Sekisui Cuts Waste and Costs Using Material Flow Cost Accounting

Sekisui Chemical Co., Ltd., a Japanese company that manufactures plastics, urban infrastructure products and houses, has effectively reduced waste and costs by using Material Flow Cost Accounting (MFCA). Since the introduction of MFCA in fiscal 2004, Sekisui has promoted it on 106 products and processes in 35 business offices. As a result, waste generation in these offices has decreased by 11 percent overall and nine percent per unit, and cost losses associated with energy and raw materials decreased by 15 percent from fiscal 2005 levels.

MFCA is a comprehensive method of cost counting and analysis that evaluates not only raw materials and resources to the finished products, but also useless waste by-products and energy losses in manufacturing.

The company has used MFCA as a means to reduce losses in manufacturing processes. It aims to reduce generation of waste by 50 percent from fiscal 2004 levels by fiscal 2010, which is equivalent to a one-third reduction from fiscal 1998 levels.

- Sekisui Chemical Co., Ltd. official website
http://www.sekisuichemical.com/
- Material Flow Cost Accounting (Related JFS article)
http://www.japanfs.org/en/pages/025035.html
- Sekisui Chemical Achieves Record with Home Photovoltaic Installations (Related JFS article)
http://www.japanfs.org/en/pages/026771.html

Posted: 2008/11/29 06:54:15 AM

TAG Manufacturing industry , System/Law