Instruments of Operational Controlling and Management: MFA & MFCA Flashcards
(12 cards)
What is MFM?
Material flow management refers to analysis and optimization of material and energy flows in manufacturing processes. Can focus on different levels (system boundaries can be defined as one of these based on the scope and goal of a study): company internal processes, entire company, supplier relations along a value chain, entire value chain, region and nation.
What is MFA?
Material flow analysis is the implementation-oriented advancement of MFM. It is a tool for investigating flows and stocks.
What are the objectives of MFA?
- delineate a system of material flows and stocks;
- reduce the complexity of the system;
- assess the relevant flows and stocks in quantitative terms;
- present results about flows and stocks of a system;
- use the results as a basis for managing resources, the environment, and wastes
What is the first law of thermodynamics (conservation of energy)?
Energy can be transformed from one form to another, but can be neither created nor destroyed.
What is the black box in MFA?
In Material Flow Analysis (MFA), the “black box” refers to the object of analysis and the spatial boundaries of the balance. This means it is the defined system or process that you are studying. Inputs undergo transportation and transformation processes within it, and outputs leave it.
What are the sources of information for MFA?
–cost accounting
–purchase
–accounting
–asset management
–responsible employees (e.g. special officers)
–measurements, calculations, observation
What are the 2 process types in the context of MFA?
Dynamic process - Δ𝑆𝑡𝑜𝑟𝑎𝑔𝑒≠0
Steady state process - Δ𝑆𝑡𝑜𝑟𝑎𝑔𝑒=0
What are the forms of representation of MFA?
-Input output table
-Linking inputs, outpits and processes (table, flow chart combo; software for MFA)
-Sankey-diagram (visualizes, width of flows proportional to values)
What is MFCA?
A tool for quantifying the flows and stocks of materials in processes or production lines in both
physical and monetary units
What are the cost categories in MFCA methodology?
–Material costs
–System costs (material handling , labour , transport , …)
–Waste management costs
–Energy costs
Why is MFCA is important for organizations?
–Material flows are considered as cost drivers
–Organizations are unaware of lost material & energy costs
–Provides information on cost saving potentials regarding a more efficient use of
material and energy
What are some challenges and benefits of MFCA?
Challenges:
Data collection is difficult;
High initial investment;
Resistance to change;
Benefits:
Cost Reduction and Profitability
Resource Efficiency and Waste
Reduction
Improved Decision-Making and
Process Optimization
