Product Service Systems Method on Jepara Furniture Industry Sustainability Assessment Ratna Purwaningsih Industrial Engineering Department Faculty of Engineering - University of Diponegoro Semarang, Central Java, Indonesia ratna.tiundip@gmail.com Novie Susanto Industrial Engineering Department Faculty of Engineering - University of Diponegoro Semarang, Central Java, Indonesia nophie.susanto@gmail.com Nadira Apsari Industrial Engineering Department Faculty of Engineering - University of Diponegoro Semarang, Central Java, Indonesia nadirapsari@gmail.com Abstract— Jepara Furniture Industry timber consumption is 2.2 million m 3 per year. The Jepara timber consumption are exceed production capacity of Java Island forest which only 900 thousand m 3 per year. The development of the furniture industry sector is seen as an activity that causes impacts on the environment changes. The depletion of raw materials while the higher consumer demand can result in unsustainable industry. Research objective are identify the critical sustainability dimension and kriteria of Jepara furniture industry. The method used to identify the dimensions of sustainability in this study is the Product- Service Systems (PSS). PSS promising a more sustainable system to integrate environment with social and economic aspects. The results show that sustainability criteria need to be improved are resource reduction, health and safety, employment, and long-term business development. Recommendations are then compared and tested to determine the feasibility and possibility of its application. Radar of sustainability at the end of discussion give brief overview about the suitable recommendation to increase sustainability furniture industry. Keywords—furniture industry; sustainability, product service system, environment, social economic aspect I. INTRODUCTION Brundtland Report [1] define Sustainable development as a development that seeks to meet the needs of today generation, without compromising the ability of future generations to meet their needs. The Indonesia Republic Ministry of Environment [2] said that development can be measured on sustainability based on three criteria, (1) There is no wasteful use of natural resources or depletion of natural resources; (2) There is no pollution and other environmental impacts; (3) The activities should be able to increase the useable resources or replaceable resource. Fauzy [3] states that there are three main reasons why economic development should be sustainable. The first reason is morality, because the current generation enjoy the goods and services produced from natural resources, they needs to pay attention to the availability of natural resources for future generations. Second is ecological reasons, because biodiversity have very high ecological value, the use of natural resources should not be threatening the ecological functions. The third reason is the economic reason, the measurement of intergenerational welfare (intergeneration welfare maximization). Sustainability Assessment has been developed in various fields. In the mining and minerals sector sustainability indicators have been developed by the Mining, Minerals and Sustainable Development (MMSD). In the forest sector sustainability impact assessment of the supply chain of timber is measured using ToSIA/A Tool for Sustainability Impact Assessment [4]. In chemical sector characterization factors for eco-toxicity and human toxicity is measured by the method of the Uniform System for the Evaluation of Substance (USES- LCA). Eco-toxicological characterization factors available for terrestrial ecosystems, marine and freshwater while human toxicity factors into account both carcinogenic and non- carcinogenic [5]. Industrial sector has developed a method of identification of sustainability Indicators of Sustainable Development for Industry (ISDI). Sustainability assessed through fourteen indicators of quantitative and qualitative indicators which four are classified into three categories: environmental impact, environmental efficiency and voluntary action. ISDI following the life cycle approach, taking into consideration the complete life cycle of materials and energy used [6]. One method for assessing the sustainability of the industry which focused on the identification of improvements that can be suggested to improve the sustainability of the industry is PSS (Product-Service System). PSS suitable to be applied on a business of making and selling physical products and services to meet consumer demand. PSS consist of three aspect of sustainable development, social, economic, and environmental. PSS is a business strategy that aims to integrate environmental with social and economic aspects [7]. 5C2-1 Joint International Conference on Electric Vehicular Technology and Industrial, Mechanical, Electrical and Chemical Engineering (ICEVT & IMECE) 2015 978-1-4673-8504-6/15/$31.00 ©2015 IEEE 5C2-1-1