Material Flow Cost Accounting (MFCA)
・A system to measure the flows and stocks of materials in the manufacturing process (raw materials and energies), in terms of physical and monetary units →Identifies accurate costs of wastes and emissions
・The prototype of MFCA was developed in Germany. Japanese versions of MFCA are modified for increased facility of use, by segmenting materials into raw materials and energy sources, as well as measuring them by process for easier improvement plans. The Ministry of Economy, Trade and Industry initiated MFCA-related measures in FY1999, followed by a series of model projects. The ministry has bolstered the promotion measures since FY 2006.
・MFCA focuses on environmental aspects, aiming at substantial cost reduction. Materials generating the output of wastes and emissions should not be imput.
・MFCA pursues reduction and dramatic improvement in productivity through innovations of production process.