Sustainability Analysis of Small Medium Enterprise Using Sustainable Lean Production and Product-Service System

Abstract

Sustainable Development Goals have emerged as a critical global agenda, including for micro, small, and medium enterprises (MSMEs). However, several MSMEs in Indonesia have struggled to implement these goals effectively. Kembang Mayang Batik Studio is one such enterprise, where a significant amount of waste is still being generated that could otherwise be avoided. To address this issue, a new method has been developed by integrating the Product-Service System and Sustainable Lean Production, which is named the Sus-PSS framework. The results of the study identified several types of waste, including defects, inventory, motion, and excess processing, as well as categorized activities into Value Added, Not Value Added, and Necessary Not Value Added. In addition, 11 sustainability indicators were identified, and based on the analysis, most have not met their targets, except for water consumption, with an overall sustainability index of 63.1%. Based on the results of Sustainable Value Stream Mapping, Sustainability Index, and Strengths-Weaknesses-Opportunities-Threats Analyses, twelve recommendations were formulated. After assessment, six of these recommendations were identified as immediately actionable. These efforts can help Kembang Mayang Batik effectively move toward sustainability by increasing value-added activities by 5%, eliminating waste, especially in the category of defects and unnecessary movements, and reducing non-value-added activities by 5%.