Umberto NXT MFCA (v7.1)

Transcription

1 Umberto NXT MFCA (v7.1) Tutorial ifu Hamburg GmbH Max-Brauer-Allee Hamburg / Germany DocVersion: 2.10 Date: October 2015 Publisher: ifu Hamburg GmbH

2 Umberto is a registered trademark of ifu Hamburg GmbH Microsoft and MS are registered trademarks. Windows and Excel are trademarks of Microsoft Corp. Other brand and product names are trademarks or registered trademarks of their respective holders. Information in this manual is subject to change without notice. No liability for the correctness of the information in this manual. All figures are for demonstration purposes only and contain fictitious data. Reproduction or translation of any part of this manual in any form (electronic or mechanic) without prior written permission of the copyright owner is unlawful. Requests for permission should be addressed to ifu Hamburg GmbH, Hamburg, Germany.

3 ifu Hamburg GmbH Umberto NXT MFCA Introduction This tutorial for Umberto NXT MFCA is divided into three sections with an increasing complexity. Each section builds on the previous one and has its emphasis on a different topic. The first tutorial section introduces the basic features of Umberto NXT MFCA. You will create a simple model and learn some general information about material flow modelling. This is done by using a simple example. It has at this stage no particular link to material flow cost accounting (MFCA). The second tutorial section focuses on the material flow cost accounting. It is from a fictitious metal processing company. You will learn how to setup a material flow model, and handle cost data for the MFCA approach. The third tutorial section is from a (again fictitious) textile company. It repeats some of the topics you will have learned in section 2, but also introduces additional features that you might wish to use in Umberto NXT MFCA. For example, you will learn how to do a carbon footprint based on the material flow model. Note that in the trial version due to license restrictions, only a limited number (25-30) of sample datasets from ecoinvent 2.2 are available in a separate master material database 'Free Tutorial Database'. These can be used to do the tutorials 1 through 3. Further information on all functions of the software can be found in the Umberto NXT MFCA User Manual accessible via the Help menu. Tutorial Page 1

4 Umberto NXT MFCA ifu Hamburg GmbH Tutorial 1: Simple Modelling Example Time: min Pages: 20 Level: New User Requirements: none What you will learn: Umberto NXT handling Create, rename or delete a net element Building up a graphical model Calculate a model Analyze the calculation results 1 Tutorial 2: Metal Company Time: min Pages: 20 Level: Beginner Requirements: Tutorial 1 or first experiences with Umberto NXT What you will learn: Introduction to MFCA Material Direct Cost and Variable Process Cost Function Terms Parameters MFCA calculation and MFCA results MFCA Sankey diagram 2 Tutorial 3: Textile Company Time: 120 min Pages: 32 Level: Advanced Requirements: Tutorial 1 and 2 or experiences with Umberto NXT MFCA What you will learn: Use of ecoinvent materials with GWP100a property User Defined Functions Allocations Sankey diagrams Print and export results Carbon Footprint calculation Module Gallery 3 Page 2 Tutorial 1 2 3

5 ifu Hamburg GmbH Umberto NXT MFCA Tutorial 1: Simple Model Within this tutorial you will learn the basic handling of Umberto NXT MFCA. You will also create a first simple model. This tutorial starts with a simple example which is not specifically linked to material flow cost accounting (MFCA) but rather explains the basic modelling features of Umberto NXT. Content: Umberto NXT handling Create, rename or delete a net element Building up a graphical model Calculate a model Analyze the calculation results Getting Started The first thing you see after opening Umberto NXT MFCA is the start page. This page offers information about Umberto NXT and provides shortcut links e.g. to creating a new Umberto project file as well as to opening existing stored project files, such as the ones of this tutorial example. In Umberto NXT your data is organized in a project file. A project file is a database in which your models and materials are stored. You can have several models in one project file. A model is made up from a set of elements that represent e.g. a production process with machines and flows of material and energy between these elements. You can use any material defined in the project file for any model within your project. All changes you make while working on a project are instantly written in the project database. Therefore it is not necessary to actively save your progress. Before you can create a material flow model you need to open a new Umberto project file. There are two ways to do that: Either open the 'File' menu in the menu bar and choose the entry 'New Project ' or click on the 'New Project File' button in the main toolbar below the menu bar. In the 'New Umberto NXT project file' dialog enter a name for the project, such as e.g. "MFCA Tutorial 1" and click on Save. The default file path where project files are stored is C:\Users\<USER>\Documents\Umberto NXT MFCA After creating the project file four different windows open in the work area. Tutorial Page 3

6 Umberto NXT MFCA ifu Hamburg GmbH Figure 1: Graphical User Interface of Umberto NXT MFCA The largest window is the 'Net Editor'. The net editor is where you create a graphical model ("net") of your production process system, the material flow model. The window on the top left side is the so called 'Project Explorer'. It gives an overview of the models in the project, lists the materials and cost types you have defined in the project, and may also give access to additional databases, such as the ecoinvent GWP database. In the hierarchical folder structure you can explore all elements of the Umberto project file. 'Located below on the bottom left is the 'Property Editor'. Within this window you can view and edit the properties of any element that is select (marked) in the 'Net Editor' or in the 'Project Explorer'. At the top of the window you can see the type and name of the element currently selected. Below the 'Net Editor' you can find the 'Specification Editor'. It is used to specify the processes (quantity centres) of your material flow model. This area is also used to show the results of the material flow model calculation. Note that since you have not created a model yet, the specification editor is likely empty at the moment. Page 4 Tutorial 1 2 3

7 ifu Hamburg GmbH Umberto NXT MFCA Creating a Model By opening the project a default model has already been created. It is named 'Model'. You can use this name or give a meaningful name to the model. You can rename a model by selecting it in the Project Explorer. In the Property Editor window, type in a new name into the name field and confirm it by pressing return key on the keyboard. A new model within the project is created by clicking the 'New Model' button in the Project Explorer's toolbar, or by using the 'New Model' command from the context menu opened with the right mouse button on the "Models" folder in the Project Explorer. Now that you created a new project and have a model, you can start creating your first material flow model. In this example you are going to build a small graphical model of a simple production chain. There will be a single input material which is being processed to the final product in two production steps. Material flow models are made up from three different types of elements: Process (also referred to as Quantity Centre in MFCA) Place (inputs and output to/from processes) Arrow (linking processes and places) To set the first process in the model, go to the net editor and click on the symbol in the net editor's toolbar. The cursor now changes to a cross-hair with an attached square, which indicates that you are in the inserting mode. Click in the middle of the net editor to draw the first process. After inserting the process the insert mode ends automatically. To draw several elements in a row without exiting the insert mode, double-click on the element button in the toolbar. After double-clicking on an element a small pin is shown on the button next to element.. You are now locked in the permanent insert mode and can draw multiple elements. To exit the permanent insert mode for drawing multiple elements use the right mouse button. The process symbol already has a default name "QC" followed by a number. "QC" stands for quantity centre, a term used in material flow accounting for a "selected part or parts of a [manufacturing] process for which inputs and outputs are quantified in physical and monetary units" (ISO 1405, clause 3.20). Tutorial Page 5

8 Umberto NXT MFCA ifu Hamburg GmbH You can add a name by selecting the label of the process located below the process. Click it, go to the property editor and enter the name 'Machine 1' in the field 'Text'. You can also change the process label by clicking on its text while it is already selected. Next, the process (or quantity centre) will need an input place from which it received inputs, and an output place that takes up all flow that are leaving the process. Choose an input place element from the toolbar (input ) and click once on the left of the process "QC1 Machine 1". Name the input element 'Material Input'. In the same way, look for the output place element in the toolbar (output ) place it to the left of the process "QC1 Machine 1". Now, to complete the first tiny model, the places and the process have to be linked with an arrow. To connect two elements with an arrow, choose the arrow element from the toolbar. Hold the cursor over the first element so that a grey fill marker appears. Then hold the left mouse button and drag the cursor towards and onto the second element. You see an arrow emerging from the element. When the cursor comes close to a connectable element, the arrow snaps to the element automatically. When you release the mouse button over the second element, the two elements will be connected. Try to connect the input place to the process, and the process to the output place to create this first small model. Figure 2: Process "chain" with input place, process (quantity centre), and output place The graphical structure should look more or less like this. The process shows a small red warning sign. This means that the process is still needs to be specified. Page 6 Tutorial 1 2 3

9 ifu Hamburg GmbH Umberto NXT MFCA The function 'Snap to Grid' in the net editor's toolbar can be used to easily align elements. As default this feature is enabled which is indicated by a blue square around the symbol. If you like to disable this feature click on its symbol and the blue square will disappear. You can also show and hide the grid to which the elements are aligned by using the 'Show Grid' button. Defining Materials To specify the flows in a material flow model, it is first necessary to add a number of materials to the material lost of the project. In this first example you will learn to define new materials. In Umberto NXT MFCA materials are inserted into predefined material groups. Material groups are shown as folders in the Project Explorer. Note that the material flow accounting (MFCA) approach uses the location of a material (i.e. in which folder it is located) to determine how the material is interpreted in the MFCA. Figure 3: Root folder 'Project Materials' with subgroups Groups to insert inputs into a production process: Raw, auxiliary, and operating materials Energy Groups to insert unavoidable outputs from the production process (not accounted for in material flow cost accounting): Tutorial Page 7

10 Umberto NXT MFCA ifu Hamburg GmbH Unavoidable Waste Emissions Groups to insert outputs from the production process that are accounted for in material flow cost accounting: Losses with subgroups o Production Waste o Waste o Wastewater o Miscellaneous Groups to insert intermediate goods and final products: Intermediate goods Products To define a new material browse for the folder 'Project Materials'. Mark the appropriate sub-folder and click the 'New Material' button in the Project Explorer's toolbar. Alternatively use the context menu to create a new material. For this small tutorial we want to define the following materials: "Input Material 1" and "Input Material 2" in material group "Raw, auxiliary, and operating materials". Also, we will define a material "Intermediate Product" in the appropriate material group. Click on the folder "Raw, auxiliary, and operating materials" in the hierarchical folder structure, then click the 'New Material' button in the Project Explorer's toolbar. Have a look at the 'Property Editor' below. Change the default name of the newly defined material to "Input Material 1". Verify that the unit type is set to "Mass [kg]". At this stage of the tutorial there is no need to change other material properties. However, the property editor allows setting the unit type, choosing a display unit and entering a description for the material entry. Additionally a color can be chosen that is later used to visualize the material flow in a Sankey diagram. In the same way create another material named "Input Material 2" in the same material group. Finally, define a material "Intermediate Product" in the material group "Intermediate goods". Page 8 Tutorial 1 2 3

11 ifu Hamburg GmbH Umberto NXT MFCA Figure 4: Project Explorer and Property Editor Tutorial Page 9

