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All Journal Jurnal Pembangunan dan Alam Lestari The International Journal of Accounting and Business Society
Rachmawati, Christina
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Agriculture, Biological Sciences & Forestry Chemical Engineering, Chemistry & Bioengineering Civil Engineering, Building, Construction & Architecture Control & Systems Engineering Decision Sciences, Operations Research & Management Economics, Econometrics & Finance Environmental Science Social Sciences

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Redefining Competitiveness: The Role of Lean Production and Eco-Design in the Indonesian FMCG Industry Rachmawati, Christina; Mahmudy, Wayan Firdaus; Khusaini, Moh.; Kurniawan, Andi
Jurnal Pembangunan dan Alam Lestari Vol. 16 No. 1 (2025): Jurnal Pembangunan dan Alam Lestari
Publisher : Postgraduate School of Universitas Brawijaya

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.21776/ub.jpal.2025.016.01.01

Abstract

The Indonesian FMCG market is booming due to increased consumer spending power. However, this expansion brings challenges, including fierce competition and the potential for escalating production costs. FMCG companies must prioritize innovation to improve operational efficiency and environmental sustainability to stay competitive and profitable. This research explores the strategies employed by a leading Indonesian FMCG company to attain a competitive edge in sustainability by integrating eco-design and lean production principles. The concept of Eco-Design, which emphasizes minimizing environmental impact over the product's lifecycle, is integrated with Lean Production's emphasis on waste reduction and process efficiency. This company is redefining competitiveness by merging these two strategies. It's not just about economic success; it's about achieving that success in a way that prioritizes environmental stewardship and minimizes ecological impact. This holistic strategy seeks to harmonize financial and environmental objectives, creating a mutually reinforcing cycle that fosters a more sustainable and responsible approach to competitive advantage. This study used statistical analysis to confirm that Lean Production and Eco-Design strongly contribute to sustainable manufacturing in the FMCG sector. The findings highlight how combining these two approaches can boost efficiency and sustainability, offering a powerful roadmap for companies in Indonesia and beyond to achieve lasting success in a rapidly changing market. Keywords: eco-design, FMCG market, lean production, prioritize innovation
Maximizing Profitability: The Lean Way To Sustainable Manufacturing Rachmawati, Christina; Mahmudy, Wayan Firdaus; Moh. Khusaini; Kurniawan, Andi
The International Journal of Accounting and Business Society Vol. 33 No. 1 (2025): IJABS
Publisher : Accounting Department,

Show Abstract | Download Original | Original Source | Check in Google Scholar | DOI: 10.21776/ijabs.2025.33.1.864

Abstract

Purpose - This quantitative study examines the impact of lean production practices on the financial performance and sustainability of Indonesian FMCG companies. By analyzing waste reduction, efficiency improvements, and eco-design integration, the research demonstrates that lean practices significantly enhance both financial performance and environmental responsibility. These findings offer valuable insights for multinational companies operating in similar contexts. Design/methodology/approach - This research employs a quantitative approach to discern the contribution of lean way to sustainable manufacturing. Through a comprehensive survey and meticulous observation, this work maps the intricate ways in which lean production practices affect economic and business outcomes, providing valuable insights into the real-world application of lean principles. Findings -. This case study demonstrates how lean production methods can substantially benefit a company's financial performance and overall operations. The implementation of lean production methodologies has a proven track record of improving efficiency, reducing waste, and elevating product and process quality, leading to substantial economic gains and enhanced business performance. Practical implications - Implementing lean production requires careful consideration of technological innovation and organizational culture. Neglecting either aspect poses a significant risk of hindering the successful implementation and realization of the myriad benefits that lean production offers. Originality/value - This article examines an Indonesian FMCG company's experience with lean production, providing a rare glimpse into how these methods are applied in a developing economy. This study aims to expand our understanding of lean production and offer useful guidance to multinational companies operating in comparable settings. Paper type -Case study
Co-Authors Andi Kurniawan Moh. Khusaini Wayan Firdaus Mahmudy