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Journal of Cleaner Production 85 (2014) 201e211

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Journal of Cleaner Production


journal homepage: www.elsevier.com/locate/jclepro

Value chain analysis for green productivity improvement in the


natural rubber supply chain: a case study
Marimin*, Muhammad Arif Darmawan, Machfud, Muhammad Panji Islam Fajar Putra,
Bangkit Wiguna
Department of Agroindustrial Technology, Faculty of Agricultural Technology, Bogor Agricultural University, Bogor, Indonesia

a r t i c l e i n f o

a b s t r a c t

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.

(Damardjati and Jacob, 2009). Besides the low productivity of


natural rubber upstream industry, the raw material supply for
manufacturing industry was scarce due to the export of most of the
NR.
Existing studies on natural rubber have focused on upstream
practices rather than the natural rubber supply chain as a whole.
Several studies on plantation practices have been conducted such
as on the germination and seedling (Basyaruddin, 2009; Permadi
and Ginting, 2009; Hickling et al., 2009; Sundiandi et al., 2009;
Boerhendhy et al., 2009; Muluk, 2009), and land preparation
(Nugroho and Istianto, 2009). Although several studies have been
done on natural rubber production and rubber-related supply
chains, such as rubber wood (Zachariah and Patrick, 2011), and
environmental impact (Tekasakul and Tekasakul, 2006; Singh et al.,
2011; Mohammadi et al., 2011), only few of them examined the
integration of productivity and effects on the environment. Arin
(2005) identied the need for integration between productivity
and environmental concerns by increasing production with the
introduction of new varieties of rubber trees, combined with land
use that meets the requirements of sustainable resource management and environmental quality. The Arin study, however, did not
address increasing productivity throughout the supply chain nor
did it integrate productivity and environmental issues in a systemic
and systematic fashion. Rao (2000) suggested that an approach
towards an environmental initiative required a long-term vision of
a sustainable world encompassing a three-stage strategic solution

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Marimin et al. / Journal of Cleaner Production 85 (2014) 201e211

for the environment, namely (1) pollution prevention before


pollution control, (2) product stewardship and (3) clean technology.
A systemic approach is required in order to see the problem from
both an economic and environmental viewpoint.
The concept used in this research was Green Productivity (GP),
focused on the issues at hand. The Asian Productivity Organization
(APO) in 2006 stated that GP focuses on the environment through a
reduction in the rate of use of environmental resources while at the
same time reducing the negative impact on the environment. GP
also focuses on the economical reduction of material and energy
costs used to create goods and services, thereby reducing the direct
costs that ultimately have an impact on protability.
This research has two purposes; (1) mapping and analyzing
green productivity of the natural rubber supply chain, and (2)
formulating scenarios to increase the productivity of the NR business based on a Green Productivity approach through case studies
of large-scale plantations (estates).
2. Literature study
2.1. Indonesian natural rubber supply chain
Businesses in the natural rubber industry supply chain are very
closely interlinked; therefore, a supply chain analysis has the potential to indicate methods of reducing the cost of NR as a commodity. Large estates are able to integrate all activities in the chain
resulting in the ability to implement effective and efcient production, while small and medium estates need further improvement in order to integrate their upstream and downstream supply
chain. Indonesias NR industry produces commodities in the form
of crumb rubber (Standard Indonesian Rubber), sheet (Ribbed
Smoked2 Sheet), concentrated latex3, and crepe. The need for
integration between the downstream and upstream natural rubber
businesses is important.
The price of natural rubber is caused by several factors such as
the phenomenon of the business cycle and the effect of Cobweb4
theory on rubber commodity, the dynamic changes in fundamental factors and economic shocks/policies that affect the demand and supply of the worlds natural rubber, and the emergence
of non-physical market as hedging efforts of investors and speculators in the futures market exchange, especially in Singapore
Commodity Exchange (SICOM), Shanghai Future Exchange (SHFE),
Tokyo Commodity Exchange (TOCOM) and others. World rubber
price volatility is often used by speculators to make a prot, but for
rubber planters, this is often detrimental to farmers particularly
when prices fall and only a momentary benet in the event of price
increases (Permadi, 2010).
The natural rubber supply chain in Indonesia consists of supplier, distributor, processor, and marketer. The suppliers are
smallholder farmers, private and government estates, and natural
rubber importers. The smallholder supply goes through various
intermediaries, usually including village, district and provincial
level collectors. The larger private and government estates establish
their own internal distribution. Smallholders supply over 90% of the
total natural rubber supply, and it is primarily in one of the solid
forms. NR processed products consist of crumb rubber of

