Multi-Layer Stream Mapping (MSM) and Overall Circularity Index (OCI) Application for a Conjoint Efficiency and Circularity Assessment: A Textile Use-Case

Circular economy and Industry 4.0 principles are increasingly shaping industrial practices. In the textile sector, environmental impacts and low recyclability make circularity a critical priority. This study focuses on enhancing both circularity and operational efficiency in a Portuguese manufacturer of labels and trimmings. Achieving this requires the collection of relevant data and identification of the factors that most influence operational performance, while linking these to circularity outcomes. To support this effort, the paper presents two complementary methodologies: Multi-layer Stream Mapping (MSM) for evaluating manufacturing efficiency and the Overall Circularity Index (OCI) for assessing circularity performance. MSM provides a detailed analysis of process efficiency, identifying sources of waste and summarizing results through user-friendly scorecards that highlight high-impact improvement areas. The OCI measures a company’s circularity on a scale from 0 to 1—where 1 represents full circularity—using strategic indicators across environmental, material, economic, and social dimensions. The MSM revealed an overall efficiency of 71%, whereas the OCI resulted in a final score of 0.516. When applied together, MSM and the OCI form a straightforward, iterative, and effective framework for diagnosing strengths and weaknesses in the manufacturing process, supporting evidence-based decision-making and guiding the company’s transition toward more circular and efficient operations.