"Material Flow Cost Accounting in an order-related Handicraft Business"
Material Flow Cost Accounting in an order-related Handicraft Business
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In literature, the method material flow cost accounting is appraised as powerful method in comparison to others in the environmental management tools. The main idea behind this promising tool is to make the real costs of waste visible and ensure the opportunity of material input reduction, followed by cost efficiency and reducing environmental
The purpose of MFCA is to support an increased transparency of material and energy use practices through the development of a material flow model that observes and quantifies the flows of materials within a corporation in physical units.
This method clearly seems to offer a variety of opportunities for companies and the environment at the same time. That for, the following master thesis is about to look at this promising method including the application of the method in a company. The aim of the master thesis is to prove the usefulness of the method itself by applying it to a pure handy craft business.
Out of this several findings and challenges has been identified such identifying measurable valid data and adding a quite theoretical method in practice. Still by taking the needed time and effort this master thesis prove the advantages of implementing material flow cost accounting in production processes to improve the material flow and reduce real costs of waste.
In the first step, material flow cost accounting will be reviewed by using existing literature, which is followed by applying the method in practice. In this context, a case study was conducted in an order-related handicraft business to test the advantage and disadvantages of the introduced method.