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Tempe chips are one of the typical foods of Malang City. One of SME that produces tempeh chips in Malang City is Putra Ridhlo. The purpose of this research were to measure the value of productivity, determine several strategic alternatives, and estimate the influence of selected alternative to a better productivity. A suitable approach to help the SME to increase productivity and reduce environmental impact is the Green Productivity Method. Green Value Stream Mapping (GVSM) was also used to identify green waste. Green Productivity Index (GPI) of Putra Ridhlo was only 0,28 (low). Alternatives were prepared to overcome several green waste problems. The results of the study showed that the biggest waste came from frying process (emission), seasoning making process (waste water), and packaging process (solid waste). There were three improvement alternatives to increase productivity values, namely: ​​standardization of packaging weight, usage of blower during the day, and water volume measurement with a measuring cup when making seasonings. According to expert judgement with pairwise comparison, the alternative with highest GPI is standardization of packaging weight (0,30), while usage of blower during the day had GPI 0,29, and water volume measurement with a measuring cup when making seasonings had GPI 0,28. The application of green productivity might be implemented in Putra Ridhlo because it could improve the economy value to be 2,48, and environmental impact (GPI future to be 0,30 and GPI ratio to be 1,08). Future studies could measure productivity with other methods such as Benefit Cost Ratio (BCR).