Purpose: This study explores the complexity of developing a sustainable small and medium industry (SMI) through a conceptual model that integrates lean and green manufacturing principles.Design/methodology/approach: This model includes a systems diagram that illustrates the structure of the interconnected variable and the interrelationships between goals, inputs, processes, and outputs required to achieve a system’s goals by using both lean and green principles. The diagram uses causal loop diagram logic from systems thinking based on the literature review, multi-actor analysis, observations, and focus group discussions.Findings: Combining the efficiency benefits from lean principles and better environmental effectiveness from green principles would help to achieve sustainability. A conceptual structural map could support the integration processes by illustrating the variables, multi-actors, and multi-indicators required to achieve sustainability.Research limitations/implications: The conceptual model highlights the necessary linkage between lean and green practices that would help SMI researchers and decision-makers to navigate their activities in achieving sustainability.Originality/value: There is currently little discussion at the SMI level from a multi-actor perspective. The systems diagram offers a comprehensive picture that is the basis for further discussion of the complexity of integrating lean and green principles.

Global customer consciousness for more sustainable products and government requirements for a more sustainable industry have motivated cosmetics small and medium industries (SMIs) to innovate the strategy by integrating sustainability principles into their manufacturing processes. However, the dynamic complexity of balancing sustainability efforts, stakeholders’ interests, and uncertainty in material pricing require a conceptual reference model to help managers and decision-makers cope with the transition process. This work therefore proposes a model-based strategy using system dynamics to assist managers and stakeholders in SMIs to clarify their possible pathways and to offer a framework to understand, guide, and generate future strategies. In multiactor, multistakeholder conditions, the proposed methodology can provide insights into how stakeholders can effectively intervene to improve sustainability through open innovation dynamics models. The case study presented here on a personal care cosmetics company demonstrates several leverage points and obstacles, thereby allowing each stakeholder to understand their strategic role in realizing sustainable cosmetics SMIs.

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PT. ZXY merupakan perusahaan yang bergerak dalam produksi alas kaki yang tidak terlepas dari permasalahan efisiensi dan efektivitas pada mesin (peralatan) yang diakibatkan oleh six big losses. Masalah yang terjadi pada mesin laser di departemen cutting kurang optimalnya proses pemotongan komponen alas kaki, oleh karena itu perlu dilakukan langkah-langkah untuk mencegah atau mengatasi masalah tersebut dengan bertujuan untuk mengetahui tingkat efektifitas mesin laser. Tujuan penelitian ini adalah untuk menghitung efektifitas melalui metode Overall Equipment Effectivenes (OEE) yang kemudian dilanjutkan dengan pengukuran OEE pada six big losses untuk mengetahui besarnya efisiensi yang hilang pada ke enam faktor six big losses, selanjutnya diperoleh faktor yang paling tinggi pada six big losses di mesin laser yaitu Equipment Failure Losses sebesar 53,97%. Dengan diagram pareto dan analisa sebab akibat dapat dianalisis masalah sebenarnya yang menjadi penyebab utama rendahnya efektifitas yang mengakibatkan rendahnya produktivitas mesin laser adalah punching head di sebabkan faktor manusia, mesin dan material.Hasil kesimpulan yang dapat diambil pada penelitian mesin laser ini setelah dilakukan perbaikan adalah dengan meningkatkan availability mesin laser dari rata-rata 96,2% menjadi 96,4% berdampak pada meningkatnya OEE dari 91,9% menjadi 92,1%.Kondisi ini sangat ideal (≥85%). Sehingga yang mempengaruhi nilai OEE dan menjadi prioritas utama dengan kontribusi terbesar terjadi pada Equipment Failure Losses dapat diatasi.

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