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Value chain analysis for green productivity

improvement in the natural rubber supply
chain: A case study

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DOI: 10.1016/j.jclepro.2014.01.098

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 Journal of Cleaner Production 85 (2014) 201e211

Contents lists available at ScienceDirect

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: The main objective of this research was to map and to analyze green productivity of a natural rubber
Received 27 March 2013 supply chain and formulate scenarios for increasing its green productivity level. The case studies were
Received in revised form conducted in private enterprises engaged in natural rubber plantation and processing. Material ow
21 December 2013
analysis was performed using the green material ow map to analyze the seven sources of green wastes.
Accepted 29 January 2014
Available online 7 February 2014
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
Keywords:
Green productivity
shown that the natural rubber cultivation combined with latex production improvement and waste
Natural rubber minimization was the best green productivity improvement strategy. The best selected strategy for the
Value stream production process was reusing the processing water.
Green productivity index 2014 Elsevier Ltd. All rights reserved.

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

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 sour-
ces 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 produc-
tivity 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.
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 manage-
ment 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

http://dx.doi.org/10.1016/j.jclepro.2014.01.098
0959-6526/ 2014 Elsevier Ltd. All rights reserved.
202 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 busi-
ness 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 po-
tential to indicate methods of reducing the cost of NR as a com-
modity. Large estates are able to integrate all activities in the chain
resulting in the ability to implement effective and efcient pro-
duction, while small and medium estates need further improve-
ment 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 funda-
mental factors and economic shocks/policies that affect the de-
mand and supply of the worlds natural rubber, and the emergence
of non-physical market as hedging efforts of investors and specu-
lators 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 sup-
plier, 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 pro-
cessed, 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 inter-
national markets. The national market consists of local brokers and
traders that supply national downstream manufacturing. The in-
ternational 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, envi-
ronmental 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 improve-
ment in the quality of human life. It is the combined application
of appropriate productivity and environmental management
tools, techniques and technologies that reduce the environ-
mental impact of an organizations activities, products and
services while enhancing protability and competitive
advantage.
Although there are very few research articles on Green Pro-
ductivity, 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 op-
erations 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
Natural
Rubber
Importer
Provincial level
collector
District level
collector
Village level
collector
Smallholders
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 elim-
inate 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, non-
value 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 simi-
larity between a value stream and the green value stream, there are
differences in the way they dene waste. The value stream iden-
ties seven sources of waste generation consisting of inventory,
displacement, damage to the product, transportation, over-
production, 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.
2.4. Analytical Hierarchy Process
The Analytical Hierarchy Process (AHP) is known for its appli-
cability in multi-criteria decision-making. The method was devel-
oped by Saaty in the 1970s and used to solve problems by using an
organized framework, so it can be expressed to take effective de-
cisions 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
203
SIR
processing
Overseas broker Overseas
RSS
processing Manufacturer
Centrifuge
Latex
processing
Local brokers Local
and traders Manufacturers
Crepe
rubber
processing
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 de-
cision problem can be constructed as a multilevel diagram (hier-
archy). AHP begins with the focus or goal past the rst level criteria,
sub criteria, and nally alternative. There are various forms of hi-
erarchies 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, pri-
oritization, and logical consistency (Marimin, 2004). Problem-
solving 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).
2.5. Research framework
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 Activity analysis of natural Expert Judgement on

rubber upstream and first environment issues
downstream industry

Green Productivity Generate Green

Measures Productivity Indicator

Economic Green Productivity Environment Indicator

Indicator Calculations

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 Production Cost

Productivity Indicators. Subsequently, green productivity measures
were determined as an input for Green Productivity calculations. In Economic Indicator
addition, green productivity measures, i.e. environmental indicator Product price
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 Gas waste source Green Productivity
map was analyzed in order to generate productivity improvement generator
strategies. The productivity improvement strategies were then
used to construct a future green value stream map.
Water consumption Environment impact