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.

Indonesian Standard (SIR), Ribbed Smoked Sheet (RSS), Centrifuge


Latex, Crepe rubber (Brown Crepe and White Crepe) and others.
The natural rubber markets comprise national market and international markets. The national market consists of local brokers and
traders that supply national downstream manufacturing. The international market, on the other hand, consists of overseas brokers
that supply overseas manufacturers of rubber goods. The overall NR
supply chain is exhibited in Fig. 1.
2.2. Green productivity
Green Productivity stems from the concept of lean and green
concept, which is an integration of both lean and green thinking.
Lean thinking was introduced in order to enhance productivity in
terms of economy over the last several decades. Recently, environmental consciousness in industrial practices has received
considerable attention. It has triggered the emergence of green
thinking in the way rms operate in various industries. Lean and
green thinking tries to minimize waste in terms of production and
terms of the environment. Overlap between the two paradigms has
been studied by Dues et al. (2012). The literature study concluded
that the relationship between lean and green are very close. Based
on the studies that have been done on companies implementing
lean production system, it was found that lean could help create
green supply chains. On the other hand, the application of green
approaches in the production system can help production become
lean.
One of several lean and green initiatives is Green Productivity
that was designed by The Asian Productivity Organization. It was
created following the 1992 Rio Earth Summit as both concept and
strategy integrating the lean and green initiative. The denition of
Green Productivity as stated by the Asian Productivity Organization
(2006) is:
Green productivity (GP) is a strategy for enhancing productivity
and environmental performance simultaneously to achieve
overall socio-economic development. Its aim is well-rounded
socio-economic development that leads to sustained improvement in the quality of human life. It is the combined application
of appropriate productivity and environmental management
tools, techniques and technologies that reduce the environmental impact of an organizations activities, products and
services while enhancing protability and competitive
advantage.
Although there are very few research articles on Green Productivity, it is a growing topic in the eld of lean and green. Several
papers explicitly mentioned Green Productivity, namely Gandhi
et al. (2006), Tuttle and Heap (2008), and Hur et al. (2004).
Fliedner and Majeske (2010), although they did not explicitly
mention the term Green Productivity, argued that lean and green
concepts intercept and supported each other in order to enhance
productivity.
2.3. Green Value Stream
Green Value Stream (GVS) map method was introduced by Wills
(2009), which was known as the principle of green intentions with
green value stream mapping, as a tool to map the seven waste
generators that exist in value added systems. The GVS has its roots
to the original value stream map that was rst developed by operations management staff at Toyota Motor Corporation, Japan, in
the late 1980s. It was originally used to identify ways to smooth the
ow of material and information, improve productivity and
competitiveness, and help implement the system rather.

Marimin et al. / Journal of Cleaner Production 85 (2014) 201e211

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).