12 Umberto NXT MFCA ifu Hamburg GmbH Specifying the Process Specifying a process (aka quantity centre) in a material flow model means to define the input and output flows of the process (the material entering and leaving the process), as well as their relationship to each other. This is done in the specification editor when the process symbol is marked. In the small model you have already created select the process "QC 1 Machine". When the process is selected, the specification editor shows the inputs of the process on the left side of the grid of the tab "Input/Output". The right side will show the outputs. As the next step in the training you will learn how to add input and output entries in the process. Browse for the material group "Raw, auxiliary, and operating materials" in the project explorer. Click and hold the left mouse button on the previously defined material "Input Material 1" and drag it to the input side of the specification editor. Release the mouse button there. The material is now added to the input section of the process. Proceed the same way with the material "Input Material 2" and drag it from the 'Project Explorer' onto the left side of the of the tab "Input/Output" in the process specification. On the output side of the process add material "Intermediate Product". This is the output of the machine, made from the two input materials. At this stage energy for the machine is not yet considered. Figure 5: Process specification, two inputs and one output You can alternatively add materials to a process specification by using the button under the table. This button opens a dialog which allows you to search materials defined in the project. This search function is especially helpful when you handle extensive material lists in the project. Note that the process specification is not yet fully complete: As a warning marker remains visible on the process element, the process is still unspecified. It is necessary to determine the ratio between the input and output materials. Page 10 Tutorial 1 2 3

13 ifu Hamburg GmbH Umberto NXT MFCA This can be done by adding coefficients to the material entries on the input and output side of the process specification. In this small example the ratio between the first input material and the second input material is 1:3. The output is the sum of the two inputs. Since all entries are mass related it is a straight forward simple "recipe": Enter a coefficient of "1" for the material entry "Intermediate Product" on the output side. Enter a coefficient of "0.25" for the material entry "Input Material 1" and a coefficient of "0.75" for the material entry "Input Material 2" on the input side of the process specification. Alternatively, if you find it easier to think of the process specification as percentage values, you can also "25" for the material entry "Input Material 1" and "75" for the material entry "Input Material 2". On the output side enter "100" as the coefficient for the "Intermediate Product". Yet another possibility would be to enter "1" for the material entry "Input Material 1" and "3" for the material entry "Input Material 2". In this case make sure to enter "4" on the output side as the coefficient for the "Intermediate Product". All three process specification are correct and will calculate the model correctly. Figure 6: One possible version of the process specification, two inputs and one output with coefficients After entering the coefficient the process is specified and the warning sign should disappear. Tutorial Page 11

14 Umberto NXT MFCA ifu Hamburg GmbH Expanding the Model Now we are going to expand this rather simple material flow model. First we are going to add another input place and link it to the process "QC1 Machine". Then we will define another material that represents the energy input into the machine. The process specification will have to be expanded. Further we will add another process and expand the process chain. This second process takes up the output from the first process ("Intermediate Product") and transforms it to a final product. This can be, for example a cleaning or packaging process step. Again, electric energy is required to run the second machine. First, add a new input place above the process symbol. Choose the input process symbol in the editor toolbar and click at this position. Enter a name for the place, e.g. "Energy". This place represents the feed of electricity from the grid. Finally, click use the 'Draw Arrow' button and connect an arrow from the place "Energy" to the process "QC1 Machine". Figure 7: An additional input place for supplying energy to the process in the model Since we do not work with pre-defined material lists in this first tutorial section, we must also define a material entry for electric energy. Note that the term "material" should not be taken too literally. Everything that flows in the material flow model is treated like a material, even if it is not mass. Define a new entry in the material group "Energy" in the 'Project Explorer'. Make sure that this time the unit type is set to "Energy [MJ]" and not "Mass [kg]" in the 'Property Editor'. If you wish you can choose an alternative 'Display Unit', such as "kwh" from the dropdown list. Page 12 Tutorial 1 2 3

15 ifu Hamburg GmbH Umberto NXT MFCA Figure 8: An additional entry with the unit type "Energy" Add the material to the input of the process "QC1 Machine". The field 'Place' in the specification editor now shows three question marks for the newly added material. The reason for that is that there are now two input places for the process. Click in the field 'Place' and choose the identifier of the delivering input place. The process needs 2 kwh electricity to produce 100 kg of intermediate product. Change the unit for the electricity in the specification editor to 'kwh' and enter a coefficient of "2". Figure 9: Expanded process specifications Next, we will be adding another process. Tutorial Page 13

16 Umberto NXT MFCA ifu Hamburg GmbH Place another process to the right of the existing process and the output place. Name this process (quantity centre) "Finishing". The label will show "QC2 Finishing". The output place P2 is now a place that pushes all output of the process "QC1 Machine" as input into the next process "QC2 Finishing". It is now located in the middle of the model, and thus does not merit the output place type any more. Click it and switch the output type to "Connection" in the property editor. It will be shown with a yellow borderline. Figure 10: Setting place type in the property editor of the place The output of "QC2 Finishing" will be the final product leaving the system. For this product shipped to the market we need a new output place. Set a place to the right of the second process and label it "Market". Draw an arrow from the second process to this output place. In the finishing process, some 2% mass of the intermediate product will be lost as waste in an abrasive cleaning process. This waste will be directed to a different output place. Set another output place below "QC2 Finishing" and name it "Waste". Draw an arrow from the process to the output place. Then, to complete the graphic material flow model, draw an arrow from the place "Energy" to the newly added process "QC2 Finishing". This machine also uses energy from the grid. The expanded model should now look more or less like this: Figure 11: Expanded material flow model with two processes Page 14 Tutorial 1 2 3

17 ifu Hamburg GmbH Umberto NXT MFCA The arrow from the energy input place to the second process is by default straight. You can add additional waypoints and modify the routing by clicking on the arrow and dragging the grey marker point. Mind that you have yet to work on the specification of the second process "QC2 Finishing". Since there is no specification, the warning sign is shown. Now, create a new material called 'Final Product' in the material group "Products" in the 'Project Explorer'. Make sure it has the unit type "Mass [kg]". Also create another new material entry called "Abrasion Waste". It has to be located in the material group "Losses" in one of the subgroups, e.g. "Waste". The unit type "Mass [kg]". The next task is to specify the second process "QC2 Finishing". As said above, 2% of the mass of the incoming flow is lost as waste, so only 98% mass makes up the actual product. Enter the materials and their coefficients on the input and on the output side of the process specification. Using 100 kg input of "Intermediate Product" delivered from process "QC1 Machine" we create a product output of 98 kg "Final Product" and 2 kg output of "Abrasion Waste". Use drag&drop from the material groups in the 'Project Explorer' or use the search function (button 'Add' on the input and output side of the process specification to insert the material entries. Make sure to direct the two flows to the appropriate output places. In the figure above, the product flows to 'P4 Market' and the waste flows to 'P5 Waste'. Mind that the place identifiers could be different in your own model Finally we have an electric energy consumption of 4.5 kwh for finishing 1 ton of mass input into the process. Translate this information from a data sheet into data that matches your process specification. The decimal point for entering a value in the "Coefficient" field of the process specification is determined by the Windows setting. In some regional settings the comma (",") is used. "4.5" is entered as "4,5". Tutorial Page 15

18 Umberto NXT MFCA ifu Hamburg GmbH Figure 12: Specification of the second process 'QC2 Finishing' Calculating a Model The small model is now specified and almost ready to be calculated. To be able to calculate the model you need to define a starting point for the calculation. In Umberto NXT this is the so-called manual flow. A manual flow determines the amount of one material flowing between a process and a place. In most cases this is the output of the final product, the overall output of the production process, e.g. the yearly amount of product. To set the manual flow in the model, select the arrow between process "QC2 Finishing" and the output place "P4 Market". Figure 13: Arrow specification for manual flow From the 'Project Explorer' drag the material "Final Product" to the specification editor. The caption of this window should read 'Specification Arrow' and the tab is called "Flows". Page 16 Tutorial 1 2 3

19 ifu Hamburg GmbH Umberto NXT MFCA Enter a quantity for the manual flow. In the figure above an annual production quantity of 200 tons ( kg) has been entered, but you can choose any quantity you find appropriate. The specification of the arrow now shows the flow type 'Manual'. The arrow turns purple, which indicates that it contains a manual flow used to trigger the material flow model calculation. All flows in the model will be determined based on the entered manual flow quantity. The model is now ready to be calculated. To calculate a model press the 'Calculate' button in the toolbar of the net editor. Alternatively choose 'Calculate' from the Calculation menu. After a successful calculation all arrows change their color from grey to black (except for the manual flow). Calculation Results All results of the model calculation are presented in the window below the net editor on the two tabs "Inventories" and "Results". The tab "Results" is on top after the calculation, but will (at this stage of the tutorial) not show any meaningful results for the material flow cost accounting (MFCA) calculation. In this first section of the tutorial, costs have not yet been considered. The MFCA results can be ignored for the time being. Switch to the tab 'Inventories' instead. On the tab 'Inventories' several views on the calculated material and energy flow data for the production process can be selected. Have a look at the view 'Materials A-Z, disaggregated' under the header 'Input/Output'. This page shows all physical flows entering the model (inputs) with their quantity on the left side, and all physical flows leaving the model (outputs) with their quantity on the right side. Figure 14: Inventories, view 'Materials A-Z, disaggregated' Tutorial Page 17

20 Umberto NXT MFCA ifu Hamburg GmbH Note that the views under the heading 'Input/Output per Product' in this simple model with just one product output show the inventory results only for this one product. These views only gain importance later, when the model has more than one product output (multi-product system). Browse the other view ''Materials A-Z, aggregated' and the grouped inventory views under 'Input/Output per Product'. The calculated input/output inventories can be viewed grouped "By Units", "By Process" or "By Materials". Figure 15: Input/Output inventory, per process Please remember that the inventories you are looking at represent the values of the last calculation and for a certain "manual flow" that has been entered in the arrow from QC2 to the place 'Market' (see above section 'Calculating a Model'). In the example the manual flow was set to kg (200 tons). All flows in the inventory are for producing this amount of "Final Product". If you are interested in the flows that relate to one unit of product, there are two options: enter a different amount as manual flow or scale to one unit of product. Let's assume one product has a weight of 4 kilograms. You can either enter this quantity as a manual flow as described above, and launch the calculation another time. The inventory results are then shown for a manual flow of 4 kg of "Final Product". Alternatively, go to the 'Project Explorer' and browser for the material entry 'Final Product' in the 'Products' material group folder. In the 'Properties' dialog for the selected material 'Final Product' mark the option "Material represents Functional Unit" by setting a tick mark in the box. Enter a name for one unit of product and its quantity (1 unit, 4 kg). Then calculate the model again. Page 18 Tutorial 1 2 3

