IMPROVING THE IMPACT OF BIO-BASED PLASTIC MATERIALS ON BABY PRODUCTS FROM CIRCULAR ECONOMY PERSPECTIVE TOWARDS BUSINESS OPERATIONS: STUDY CASE AT PT. XYZ

Abstract

The manufacturing processes of baby products by creating a sustainable product, especially the usage of bio-based plastic material, is quite challenging. Companies must drive and strive to deliver the environmental message. In terms of the operational side, it

may lead to high production costs. Sustainability is not only about environmental or eco- friendly materials, but also about the production process and ensuring its good

productivity. Bio-based plastic material is one of the non-fossil materials that gain popularity these days. This kind of material is made from renewable energy that helps to reduce the waste that impacts on the environment. Despite its popularity, this material procurement is also another challenge due to its rare manufacturers or suppliers and impacts the overall procurement cost and time consuming. Externally, baby products using bio-based plastic material also affect consumer perception with regards to the product price and its quality. Customers are very sensitive to product prices due to the unstable global economic situations caused by climate change, geopolitical conditions, government policies and the after-effects of the pandemic. This case study aims to evaluate and assess the impact of using bio-based plastic material in the manufacturing processes of baby products and its subsequent effect such as: productivity, quality, cost, product sustainability and the market acceptance at PT. XYZ. The research employs a mixed-methods approach, combining qualitative analysis of manufacturing productivity metrics with market trend analysis. Preliminary findings at PT. XYZ found that the use of biobased plastic material can reduce the manufacturing productivity due to its difficulty of processing and cost-effectiveness. This research concludes with a discussion on the implications of these findings and the solutions for manufacturers, marketers, and policymakers in the baby products industry, and suggests directions for future research improvement.