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Article history:
Received 27 March 2013
Received in revised form
21 December 2013
Accepted 29 January 2014
Available online 7 February 2014
The main objective of this research was to map and to analyze green productivity of a natural rubber
supply chain and formulate scenarios for increasing its green productivity level. The case studies were
conducted in private enterprises engaged in natural rubber plantation and processing. Material ow
analysis was performed using the green material ow map to analyze the seven sources of green wastes.
The best strategy for green productivity improvement was determined by using the Analytic Hierarchy
Process (AHP). The performance of green productivity improvement strategies was then assessed as
future GPI (Green Productivity Index) and compared with current GPI. Results of this research have
shown that the natural rubber cultivation combined with latex production improvement and waste
minimization was the best green productivity improvement strategy. The best selected strategy for the
production process was reusing the processing water.
2014 Elsevier Ltd. All rights reserved.
Keywords:
Green productivity
Natural rubber
Value stream
Green productivity index
1. Introduction
Indonesia is the second largest natural rubber (NR) producer in
the world with a production about 28% of the total production in
2010. However, rubber plantation productivity in Indonesia is
lower compared to other major natural rubber producing countries
such as Thailand and Malaysia.
Indonesias natural rubber industries have three possible sources of raw material, namely smallholders, Government Owned
Enterprises, and large scale private plantations (estates). They are
characterized by their low productivity on both the upstream and
downstream1 sides. Indonesia natural rubber upstream productivity was 935 kg/hectare/year (Ministry of Agriculture, The
Republic of Indonesia (2012)). This gure was lower than those of
other natural rubber producing countries such as Thailand,
Malaysia and India. In 2008, Thailands natural rubber upstream
productivity was 1698 kg/hectare/year, while Malaysia was
1430 kg/hectare/year and India was 1930 kg/hectare/year
* Corresponding author.
E-mail addresses: marimin@ipb.ac.id, marimin_07@yahoo.com, marimin@indo.
net.id ( Marimin).
1
The liquid latex tapped from tress is not a stable material and processing is
required to change it to a form suitable for storage or shipment. The use of the term
downstream here refers to the processes used to convert the latex to a solid form
as crumb rubber, ribbed sheet, or crepe rubber.
http://dx.doi.org/10.1016/j.jclepro.2014.01.098
0959-6526/ 2014 Elsevier Ltd. All rights reserved.
202
2
Concentrated latex is an alternate downstream NR form. It is normally processed, by centrifuging the liquid latex and adding an ammonia stabilizer.
3
Part of the process necessary to produce solid forms of NR is drying. Originally
drying was aided by heat of the smoke from burning wood. The term smoked
comes from that history.
4
Cobweb model is based on a time lag between supply and demand decisions.
Since there is lag between planting and harvesting in agricultural markets, the
Cobweb model is said to be applicable in these market.
203
Natural
Rubber
Importer
Provincial level
collector
District level
collector
Village level
collector
Smallholders
SIR
processing
RSS
processing
Centrifuge
Latex
processing
Overseas broker
Overseas
Manufacturer
Local brokers
and traders
Local
Manufacturers
Crepe
rubber
processing
Private estate
Government
estate
Fig. 1. International rubber supply chain (Modied from Peramune and Budiman, 2007).
The Analytical Hierarchy Process (AHP) is known for its applicability in multi-criteria decision-making. The method was developed by Saaty in the 1970s and used to solve problems by using an
organized framework, so it can be expressed to take effective decisions on the issue. The use of AHP can simplify and speed up the
decision making process. The fundamental principle of AHP is a
simplication of a complex issue that is not structured, strategic
204
Literature Study
Economic
Indicator
Expert Judgement on
environment issues
Green Productivity
Measures
Generate Green
Productivity Indicator
Green Productivity
Calculations
Environment Indicator
Production Cost
Economic Indicator
Product price
Water consumption
Green Productivity
Environment impact
3. Research method
Indonesias natural rubber industries have three possible sources of raw material, namely smallholders, Government Own Enterprises, and large scale private plantations (estates). In this
research, in determining the common factors we considered these
three sources. However, due to practical constraints, we used
detailed numerical data and information provided by XYZ Co. in
particular and the private estates in general.
Value chain analysis consists of several activities. The process
stages and required material for cultivation and production were
analyzed using green value stream developed by Wills (2009). This
analysis starts with the identication of seven green waste generators. Following the analysis of the activities and materials needed
in the cultivation and production, the green productivity index
(GPI) was calculated with formulas (1), (2), and (3). Fig. 3 shows the
framework of GPI measurement.