21 ifu Hamburg GmbH Umberto NXT MFCA Figure 16: Setting the functional unit for the product, in order to scale to 1 unit of product In the views on the 'Inventories' tab you can now scale the input/output flow data to one unit of product by clicking on the button 'Toggle Scaled/Normal Values' and selecting the product from the menu. The inventory views for cost data have no relevance in Tutorial 1, but will be used in Tutorials 2 and 3, when costs are supplemented in the model. The topic 'Carbon Footprint' and the associated inventory and result views for GWP 100as data will be addressed in Tutorial 3. Visualizing Flows in Sankey Diagrams On top of the flow data shown in the tables of the tab 'Inventories' a visual representation of the flows in the form of a Sankey diagram can be helpful. A Sankey diagram is a flow diagram, where the width (magnitude) of the arrows is proportional to the quantity of the flow. To show the material flow model as a Sankey diagram, use the button 'Show Sankey Diagram' and select 'Classic' from the menu. From the cascading menu select ' Total Flows'. The arrow colors are the colors defined for the material entries. Both mass-related flows (in kg) as well as energy consumption (in basic unit MJ or if defined in the display unit kwh) are shown. Tutorial Page 19

22 Umberto NXT MFCA ifu Hamburg GmbH Figure 17: The material flow model from Figure 11 shown as a Sankey diagram Hover the mouse cursor over the Sankey arrows to see the flow quantities in a tooltip. To switch off the Sankey diagram display, click on the 'Show Sankey Diagram' button again. Thank you for completing tutorial 1. Please continue with tutorial 2 to discover more practical features of Umberto NXT MFCA. 1 2 Page 20 Tutorial 1 2 3

23 ifu Hamburg GmbH Umberto NXT MFCA Tutorial 1: Simple Modelling Example Time: min Pages: 16 Level: New User Requirements: none What you will learn: Umberto NXT handling Create, rename or delete a net element Building up a graphical model Calculate a model Analyze the calculation results 1 Tutorial 2: Metal Company Time: min Pages: 22 Level: Beginner Requirements: Tutorial 1 or first experiences with Umberto NXT What you will learn: Introduction to MFCA Material Direct Cost and Variable Process Cost Function Terms Parameters MFCA calculation and MFCA results MFCA Sankey diagram 2 Tutorial 3: Textile Company Time: 120 min Pages: 36 Level: Advanced Requirements: Tutorial 1 and 2 or experiences with Umberto NXT What you will learn: Use of ecoinvent materials with GWP100a property User Defined Functions Allocations Sankey diagrams Print and export results Carbon Footprint calculation Module Gallery 3 Tutorial Page 21

24 Umberto NXT MFCA ifu Hamburg GmbH Tutorial 2: Metal Processing Company In this tutorial you will build on the capabilities acquired by doing tutorial section 1. Your knowledge of how to build a material flow model will be expanded. You will be working with an example for a fictitious metal processing company. In this model you will also be working with costs, and use the material flow costing approach to produce results that are in line with the MFCA method as described in ISO For further information about the functions covered in this tutorial have a look at the Umberto NXT MFCA User Manual. Content Introduction to MFCA Material Direct Cost and Variable Process Cost Function Terms Parameters MFCA calculation and MFCA results MFCA Sankey diagram A Short Primer on Material Flow Cost Accounting (MFCA) Umberto NXT MFCA has been designed specifically for material and energy flow modelling and material flow cost accounting (MFCA). For comprehensive information on the material flow cost accounting method and its application, we recommend to consult the literature listed in chapter 3 of the Umberto NXT MFCA user manual. For a full understanding of the method is strongly recommended to obtain a copy of the ISO standard. Material Flow Cost Accounting (MFCA) is an instrument to identify and calculate the real cost of waste and material losses. It can be an important element in tackling corporate resource efficiency. According to the ISO standard Material Flow Cost Accounting (MFCA) is "a management tool that can assist organizations to better understand the potential environmental and financial consequences of their material and energy use practices". It is based on the observation that losses and rejects in a production system and the costs associated with them - are often not Page 22 Tutorial 1 2 3

25 ifu Hamburg GmbH Umberto NXT MFCA considered adequately in conventional management cost accounting. MFCA is therefore proposed as an additional, alternative perspective on costs. Rather than only looking at the costs of the product, MFCA also looks at the cost of losses and rejects (waste). By doing so, management can take into account these financial losses and work on reducing these them. ISO 14051:2011 Environmental management -- Material flow cost accounting -- General framework is the guiding document and provides a framework for material flow cost accounting (MFCA). The cost calculation used in material flow cost accounting aims to provide an additional perspective on costs, not on replacing conventional cost accounting established in most companies. The direct cost for purchased material and energy that does not find its way into the actual product is typically not accounted for separately in conventional cost accounting. Costs for waste management are either associated the product cost, or are accounted for in the overhead costs By focusing on the costs for material losses, the inefficiencies of the production process become quantifiable and attention is drawn to those losses. In MFCA, costs are accounted for in a systematic way, by distinguishing four different pre-defined cost types: material costs energy costs system costs (e.g. labour, depreciation, maintenance, transport) waste management costs Material direct costs are derived from the market price defined for a material (raw material, auxiliary material, intermediate, component) that is purchased. Energy costs can be treated just like material direct costs by accounting for all energy and fuels (electric energy, natural gas, heat, cooling, pressurized air, ) and considering their price. Alternatively ISO allows to handle energy costs as a variable process cost. System costs and waste management costs are variable process costs. In each process (or "quantity centre" as it is described in ISO 14051) the variable process costs have to be defined System costs and waste management costs are variable process costs. Tutorial Page 23

26 Umberto NXT MFCA ifu Hamburg GmbH Results of the material cost accounting calculation are presented in a typical matrix that is defined in ISO The material flow cost matrix for each single quantity centre (QC) can be viewed, as well as for the entire system. The material flow cost matrix will clearly show how much of the costs is spent on producing the actual product(s), and how much is spent on producing a material loss. These results will help to identify inefficiencies and may lead to improvements in the production process that lead to an increased resource and energy efficiency. Getting Started This tutorial example is from metal processing company and using fictitious values. The metal processing company produces among other, washers (aka as flat washers or shims) in different sizes. The washers are stamped from a rolled steel sheet. Figure 18: Picture of washers (Source Wiki Commons) Please note that for the purpose of this training tutorial, we will be modelling only a small section of the whole company, consisting of two processing steps (quantity centres). Other parts of the company are neglected. Hence, the MFCA will be only for the washer production line, not the overall metal processing company. Creating a Project and a Model Please define a new project as you have learned in section 1 of the tutorial: Click on the 'New Project' button in the toolbar or use the command from the 'File' menu. State a name for the project, e.g. "MFCA Tutorial 2". Page 24 Tutorial 1 2 3

27 ifu Hamburg GmbH Umberto NXT MFCA Name the default mode that opens in the new project "Metal Processing Line" or "Metal Washer Production" or something like that. Defining Materials From the first tutorial you will remember that the list of materials under the folder 'Project Materials' is structured hierarchically and that the names of the folders are predefined () in order to categorize material and energy flows in such a way that they are adequately considered in the material flow cost accounting (MFCA). Figure 19: 'Project Materials' folder with subgroups Next you have to define the material entries that will be used in the model of the washer production. From a "metal sheet" the "washer" will be stamped at a diameter of 20 mm and with a centered hole of 5 mm. Please define the material "metal sheet" in the material group "Raw, auxiliary, and operating materials". It has the unit type "Mass [kg]" (although it could also be measured in square meter (m²) or coils). The unit type should already be set. The metal sheet is an incoming good that is purchased at the market. Enter a price of "3" or "3,00" EUR/kg in the field 'Market Price'. Tutorial Page 25

28 Umberto NXT MFCA ifu Hamburg GmbH Figure 20: The 'Metal Sheet' has a material price of 3 EUR/kg If you want, you can also enter a description for the material in the field "Description", e.g. the name of the supplier, or additional properties, such as the article or order number. A color is suggested that will be used in the Sankey diagram to visualize the metal sheet flow. You can change the color, if you like, by clicking on the 'Color' button and choosing a different color. In the same way, define the final product "washer" in the material group "Products". That product has a market price, that price at which it is sold. It also has the unit type "Mass [kg]". The value entered in the 'Market Price' field is 8 EUR/kg. Finally, in the stamping process, there will be "cuttings" (cut-off) when the round washer is stamped from the metal sheet. Define this material entry in the material group "Losses", subgroup "Waste". It has the unit type "Mass [kg]". We could define a cost for disposing of the cuttings, but for now, please leave the 'Disposal Cost' field empty. Modelling and Specifying the Metal Stamping From the first part of the tutorial you will remember how to build a model of the production process by setting processes (square symbol), input places (green circle symbol), output places (red circle symbol), and connection places Page 26 Tutorial 1 2 3

29 ifu Hamburg GmbH Umberto NXT MFCA within the system (yellow circle symbol). You have also learned how to connect these element with arrows. The graphical modelling of the metal stamping process should therefore not be too difficult for you. Start out with the process (also called quantity centre, QC): Choose the element in the toolbar and position it on the drawing area. Then name it "Stamping". Set one input place to the left of the process "QC1 Stamping". Add two output places, one on the right of the quantity centre, one below. The one on the right should be labeled "Output", the one below "Waste". If you don't remember how to select and set a place in the model, or how to link two graphical elements with an arrow, please go back to Tutorial 1 to read about the three basic elements for building of the graphical model. The small model of the stamping process should look similar to this. Figure 21: Stamping process model with one input and two outputs. The process is not yet specified. The red marker on the process symbol is a warning that the process is not (yet) completely specified or that there is still an error. In the next step, please define the process specification: Click on the process "QC1 Stamping". In the "Specification Editor" below the net editor, enter "Metal Sheet" on the left side (the input side) of the table. You can do so by dragging the material entry directly from the material group "Raw, auxiliary, Tutorial Page 27

30 Umberto NXT MFCA ifu Hamburg GmbH and operating materials" onto the left side of the table. Alternatively you may want to try to use the "Add" button below the table and locate the material entry "Metal Sheet" in the list of materials. On the right side (the output side) of the process add the materials "Washer" (from the group "Products") and the material "Cuttings" (from the group "Losses" / subgroup "Waste"). Use your preferred method to insert the material entry: drag&drop from the material list, choose from the list of materials that opens when clicking the "Add" button, or by dragging the material onto the process symbol and then choosing "Output" from the popup menu. The next step is to check whether the places have been properly assigned in the columns "Place". On the input side the input place was assigned correctly, since there is no doubt where the material is delivered from (P1). On the output side, you should direct the flow of "Washer" to the place named 'Output', and the flow of "Cuttings" to the other place named 'Waste'. As for the coefficients, we assume that there is a loss of 20% in mass when stamping the washers from the metal sheet. The center holes and the corners make up this loss. Specify the coefficients of the three entries in the specification accordingly. The process specification should look like this. Note that the washer is properly identified as being the reference flow, and is displayed in bold red: Figure 22: Specification of the stamping process. The red warning marker should have disappeared by now. If it is still there, check the message (by hovering the cursor over it) and try to resolve the issue. In the next step, the metal processing model will be expanded by adding a quality control process step. To this end some additional materials have to be defined. Page 28 Tutorial 1 2 3

