Abstract
In the fiercely competitive landscape of modern manufacturing, small and medium-sized enterprises (SMEs) are navigating an intricate web of challenges and opportunities. This environment demands constant adaptation and innovation to remain relevant and profitable while upholding sustainable practices. Nowadays, Model-based Systems Engineering (MBSE) capabilities have evolved to a state where collaboration, handling complexity, and integrating sustainability into design processes are streamlined. By leveraging digital models to holistically represent and analyze complex systems, MBSE empowers designers to systematically incorporate sustainability issues and make informed decisions. This research elucidates the application of MBSE in fulfilling stakeholders' needs, tracing integrated functional requirements, and finding solution alternatives for accelerating the movement toward sustainable factories. In this regard, the Cameo System Modeler is utilized for sustainable factory design decomposition. To facilitate factories' sustainability assessment, the first level of functional requirements is defined based on axiomatic design theory and sustainability metrics which are highlighted in the European Sustainability Report Standard (ESRS). To present the application of Cameo, the Austrian Post sustainability report is analyzed based on assumed sustainability targets. Results show how MBSE can help stakeholders, managers, and designers have a big picture of a sustainable factory in one place and provide a resilient decision-making environment.