SUSTAINABLE PRODUCTION OPTIMIZATION STRATEGY FOR MSMES IN SOUTH TANGERANG USING GVSM, SWOT, AND AHP METHODS

Abstract

Micro, Small, and Medium Enterprises (MSMEs) have a strategic role in local economic development, but still face various challenges in creating an efficient and sustainable production system. This study aims to formulate a strategy for optimizing sustainable production for MSMEs in South Tangerang through an integrative approach of Green Value Stream Mapping (GVSM), SWOT analysis, and the Analytical Hierarchy Process (AHP) method. The GVSM method is used to identify value-added activities and waste in the production process. GVSM findings show that the greatest waste occurs in waiting time, excess inventory, and inefficient processes. SWOT analysis is then applied to evaluate internal and external factors that affect the ability of MSMEs to implement sustainable production. The results of the SWOT identification are used as the basis for compiling alternative strategies which are then prioritized using the AHP method. Based on the results of the AHP weighting, the priority strategy is to increase the efficiency of the production process through environmentally friendly technology training and supply chain digitalization. This study concludes that the combined approach of GVSM, SWOT, and AHP is effective in providing comprehensive mapping and data-based strategic recommendations. The practical implications of this study are the importance of institutional support, ongoing training, and digital integration as part of MSME development policies at the regional level. These results are expected to be a reference in policy making and designing sustainable production strengthening programs that are applicable and contextual for local MSMEs.