31 ifu Hamburg GmbH Umberto NXT MFCA Expanding the Model Next, it is necessary to add the energy consumption for the stamping process. Define the material "Electricity" in the material group folder 'Energy'. Then add it as an entry on the input side of the quantity centre (process) "QC1 Stamping". An input place must be added in the graphical model. Label it "Energy Grid" and link it with an arrow to the stamping process. Then set the identifier for the place that delivers "Electricity" into the process correctly. In the column 'Coefficient' enter a quantity in relation to the process level (e.g. 1 MJ or kwh for stamping 1 kg of steel sheet, fictitious value). Enter a market price of 0,1 /MJ for "Electricity" in the 'Properties' dialog (field "Market Price"). Note that ISO also permits to handle energy costs as variable process cost. In this example, by defining it as a material entry in the "Energy" group it will be handled as a material direct cost. Figure 23: An input place has been added that delivers 'Electricity' for the process QC1. In the next step add another quantity centre (process) to the right of the output place (in the figure above 'P2: Output'). Label this second process "Quality Control". Let's assume that there is a staff overlooking the production line and checking for the quality of the washers, adjusting the equipment and intervening in case of defective products. Tutorial Page 29

32 Umberto NXT MFCA ifu Hamburg GmbH Turn the place type of 'P2: Output' from an output place to a connection place. Click the place and change the type in the 'Properties' dialog. Then connect the connection place to the new QC2 process. Note that it is not possible to draw an arrow from an output place to the process symbol. It must be converted to a connection place first. There is a small quantity of rejects or defective washers that are separated in this process. To account for this stream, set an output process below the process (quantity centre) "QC2 Quality Control" and link it with an arrow from the process to the output place. Label the place "Rejects". Figure 24: Expanded model with QC1 and QC2. Using Function Terms Again, the next step is the process specification "QC2 Quality Control". This time, you will learn how to use a function to define a coefficient. Start out by entering the flow entries on the input and output side. Washers enter the process arriving from the previous production step. They also leave the quantity centre "QC2 Quality Control" to the output place on the right (in the figure above 'P5'). If you were to use the material flow entry "Washer" from the material group 'Products' also for the flow of rejected washers to the place 'P6: Rejects', it was also be considered a product flow. Therefore you need to define a new material entry in the group 'Losses / Production Waste'. Either name it "Washer" like the original product, or in order to distinguish it better from the actual product name it "Washer, rejected". Page 30 Tutorial 1 2 3

33 ifu Hamburg GmbH Umberto NXT MFCA Figure 25: The coefficients for the output of QC2 are determined by evaluating the term in the field in the 'Function' column. On the input side use a coefficient of "1". On the output side, use the following information to enter function terms for the two output flows in the field "Function". During a regular production year, with a production volume of 200 tons, there are approximately 10 tons of rejects. In other words 10 out of 200 tons of washers exiting the stamping process and passing through quality control are sorted out, only 190 out of 200 tons are washers that go to the market. In the 'Function' field for the output flow "Washer" enter the term '190/200'. In the 'Function' field for the output flow "Washer, recjected" enter the term '10/200'. You can either enter the value directly or click on the button with the three dots to open a dialog box for entering the term. The term is evaluated and the resulting value is shown in the 'Coefficient' field. You may want to check the tab "MFCA Allocations" at this point. Since in material flow cost accounting (MFCA) allocations of expenses to the actual product (here: "Washer") and to material losses (here "Washer, rejected") are made, you will see a pair of allocations. The allocation method is set to 'Physical' which will result in a distribution of 95% to the product and 5% to the reject. The actual allocation coefficients will be inserted automatically upon the first calculation of the model. Read more on allocation in the Umberto NXT MFCA user manual. Tutorial Page 31

34 Umberto NXT MFCA ifu Hamburg GmbH Entering Variable Process Cost In the quantity centre "QC2 Quality Control" we will define variable process cost. Let's assume that staff cost is 0,40 per kg product input into the quality control (this could be determined e.g. by a throughput of 100 kg product per hour and an hourly staff cost of 40 including overhead). First this cost type has to be defined in the project. Go to the 'Project Explorer' window and click the cost type group 'System Costs' (below the material groups). Click on the button "New Cost Type" and rename the default name to "Personnel Costs" in the 'Properties' dialog below. Figure 26: Definition of a cost type "Personnel Costs" in the cost type group "System costs". Use this newly created cost type entry and insert it on the input side of the quantity centre "QC2 Quality Control". You can do so by either dragging the cost type entry onto the table directly, or by dragging it onto the process symbol and choosing "Input" from the popup menu. Note that an additional input arrow appears. It leads from a hidden input place "CI" (cost input) to the quantity centre. The cost type input is handled in the Page 32 Tutorial 1 2 3

35 ifu Hamburg GmbH Umberto NXT MFCA same way as a material flow input. It is scaled to the actual throughput at the process. For example, if the throughput is ten times higher, the cost input is also ten times higher. Cost flows can also be visualized in the cost Sankey diagrams. Calculation You are ready to launch the calculation of the model. A manual flow must be set that defined the production level. This manual flow quantity is used to determine all other material and cost flows in the model. Click on the arrow leading from the process "QC2 Quality Control" to the place P5. This is where we have a flow of the final product washers that is sent to a wholesalers or directly to shops. Let's assume there is an annual production quantity of 1800 tons. Add the material entry "Washer" in the arrow. You drag the material entry from the group "Products" onto the arrow or onto the 'Arrow Specification' window. Alternatively you can click the 'Add' button below the table 'Flows' in the 'Arrow Specification' window. Figure 27: Adding the manual flow (1800 tons of product "Washer") in the arrow. You can enter the quantity in the basic unit (= kg) or select the display unit "ton" first, and then enter the value "1800". Tutorial Page 33

36 Umberto NXT MFCA ifu Hamburg GmbH Then launch the calculation by clicking on the button with the pocket calculator in the net editor toolbar. Alternatively, choose the command "Calculate" from the dropdown menu that opens when you click on the arrow next to the 'Calculate' button. Results MFCA In the event of a successful calculation of the model, all arrows (with the exception of the manual flow that has been entered by you) should have turned black. In the specification editor window below the net editor, a tab "Results" is presented. It shows a summary overview of the results of the material flow cost accounting (MFCA) calculation. Figure 28: Cost Matrix Overview presented on the tab "Results" after calculation of the model The total costs in the MFCA perspective is shown, broken down into the "Share of Products" (in blue) and the "Share of Material Losses" (in red). Additionally the cost is split into "Material Costs", "Energy Costs", "System Costs" and "Waste Management Costs". More detailed material flow cost accounting data is available in the view "Costs Matrix". Choose this entry in the list on the left side. It shows the typical MFCA cost matrix (as recommended by ISO 14051) per quantity centre (QC). With this view you can see how in each processing step costs add up to the "Share of Products" (in blue) and the "Share of Material Losses" (in red). Page 34 Tutorial 1 2 3

37 ifu Hamburg GmbH Umberto NXT MFCA Figure 29: Cost Matrix details on the tab "Results" You might want to have a glimpse at the conventional cost accounting perspective results, provided under the heading "Classic" in the "Costs Summary" view. Discuss the difference between the two cost accounting perspectives. Additionally, have a look at the "Costs per Output" view under the "MFCA" heading. Here, the costs are shown for the actual product ("Washer") as well as for the material losses ("Cuttings" from the first process QC1 and "Washer, rejected" from the second process QC2). Apart from the actual material direct costs that make up the costs for material losses, we can also identify variable process cost for the material loss. This is interesting, as it means we have spent personnel cost for an unproductive activity. Figure 30: Costs per Output on the tab "Results" Note that the other views available on the "Results" tab, including the GWP Matrix" and the "Carbon Footprint" views do not show any meaningful data at this stage of the tutorial example, since the required inputs have not been made yet. Carbon footprinting is part of the tutorial 3. Tutorial Page 35

38 Umberto NXT MFCA ifu Hamburg GmbH Results Flow Inventories To view the underlying physical flows that have been calculated in the material flow model, switch to the tab "Inventories". Several views on the calculated flow data are available. The default view is a list of input and output flows into and out off the model. These flows are the flows that lead from the input places and to the output places. Figure 31: Input/Output flows on tab "Inventories" The entries are sorted alphabetically. A different sorting can be achieved by clicking on the column headers. The column widths can be changed by dragging the column separator lines of the column headers. Another interesting view is the input/output flows inventory "By Processes". Here you can observe the inputs into and outputs from the quantity centres QC1 and QC2 separately. Figure 32: Input/Output flows, grouped by processes on tab "Inventories" The cost data details can be viewed with the entries under the header "Costs" and "Costs per Product" Page 36 Tutorial 1 2 3

39 ifu Hamburg GmbH Umberto NXT MFCA Sankey Diagram All flows that have been calculated can not only be viewed in the tables available on the tabs "Inventories" and "Results", but also as Sankey diagrams. Create a Sankey diagram of the physical flows (material and energy) by clicking on the button "Show Sankey Diagram" in the net editor toolbar. Figure 33: A Sankey diagram with all physical flows ('Total Flows') of the washer production. Hover the mouse over the colored Sankey arrows to see the flow quantities. The diagram shows the flows for the last calculation (1800 tons production volume). Mind that the Sankey diagram comprises two unit types (Mass, Energy). These unit types can be scaled separately and mustn't be compared to each other directly. To scale a unit type bring the tab 'Scaling of Sankey Diagram' to front in the 'Properties' window to front and move the slider for "Mass". Create a label that shows the flow quantity for the product output flow from QC2 to P5. This is the manual flow you entered that was used for the calculation of all flows in the model. To create the label, mark the Sankey arrow. In the 'Properties' dialog set a tick mark at the option "Display Flow Label" in the 'Labels' panel. Move the flow label to where you find it most suitable. Click on the flow label and increase the font size in the 'Properties' dialog for the label, e.g. to 12 pt bold. Other Sankey diagram types are available. Tutorial Page 37

40 Umberto NXT MFCA ifu Hamburg GmbH Next, create a Cost Sankey diagram for the cost results obtained through the material flow cost accounting calculation: From the menu that opens when you click on the button with the arrow next to the 'Show Sankey Diagram' button, select 'MFCA', and select 'Costs' from the cascading menu. From the next cascading menu choose one of the products or material losses for which you wish to display the cost data in the MFCA perspective (e.g. the "Washer, rejected"). The cost Sankey diagrams can be scaled using the slider "Currency" in the tab 'Scaling of Sankey Diagram' in the 'Properties' window. Figure 34: A Sankey diagram with all physical flows ('Total Flows') of the washer production. The cost data represented as Sankey diagram can be viewed by hovering the mouse over the Sankey arrows or by making the flow labels visible Note that in this Sankey diagram, the personnel costs (from the "System Cost" cost type group) are also shown as a Sankey arrow. It is an input to the process "QC2 Quality Control". Since there are so many different Sankey diagram types available, it might be helpful to bring on a text label indicating which type you are currently looking at. Choose "Sankey Mode Label" from the "Draw" menu. Move the label to the top left corner. Page 38 Tutorial 1 2 3

41 ifu Hamburg GmbH Umberto NXT MFCA Thank you for completing tutorial 2. Please continue with tutorial 3 to discover more practical features of Umberto NXT MFCA. 2 3 Tutorial Page 39

