Track: Sustainable Manufacturing

Abstract

The manufacturing industry is currently faced with many challenges both from competitors and from stakeholders. The paint industry is one of the manufacturing industries that has received a lot of attention so that it can become a sustainable manufacturing industry. The implementation of triple bottom-based sustainable manufacturing can be a solution to these sustainability challenges. The purpose of this study was to analyze the implementation of green manufacturing and its effect on the sustainability of the decorative paint industry using the SEM-PLS method.  The PLS SEM method was chosen because it works efficiently for small sample sizes and complex models. The results of triple bottom line modeling using SEM PLS show that the input category indicator has a negative effect on the economic dimension and does not affect the social dimension. Operations and output category indicators have a positive effect on the social dimension. Prediction accuracy is moderate for the social dimension and high for the relevance value for the social dimension. This shows that environmentally friendly products can increase social trust for both employees, customers and the surrounding community but are perceived to have a negative impact on the economy from the use of environmentally friendly input materials.