Sustainability in Manufacturing: A Guide to Circular Economy Practices and Key Performance Indicators

In today's push for sustainability, it is crucial for the manufacturing industry to apply Circular Economy (CE) principles, United Nations Sustainability Development Goals (UN-SDGs), and the 6R concept (i.e., Reduce, Reuse, Recycle, Recover, Redesign, and Remanufacture). Amidst escalating global challenges such as resource scarcity, economic inefficiencies, social inequalities, and environmental degradation, the CE model has emerged as a pivotal framework for sustainable development. This momentum is derived from its ability to replace the conventional linear economy model (i.e., take, make, use, and dispose). This work highlights the significance of properly selecting Key Performance Indicators (KPIs) and their crucial role to decision-makers in the manufacturing industry. These KPIs are intended to effectively measure and reflect system changes and address global issues concerning UN-SDGs. The study involves a comprehensive literature review across various manufacturing sectors. It collects several Key Performance Indicators (KPIs) and categorizes them into two proposed sorting phases. The first phase aligns each KPI with the seventeen Sustainability Development Goals, showcasing their potential to describe and contribute to assessing the UN's promising goals. The second phase delves deeper, strategically recategorizing KPIs based on the 6R concept. The paper's core aims to explore the crucial role of the CE indicators in fostering sustainability within the manufacturing industry. Manufacturers can align their KPIs with different 6R practices by proposing a systematic guide for tailored KPI selection, aligning with global initiatives such as UN-SDGs. The findings serve as a compass for manufacturers, business partners, and practitioners that guide them through a successful decision-making process.