Application of MFCA and ECRS in waste reduction: A case study of electronic parts factory

© IEOM Society International. The objective of this study is to apply Material Flow Cost Accounting (MFCA) and ECRS techniques to reduce material waste in the production of one electronic parts factory in Thailand. The seven steps of MFCA implementation were adopted to locate the source of negative...

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Main Authors: Kasemset C., Boonmee C., Khuntaporn P.
Format: Conference Proceeding
Published: 2017
Online Access:https://www.scopus.com/inward/record.uri?partnerID=HzOxMe3b&scp=85018405176&origin=inward
http://cmuir.cmu.ac.th/jspui/handle/6653943832/42504
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Institution: Chiang Mai University
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spelling th-cmuir.6653943832-425042017-09-28T04:27:26Z Application of MFCA and ECRS in waste reduction: A case study of electronic parts factory Kasemset C. Boonmee C. Khuntaporn P. © IEOM Society International. The objective of this study is to apply Material Flow Cost Accounting (MFCA) and ECRS techniques to reduce material waste in the production of one electronic parts factory in Thailand. The seven steps of MFCA implementation were adopted to locate the source of negative product cost. From MFCA analysis, the negative product cost of material cost (MC) was the biggest amount comparing with other costs. Pareto chart was used to identify the major cause of the problem. Consequently, it was found that at the first process of trigger coil (target product) production line as frame cutting and injection had the highest negative cost of MC. Then, it was found that material waste in form of frame scrap generated at this process was from the inappropriate working method. Thus, the solution was proposed to design a new jig for the cutting operation. The results from MFCA analysis for the improvement showed that the total input cost was decreased from 22,444.46 to 22,300.92 THB and the negative product cost of MC was decreased from 2,557.10 to 2,437.21 THB. In addition, this solution can help in material reduction as 465.50 g. and gained more product as 2,000 pieces per production lot. Moreover, the total benefit for this product was approximately as 23,611.24 THB per month. © IEOM Society International. 2017-09-28T04:27:26Z 2017-09-28T04:27:26Z 2016-01-01 Conference Proceeding 2-s2.0-85018405176 https://www.scopus.com/inward/record.uri?partnerID=HzOxMe3b&scp=85018405176&origin=inward http://cmuir.cmu.ac.th/jspui/handle/6653943832/42504
institution Chiang Mai University
building Chiang Mai University Library
country Thailand
collection CMU Intellectual Repository
description © IEOM Society International. The objective of this study is to apply Material Flow Cost Accounting (MFCA) and ECRS techniques to reduce material waste in the production of one electronic parts factory in Thailand. The seven steps of MFCA implementation were adopted to locate the source of negative product cost. From MFCA analysis, the negative product cost of material cost (MC) was the biggest amount comparing with other costs. Pareto chart was used to identify the major cause of the problem. Consequently, it was found that at the first process of trigger coil (target product) production line as frame cutting and injection had the highest negative cost of MC. Then, it was found that material waste in form of frame scrap generated at this process was from the inappropriate working method. Thus, the solution was proposed to design a new jig for the cutting operation. The results from MFCA analysis for the improvement showed that the total input cost was decreased from 22,444.46 to 22,300.92 THB and the negative product cost of MC was decreased from 2,557.10 to 2,437.21 THB. In addition, this solution can help in material reduction as 465.50 g. and gained more product as 2,000 pieces per production lot. Moreover, the total benefit for this product was approximately as 23,611.24 THB per month. © IEOM Society International.
format Conference Proceeding
author Kasemset C.
Boonmee C.
Khuntaporn P.
spellingShingle Kasemset C.
Boonmee C.
Khuntaporn P.
Application of MFCA and ECRS in waste reduction: A case study of electronic parts factory
author_facet Kasemset C.
Boonmee C.
Khuntaporn P.
author_sort Kasemset C.
title Application of MFCA and ECRS in waste reduction: A case study of electronic parts factory
title_short Application of MFCA and ECRS in waste reduction: A case study of electronic parts factory
title_full Application of MFCA and ECRS in waste reduction: A case study of electronic parts factory
title_fullStr Application of MFCA and ECRS in waste reduction: A case study of electronic parts factory
title_full_unstemmed Application of MFCA and ECRS in waste reduction: A case study of electronic parts factory
title_sort application of mfca and ecrs in waste reduction: a case study of electronic parts factory
publishDate 2017
url https://www.scopus.com/inward/record.uri?partnerID=HzOxMe3b&scp=85018405176&origin=inward
http://cmuir.cmu.ac.th/jspui/handle/6653943832/42504
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