42 Umberto NXT MFCA ifu Hamburg GmbH Tutorial 1: Simple Modelling Example Time: min Pages: 20 Level: New User Requirements: none What you will learn: Umberto NXT handling Create, rename or delete a net element Building up a graphical model Calculate a model Analyze the calculation results 1 Tutorial 2: Metal Company Time: min Pages: 20 Level: Beginner Requirements: Tutorial 1 or first experiences with Umberto NXT What you will learn: Introduction to MFCA Material Direct Cost and Variable Process Cost Function Terms Parameters MFCA calculation and MFCA results MFCA Sankey diagram 2 Tutorial 3: Textile Company Time: 120 min Pages: 32 Level: Advanced Requirements: Tutorial 1 and 2 or experiences with Umberto NXT MFCA What you will learn: Use of ecoinvent materials with GWP100a property User Defined Functions Allocations Sankey diagrams Print and export results Carbon Footprint calculation Module Gallery 3 Page 40 Tutorial 1 2 3

43 ifu Hamburg GmbH Umberto NXT MFCA Tutorial 3: Textile Company In this tutorial you will create another production process model and do a material flow accounting. This is again an example with fictitious data from a textile company that manufactures T-shirts. In addition you will also learn to calculate the carbon footprint of the production. To this end GWP100a data from the ecoinvent v2.2 database is used, to supply the embodied carbon (or carbon rucksack, carbon burden) that comes with purchased material or energy. For further information about the functions covered in this tutorial have a look at the Umberto NXT MFCA User Manual. Content Use of ecoinvent materials with GWP100a property User Defined Functions Allocations Sankey diagrams Print and export results Carbon Footprint calculation Module Gallery Building the Production Line Model Start by creating a new project ("Tutorial 3 Textile"). Create a model within this project and name it "T-Shirt Production Line". The T-Shirt production line consists of three processing steps: Tissue Weaving, Finishing, and Tailoring. The final products are T-shirts. In the first process "Tissue Weaving" cotton yarn purchased on the market is used to create a fabric / cloth. This weaving process uses electric energy. The second process "Finishing" is basically a coloring process, where textile colors are applied and water I used to rinse the colored cloth. Finally, in the third step the colored fabric is cut and seamed in the "Tailoring" to deliver the T-shirt. In today's textile business the processing steps shown in model are very likely executed by specialized companies located in different places/countries of the world. and not located in one textile plant. Here is an overview of the materials uses in the three processes. Mind that some material entries need to be defined manually by you, but some others Tutorial Page 41

44 Umberto NXT MFCA ifu Hamburg GmbH are selected from the ecoinvent master material database. These pre-defined material entries contain average carbon footprint background data (GWP 100a data, embodied carbon) that are used for the carbon footprint calculation. These are the materials used in the process "Tissue Weaving": Material Name Define in Material Group or use from Input/Output ecoinvent yarn, cotton, at plant Input electricity, medium Input voltage Fabric Intermediate Output Fabric, defective Losses/Production Waste Output These are the materials used in the process "Finishing": Material Name Define in Material Group or use from Input/Output ecoinvent Fabric From process "Tissue Weaving" Input electricity, medium Input voltage Color Input Water Input Fabric, colored Intermediate Output Color in Wastewater Output Wastewater Losses/Wastewater Output These are the materials used in the process "Tailoring": Material Name Define in Material Group or use from Input/Output ecoinvent Fabric, colored From process "Finishing" Input electricity, low voltage Input T-Shirt Product Output Cutting losses Losses/Production Waste Output Please set up the graphical model with three processing steps (quantity centres). The first process has an input place that delivers the cotton yarn. The second process has one input place that supplies all auxiliary materials (water and color). All three processes require energy that can be delivered from one single input place. Each quantity centre has an output place that can be used to send waste or losses to. The final product is shipped to an output place. The graphical model could look similar to this: Page 42 Tutorial 1 2 3

45 ifu Hamburg GmbH Umberto NXT MFCA Figure 35: Graphical model of the textile production line. Defining Material Entries Next, it is required to define the material entries. There are some pre-defined material entries in this tutorial you can just select from the ecoinvent v2.2 database. You will be using these predefined material entries, in order to use some carbon footprint GWP 100a properties that come with the data. Define the materials listed in the table below. Mind that you create the entries in the correct material group, since the material flow cost accounting calculation and result display assesses where a specific material is situated in the material list. Material Name Define in Material Group Unit Type Fabric Group "Intermediates" Mass [kg] Fabric, colored Group "Intermediates" Mass [kg] T-shirt Group "Products" Mass [kg] Fabric, defective Group "Losses/Production Waste" Mass [kg] Cutting losses Group "Losses/Production Waste" Mass [kg] Color Group "Raw, auxiliary and operating Mass [kg] materials" Water Group "Raw, auxiliary and operating Mass [kg] materials" Color in Wastewater Group "Losses/Miscellaneous" Mass [kg] Wastewater Group "Losses/Wastewater" Change unit type! Mass [kg] Note that the suggested unit type for the entry "Wastewater" created in the material group "Losses/Wastewater" is 'Volume [m³]'. Since we handle water in 'Mass [kg]' already, it is recommended to also switch the unit type of the Tutorial Page 43

46 Umberto NXT MFCA ifu Hamburg GmbH newly created entry "Wastewater" to 'Mass [kg]' too. The unit type can only be modified, when the material entry is not in use in a process specification. For the time being you are not required to enter a market price or a GWP100a value in the properties. You may wish to choose different colors than the ones automatically suggested by the program (in fact, each material group has a color pallet in the background, from which it suggests a default color). Just click on the color indicator or the 'Edit Color' button. Also, it might be an idea to enter a description for the material, if you have time. Figure 36: 'Project Materials' folder with material defined Specifying Process 'Tissue Weaving' You can now use the materials defined in the material list and the pre-defined entries from the ecoinvent 2.2 database to specify the processes (quantity centres) in the model you have already created. If you are using a trial version of Umberto NXT MFCA, you will find a 'Free Tutorial Database' with approximately 25 material entries, including all material entries required to do the following process specifications. Should you be doing this exercise with a Page 44 Tutorial 1 2 3

47 ifu Hamburg GmbH Umberto NXT MFCA licensed version, you have access to the more than 4000 material entries (see User Manual for more details). Specify the process 'Tissue Weaving' by adding two entries on the input side: Use the button 'Add' on the left side of the process specification window to call a 'Search Material' dialog. Type the first letters of "yarn" in the search field "Name" and you will see the material entry "yarn, cotton, at plant [GLO]" come up. Double-click it to insert it in the process specification, alternatively mark it in the hit list and click "OK". Figure 37: The 'Search Materials' dialog is a way to enter material from the master database Note that after inserting the material "yarn, cotton, at plant [GLO]" into the process specification for "Tissue Weaving", a copy of this material also appears in the "Project Materials" in the material Group "Raw, auxiliary and operating materials". By using an entry from a master database, the material becomes part of the project. Figure 38: A pre-defined material entry from the master database has been copied to the project Tutorial Page 45

48 Umberto NXT MFCA ifu Hamburg GmbH The ecoinvent 2.2 master database is a database for LCI (Life Cycle Inventory) data, serving in Umberto NXT MFCA primarily to provide embodied carbon (GWP 100a) data for a large number of materials, thus facilitating the calculation of a carbon footprint (see below). It is not meant to be an exhaustive list of materials you might be using as raw materials in your factory. What does "at plant" mean? And what is the suffix "[GLO]". In this case, the underlying dataset is for the average carbon footprint of a global (GLO) cotton yarn production that is provided at the yarn factory (without transport to the location of use of yarn included). Check the GWP 100a value that this dataset provides by clicking on the material entry and looking in the properties dialog. Enter a price for the yarn. Click on the material entry "yarn, cotton, at plant [GLO]" in the "Project Materials" subfolder "Raw, auxiliary and operating materials". Let's say one large spool of yarn has a weight of 20 kg and costs 60 Euro. Then the cost per kg is 3 Euro. Enter the value "3" in the market price field. Note that the "Market Price" can be edited, but not the "CO2 Footprint" value, as it is provided in the master database. Secondly, you have to insert the electricity used to run the process "Tissue Weaving". Again, for the purpose of this exercise, you should use a predefined material entry from the ecoinvent 2.2 master database. This time, however, instead of calling the 'Search Material' dialog you are asked to browse for an appropriate entry in the folder structure of the ecoinvent 2.2 master database. The electric energy used for the machines in the weaving is 1500 V. This is considered medium-voltage electricity. The factory where the weaving is done is supposed to be in Germany (DE). We therefore need a material entry for "electricity, medium voltage [DE]". Browse the subfolders of the ecoinvent 2.2 database by clicking on the folders in the bottom half of the 'Project Explorer'. You will find the dataset in ecoinvent 2.2 > Exchanges > Activities (ecoinvent Processes) > electricity > supply mix. Among the many entries choose "electricity, medium voltage, at grid [DE]". Drag the entry "electricity, medium voltage, at grid [DE]" from the list directly onto the left side of the process specification below the model editor. Page 46 Tutorial 1 2 3

49 ifu Hamburg GmbH Umberto NXT MFCA Figure 39: An alternative way of inserting a pre-defined material entry from the master database is to drag it directly onto the input or output side of the process specification. Note that a copy of the entry is also automatically added to the material group "Energy" in the 'Project Materials' group. You can enter a market price of "0,10" Euro per kwh for "electricity, medium voltage, at grid [DE]". On the output side of the process "Tissue Weaving" enter the two material entries "Fabric" and "Fabric, defective". These are user-defined material entries. From 100% of the yarn we can typically produce 98 mass-% good fabric, while some 2 mass-% of the input end up as defective fabric (e.g. faulty production, start-up loss, end of batch loss). Enter the coefficient "1,00" for the entry "yarn, cotton, at plant [GLO]" on the input side, and "0,98" for "Fabric" and "0,02" for "Fabric, defective" on the output side. As you have learned in the first parts of the tutorial, the process specifications don't have to be made for 1 kg. You can choose any other coefficients, as long as their relations to each other match. For the sake of simplicity we recommend you use either /2 or 1 0,98/0,02. Finally, please set the place identifiers correctly for the four entries. The fabric is sent to the connection place that delivers it to the subsequent process. The defective fabric flows to the output place. Note: You might ask yourself, why you do not enter a market price for the material entries "Fabric" and "Fabric, defective". Both are outputs from a Tutorial Page 47