3.1. Green productivity index
Green productivity calculations were done by accumulating the
results of the calculation of economic indicators and environmental
indicators. Economic indicators were calculated by the ratio between the incomes earned from the sale of products and production costs to produce the product.
Fig. 3. Green productivity index measurement (modied from Gandhi et al., 2006).
The economic indicator is the ratio between the selling price and
cost of production of the same unit of one type of product. In this
research, the selling price of the product in question is the selling price
per liter of latex products produced from the eld, while the cost of
production is the cost required to produce 1 L of latex products. The
calculations used in determining the value of the economic indicator
are based upon the production of one tonne of latex products.
(2)
(1)
(3)
whereas:
w1, w2, w3, w4: weight of each GPI
GWG : gaseous wastes generation
SWG : solid wastes generation
WC : water consumption
LWG : land wastes generation
Therefore, the weights of each GPI indicator for natural rubber
cultivation were, w1 0.375, w2 0.25, w3 0.125, and w4 0.25
and the environmental impact of natural rubber cultivation was
formulated as:
(4)
(5)
205
Table 1
Indicators weight in ESI 2005 (Esty et al., 2005).
Equality of ESI indicator
Weight in ESI
Quality of air
Greenhouse emission
Decrease in air pollution level
Water quality
Water consumption
Decrease in solid and material consumption
Biodiversity
Land area
0.05
0.05
0.05
0.05
0.05
0.05
0.05
0.05
206
Table 2
Green waste identication for upstream activities.
Waste type
Process activities
Energy (Kwh)
Water (m3)
Material (kg)
Garbage (kg)
Transportation (km)
Emission
Biodiversity (ha)
Nursery
NPP maintenance
PP maintenance
Harvest
Sorting
Shipping
Total
1830
900
1245
0
0
1631
194
0
0
28,075
0
0
0
763
0
0
40,531
0
0
0
1759
0
0
0
14,400
0
0
0.02
0
0
0
3000
0
0
0.01
0
0
0
0
2700
1426
0
1830
900
69,851
14,400
2769
3094
2715
Table 3
Seven green wastes identication of RSS.
Waste type
Milling
Smoking
Sorting
Packaging
Total
Energy (kWh)
Water (liter)
Material (kg)
Garbage (kg)
Transportation (km)
Emission (tonnes CO2/day)
Biodiversity (Ha)
3.33
e
e
e
e
2.97 10-3
e
200.00
8549.71
45.00
e
e
0.71
e
170.00
7000.00
e
e
e
0.76
e
e
e
e
e
e
e
e
e
e
50.00
e
e
e
e
0.27
e
423.33
15,549.71
45.00
652.00
e
1.89
e
0.00
652.00
e
0.15
e
Table 4
Seven sources of green wastes identication of BC.
Waste type
Energy (kWh)
Water (liter)
Material (kg)
Garbage (kg)
Transportation
(km)
Emission
(tonnes CO2/day)
Biodiversity (Ha)
Source: XYZ Co. (2012).
Sorting and
receiving
Milling
Drying
Sorting
Total
90.00
4000.00
e
e
e
148.20
6080.00
e
e
e
e
e
e
e
e
e
e
e
e
e
238.20
10,080.00
e
e
e
0.66
0.74
6
V
a 5
l
u 4
e 3
Environmental indicator
Economic Indicator
Current GPI
2
1
0
Upstream
RSS
BC
Fig. 4. Economic and environmental indicators and GP index for upstream and production processes.
