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It is often difficult to extract data on material and energy wastes and related costs in the value chain of manufacturing products. Many organizations are not fully aware of the actual costs of material and energy wastes. For this purpose, advanced costing methods should be used. For this case study, we used material and energy flow cost accounting (MEFCA) to determine material costs, losses, and waste management in the manufacturing of turbine blades at the Iran Power Plant Company. Using the extracted data, the manufacturing costs of turbine blades were studied. The conventional method of turbine blades production is the machining method, which produces a significant amount of material and energy waste. By studying different methods, we found that there is an alternative method called forging, which reduces losses and costs. Finally, the costs of the two methods were compared. Engineering economics techniques were also used to compare the two methods on a long-term planning horizon.

sustainability

Increasing Energy and Material Consumption Efficiency by Application of Material and Energy Flow Cost Accounting System (Case Study: Turbine Blade Production)