Potential for changing value uncaptured to value captured through circular economy practices

Abstract

Value Captured (VC) is the benefit obtained by stakeholders (especially companies) from a manufacturing business. In principle, VC can be obtained from Value Uncaptured (VU) which often appears in the company's manufacturing practices. This VU can take the form of inefficiencies (waste and by-products that are not used) in the company's manufacturing process. The study of VU has provided guidance on VU in the manufacturing industry. VUs that have been identified need to be changed to VCs. Meanwhile, to convert VU to VC, the right method is needed. The concept of Circular Economy (CE) offers methods in an effort to convert VU to VC. Some alternative methods in the CE context include: maintenance, reuse, recycling, etc. CE can solve this problem, while also providing environmentally friendly solutions. This study provides an overview of the potential of turning VU into VC with several alternatives offered by the CE concept. This study also provides some examples of CE implementations that have successfully solved problems in offering company VCs.