"Material flow cost accounting", a new method of environmental management accounting, has been gaining attention. In the flow of materials from in raw materials to the finished product, the method calculates the amount of useless waste by-products of each manufacturing process. On a material process flowchart the method identifies which processes cause losses, leading to improvements.

The Institut fur Management und Umwelt (IMU) (Institute of Management and Environment) in Germany first developed this accounting system. The Japanese Ministry of Economy, Trade and Industry commissioned the Japan Environmental Management Association for Industry to investigate this methodology. Nitto Denko Corporation, Takiron Co., Ltd, Tanabe Seiyaku Co., Ltd, Canon Inc. and other companies have already introduced the method on a trial basis.



Posted: 2002/08/25 07:10:19 AM
Japanese version

TAG Government , Manufacturing industry , Material reduction , Non-manufacturing industry