50 Umberto NXT MFCA ifu Hamburg GmbH production process and their price is determined from the expenses (the input costs plus possibly process costs) automatically. It is therefore not necessary to define a market price. For the energy consumption enter a coefficient of 1,4 kwh to the input-sided entry "electricity, medium voltage, at grid [DE]". Figure 40: QC1 Tissue Weaving process specification. With all input/output entries, their coefficients and the place identifiers specified, the marker on the process should now have disappeared. Specifying Process 'Finishing' In the 'Finishing' process (quantity centre) the fabric produced in the previous process is colored and treated. We can imagine that the finishing is actually a two-step treatment, where at first, chemicals and color is applied to the cloth. The fabric is subsequently transferred to a larger tank, where it is rinsed to wash out excess substances. Finally the fabric is slowly dried at mild heat. One option would be to actually model this with three individual quantity centres (processes), but here you will be using only one process symbol, summarizing the three treatments steps. Specify the process 'Finishing' by adding the material entries "Fabric" on the input side, as well as the input materials "Color" and "Water". Use "electricity, medium voltage, at grid [DE]" again to account for the energy consumption in this process (e.g. heating the water, pumps, etc). You can choose any of the alternatives to enter material entries (button 'Add' and "Search Material" dialog or browsing for a material entry in the 'Project Materials' and dragging it directly onto the input-side of the process specification. Please assign appropriate place identifiers. Page 48 Tutorial 1 2 3

51 ifu Hamburg GmbH Umberto NXT MFCA On the output side we have "Fabric, colored" as the targeted output flow, that is directed to the subsequent process ("Tailoring"). Additionally we have the outputs "Wastewater" and "Color in Wastewater" flowing to the output place for wastewater. Note that several flows can run along one arrow. If you are using drag&drop of material entries from the 'Project Materials' or element specifications to insert the entries, try to drop a material on the square process symbol to learn yet another way to insert. Assign appropriate place identifiers for the entries on the output side. The next step is to define the coefficients: 1 kg of fabric enters the process and leaves the process as "Fabric, colored". The color does not significantly increase the mass. 100 kg of textile color is applied to one batch of a ton (1000 kg) of fabric. But actually only 80% of the color attaches to the fibre, 20% of the color is found as "Color in Wastewater". A batch of one ton of fabric is rinsed in litres of water. The color in the wastewater is diluted and doesn't increase the wastewater volume or mass. And finally, the energy required in this process for heating the water, running the pumps and stirring is MJ per ton of fabric throughput. To enter a coefficient with a different display unit (MJ instead of the basic unit 'KWh' for energy) choose the display unit from the dropdown list first, then enter the coefficient. Otherwise the coefficient will be converted upon modifying its unit. Figure 41: QC2 Finishing process specification Note that the process is actually not exactly balanced in the regard to mass. However, this is permitted in a process specification in Umberto NXT. Discuss what the advantages or disadvantages of a more detailed modeling of the 'Finishing' process as two or three separate quantity centres or processing steps would be. Tutorial Page 49

52 Umberto NXT MFCA ifu Hamburg GmbH Specifying Process 'Tailoring' Finally, please specify the process (quantity centre) 'Tailoring'. We will be using a parameter to be able to modify the process specification easily. In the tailoring process the colored fabric is cut and sown. The final product is a T-Shirt. There is a certain quantity of cut-offs. The energy used in the production step is 0,5 MJ per kg of fabric passing through this production step. Specify the input/output entries with the information given (refer to the table at the beginning of this tutorial or to the figure below. Figure 42: QC3 Tailoring process specification (without coefficients) You will note that upon inserting the entry "T-shirt" and setting the place identifier, the entry will be shown in bold and red. Why that? This is because the flow has been identified as a reference flow or product of the system: It is in the group "Products" and is directed to an output place (it crosses the system boundary of the model e.g. it is sold to the market). When entering the coefficient for electricity on the input side, mind that by default the unit is in 'kwh'. Since we have the information in another unit, please switch the display unit to 'MJ' in the dropdown list in the column 'Unit' of the entry "electricity, medium voltage, at grid [DE]". Only then enter the value "0,5". If you enter the value first and then switch from 'kwh' to 'MJ' in the dropdown list the value will be converted. Check that you use 0,5 MJ for 1 kg of colored fabric as given above. On the output side we wish to keep the share of product ('T-shirt') and cutting losses flexible by introducing a parameter. Change to the tab "Parameters" of the process specification. Click in the table and define a parameter "Rate Cut Off Loss". Enter, for example, the value "0,15". The unit field can be left empty. Page 50 Tutorial 1 2 3

53 ifu Hamburg GmbH Umberto NXT MFCA Figure 43: Parameter in the 'QC3 Tailoring' process specification The identifier "C00" has been defined by default for this parameter. You can just use it, or change its name. Switch back to the tab "Input/Output". On the output side now use the fields "Function" enter "1-C00" in the column 'Function' for the flow of "T-shirt", and "C00" for the flow 'Cutting losses'. The values in the coefficient column will be set automatically. Figure 44: using the parameter identifier C00 on the output side of the process specification You can go back to the tab "Parameters" to enter another value for the cutting losses rate. You will note that the two coefficient values on the output side of the process specification will adapt according to the value set. Hence, parameters can be used to keep a process specification more flexible and adaptable. The expression written in the field 'Function' can use the valid expressions and mathematical operators described in Annex A of the user manual. What has been done above is actually a percentage share of 15% for cutting losses. However, mind that when we define the parameter "Rate Cut Off Loss" as "15" and add the unit "%" this does not automatically lead to a percent ("per 100") calculation. In this case you would have to write "(100-C00)/100" and "C00/100" as function terms in the "Function" field to produce the coefficients. You will get to know an even more powerful use of function terms and mathematical expressions later on, in the section on "User Defined Functions Tutorial Page 51

54 Umberto NXT MFCA ifu Hamburg GmbH Calculating the Model All warning markers on the process symbols (blue squares) should have disappeared by now. We can do a first calculation of the model. First, calculate the model for an annual production volume of 4000 kg. To do this, enter a manual flow in the arrow leading from the 'QC3 Finishing' process (quantity centre) to the output place 'T-Shirt'. When you mark this arrow, the 'Process Specification' for the arrow is accessible. Enter the flow "T-shirt" either with drag&drop from the material list, or use the button "Add" to search for the material entry. Launch the calculation using the 'Calculate' button or the keyboard shortcut 'F9'. The default result screen 'MFCA' > 'Costs Matrix Overview' at this stage does not show complete results (we will be adding process cost in the next part of the tutorial), so we should neglect it at this moment. However, we can view the calculated material and energy streams in the tables on the tab "Inventories", You can also hover the mouse cursor over the arrows in the model, or click on specific arrows to see the physical flows that were calculated for the annual production volume. You may at this stage already wish to have a look at a Sankey diagram of the calculated flows. From the menu under the button 'Show Sankey Diagram' choose either 'MFCA' or 'Classic' and then choose 'Total Flows' in the cascading menu. A Sankey diagram will be produced. You can return to the regular diagram view by clicking on the button 'Show Sankey Diagram' again. Figure 45: Sankey diagram for 'Total Flows' showing all physical (mass/energy) flows If you are interested in seeing the flows related to the production of one unit of product (1 T-shirt, which has a weight of 250 grams), there are two options: The quickest way is to use the manual flow entry and modify the quantity to 0,250 kg. Then calculate the entire model again. The results will be shown for one T-shirt of 250 grams instead of for the previously used annual production volume of the factory. Page 52 Tutorial 1 2 3

55 ifu Hamburg GmbH Umberto NXT MFCA The other alternative is to define the weight of one T-shirt in the properties of the material "T-shirt" in the 'Products' material group. Mark the option "Material represents Functional Unit" and enter a name ("piece"). In the "Quantity" field enter the weight of one piece ("0,25 kg" or "250,00 g"). Figure 46: Defining one unit of product for scaling You can take advantage of already working on the properties and enter the market price (the intended sales price) of the T-Shirt. If you can sell one T- Shirt (250g) at 3,00 then the "Market Price" of the product is "12,00" Euro per kilogram. After a renewed calculation of the model (the manual flow remains the annual production volume of 4000 kg as before) the data inventories can be switched between the actual calculation results for a production 4000 kg and for one T- Shirt of 250 grams by using the button "Toggle Scaled / Normal Values" on the tab "Inventories". Adding Material Direct Costs and Process Costs When defining the material entries, or when using entries from the ecoinvent 2.2 master database, you may have entered a market price already for one or more items (e.g. for "electricity, medium voltage, at grid [DE]" or "yarn, cotton, at plant [GLO]"). Other input materials and commodities consumed in the production still have no market price assigned (e.g. water, color). Additionally, we should have a look at process costs. Tutorial Page 53

56 Umberto NXT MFCA ifu Hamburg GmbH First, add the material direct cost for Water (group 'Raw, auxiliary and operating materials') 0,002 /kg Color (group 'Raw, auxiliary and operating materials') 0,8 /kg As for materials on the output side of the inventory (e.g. "Wastewater") we could also add a material direct cost. This would correspond to a payment made to dispose of the wastewater (e.g. a fee for municipal wastewater treatment). This would be entered as disposal costs in the property of the material entry. Enter a disposal cost for: Wastewater (group 'Losses > Wastewater') 0,003 /kg Next, we want to include process costs. These are costs that are not directly machine related, but rather incur at the machine (or quantity centre). This could be machine cost, maintenance cost, or even wages of staff. Process cost (also referred to as system costs in the ISO 14051) are defined in the 'Project Explorer' under the 'Cost Type" folder. In the 'Project Explorer' browse for the folder 'System Costs' under the 'Cost Types' folder. Then click on "New Cost Type". Enter the name "Machine Costs" for the new cost type. The machines in 'Tissue Weaving' as well as in the 'Finishing' quantity centre have costs. Enter the new cost type on the input side of the two process specifications. Either drag&drop the cost type entry "Machine Costs" directly from the folder 'System Costs' onto the process specification (or onto the symbol in the editor), or use the "Add" button to insert it. Page 54 Tutorial 1 2 3

57 ifu Hamburg GmbH Umberto NXT MFCA Figure 47: Inserting the cost type entry 'Machine Costs' in 'QC1 Tissue Weaving' Please add a value of "0,20" Euro machine costs, and a value of "0,10" Euro machine costs for the 'QC2 Finishing'. This is in relation to one kilogram of throughput. These values were derived from the fact that the machine had a purchasing price, needs maintenance from time to time, and is depreciated over its expected lifetime. The throughput of one ton of yarn corresponds to a machine cost of 2 Euro (0,20 Euro per kg throughput) in 'Tissue Weaving' and a machine cost of 1 Euro (0,10 Euro per kg throughput) in 'Finishing'. Note that these are variable process cost. Let's assume that there is not machine cost in the 'QC3 Tailoring', but rather we have to account for personnel cost of 0,80 Euro per kg cloth handled here: Define a new cost type by the name 'Personnel Cost" in the 'System Cost' cost type group. Add it to the process specification of 'QC3 Tailoring'. You will be accounting for a personnel overhead cost of 10% using a net parameter. To define a net parameter, click anywhere in the model on an empty area to open the "Net Parameter" table in the specification editor below the model editor window. Net parameter can be accessed in any of the processes in the model by referencing the variable identifier. Define a new net parameter by clicking on the button 'Add". In the field name type the name "Personnel Cost Overhead Rate". Enter "0,10" as the default value in the "Coefficient" column. The field unit can remain empty. The new net parameter will receive a default identifier ('N00') which can of course be modified, if you wish. Tutorial Page 55

