Report: Material Flow Cost Accounting (MFCA) Workshop, August 24-28, 2015, Indonesia

Group Photo of Participants

Group Photo of Participants

The Workshop on Material Flow Cost Accounting (MFCA) held in Jakarta, Indonesia is a 5-days training program that covers lectures and demonstrations about the concepts, structures and cost calculation methodology based on MFCA.

One of the highlights of the said activity centers on the establishment of MFCA Forum among Asian Productivity Organization (APO) member countries which serves as a platform to further strengthen MFCA implementation and dissemination. All participating countries, except Lao PDR and Cambodia, signed the Declaration of National MFCA Forum during the launching of Indonesian MFCA Forum as an agreement to commence the process of establishing a national MFCA forum with the objective of developing and disseminating MFCA, in collaboration with the government, academia, industries, further stakeholders and other member countries of the Asian Productivity Organization.

To complement the lectures and discussions done by the MFCA experts on this matter, we undergone site visit at PT Martha Berto, a manufacturing and marketing subsidiary of Martha Tilaar Group which is a leader in the Indonesian cosmetics market. The said company already implemented the tool on its manufacturing operations and was considered as the MFCA demonstration project company.  We first had company orientation wherein their products and services were introduced, followed by the introduction of some of the company’s administrators.  An actual tour on the plant followed where the lipstick production was currently in progress. The operations and processes on the production of lipstick were explained to us.

OBJECTIVES FOR PARTICIPATION

M. Mendoza, Mapua Institute of Technology

As an Industrial Engineering and Engineering Management professor, I found MFCA aligned in our program since MFCA focuses on enhancing productivity, quality improvements and cost reductions. Attending this workshop gave me the capability to share new knowledge and contribute more inputs to my students during classroom discussions.  Moreover, this would also give me an opportunity to conduct workshops and mentor industries on this subject.

D. Vanguardia, Zenith Foods Corporation

MFCA was first implemented at Zenith Foods Corporation (ZFC), central commissary of Jollibee Foods Corporation. Ms. Aurora Mercurio, pioneered the application of MFCA  in this company after attending the workshop in Tokyo, Japan.  She formed an MFCA team and initially applied it in one of its production lines in the Laguna commissary, but unfortunately, Ms. Mercurio transferred to another commissary.  MFCA gives a lot of benefits especially savings to the company, hence, continuing what was already started  by Ms. Mercurio is the main reason why I joined this workshop.

PROFILE OF PARTICIPANTS

There are 23 participants hailed from Bangladesh (2), Cambodia, Republic of China, Fiji, India (2), IR Iran, LAO PDR, Malaysia, Pakistan, Sri Lanka (2), Vietnam (2), Indonesia (6), and Philippines (2).

PHILIPPINE DELEGATES

Mary Christy O. Mendoza
Faculty Member, IE-EMG Department
Mapua Institute of Technology

Dindo M. Vanguardia
Manufacturing Manager
Zenith Foods Corporation – Jollibee Commissary

SCOPE AND CONTENT

1. APO Activities on Green Productivity (GP) and MFCA
2. MFCA in APO member countries:  Country reports
3. Structure, roles and responsibilities of National MFCA Forum
4. Ways to develop, stabilize, strengthen and sustain National MFCA Forum
5. Site Visit at PT Martina Berto, subsidiary of Martha Tilaar Group of Companies
6. Discussion and analysis of site visit
7. Visualization of MFCA: utilization of software
8. Preparation and presentation of declaration of national MFCA forum

METHODOLOGY

1. Lectures and presentations
2. Question and answer
3. Site visit
4. Discussion and analysis (identification of areas for improvement)
5. Group presentations
6. MFCA software

OUTCOMES AND EVALUATION

I (Christy Mendoza) already attended an MFCA workshop locally last 2014, but this national training further deepened my knowledge and understanding on the concepts, applications and benefits of MFCA.

Both of us really appreciated the country paper presentations where speakers, facilitators, and delegates from different participating countries exchanged information on the applications of MFCA, shared success stories and different approaches on its implementation, and deliberated on future strategies to expand and disseminate this concept globally.  Resource speakers were very knowledgeable on the subjects that they have discussed.  They managed to lead the workshop into an interactive session of knowledge/experience sharing and brainstorming and have inspired the participants to move on to the next step.

The National Productivity Organization (NPO) Indonesia, the host of the said workshop, really did an excellent job to make the operations of this project run smoothly. We really felt their genuine hospitality.  Overall, the workshop was very organized, and the objectives of the workshop were met.

RECOMMENDATIONS AND ACTION STEPS

General Recommendations of APO and delegates:

• More MFCA workshops to develop local consultants
• Develop MFCA manual/handbook
• Develop MFCA website
• Establish demo companies
• Annual MFCA conference
• Select target sectors and pilot unit
• Financial support

Recommendations to Development Academy of the Philippines (DAP):

• Workout/strengthen structure for National MFCA Forum Philippines
• Extend help in tapping possible  industry/academe participants for workshop/seminar on MFCA
• Initiate more MFCA workshops locally to develop MFCA experts
• Conduct Progress Report Meeting/Presentation few months after the workshop
• Create Journal that would showcase best practices of those who implemented MFCA tool
• Financial support, if possible

DELEGATES’ ACTION PLANS

Establishment of MFCA Forum Philippines has been proposed already by Dr. Rex Robielos, Dean, Mapua Institute of Technology, and DAP (our local NPO) to APO since last year.  After this workshop, we are planning to extend our hands so that this endeavor could materialize in the near future.  We would probably help in setting up the structure of the said forum, in cooperation with DAP and other APO Grantees in the Philippines,  by tapping key persons from big organizations like Production and Operations Management Association of the Philippines (PROMAP) and Association of SMEs in the Philippines.  We also plan to conduct seminars and workshops to schools and industries to further promote MFCA, and to keep in touch with the MFCA guest speakers and participants to keep us abreast with new developments and issues concerning MFCA.

As for the case of Zenith Foods Corporation, the target is to extend the application of MFCA to its other production lines and eventually to other subsidiary companies like Greenwich, Mang Inasal and Chowking in the near future.

SUBMITTED BY

MARY CHRISTY O. MENDOZA
Faculty Member, IE-EMG Department
Mapua Institute of Technology

DINDO M. VANGUARDIA
Manufacturing Manager
Zenith Foods Corporation (Jollibee Commissary)

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