Material loss in the production refers to non-productive or nonefficient
use of materials extracted from nature. MFCA is a tool that
can identify the cost of production in each sub-process as well as
categorize positive and negative products cost. For example, some
company that just applies MFCA found that its positive product is
70 percent whereas negative product can be up to 30 percent. If the
company can improve material efficiency or reduce their material
loss, their negative cost will reduce (meaning increase in profit).
This information can assist the decision making process of the top
management of the company on whether is it cost effective to
invest in reducing material loss and can help reduce negative
product cost