Productivity and Quality in Smart Manufacturing Systems

Sustainable Business Model Innovations in the Value UncapturedManufacturing Industry: Fitting Gains—Gain Creators

Burhan, Udisubakti Ciptomulyono, Moses Laksono Singgih and Imam Baihaqi


Increased manufacturing activity has an impact on environmental quality degradation.Waste generated from manufacturing activities is one of the causes. Previous studies have referred tothis waste as value uncaptured. Minimizing value uncaptured is a solution to improve environmentalquality. This study aims to reduce value uncaptured by converting it into value captured. This processrequires a value proposition design approach because of its advantages. One of the advantages of thisapproach is that it can improve existing or future products/services. To do so, this research uses acase study of a furniture company. To implement a converting process, a sustainable business modelis proposed to solve this problem. This business model combines several methods: value propositiondesign, house of value and the product sustainability index matrix. Recently, the existing valueproposition problem-solving has been using the value proposition design method. This researchproposed implementing a house of value to replace the fitting process. The questionnaire is developedto obtain various value uncaptured in the company. To the weight of the value uncaptured, thisresearch utilized the pairwise comparison method. Then, the weights could represent the importanceof jobs. Based on the highest weight of these jobs, the alternative gains would be selected. To providethe weight of the gain creators and value captured, the house of value method is developed. Referringto three pillars of sustainability, the value captured should be considered. This research proposedimplementing a product sustainability index which in turn produces eco-friendly products. Thisstudy produces “eco-friendly products” as sustainability value captured. The sustainability businessmodel could be an alternative policy to minimize the existence of value uncaptured.

Keywords: value captured; value uncaptured; sustainable business model; value proposition design; the house of value; fitting

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