58 Umberto NXT MFCA ifu Hamburg GmbH Figure 48: Defining a net parameter Click on the 'QC3 Tailoring' process specification. Use the variable identifier 'N00' (or the identifier you may have assigned to it) to calculate the personnel cost entry on the input side. Enter the term '0.8*(1+N00)' in the field 'Function'. The coefficient will be calculated based on the net parameter value. Figure 49: Defining personnel cost using a net parameter to include an overhead The advantage of net parameters is that they are a global place where values can be changed. The change may affect the input/output coefficients and local parameters in all processes, where the net parameter is referenced. After adding the process costs, you can calculate the entire model of the textile production again. On the 'Results' tab look at the section with 'Classic' views. Choose "Costs per Product" to create a bar chart that also features the variable process cost. If you look at the "Balance" it should show the revenue that remains when subtracting the 'Material Direct Cost' and the 'Variable Process Cost' from the 'Revenue'. The revenue is calculated from the quantity of T-shirts (annual production 4000 kg) and the market price that can be obtained for 1 kg. In the figure below the chart has been scaled to one unit of product (1 T-Shirt of 250 g). Page 56 Tutorial 1 2 3

59 ifu Hamburg GmbH Umberto NXT MFCA Figure 50: Costs per Product in the 'Classic' perspective shown variable process cost Switch to the 'Costs Matrix Overview' in the 'MFCA' perspective, the view that was presented directly after calculation. It is surprising that the 'Share of Material Losses' (in red) is much higher than the 'Share of Products' (in blue). The fact in this 'MFCA' perspective a very large share of costs is shown under material losses is not correct. It points to an allocation issue. This will be handled in the next section. MFCA Allocation To understand what is happening, and how the costs are distributed to 'Products' and 'Losses' in the cost accounting approach, it is recommended to view the costs as Sankey diagram. Indeed Sankey diagrams are not only a very good visualization of results, but also help to identify inconsistencies and errors. The high 'Share of Material Losses' that occurs should be traced visually by calling one or more cost Sankey diagrams: From the menu under the button 'Show Sankey Diagram' choose 'MFCA' and the entry 'Costs' in the cascading menu. In the second cascading menu select 'All Reference Flows'. Figure 51: Sankey diagram for 'Costs' / 'All Reference Flows' in the MFCA perspective Tutorial Page 57

60 Umberto NXT MFCA ifu Hamburg GmbH You may want to modify the scale ration, by using the slider on the tab 'Scaling of Sankey' flows behind the 'Properties' dialog. This Sankey diagram confirms the result from the MFCA Cost Matrix. The cost to "produce" wastewater is the highest in the model. Apparently something is wrong in 'QC2 Finishing'. Click on the process 'QC2 Finishing'. Switch to the tab 'MFCA Allocations'. The allocation tab shows how the expenses (both expenses from material direct costs as well as process costs) are distributed onto the reference flows (the products and material losses) in this process. By default this allocation is done based on mass proportion ("Physical Allocation"). Figure 52: Allocation factors for the distribution of expenses to the reference flows This table can be read as follows: The color (and the cost for color) are distributed mass-based with the respective share (in column "Percent" onto the three reference flows in this process: "Color in Wastewater", "Wastewater" and the actual intended output of this process "Fabric, colored". Since a lot of water is used in this process for rinsing (actually over 98% of the output-mass is wastewater), the allocation by mass is also set to that value. Does this default allocation by mass proportion ("Physical Allocation") make sense? It would be more realistic ore more "fair" to not assign expenses for electricity water, color, the intermediate fabric entering the process to the material loss 'Wastewater'. As for the reference flow 'Color in Wasterwater', also a material loss, it would be "fair" to assign expenses for color entering the process to it, but not the other expenses (electricity water, and the fabric). To assign the allocation factors manually, make sure the "Default Allocation method" is set to "User Defined" in the dropdown list at the top of the tab "MFCA Allocations". Then enter the allocation factors manually in the column "Coefficient": Set "100" (=all expenses allocated) in the line "Fabric, colored" for the expense "Water", "Fabric" and "electricity, medium voltage, at grid [DE]". The other Page 58 Tutorial 1 2 3

61 ifu Hamburg GmbH Umberto NXT MFCA reference flows have the coefficient "0,00" (=no expenses allocated). For these entries, all expenses are assigned to the actual product, and none to a material loss. For the expense "Color", we acknowledge that only 80% of the color is used to color the fabric, while 20% is not attaching to the fabric, but ends up as color in wastewater. Hence, please set a value of "80" in the column "Coefficient" in the line "Fabric, colored" of the triplet defined for "Color, and a value of "20" in the line "Color in Wastewater". Figure 53: Allocation factors are allocated manually You can now calculate the model again and have a look at the 'Cost Matrix'. What has changed? This "fairer" distribution of costs onto the product and the material losses is also reflected in the cost Sankey diagrams. If you want you can view the Sankey diagrams for the different reference flows (the product "T-Shirt" and the four material losses that occur along the production). Use the 'MFCA' perspective for the Sankey diagram, and choose the different reference flow entries from the cascading menu. You might also want to compare these Sankey diagrams to the cost Sankey diagram in the conventional cost accounting perspective ("Classic"). Here we find only one reference flow. Material losses are not considered reference flows like in the MFCA perspective. All costs of material losses are born by the actual product. The cost for the product is comparatively higher. Tutorial Page 59

62 Umberto NXT MFCA ifu Hamburg GmbH Figure 54: Viewing the cost Sankey diagrams for the reference flows of the system helps to understand what costs are assigned to the product (T-Shirt) and the four material losses Allocation of costs (expenses) in multi-product processes can be done in different ways. There is no single, correct, way to do it. Physical allocation is one very common way to do it. If physical allocation is not possible (e.g. because the reference flows do not have the same unit type) then manual allocation factors must be entered. Setting the allocation factors has a significant impact on cost distribution. In material flow cost accounting (MFCA) the topic of allocation is even more present, since material losses are considered as reference flows just like products in a process, and allocation is required. In the conventional cost accounting approach this is only required when we face a real coupled production (see next paragraph in this tutorial). ISO 14051:2011 Environmental management -- Material flow cost accounting -- General framework explains about cost allocation in clause Allocation is also explained in Annex B.3 Copying and Extending Model To model a real coupled production, we will first be expanding the existing model. To do this, it is recommended to make a copy of the model. By doing Page 60 Tutorial 1 2 3

63 ifu Hamburg GmbH Umberto NXT MFCA this, you can keep your work in the present status, in case you wish to look over it again in the future. Go to the 'Project Explorer' and locate the model in the folder 'Models'. If the name of your model is still the default "Model", please give a meaningful name, and if you like a description. Copy the model by selecting all elements (CTRL-A) or by drawing up a selection frame around the entire model. Press "CTRL C" or select "Copy" from the menu 'Edit', Create a new model either by clicking on the button "New Model" in the 'Project Explorer' or by choosing the command "New Model" from the context menu of the "Models" folder. Give a meaningful name to the second model, e.g. "Textile Production with 2 Products" or "Model with Coupled Production". In the new, second model editor that opens, paste the model that should still be in the clipboard. You can keep the original model open, or, if you don't need it any more, close it using the 'Close' button at the top-right corner of the model editor tab. The model can always be opened again by clicking on the entry in the 'Models' folder of the 'Project Explorer'. When copying & pasting the net from one model to another, we will not be copying the net parameter that has been used in the first model to calculate the personnel cost. As a consequence the process 'QC3 Finishing' will show a warning symbol and a message will appear in the bottom right corner of your screen. Turn the place type of the place 'T-Shirt' to 'Connection'. What used to be the boundary of the system under study will now be an internal place. See figure below. The copied model is now expanded by two more processes (quantity centres): Set two more process symbols (QCs) to the right of the former final output place 'T-Shirt'. Name these processes "Quality Control" (QC4) and "Labeling" (QC5). The process 'QC4 Quality Control' has an arrow that leads to an output place "T-Shirt (2nd Quality)". The T-shirts that have been identified to have minor defects are sent to another wholesaler at a different price. In the last process 'QC5 Labeling' the T-shirts of excellent quality and without defect are labeled (branded) with a logo that is sewn at the sleeve. The Tutorial Page 61

64 Umberto NXT MFCA ifu Hamburg GmbH process requires electricity for the sewing/stitching machines. Draw an arrow from the existing electricity input place to QC5. Another output place is needed to take up the final product. Name it "T-Shirt (1st Quality)". In the figure below the two output places that take up the two products (the two T-Shirts of prime and secondary quality) have both been positioned to also visually reflect the fact that this is a coupled production. Figure 55: The model has been extended by two more quantity centres. The system will yield two products, QC4 and QC4 still are shown unspecified with a red warning marker To do the process specification, let's start by fixing the issue in QC3 that was caused by the fact that the net parameter has not been copied from one model to the other. Define the net parameter for "Personnel Overhead Cost Ration" again with its identifier (N00 or with the name you used in the function to determine the coefficient value for process costs) and set its value to "0,1". If not sure verify above how you did it before. The warning marker should then disappear. In the material list add the new entries "T-Shirt, Prime Quality" and "T-Shirt, Second Quality" in the 'Products' group. The product of higher quality, that is branded shall be sold at a market price of "7,00" Euro per piece (250g). Define the "Market Price" correctly. The second quality T-Shirt that does have some defects is sold without label. You can keep the previous sales price of "3,00" Euro per piece (as in the first part of the tutorial). Move material entry "T-Shirt" that has so far been used as the final product from the material group 'Products' to the group 'Intermediates'. This intermediate after passing through quality control is led to the 'Finishing' process. Page 62 Tutorial 1 2 3

65 ifu Hamburg GmbH Umberto NXT MFCA Specifying the Processes / User Defined Click on 'QC4 Quality Control' to specify the process. This process is specified with "User Defined Functions" to show that a process specification can also be done using mathematical formulas. Enter the entry "T-Shirt" on the input side of the process, enter the entries "T- Shirt, Prime Quality" and "T-Shirt, Second Quality" on the output side. Direct "T-Shirt, Prime Quality" to the connection place and "T-Shirt, Second Quality" to the output place. Additionally enter the cost type entry "Personnel Cost". Figure 56: The process specification for 'QC4 Quality Control' without coefficients. Umberto NXT identifies two products and therefore shows the "Allocation" tab for coupled production (multioutput-process) Verify, if all place identifiers are set correctly. You do not have to enter coefficients this time. It is necessary to define a local parameter in this process that can be used to set a rate of T-Shirts that are second choice. Go to the tab "Parameters" and define a parameter "Percentage 2nd Choice T-Shirts". Keep the default identifier "C00" or rename it to"rate2nd". Set the parameter value to "30" initially and enter the percentage symbol in the "Unit" column. Figure 57: Parameter in the process specification on tab "Parameters" Now, to prepare the process specification for entering user defined functions, right mouse-click the process symbol and choose "Convert To" and "User Defined" in the cascading menu. Tutorial Page 63

