Productivity and environmental performance: an empirical evidence from a furniture factory in Malang City, Indonesia

Abstract

The growth of furniture factories in Malang City produces large volumes of waste that potentially degrade the environment. This study aimed to analyse the level of productivity and environmental performance of a furniture factory then to determine alternative solutions for increasing productivity and improving environmental performance simultaneously. An empirical evidence was carried out from UD. JAYA ABADI using 3 stages of Green Productivity (GP) approach. The first stage was measurement of mass balance and analysis of the production process by mapping each process flow using Green Value Stream Mapping (GVSM) current-state. The second stage was the measurement of the environmental impact using initial condition of Green Productivity Index (GPI). The third phase was determination of alternatives solution based on the results of problem identification using the Fishbone Diagram. Contribution estimation of each improvement alternative solution then was done using Benefit Cost Ratio as financial analysis, future state GVSM, and GPI condition after improvement. The analysis result showed the initial condition of the company had the Environmental Impact (EI) of 26.003, economic indicator of 1.266 and GPI of 0.0487 for initial condition. It showed the impact on the environment was greater than the level of company productivity. The best solution alternative for increasing productivity and improving environmental performance was the recycling of solid waste become planting media that increased the value of GPI to be 0.064, the value of EI to be 19.711, and economic indicator increased to be 1.268.