3. Research method
Solid waste source
Indonesias natural rubber industries have three possible sour- generator
ces of raw material, namely smallholders, Government Own En-
terprises, and large scale private plantations (estates). In this
Fig. 3. Green productivity index measurement (modied from Gandhi et al., 2006).
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
The economic indicator is the ratio between the selling price and
particular and the private estates in general.
cost of production of the same unit of one type of product. In this
Value chain analysis consists of several activities. The process
research, the selling price of the product in question is the selling price
stages and required material for cultivation and production were
per liter of latex products produced from the eld, while the cost of
analyzed using green value stream developed by Wills (2009). This
production is the cost required to produce 1 L of latex products. The
analysis starts with the identication of seven green waste gener-
calculations used in determining the value of the economic indicator
ators. Following the analysis of the activities and materials needed
are based upon the production of one tonne of latex products.
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. Economic Indicator Revenue=Total Cost (2)
Furthermore, the environmental indicator is determined by the
3.1. Green productivity index extent of environmental impact of the cultivation and production of
natural rubber. Based on the methodology developed by Gandhi
Green productivity calculations were done by accumulating the et al. (2006), the indicator value is determined based on three
results of the calculation of economic indicators and environmental types of plant waste, i.e. gaseous wastes generation, solid wastes
indicators. Economic indicators were calculated by the ratio be- generation, and water consumption.
tween the incomes earned from the sale of products and produc- The environmental impact (EI) was determined by the sum of the
tion costs to produce the product. 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 environ-
mental quality assessment components, which included 21 in-
dicators 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 pro-
cessing 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 de-
cisions. 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 Consis-
tency 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 0.05
Greenhouse emission 0.05
Decrease in air pollution level 0.05
Water quality 0.05
Water consumption 0.05
Decrease in solid and material consumption 0.05
Biodiversity 0.05
Land area 0.05
hierarchy, which according to Saaty and Vargas (1994) described
the structure of the system in which the function hierarchy be-
tween 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 activ-
ities, 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. Elimi-
nation 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 elimi-
nable 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), harvest-
ing, 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

Nursery NPP maintenance PP maintenance Harvest Sorting Shipping Total

Energy (Kwh) 1830 0 0 0 0 0 1830

Water (m3) 900 0 0 0 0 0 900
Material (kg) 1245 28,075 40,531 0 0 0 69,851
Garbage (kg) 0 0 0 14,400 3000 0 14,400
Transportation (km) 0 0 0 0 0 2700 2769
Emission 1631 0 0 0 0 1426 3094
Biodiversity (ha) 194 763 1759 0.02 0.01 0 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) 3.33 200.00 170.00 e e 50.00 423.33

Water (liter) e 8549.71 7000.00 e e e 15,549.71
Material (kg) e 45.00 e 0.00 e e 45.00
Garbage (kg) e e e 652.00 e e 652.00
Transportation (km) e e e e e e e
Emission (tonnes CO2/day) 2.97  10-3 0.71 0.76 0.15 e 0.27 1.89
Biodiversity (Ha) e e e e e e 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 indi-
cator. The upstream process has a higher GPI compared to the
downstream processing of the chain, which means the green pro-
ductivity 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 ach-
ieves 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.
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 pro-
duction processes. In the upstream side of the chain, the environ-
mental 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 indica-
tor. 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 envi-
ronmental 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 Rib-
bed Smoked Sheet production are exhibited in Fig. 5 and Fig. 6. The

Table 4 9
Seven sources of green wastes identication of BC.
8
Waste type Process activities (per production) 7

Sorting and Milling Drying Sorting Total 6 Environmental indicator

V
receiving a 5 Economic Indicator
l
Energy (kWh) 90.00 148.20 e e 238.20 Current GPI
u 4
Water (liter) 4000.00 6080.00 e e 10,080.00 e 3
Material (kg) e e e e e
Garbage (kg) e e e e e 2
Transportation e e e e e 1
(km)
Emission e 0.66 e e 0.74 0
Upstream RSS BC
(tonnes CO2/day)
Biodiversity (Ha) e e e e e
Fig. 4. Economic and environmental indicators and GP index for upstream and pro-
Source: XYZ Co. (2012). duction processes.
 Marimin et al. / Journal of Cleaner Production 85 (2014) 201e211 207

ADMIN & SUPPORT

XYZ Company Latex Production
Seed demand
Average: 428,557 PROCESSING PLANT
1 million seeds/year
Liter/month
SEED SUPPLIER

Energy : 1,830 KWh

Water : 900 m

Materials : 131,836 kg

Garbage : 147,334 kg Shipping

Transport : 69.17 km
Transportation : 2,769.17 km
Emission : 37 kg Transport : 2,700 km
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 : 0 KWh Energy : 0 KWh Energy : 0 KWh Energy : 0 KWh
3 3 3
Water : 900 m Water :0m Water :0m Water :0m 3
Water : 0 m3

Materials : 2,358.6kg Materials : 53,670.5 kg Materials : 75,806.6 kg Materials : 0 kg Materials : 0 kg

Garbage : 334 kg Garbage : 0 kg Garbage : 0 kg Garbage : 144,000 kg Garbage : 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

Latex needs XYZ Company Demand
PROCESSING CUSTOMER
PLANT
information 120 Tonnes/month
Average 14,285.23
Liter/Day

Every Day Transport. : -

14,285.23
Liter/Day
Energy : 12,699.9Kwh/Month Emission : -
Water :388.742 m3/Month
Materials :1,125 liter/Month
Transport. : - Garbage :19.56 tonnes/month
Emission : - Transportation :-
Emission :1.8876 tonnes CO2/Day
2x/Month
Biodiversity :- Energy
(Daily)