Value stream mapping is a tool that can be used to map the ow


of value in detail to identify the waste and provide a way to eliminate or to reduce it (Nielsen, 2008). Lasa et al. (2008) suggested
that value stream is a valuable tool for the redesign of productive
systems according to the lean system. Three important elements
associated with value stream maps are value-added activities, nonvalue added activities and activities that are important, but do not
provide added value. Value-added activities are activities that truly
benet the customer. Activities that are not value-added those that
add value to an activity rather than to the customers, but cannot be
eliminated (Jones and Hines, 2004). Value stream map provides a
visual presentation of the ow of the current process or the Current
Folder displays ow cycle times and diagrams. When the activity
stream is analyzed and modied, resulting in a ow chart, after
elimination of the waste, for the future called future map (Hande
and Ceylan, 2011). According to Hines and Taylor (2000), value
stream mapping provides a real and powerful technique that can be
used to identify non-value added activities in a company. Activities
within the value stream that consume resources but do not
contribute value should be eliminated. Although there is a similarity between a value stream and the green value stream, there are
differences in the way they dene waste. The value stream identies seven sources of waste generation consisting of inventory,
displacement, damage to the product, transportation, overproduction, excess margin processes, and the waiting time. On the
other hand, the green value stream denes seven sources of waste
generation as the excessive use of energy, water, material, waste,
transport, emissions, and damage to biodiversity (Wills, 2009).
Similar to the value stream map, green value stream map also has
two types of mapping, current state and future state.

and dynamic to be parts and arranged in a hierarchy (Saaty and


Vargas, 1994). The level of importance of each variable assigns a
numerical value, the opinion of the importance of these variables
and relative to the other variables. From various considerations, a
synthesis is performed to dene the variables that have a high
priority and role in inuencing the outcome of the system.
AHP model is used to calculate the weight of criteria, both
quantitative and qualitative in one research. Graphically, AHP decision problem can be constructed as a multilevel diagram (hierarchy). AHP begins with the focus or goal past the rst level criteria,
sub criteria, and nally alternative. There are various forms of hierarchies tailored to the substance of the decisions and problems
that can be solved by AHP. AHP allows the user to give a relative
weight of a compound criterion or multiple alternatives against the
criteria. The weight was determined intuitively by doing pair wise
comparisons. AHP can measure the consistency of judgment in case
deviation is too far from the value of perfect consistency, which
shows the hierarchy of assessment needs to be repaired or must be
re-structured (Saaty and Vargas, 1994). AHP has many advantages
in explaining the decision-making process, as it can be depicted
graphically, making it easily understood by all parties involved in
the decision making. Through the use of AHP, the complex decision
process can be broken down into smaller decisions that can be
handled with ease. AHP consists of four basic ideas, namely the
preparation of hierarchy, criteria and alternative assessment, prioritization, and logical consistency (Marimin, 2004). Problemsolving using AHP is done using hierarchy to decompose complex
systems into simpler elements. The hierarchy can consist of focus,
actors, goals, and alternatives (Marimin et al., 1997; Maarif and
Somamiharja, 2000).

2.4. Analytical Hierarchy Process

2.5. Research framework

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

The research done here was based on the concept of Green


Productivity using Green Value Stream Map and AHP as its core
techniques. Fig. 2 shows the research framework. A literature study
of the issue at hand was done in order to acquire a rm concept of
the planned research. After a thorough literature study, an activity
analysis of natural rubber cultivation and middle stream industries
was completed. Parallel to the activity analysis, expert judgment on

204

Marimin et al. / Journal of Cleaner Production 85 (2014) 201e211

Literature Study

Economic
Indicator

Activity analysis of natural


rubber upstream and first
downstream industry

Expert Judgement on
environment issues

Green Productivity
Measures

Generate Green
Productivity Indicator

Green Productivity
Calculations

Environment Indicator

Current green value stream


map
Generate Productivity
Improvement Strategy
Future green value stream
map
Fig. 2. Research framework.

environmental issues was completed in order to generate Green


Productivity Indicators. Subsequently, green productivity measures
were determined as an input for Green Productivity calculations. In
addition, green productivity measures, i.e. environmental indicator
and economic indicator were used in the calculation. Green value
stream map was constructed on the basis of activities performed
and the result of the calculation. The current green value stream
map was analyzed in order to generate productivity improvement
strategies. The productivity improvement strategies were then
used to construct a future green value stream map.

Production Cost
Economic Indicator
Product price

Gas waste source


generator

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.

Solid waste source


generator

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.

