Integrating Life Cycle Assessment (LCA) and Quality Function Deployment (QFD) in Bandung’s Knitting SMEs to Support Green Innovation

The knitting SMEs in Bandung City are a key part of the creative industry, contributing to the regional economy and employment. However, their production processes generate solid waste such as yarn residues and fabric scraps, which pose environmental risks if not properly managed. Nationally, the textile sector produces over 200,000 tons of fabric waste annually, much of it from SMEs, highlighting the need for systematic environmental assessment. This study integrates Life Cycle Assessment (LCA) and Quality Function Deployment (QFD) to evaluate environmental impacts across the knitting production process and identify green innovation opportunities. Data were collected through interviews and on-site observations at two representative SMEs, focusing on material flows and customer perceptions of eco-friendly products. Results show that the dyeing and finishing stages contribute the highest environmental burden (45–52%), mainly due to energy consumption and chemical use. Solid waste generation ranges from 1.8–2.4 kg per batch, with only 30% reused or recycled. The combined LCA–QFD approach indicates that proposed improvements could reduce environmental impacts by 18–24% and increase customer satisfaction by 20%. These findings demonstrate that structured environmental assessment and customer-oriented design can enhance efficiency and support green innovation in knitting SMEs.