Selection of Sustainable Performance Strategies in Cosmetics SMIs Using Lean and Green Balance Scorecards Methods

Abstract

Cosmetics SMI is experiencing problems assessing its business performance in the face of demands for sustainable industry transparency. They only assess their performance based on operation and financial aspects and pay less attention to environmental and social criteria. This research was conducted to assist the owner-manager of cosmetics SMI in designing criteria for measuring the performance of a sustainable SMI comprehensively and determining the right strategy to improve performance. The research team combined the Balanced Scorecards (BSC) method with four perspectives and performance indicators for lean and green manufacturing to support a sustainable SMI. That combination produces 18 lean and green criteria arranged from financial, customer, internal process, and growth and learning. Then, researchers prioritize these 18 criteria with the analytical hierarchy process (AHP) technique. The weighting results show that the financial criteria have the highest weight of 35.2% and the growth and learning criteria have the lowest weight of 13.7%. The weighting calculation has a consistency value of 0.01. Researchers recommend four strategies that can improve the criteria’ performance based on weighting assessments at the sub-criteria level. The four strategies can accelerate the achievement of sustainable Cosmetics SMI.