66 Umberto NXT MFCA ifu Hamburg GmbH Figure 58: Preparing a standard input/output coefficient process specification to be specified using "User Defined Functions" Doing this you will note that the column for coefficients disappears in the process specification and that instead the column "Var" with identifiers for the input and output entries is shown. On top of that, the process symbol now has a lighter blue border line, to indicate that it is specified as a user defined function Open the editor window for the user defined function by clicking on the button "Edit User Defined Functions" in the process specification window or by selecting the command from the context menu of the process (quantity centre) symbol. The editor window is empty, we will have to write the definitions of how the input and output entries are defined. We will use the identifiers A00, X00, Y00 and Y01 in the "Var" column to address these entries. Furthermore, the parameter with the identifier "C002 will also be incorporated Specify the following four lines in the editor on the "Functions" tab that is shown behind or on top of the net editor area. In case the functions editor has been closed accidentally, you can open it again with the command "Edit User Defined Functions" from the context menu of 'QC4 Quality Control' or by clicking the button by the same name in the process specification. Note that lines starting with a semicolon (";") are comment lines. You don't have to write them to make the process specification work, but they help explaining what is being calculated. "RATE2ND" delivers the parameter value given in percent. Page 64 Tutorial 1 2 3

67 ifu Hamburg GmbH Umberto NXT MFCA Figure 59: "User Defined Functions": outputs Y00 and Y01 are defined based on a known input stream X00. The inverse function guarantees that the process also can be calculated, if one of the outputs is known The inverse function definitions are not necessarily required. However, by defining them, the model can also calculate if an output flow is known. Discuss the role and location of the manual flow used to launch the calculation and the need for inverse functions in "User Defined Function" process specifications. Next, specify the process 'QC5 Labeling': The inputs from the connection place are the "T-Shirt, Prime Quality" from the connection place and "electricity, medium voltage, at grid [DE]". Electricity should be supplied from the respective place, so make sure there is an arrow feeding the flow and the place identifier is set properly. Finally we need a new product "Brand Patch (Label)". Enter a price of 0,05 per label of 5 grams. You can create a duplicate place of the place 'Auxiliary Materials' that feeds into QC2 Finishing': create a Duplicate by choosing the "Duplicate" command from the context menu of the place and then dragging the copy to a position above the process 'QC5 Labeling'. As for the coefficients that describe the relationship of input and output. The weight of the unlabeled T-Shirt is 250 grams (0,25 kg). The label has a weight of 5 g. 0,10 MJ of energy are used for attaching the brand label patch. Figure 60: Process specification of QC5 Labeling Tutorial Page 65

68 Umberto NXT MFCA ifu Hamburg GmbH Now check whether all red warning markers on the process symbols have disappeared. Then calculate the mode for one unit of "T-Shirt, Prime Quality". A quick way to enter a manual flow is to open the context menu on the output entry "T- Shirt, Prime Quality" in the process specification and choose "Use Entry as Manual Flow". The manual flow will be added to the arrow leading to the output place with the coefficient set. You can either use the given manual flow quantity of 255g or think of an annual sales quantity (e.g units, 255g each). The results will always be in regard to the entered manual flow Run the calculation by pressing F9 or by the button with the calculator icon. MFCA Results The "Costs Matrix Summary' shows the aggregated MFCA results. The total production cost (for the last calculation) is shown in the third column ("Total Costs"). A breakdown into cost share for products and cost share for material losses is given in the other columns. Figure 61: MFCA Cost Matrix Overview It is interesting to see that a certain amount of system costs (machine costs, personnel costs) have also been spent, even though material losses are produced. Additionally, material and energy purchased also ends up in the material losses. This perspective on costs is the key element of material flow cost accounting (MFCA) as described in ISO Have a look at the 'Costs Matrix' view to further analyse the MFCA results per processing step (quantity centre). Page 66 Tutorial 1 2 3

69 ifu Hamburg GmbH Umberto NXT MFCA Finally, the 'Costs per Product' view shows the costs per product and per material loss. Of course the balance for material losses is always negative. Which products are profitable? Figure 62: MFCA Cost Matrix showing 2 Products and 3 Losses You can also look at the cost in the cost Sankey diagrams: Below are the MFCA cost Sankey diagram for the two products. To display the label along the final arrow (where the T-Shirt leaves the factory to the market) click on the arrow and switch on the option "Display Flow Label". To present the name of the Sankey mode, switch on the "Sankey Mode Label" in the menu 'View". Figure 63: MFCA Cost Sankey for product 'T-Shirt Prime Quality' Figure 64: MFCA Cost Sankey for product 'T-Shirt Secondary Quality' Tutorial Page 67

70 Umberto NXT MFCA ifu Hamburg GmbH The Sankey diagram shows how the product value accumulates along the production line in every step. In addition to the material and energy cost, the system costs (machine cost, personnel cost) are added. Carbon Footprinting In addition to the mere cost accounting view on the production system, it can be of interest to learn more about the environmental impact associated with the production or the product. Umberto NXT MFCA allows to assess the carbon footprint (greenhouse gas emissions, contributing to climate change) linked to the production, or to the product, taking into account not only direct emissions, but also embodied carbon ("carbon rucksacks") from materials used in the production. To run a carbon footprint calculation, make sure that direct emissions of GHG gases are accounted for in the model. To do this, the best way is to define the output flows of any process that has direct emissions using the predefined material entries from the master database ecoinvent (in the 'Direct Emissions (IPCC2997/ecoinvent)' group. indirect emissions should be accounted for through the use of predefined material entries from ecoinvent 2.2 that come with an average GWP 100a value as property. if other than the pre-defined material entries from ecoinvent 2.2 are used as material entry in a process specification, it should have a value in the field "CO2 Footprint". The textile production does not have any processing steps that have direct emissions. Direct emissions in most cases result from stationary incineration processes (fuels being burned with releases of GHG gases) such as heaters, ovens, boilers, motors, etc. Direct emissions also occur in transport processes (truck, barge, ). Finally there are some non-combustion chemical processes that may release greenhouse gases. Read more on this in the relevant literature. For this tutorial example we do not need to include any direct emissions. We have been using "yarn, cotton, at plant [GLO]" and "electricity, medium voltage, at grid [DE]" from the ecoinvent 2.2 master database as inputs in the process specifications'. For these entries the GWP 100a value is already set. You can go to the folder 'Raw, auxiliary and operating materials' in the 'Project Materials" subfolder' to verify these values. Click on these material entries and look at the properties. Page 68 Tutorial 1 2 3

71 ifu Hamburg GmbH Umberto NXT MFCA Only two decimal digits are shown but additional decimal digits can be viewed when changing the number format (Menu 'Options' > Number Format) However, for most of the material entries we have defined, we still have to enter the "Carbon Footprint" GWP100a value. This value might have been obtained from the supplier or from a literature research. When searching for such a value, keep in mind that you require the embodied carbon load for one basic unit (e.g. 'kg' or 'kwh') of the material measured in 'kg CO-eq'. So basically all GHG emissions that occurred in the production of one unit of the material are accounted for in this value (hence "carbon rucksack") For this tutorial, use the following GWP100a values and enter them in the field "Carbon Footprint" for these material entries: Color Group "Raw, auxiliary and 19,0 kg CO2-eq. operating materials" Water Group "Raw, auxiliary and 0,0005 kg CO2-eq. operating materials" Wastewater Group "Losses/Wastewater" 0,0003 kg CO2-eq. The GWP 100a value for 'Color' may be an average value given by the supplier or found in a publication. 'Water' may have an environmental burden (GHG emissions) as pumps are used to supply the water to the production site. Wastewater even though on the output side of the process may incur a GHG emissions burden, since there are processing steps to treat the water before it is released to nature again. Hence, even downstream processing steps may contribute to the carbon footprint. The losses 'Fabric, defective' and 'Cutting loses' do not need to have a GWP 100a value assigned. Losses are considered in the MFCA perspective like products, and therefore the carbon footprint burden associated to them is calculated. Internal flows (intermediate materials running from one process to the next via a connection place) also do not need to have GWP 100a value assigned, since they do not show up in the inventory of the model. After having entered the GWP 100a values for the material you can calculate the model again. Have a look at the 'GWP Matrix' in the 'MFCA' perspective on the 'Results' tab. Similar to the MFCA Cost Matrix a MFCA GWP Matrix is shown featuring the GHG emission related to the overall system of producing T-shirts, as well as a breakdown to the share of emissions caused by producing the actual Tutorial Page 69

72 Umberto NXT MFCA ifu Hamburg GmbH product(s), and the share of emissions associated with the production of material losses. All values are in kg Co2-equivalents. Figure 65: MFCA Cost GWP Matrix The three views "Carbon Footprint Summary", "Carbon Footprint Details" and "Carbon Footprint Chart" in the MFCA section have additional visualizations of the carbon footprint data. Figure 66: MFCA Carbon Footprint Summary view Please mind that the MFCA perspective on GHG emissions and carbon footprint uses the same approach as for costs. The overall GHG emissions (direct and indirect) are distributed onto the products and the material losses. Hence creating a material loss while actually working to produce a marketable product assigns carbon footprint burdens to losses (and a lower carbon footprint to products). In the conventional perspective the carbon footprint burden of the wastes are expenses born by the product itself (wastes are unintended side-effects of the production, so they are assigned to the product). Compare the carbon footprint views in Page 70 Tutorial 1 2 3

73 ifu Hamburg GmbH Umberto NXT MFCA the classic perspective to learn more. Carbon footprint is not mentioned in the standard ISO 14051:2011 Environmental management -- Material flow cost accounting -- General framework. The standard that guides carbon footprint calculation is ISO of products. Module Gallery The whole model or parts thereof can be stored to the Module Gallery for use in other models at a later point in time. As an example, mark the process (quantity centre) 'QC3 Tailoring' and choose 'Copy' from the context menu. Alternatively press 'CTRL+C'. The process symbol as well as the neighbouring places with the arrows linking them will be selected and copied. Switch to the "Module Gallery". It is accessible on a tab behind the "Project Explorer". Click on the empty folder "Modules". From the context menu choose the command 'Paste to Module Gallery' or click on the button "Paste Clipboard Data to Module Gallery". Repeat the copying for another quantity centre, e.g. 'QC2 Finishing'. You may want to rename the module group to "Modules Textile Production" Figure 67: Module Gallery Tutorial Page 71

74 Umberto NXT MFCA ifu Hamburg GmbH Note that the module gallery is accessible from any project you are working on. This means that the modules you store can be copied to any other model you create. To add a module from a folder in the module gallery, just drag&drop it onto the model editor. Exporting and Printing To export a Sankey diagram, for example to include it into a report, go to the menu 'File' and use the command "Export Model ". Alternatively click on the button "Export Model " in the editor toolbar. A dialog will be shown to set the export quality and size of the image. State a name and choose graphics file format as file type. Figure 68: Export Diagram Since there are many different Sankey diagrams you can export, we recommend that you use the "Sankey Mode Label" from the 'View' menu. Thank you for completing tutorial 3. If there are still pending questions you should consult the Umberto NXT MFCA User Manual or have a look on the Umberto User Forum (my.umberto.de). Page 72 Tutorial 1 2 3