A hybrid lean-green-digital framework for sustainability-oriented operational improvement in furniture SMEs: integrating AHP and simulation – A case study in Peru

Wood furniture manufacturing SMEs in emerging economies face persistent operational inefficiencies, material waste, long lead times, high setup times, and limited monitoring capabilities, which restrict their ability to improve productivity while advancing sustainability-oriented manufacturing practices. Although Lean tools, multicriteria decision-making methods, and digital monitoring mechanisms have been widely studied, they are often applied separately and rarely integrated into a practical, low-investment framework suitable for resource-constrained SMEs. To address this gap, this study proposes and validates a hybrid Lean–Green–Digital framework for sustainability-oriented operational improvement in wood furniture manufacturing SMEs. The framework integrates current-state diagnosis through Value Stream Mapping, Lean improvement tools including 5S, SMED, and Work Standardization, sustainability-oriented prioritization using the Analytic Hierarchy Process, and a basic digital monitoring layer to reinforce process standardization. A real industrial case study was conducted in a Peruvian wood furniture SME operating under a make-to-order system. Improvement scenarios were evaluated through discrete-event simulation using Arena software and statistically assessed through paired-sample analysis. Results showed reductions in lead time, setup time, and defect levels, with the largest lead-time reductions observed in cutting, assembly, and sanding operations. Work Standardization and SMED were identified as the highest-priority interventions. The study contributes a structured, replicable, and low-investment decision-support framework that integrates operational diagnosis, multicriteria prioritization, digital reinforcement, and simulation-based validation for SMEs seeking sustainability-oriented operational improvement.