207
XYZ Company
Seed demand
1 million seeds/year
SEED SUPPLIER
Transport : 69.17 km
Energy
: 1,830 KWh
Water
: 900 m
Materials
: 131,836 kg
Garbage
: 147,334 kg
PROCESSING PLANT
Shipping
Transportation : 2,769.17 km
Transport : 2,700 km
Emission : 37 kg
Emission
: 3,094.3 kg
Nursery
Maintenance NPP
Maintenance PP
Harvest
Sorting
(0-1 years)
(1-5 years)
(6-30 years)
(everyday)
(everyday)
Energy
: 1,830 KWh
Energy
Water
: 900 m
Water
: 0 KWh
:0m
Energy
: 0 KWh
Water
:0m
Energy
: 0 KWh
Water
:0m
Energy
: 0 KWh
Water
: 0 m3
Materials : 2,358.6kg
Materials : 53,670.5 kg
Materials : 75,806.6 kg
Materials : 0 kg
Materials : 0 kg
Garbage
Garbage
Garbage
Garbage
Garbage
: 334 kg
: 0 kg
: 0 kg
: 144,000 kg
: 3,000 kg
Transportation : 0 km
Transportation : 0 km
Transportation : 0 km
Transportation : 0 km
Transportation : 0 km
Emission : 1,631 kg
Emission : 0 kg
Emission : 0 kg
Emission : 0 kg
Emission : 0 kg
Latex needs
information
Average 14,285.23
Liter/Day
PROCESSING
PLANT
Every Day
14,285.23
Liter/Day
Transport. : Emission : -
Demand
120 Tonnes/month
Energy
: 12,699.9Kwh/Month
Water
:388.742 m3/Month
Materials
:1,125 liter/Month
Garbage
:19.56 tonnes/month
Transportation
:-
CUSTOMER
Transport. : Emission : -
Emission
Biodiversity
:-
2x/Month
Energy
(Daily)
Raw Materials
Receiving (Latex)
(daily)
C/T
: 1 hour
C/O
:0
Energy
: 3.33 Kwh
Water
: 0 Liter
Materials
:0
Garbage
: 0 Kg
Transportation: 0 Km
Emission
: 2.967 x 10
Tonn CO2/Day
Biodiversity : -
C/T
C/O
: 4 hour
: 1 hour
C/T
C/O
Energy
: 170 Kwh
Energy
: 0 Kwh
Water
: 7,000 Liter
Water
: 0 Liter
Materials
:0
Materials
:0
: 0 Kg
Garbage
: 0.652 Ton
Energy
: 200 Kwh
Water
: 8,549.71 Liter
Materials
: 45 Liter
Garbage
Garbage
: 0 Kg
Transportation: 0 Km
Transportation: 0 Km
Emission
Emission
CO /Day
CO /Day
: 0.7128 Ton
(daily)
: 120 hour
: 2 hour
(daily)
: 5 hour
: 2 hour
C/T
C/O
0.7573
Biodiversity : -Energy
KWh
Sorting Station
Smoking Station
Milling Station
Transportation: 0 Km
Ton
Emission
0.1473 ton
NO , SO
:0
Biodiversity : -
(daily)
C/T
C/O
: 6 hour
: 1 hour
Energy
: 0 Kwh
Water
Packing and
inventory (daily)
C/T
C/O
: 6 hour
: 1 hour
Energy
: 50 Kwh
Water
: 0 Liter
: 0 Liter
Materials
:0
Materials
:0
Garbage
: 0 Kg
Garbage
: 0 Kg
Transportation: 0 Km
Transportation: 0 Km
Emission
Emission
CO /Day
:-
Biodiversity: -
: 0,2673 Ton
208
Based on the alternative selected, 9 scenarios were then constructed in order to implement the alternative. Next, the GPI of the
nine scenarios was calculated in order to obtain the best GPI value.
The nine scenarios and GPI value are shown in Table 5. The best GPI
obtained was 3.69 for scenario 9, which was the combination of the
best strategy with scenario 8.
4.500
4.000
3.500
3.000
2.500
Current GPI
2.000
1.500
1.000
0.500
0.000
Cultivation
Focus
(1.000)
Factor
Actor
Goal
Alternative
Government
(0.081)
Plantation optimum
utilization
(0.139)
Ministry of agriculture
(0.095)
Reuse of
wastes from
cultivation process
(0.252)
Company
management
(0.326)
Plantation head
(0.215)
Substitute a portion of
Chemical pesticide usage with
Vegetable pesticide
(0.177)
Technology Mastery
and
application
(0.135)
Transportation and
Communication
(0.039)
Substitute a portion
of Chemical with Organic
and Green fertilizers
(0.281)
Planters group
(0.204)
Government Policy
(0.032)
209
Table 5
Alternative design of scenario for improvement strategy.
Scenario
Description
Environmental indicator
Economic indicator
GPI
1
2
3
4
0.63
0.73
0.63
0.69
1.31
1.27
1.64
1.27
2.07
1.74
2.58
1.83
0.59
1.63
2.74
0.69
1.58
2.27
0.66
0.56
0.49
1.57
1.58
1.95
2.39
2.83
3.96
5
6
7
8
9
process for RSS and BC. The future green value stream map of
natural rubber cultivation and RSS production process are illustrated in Fig. 10 and Fig. 11.
5. Conclusions and recommendations
5.1. Conclusions
It is concluded that the amount of the seven sources of green
wastes were 1.830 KWh of energy, 900 m3 water consumption,
131.836 kg supporting material; 147.334 kg garbage; 2769.17 km
transportation; 3094.3 kg emissions; and 2715.45 ha biodiversity.
