Potential for increasing value captured in java furniture company (JFC)

Java Furniture Company (JFC) is a well-established furniture exporting company in Indonesia, which specializing in producing wooden furniture for indoor areas. As a by-product of making furniture, there are waste wood scraps piled up and eventually burned. This research aims to determine the circularity value of raw materials and the potential utilization of wood scrap waste. The study was conducted by identifying a business model using the Business Model Canvas (BMC) framework. At the following stage, developing a business model to become more circular using the identification of the Value Proposition Canvas (VPC) and aligning to the Circular Business Model (CBM). Furthermore, in this study the circularity value of raw materials was calculated through the Material Circularity Indicator (MCI) method. The opportunity value of processing wood scraps was determined by using the opportunity cost concept by then. This study used a questionnaire to collect information about the respondent interest of wood scrap products. The result shows that more than 90% of respondents are willing to understand about it. Based on the analysis, it is shown that wood scrap processing results in a product level MCI value of 0.998 with an income opportunity value of Rp. 72,387,000.00. The improvement design increases the circularity of raw materials by 6% at the product level and 42% at the enterprise level.