Economic Indicator Revenue=Total Cost

(2)

Furthermore, the environmental indicator is determined by the


extent of environmental impact of the cultivation and production of
natural rubber. Based on the methodology developed by Gandhi
et al. (2006), the indicator value is determined based on three
types of plant waste, i.e. gaseous wastes generation, solid wastes
generation, and water consumption.
The environmental impact (EI) was determined by the sum of the
weights for each green productivity indicator. Green Productivity

Green Productivity Index GPI Economic Indicator=Environmental Indicator

(1)

Marimin et al. / Journal of Cleaner Production 85 (2014) 201e211

weights and indicators were determined by the results of the


analysis and were summarized by world experts as Environmental
Sustainability Index (ESI) (Esty et al., 2005). Preparation of the ESI
was based upon the determination of the ve types of environmental quality assessment components, which included 21 indicators of environmental sustainability and 76 variables underlying
the valuation weight of each indicator. Aggregation method was
used to equalize the amount of weights. The use of ESI as the basis for
weighting environmental impact (EI) in this research refers to
research conducted by Gandhi et al. (2006). Table 1 shows the eight
important indicators in the ESI used in this research.
Environmental impact was dened as the sum of environmental
variable weight of GPI and derived from ESI weight.

EI w1GWG w2WC w3SWG w4LWG

(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:

EI 0:375GWG 0:25WC 0:125SWG 0:25LWG

(4)

Whereas, the Environmental impact for natural rubber processing were:

EI 0:17 SWG 0:5 GWG 0:33 WC

(5)

3.2. Generating improvement strategies


1. Systems Approach
The systems approach was accomplished by identifying all of the
factors contained in the system to obtain a good solution for resolving
the problem, and then creating a model of AHP to help rational decisions. The AHP structure consists of ve levels; namely, focus, factors,
actors, goals and alternatives. The AHP structure of productivity
improvement was gained through expert interviews, namely, opinions
of three experts and an expert in the production of natural rubber.
2. Determination of Respondents
In accordance with the approach adopted in this research, the
respondents were determined by expert selection techniques. In
this case, the experts selected were those in the eld of natural
rubber cultivation, from academia, bureaucracy and practitioners.
The experts involved in this research were three people, consisting
of corporate culture experts, experts from the Institute for Estate
Crops Research Nusantara (RPN), and a professor who was an
expert on natural rubber cultivation. The application of the AHP
requires a consistency test of expert opinion; therefore, a Consistency Ratio Test (CR Test) was completed.
3. Improvement scenario selection method
The method used in this research is the Analytical Hierarchy
Process (AHP), a technique that can be used in the decision making
process. Decision-making was carried out through preparation

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

hierarchy, which according to Saaty and Vargas (1994) described


the structure of the system in which the function hierarchy between components and the impact on the overall system can be
studied. Pictures or illustrations in Analytic Hierarchy Process were
interrelated, ranging from goals, incentives, business, strategy or
method to do. AHP was used in this research because the system
being studied was complex and unstructured. Designing scenarios
repairs were done on the basis of the results of the analysis and
identication of solutions to existing problems. The scenarios were
drawn up and problem solutions were obtained through AHP
analysis and literature review.
4. Current Green Value Stream and GPI
Based on the observation conducted, natural rubber cultivation
was classied into six process activities i.e. nursery related activities, plants maintenance, harvesting, ltering, and shipping to
designated factories. The plants were classied into two categories,
namely immature non-producing plants and mature producing
plants. Immature non-producing plants are rubber plants ranging
from 0 to 5 years of age while mature productive plants are plants
in their productive stage that can be harvested, ranging from 5 to 30
years old.
Harvesting activities were conducted every day, starting from
ve to eight oclock in the morning. Subsequently, the process of
collecting latex began at ten in the morning. All latex tapped was
collected in a collecting depot at eleven. In the process of collecting
latex, collectors usually add one drop of ammonia on each tapping
bowl to prevent latex clotting. The screening process was carried
out in the collecting depot along with the casting process of the
bucket into the tank. Filtering aims to lter out various impurities,
such as twigs, leaves, or lump (clotted latex). At the time of
screening, typically, the amount of dirt ltered reached two or three
pounds for each depot.
Latex delivery was done in latex tanks mounted on trucks. Each
truck transported the results from the depot to the factory. Elimination of natural rubber cultivation process was undertaken to
eliminate unnecessary cultivation activity due to its little or no
impact on the overall natural rubber cultivation. Based on the
analysis of the overall activities, ltering was considered as eliminable from the entire rubber cultivation. The main reason was that
the ltering activities only produced waste in the form of large latex
pollutants, such as twigs, leaves, or lump. Overall waste is basically
a type of organic waste that can be tolerated by the environment,
thus eliminating these activities will not affect the analysis of the
waste to the entire process of cultivation of natural rubber.
The seven sources of green waste per activity for the upstream
activities and production process of RSS (Ribbed Smoked Sheet),
and BC (Brown Crepe) are shown respectively in Table 2, Table 3,
and Table 4. The upstream activities of the chain consisted of
nursery, maintenance of non-productive plants (NPP Maintenance),
and maintenance of productive plants (PP maintenance), harvesting, sorting and shipping.

