The ISO 14051 standard outlines the generic implementation steps for MFCA application. MFCA can be implementing in any type of organization in any industry and is not limited to companies using environmental management system ISO 14001. The following seven implementation steps were developed based on the PDCA continual improvement cycle.
1. MFCA Team Planning:
- Top management shall be briefed and understand the MFCA approach and expected outcome. The roles and responsibilities of top management shall be defined and a working committee shall be appointed to implement the MFCA project.
2. Material Flow Planning:
- The MFCA committee shall determine the applicable product and boundary and create the material flow model that identifies the positive and negative product for each step of the process.
3. Data Collection:
- During the data collecting process the concept of mass balance shall be applied within each quantity centre. Prior to the initial data collection, the physical units for each material shall be defined.
4. Cost Calculation:
- The material flow matrix template in Excel shall be used for cost calculation, where the user is required to input energy, system, material, and waste management costs.
5.Material Flow Cost Matrix:
- The material flow cost matrix shows positive product and negative product at a glance. It is use as a communications tool for:
- Management, to support for decision making.
- Employees, to help reduce the negative product percentage
6. Improvement Opportunities:
- Conduct loss analysis to identify negative product cost by breaking down the types of negative product and each quantity center. Subsequent improvement activities such as QCC, Kaizen, or 6 Sigma shall be indicated on the loss analysis results.
7. MFCA Improvement Impact:
- The final step is integrating MFCA into the organization’s existing management system such as ISO 9001 and ISO 14001 to ensure sustainable improvement in cost reduction, environmental performance, or even as part of CSR activities.