Raw Materials Sorting Station Packing and

Dilution and Coagulation Milling Station Smoking Station
Receiving (Latex) (daily) inventory (daily)
(daily) (daily) (daily)
(daily)
C/T : 4 hour C/T : 5 hour C/T : 120 hour
C/T : 1 hour C/T : 6 hour C/T : 6 hour
C/O : 1 hour C/O : 2 hour C/O : 2 hour
C/O :0 C/O : 1 hour C/O : 1 hour

Energy : 3.33 Kwh Energy : 170 Kwh Energy : 0 Kwh

Energy : 200 Kwh Energy : 50 Kwh
Water : 0 Liter Water : 7,000 Liter Water : 0 Liter
Water : 8,549.71 Liter Energy : 0 Kwh Water : 0 Liter
Materials :0 Materials :0 Materials :0
Water : 0 Liter Materials :0
Garbage : 0 Kg Materials : 45 Liter Garbage : 0 Kg Garbage : 0.652 Ton
Materials :0 Garbage : 0 Kg
Transportation: 0 Km Garbage : 0 Kg Transportation: 0 Km Transportation: 0 Km
Garbage : 0 Kg Transportation: 0 Km
Emission : 2.967 x 10 Transportation: 0 Km Emission : 0.7573 Ton Emission : 0.1473 ton
Transportation: 0 Km Emission : 0,2673 Ton
Tonn CO2/Day Emission : 0.7128 Ton CO /Day NO , SO
Emission :- CO /Day
Biodiversity : - Biodiversity : -Energy :0 Biodiversity : -
CO /Day Biodiversity: -
KWh

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

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

4.500 Based on the alternative selected, 9 scenarios were then con-

4.000
structed in order to implement the alternative. Next, the GPI of the
nine scenarios was calculated in order to obtain the best GPI value.
3.500 The nine scenarios and GPI value are shown in Table 5. The best GPI
3.000 obtained was 3.69 for scenario 9, which was the combination of the
2.500
best strategy with scenario 8.
Current GPI
2.000
4.2. Natural rubber production process improvement strategy
Future GPI Alternative
1.500
1.000 Productivity improvement strategy was obtained from the
development of selected strategy based on the AHP. AHP structure
0.500
for strategy alternatives to increase productivity of the natural
0.000 rubber production process is presented in Fig. 9. The alternatives
Cultivation Ribbed Smoked Brown Crepe weighted by experts were (1) production process optimization, (2)
Sheet
raw material control, (3) raw material substitution, and (4) water
Fig. 7. Comparison of current and future alternative GPI. re-use. Based on expert opinion aggregation, the selected alterna-
tive strategy for increasing productivity in the production of natural
rubber in the company was the use of water (reuse). The use of
seven green wastes are illustrated in every step of the process, in water (reuse) was considered the most likely to be applied in order
the cultivation and the RSS production process. In the cultivation of to increase the green productivity of the production process in the
natural rubber, the total amount of seven green wastes generated, company. Through the reduction of water consumption in the
namely energy, water, materials, garbage, transportation and production, not only is natural rubber production cost able to be
biodiversity were 1830 KWh, 900 m3, 131836 kg, 147334 kg, reduced but also the environmental impact of the production of
2769.17 km, 3094.3 kg and 0, respectively, while the RSS production natural rubber can be reduced.
has shown a different gure of seven green wastes generated:
12699.9 KWh/month energy, 388.742 m3/month water, 4.3. Future green value stream map
1125 L/month materials, 19.56 tonnes/month garbage, 0 trans-
portation, 1.8876 tonnes CO2/day emissions and 0 biodiversity. Based on the calculation of GPI for cultivation and process
shown in Fig. 7, it is argued that there is a signicant difference in
4. Generating green productivity improvement strategies the GPI between the current and future scenario. A sharp difference
between current and future alternative was 1.956e3.960. It is
4.1. Cultivation improvement strategy argued that the implementation of future scenario could increase
GPI by 2 digits. Similar result exhibited that for RSS and BC, reuse of
A productivity improvement scenario was obtained from the water could increase GPI for both production lines.
development of selected strategy based on the AHP. The AHP Based on the comparison of current and future state GPI for the
structure for strategy alternative to increase productivity of natural cultivation of natural rubber as well as natural rubber processing-
rubber cultivation is presented in Fig. 8. The selected alternative RSS and BC it is argued that the scenario based on Green Produc-
was semi-intensication and replacing low producing plants with tivity improvement strategy is indeed able to increase Green Pro-
new ones with a weight value of 0.290 compared to other alter- ductivity. Based on the future scenario, future green value stream
natives. Alternative strategy was selected based on expert opinion. map was constructed for natural rubber cultivation and production

Focus Productivity Improvement Strategy Selection of Natural Rubber Process based on GP

(1.000)