206

Marimin et al. / Journal of Cleaner Production 85 (2014) 201e211

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

Process activities (per production)


Raw material receiving

Dilution and coagulation

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

Source: XYZ Co. (2012).

The company mainly produces two types of product, the Ribbed


Smoked Sheet and Brown Crepe. The RSS production consists of six
activities, i.e. raw material receiving, dilution and coagulation,
milling, smoking, sorting and packing. Table 3 exhibits the activities
of RSS, seven green wastes generated, and their amounts. The BC
production process consists of four activities, which are sorting and
receiving, milling, drying and sorting. Similarly, Table 4 exhibits the
activities of BC, seven green wastes generated, and the waste
amounts generated.
Calculation of Green Productivity Index for the upstream
resulted in a gure of 1.956, based on an environmental indicator of
0.6714 and economic indicator of 1.3132. These gures show that
the economic indicator was higher than the environmental indicator. The upstream process has a higher GPI compared to the
downstream processing of the chain, which means the green productivity is higher compared to the downstream processing of
natural rubber in the chain. The value indicated that the level of
productivity was still higher than the environmental impact
resulting from the activities performed. When the company achieves higher green productivity index values, the level of economic
productivity and indicators of enterprise would be higher, while the
environmental impact of the companys activity would be lower.

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).

Conversely, the lower the index value of green productivity, the


greater the environmental impact of the process activities in the
company. The GPI of upstream and overall downstream processes
of RSS and BC were compared and illustrated in Fig. 4.The upstream
GPI indicated to be the highest compared to the RSS and BC production processes. In the upstream side of the chain, the environmental indicator suggested low environmental impact, and
moderate economic indicator compared to the RSS and BC.
Conversely, the RSS production process has the lowest GPI
compared to the other two and the highest environmental indicator. Therefore, it is argued that the high environmental indicator of
RSS production has hindered the achievement of green
productivity.
In terms of GPI in the production process, RSS was signicantly
smaller compared to BC, which means that BC was higher in green
productivity. Based on Fig. 4, the environmental impact was higher
than the economic indicator signicantly which means the environmental impact exceeded its economic value added. Based on the
histogram, RSS had a substantially high environmental indicator
value, as much as 7.672, while its economic indicator was 2.063.
The Green Value Stream of natural rubber cultivation and Ribbed Smoked Sheet production are exhibited in Fig. 5 and Fig. 6. The

Process activities (per production)

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.

Marimin et al. / Journal of Cleaner Production 85 (2014) 201e211

207

ADMIN & SUPPORT


Latex Production
Average: 428,557
Liter/month

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

Fig. 5. Green Value Stream of natural rubber cultivation.

ADMIN & SUPPORT


XYZ Company

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

:1.8876 tonnes CO2/Day

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

Dilution and Coagulation


(daily)

Transportation: 0 Km
Ton

Emission

0.1473 ton

NO , SO
:0

Biodiversity : -

Fig. 6. Green value stream of ribbed smoke sheet production.

