A new framework for linking process-level sustainability performance to economic loss in manufacturing

Purpose This study presents a framework that links process-level sustainability performance and economic loss analysis in manufacturing by integrating the triple bottom stream method (TBSM), a value-stream-oriented process-flow assessment framework, into the Lean Six Sigma-define–measure–analyze–improve–control (LSS-DMAIC) cycle. The purpose of this study is to provide a structured method for identifying how operational, environmental and social inefficiencies relate to financial outcomes and to support sustainable process improvement. Design/methodology/approach The proposed framework uses TBSM to evaluate operational, environmental and social sustainability performance. These dimensions are integrated into a Composite Performance Index (CPI) that represents overall manufacturing sustainability performance. A diagnostic sustainability-loss indicator is further used to assess sustainability-related deficiencies, while economic performance is evaluated through economic-loss analysis based on observed process and problem costs. The framework enables the identification of process-level inefficiencies across the operational, environmental and social dimensions while providing a separate assessment of economic consequences at the process level. It is subsequently operationalized through the LSS-DMAIC cycle to support structured process improvement. Findings In an Indonesian manufacturing SME, the initial TBSM assessment yielded a CPI of 64.17%, indicating acceptable overall sustainability performance; however, detailed process-level assessment and economic-loss evaluation revealed that several manufacturing processes still exhibited substantial operational, environmental and social deficiencies. After implementing improvement actions, the CPI increased to 78.92%, reflecting improvement across operational, environmental and social dimensions. The improvements generated an estimated gross monthly saving of US$4,807.38 and a net monthly financial benefit of US$3,780.49 after deducting operational costs. Originality/value Prior approaches often evaluate selected dimensions without providing an integrated assessment of operational, environmental and social sustainability performance alongside process-level economic consequences. To address this gap, this study introduces the TBSM, which integrates operational, environmental and social sustainability assessments into the CPI while examining economic loss through a separate economic-consequence analysis path. This framework enables a more structured assessment of sustainability performance and economic consequences at the process level. The proposed framework supports broader sustainability objectives, including Sustainable Development Goal (SDG) 9 and SDG 12 while advancing integrated and system-oriented sustainability practices in manufacturing.