The result of the GPI calculation was 1.956.
The increase in the cultivation of natural rubber favors the
scenario of combined strategy of the use of degradable polybag,
lump utilization and substitution of 50% with the use of fertilizer
and biological fertilizer application and replanting activities of
semi-intensive production plants. The chosen scenario increased
the productivity of the cultivation process as much as two-digit
index from 1.96 to 3.96. Furthermore, based on the chosen scenario, a future green value stream map was constructed with seven
green waste prole as 1.830 KWh of energy consumption, water
Focus
(1.000)
Factor
Actor
Demand Level
(0.056)
Executive Officers
(0.256)
Government
(0.161)
Maximize profit
(0.731)
Goal
Alternative
Production process
optimization
(0.309)
HR
competence
(0.287)
Selling
price
(0.106)
Production
Cost
(0.137)
Environmental Related
Government Policy
(0.088)
Downstream industry
(0.512)
Water reuse
(0.366)
210
Latex production
Average: 428,557
liter/month
Seed needed
1 million/year
SEED
SUPPLIER
Energy
: 1,830 KWh
Water
: 900 m3
Materials
: 69,851 kg
Garbage
: 14,400 kg
Transportation : 2,769.17 km
Emisi
: 3,094.3 kg
Biodiversity : 2,715.45 Ha
Transport : 69.17 km
PROCESSING PLANT
Shipping
Transport : 2,700 km
Emission : 37 kg
Emission : 1,426.30 kg
Nursery
NPP maintenance
PP maintenance
Harvesting
Sorting Station
(0-1 year)
(1-5 years)
(6-30 years)
(daily)
(daily)
Energy
: 1,830 KWh
Energy
: 0 KWh
Energy
: 0 KWh
Energy
: 0 KWh
Energy
: 0 KWh
Water
: 900 m
Water
:0m
Water
:0m
Water
:0m
Water
:0m
Materials : 1,244.85kg
Materials : 28,074.85 kg
Materials : 40,531.3 kg
Materials : 0 kg
Materials : 0 kg
Garbage
Garbage
Garbage
Garbage
Garbage
: 0 kg
: 0 kg
: 0 kg
: 14,400 kg
: 3,000 kg
Transportation : 0 km
Transportation : 0 km
Transportation : 0 km
Transportation : 0 km
Transportation : 0 km
Emission : 1,631 kg
Emission: 0 kg
Emission : 0 kg
Emission: 0 kg
Emission: 0 kg
Fig. 10. Green value stream map of RSS natural rubber cultivation.
Latex demand
Average 14,285.23
Liter/Day
PROCESSING
PLANT
Transport. : Emission : -
Demand
120 Tonnes/Month
Energy
: 12,699.9Kwh/Month
Water
: 388.742 m /Month
Materials
: 1,125 Liter/Month
Garbage
:19.56 tonnes/month
CUSTOMER
Transport. : Emissions : -
Receiving St (Latex)
(daily)
C/T
: 1 hour
C/O
: 0 hour
C/T
C/O
Energy
: 3.33 Kwh
Water
: 0 Liter
Smoking station
Milling station
(daily)
: 5 hour
: 2 hour
C/T
C/O
(daily)
: 120 hour
: 2 hour
Sorting Station
C/T
C/O
(daily)
: 6 hour
: 1 hour
: 6 hour
: 1 hour
: 4 hour
: 1 hour
C/T
C/O
Energy
: 200 Kwh
Energy
: 12.143 Kwh
Energy
: 0 Kwh
Energy
: 0 Kwh
Energy
: 50 Kwh
Water
: 8,549.71 Liter
Water
: 500 Liter
Water
: 0 Liter
Water
: 0 Liter
Water
: 0 Liter
Materials : 0
Materials : 45 Liter
Materials : 0
Materials : 0
Materials : 0
Materials : 0
Garbage
Garbage
Garbage
Garbage
Garbage
Garbage
: 0 Kg
: 0 Kg
: 0 Kg
Transportation: 0 Km
Transportation: 0 Km
Transportation: 0 Km
Emission : 2.967 x 10
Ton CO /Day
Emission:
CO /Day
CO /Day
0.054
Ton
: 0.652 Ton
: 0 Kg
: 0 Kg
Transportation: 0 Km
Transportation: 0 Km
Transportation: 0 Km
Emission : -
NO , SO
Biodiversity : -
CO /Day
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