(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

Marimin et al. / Journal of Cleaner Production 85 (2014) 201e211

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

4.2. Natural rubber production process improvement strategy

Future GPI Alternative

1.500

Productivity improvement strategy was obtained from the


development of selected strategy based on the AHP. AHP structure
for strategy alternatives to increase productivity of the natural
rubber production process is presented in Fig. 9. The alternatives
weighted by experts were (1) production process optimization, (2)
raw material control, (3) raw material substitution, and (4) water
re-use. Based on expert opinion aggregation, the selected alternative strategy for increasing productivity in the production of natural
rubber in the company was the use of water (reuse). The use of
water (reuse) was considered the most likely to be applied in order
to increase the green productivity of the production process in the
company. Through the reduction of water consumption in the
production, not only is natural rubber production cost able to be
reduced but also the environmental impact of the production of
natural rubber can be reduced.

1.000
0.500
0.000
Cultivation

Ribbed Smoked Brown Crepe


Sheet

Fig. 7. Comparison of current and future alternative GPI.

seven green wastes are illustrated in every step of the process, in


the cultivation and the RSS production process. In the cultivation of
natural rubber, the total amount of seven green wastes generated,
namely energy, water, materials, garbage, transportation and
biodiversity were 1830 KWh, 900 m3, 131836 kg, 147334 kg,
2769.17 km, 3094.3 kg and 0, respectively, while the RSS production
has shown a different gure of seven green wastes generated:
12699.9 KWh/month energy, 388.742 m3/month water,
1125 L/month materials, 19.56 tonnes/month garbage, 0 transportation, 1.8876 tonnes CO2/day emissions and 0 biodiversity.

4.3. Future green value stream map


Based on the calculation of GPI for cultivation and process
shown in Fig. 7, it is argued that there is a signicant difference in
the GPI between the current and future scenario. A sharp difference
between current and future alternative was 1.956e3.960. It is
argued that the implementation of future scenario could increase
GPI by 2 digits. Similar result exhibited that for RSS and BC, reuse of
water could increase GPI for both production lines.
Based on the comparison of current and future state GPI for the
cultivation of natural rubber as well as natural rubber processingRSS and BC it is argued that the scenario based on Green Productivity improvement strategy is indeed able to increase Green Productivity. Based on the future scenario, future green value stream
map was constructed for natural rubber cultivation and production

4. Generating green productivity improvement strategies


4.1. Cultivation improvement strategy
A productivity improvement scenario was obtained from the
development of selected strategy based on the AHP. The AHP
structure for strategy alternative to increase productivity of natural
rubber cultivation is presented in Fig. 8. The selected alternative
was semi-intensication and replacing low producing plants with
new ones with a weight value of 0.290 compared to other alternatives. Alternative strategy was selected based on expert opinion.

Productivity Improvement Strategy Selection of Natural Rubber Process based on GP

Focus

(1.000)

Factor

Actor

Goal

Alternative

Production facility and


Infrastructure
(0.039)

Planters and actors


competence
(0.222)

Government
(0.081)

Plantation optimum
utilization
(0.139)

Ministry of agriculture
(0.095)

Increase latex output


(0.473)

Reuse of
wastes from
cultivation process
(0.252)

Plants Nursery and


Maintenance
(0.258)

Company
management
(0.326)

Plantation head
(0.215)

Environmental impact reduction


(0.263)

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)

Universities and research institution


(0.079)

Increase company profit


(0.264)

Semi-intensify and replace


Low producing plants with new ones
(0.290)

Fig. 8. AHP structure for productivity improvement in natural rubber cultivation.

