchritz

P4 T10 P14
0.00 t
P12:Verkauf #ZP4#
P51:Überschuss #ZP4#

P24 0.00 t

T16:#ZP4#-Anlage 3551.81 t
2800.00 t 2000.00 t

500.00 t

P40

P17:#ZP3#-Folgeprodukte
P15 T12 P16
T11:#ZP3#-Anlage

T13:Umwandlung
1481.93 t 987.95 t

P3 P18

P19 987.95 t 1000.00 t P32:#P1# chem. Veredelung

3200.00 t
P26
P29:#R2#-Zukauf T4:#P1#-Anlage
T21 P54:Transport #R2# nach BGH 5251.81 t
P31 10439.76 t 5230.34 t
0.00 t P30:#P1#
T17 P33

2008.10 t

P43

73351.01 t
P49
T7:#R3#-Destillation
5200.00 t
P28:#R4#
77211.59 t 10743.58 t
P6 P37 5415.00 t
T6:#R2#-Synthese
9858.69 t 2600.00 t
P42:Verlust P8

P25 P41 P27

T5:#P6#-Anlage
T20:#ZP5#-Destillation 2009.12 t
12022.79 t P45 6000.00 t
P34:#R1# P35:#P6# und #P7#
7213.68 t
P39 P36 T22 P44
4207.98 t T18:#ZP5#-Synthese

P48: aus BGH

silicon

elastomers
fluids
methanol
silanes
resins
HCl emulsions
pyrogenic silicas
Identify your improvement potentials
Thank you very much for your attention!
Michael Hauke | Resource efficiency, LCA

+49 (0)40 48 0009 – 53

DEIN
Any questions concerning the m.hauke@ifu.com BILD
implementation of MFCA? ifu Hamburg GmbH
Max-Brauer-Allee 50
22765 Hamburg

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