The Role of Material Flow Cost Accounting in Reducing Waste Losses: An Applied Study in the "Rasan Steel Factory" for the Manufacture of Steel Structures

Abstract

This study aims to show case the pivotal role of Material Flow Cost Accounting (MFCA) in mitigating waste within industrial companies. It delves into the concept of MFCA, elucidating its implementation steps, cost elements, and its critical role in waste loss identification. The primary objective is to empower industrial entities to confront competition, ensure longevity, attain success, and achieve excellence in evolving markets by curtailing waste and subsequently reducing costs – a decisive factor in securing competitive advantages.

To fulfil the study's objectives and validate its hypotheses, the researchers employed a practical approach, implementing the MFCA methodology using real data from the "Rasan Steel" plant, a steel structure manufacturing facility. Among the pivotal findings of this study is the emergence of MFCA as a contemporary approach for waste measurement and reduction. It aims to strike a balance between financial and non-financial information, providing insights into quantitative and material flow processes.

In conclusion, this study offers several recommendations, foremost of which is the necessity for industrial firms to prioritize environmental concerns. They should embrace MFCA to quantify and assess the costs associated with waste and wastage losses, and subsequently, make concerted efforts to minimize them. This strategic move will enable them to keep pace with the dynamic shifts in competitive markets and foster sustainable practices.