Marimin et al. / Journal of Cleaner Production 85 (2014) 201e211

209

Table 5
Alternative design of scenario for improvement strategy.
Scenario

Description

Environmental indicator

Economic indicator

GPI

1
2
3
4

Usage of degraded polybag and lump use


Substitution of some pesticides with green pesticide
Substitute 50% fertilizer with green fertilizer
Usage of degraded polybag and lump use and Substitution
of some pesticide with green pesticide
Usage of degraded polybag and lump use and Substitute 50%
fertilizer with green fertilizer
Substitution of some pesticide with green pesticide and
substitute 50% fertilizer with green fertilizer
Implement combination of the rst three combination
Semi intensify and replanting of low producing plants
Combination of the best strategy with scenario 8

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

consumption of 900 m3; supporting material as much as 69.851 kg;


14.400 kg garbage; 2769.17 km transportation; 3094.3 kg emissions; 2715.45 ha biodiversity.
Green productivity level conditions early in the production
process of RSS and BC were 0.269 and 1.089 respectively, due to the
suboptimal use of resources, primarily water consumption. The use
of a large amount of water can lead to discharge of liquid waste in
large amount. Therefore, four alternative strategies were chosen
based on the opinions of experts in the eld of natural rubber; they
are: (1) the optimization of the production process, (2) the control
characteristics of raw materials, (3) auxiliary materials substitution,
and (4) re-use of water (reuse) as the best strategy. Application of
the selected scenario improved Green Productivity for the production of RSS to 0.690 and increased the productivity of green to
brown crepe to 3.889. The implemented scenario could increase the
GPI of RSS and BC from 0.269 to 1.148 and from 2.565 to 3.571,
respectively.
5.2. Recommendations
Further research is needed on the analysis of application scenario and the material characteristics of the existing strategies for

Productivity Improvement Strategy Selection of Natural Rubber Cultivation in based on GP

Focus

(1.000)

Factor

Actor

Demand Level
(0.056)

Executive Officers
(0.256)

Government
(0.161)

Maximize profit
(0.731)

Goal

Alternative

Raw and Supporting Materials


Characteristics
(0.326)

Production process
optimization
(0.309)

Raw Material Control


(0.213)

HR
competence
(0.287)

Selling
price
(0.106)

Production
Cost
(0.137)

Universities and Research Institution


(0.070)

Environmental Related
Government Policy
(0.088)

Downstream industry
(0.512)

Minimize Environmental Impact


(0.269)

Raw material substitution


(0.111)

Fig. 9. AHP structure for productivity improvement in natural rubber processing.

Water reuse
(0.366)

210

Marimin et al. / Journal of Cleaner Production 85 (2014) 201e211

ADMIN & SUPPORT

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.

ADMIN & SUPPORT


XYZ Company

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 : -

Transport. :Emission :1.8876 Tonnes CO /Day


Biodiversity:

Receiving St (Latex)
(daily)
C/T
: 1 hour
C/O
: 0 hour

C/T
C/O

Energy

: 3.33 Kwh

Water

: 0 Liter

Dilution and Coagulation


station (daily)

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

Packing and Inventory


Station (daily)
C/T
C/O

: 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 : 0.7128 Ton

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 : 0.1473 ton

Emission : -

Emission : 0,2673 Ton

NO , SO

Biodiversity : -

CO /Day

Fig. 11. Green value stream map of RSS production process.

Marimin et al. / Journal of Cleaner Production 85 (2014) 201e211

increasing awareness of any environmental impact caused by the


use of materials. There is also a need for the implementation of
farm management activities in order to minimize environmental
impact, and an integrated measurement system that can measure
the level of productivity of the farming activities as well as natural
rubber production process, so that the improvement can be identied and simulated better, organized, and sustainable in practice.
Furthermore, a detailed case study should also be done in
government-owned rubber enterprises as well as in the smallholder rubber enterprises, and the results compared accordingly.
Acknowledgments
The research leading to this publication was partly funded by
Directorate General of Higher Education, Ministry of Education and
Culture, Republic of Indonesia, under National Strategic Research
Grant scal year 2012 and 2013. The authors would like also to
convey their appreciation to the editors and anonymous reviewers
for their valuable comments and suggestions, and to the key persons of companies and institutions who provided data and information for the case study in this analysis.
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