Plantation optimum Technology Mastery

Production facility and Planters and actors Plants Nursery and Transportation and
utilization and Government Policy
Infrastructure competence Maintenance Communication
Factor (0.139) application (0.032)
(0.039) (0.222) (0.258) (0.039)
(0.135)

Company
Actor Government Ministry of agriculture Plantation head Planters group Universities and research institution
management
(0.081) (0.095) (0.215) (0.204) (0.079)
(0.326)

Goal Increase latex output Environmental impact reduction Increase company profit
(0.473) (0.263) (0.264)

Reuse of Substitute a portion of Substitute a portion

Chemical pesticide usage with of Chemical with Organic Semi-intensify and replace
wastes from
Vegetable pesticide and Green fertilizers Low producing plants with new ones
Alternative cultivation process
(0.177) (0.281) (0.290)
(0.252)

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 Usage of degraded polybag and lump use 0.63 1.31 2.07

2 Substitution of some pesticides with green pesticide 0.73 1.27 1.74
3 Substitute 50% fertilizer with green fertilizer 0.63 1.64 2.58
4 Usage of degraded polybag and lump use and Substitution 0.69 1.27 1.83
of some pesticide with green pesticide
5 Usage of degraded polybag and lump use and Substitute 50% 0.59 1.63 2.74
fertilizer with green fertilizer
6 Substitution of some pesticide with green pesticide and 0.69 1.58 2.27
substitute 50% fertilizer with green fertilizer
7 Implement combination of the rst three combination 0.66 1.57 2.39
8 Semi intensify and replanting of low producing plants 0.56 1.58 2.83
9 Combination of the best strategy with scenario 8 0.49 1.95 3.96

process for RSS and BC. The future green value stream map of
natural rubber cultivation and RSS production process are illus-
trated 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 sce-
nario, 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 emis-
sions; 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 pro-
duction 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 sce-
nario and the material characteristics of the existing strategies for

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

(1.000)

Demand Level
Raw and Supporting Materials HR Selling Production Environmental Related
Factor Characteristics competence price Cost Government Policy
(0.056) (0.326) (0.287) (0.106) (0.137) (0.088)

Executive Officers Government Universities and Research Institution Downstream industry

Actor (0.070) (0.512)
(0.256) (0.161)

Maximize profit Minimize Environmental Impact

Goal (0.731) (0.269)

Production process Raw Material Control Raw material substitution Water reuse
Alternative optimization (0.213) (0.111) (0.366)
(0.309)

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

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

ADMIN & SUPPORT

Seed needed Latex production
1 million/year Average: 428,557
PROCESSING PLANT
SEED liter/month
SUPPLIER

Energy : 1,830 KWh

Water : 900 m3
Materials : 69,851 kg
Garbage : 14,400 kg
Transportation : 2,769.17 km
Shipping
Emisi : 3,094.3 kg
Transport : 69.17 km
Biodiversity : 2,715.45 Ha 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 : 0 kg Garbage : 0 kg Garbage : 0 kg Garbage : 14,400 kg Garbage : 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

Latex demand XYZ Company Demand
PROCESSING CUSTOMER
PLANT Average 14,285.23 120 Tonnes/Month
Liter/Day

Transport. : -
Energy : 12,699.9Kwh/Month
Emissions : -
Water : 388.742 m /Month
Materials : 1,125 Liter/Month
Garbage :19.56 tonnes/month

Transport. : - Transport. :-
Emission :1.8876 Tonnes CO /Day
Emission : -
Biodiversity:

Receiving St (Latex) Dilution and Coagulation Milling station Smoking station Sorting Station Packing and Inventory
(daily) station (daily) (daily) (daily) (daily) Station (daily)
C/T : 1 hour C/T : 4 hour C/T : 5 hour C/T : 120 hour C/T : 6 hour C/T : 6 hour
C/O : 0 hour C/O : 1 hour C/O : 2 hour C/O : 2 hour C/O : 1 hour C/O : 1 hour

Energy : 3.33 Kwh Energy : 200 Kwh Energy : 12.143 Kwh Energy : 0 Kwh Energy : 0 Kwh Energy : 50 Kwh
Water : 0 Liter 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 : 0 Kg Garbage : 0 Kg Garbage : 0 Kg Garbage : 0.652 Ton Garbage : 0 Kg Garbage : 0 Kg
Transportation: 0 Km Transportation: 0 Km Transportation: 0 Km Transportation: 0 Km Transportation: 0 Km Transportation: 0 Km
Emission : 2.967 x 10 Emission : 0.7128 Ton Emission: 0.054 Ton Emission : 0.1473 ton Emission : - Emission : 0,2673 Ton
Ton CO /Day CO /Day CO /Day 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 iden-
tied 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 small-
holder 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 per-
sons of companies and institutions who provided data and infor-
mation for the case study in this analysis.
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