How does reducing waste increase revenue?
Waste is the opposite of value. An activity of an organization either creates waste or it creates value. By definition it is not possible to create both at the same time. If an activity is creating waste, it has the effect of eliminating an equal amount of value. An hour spent creating waste is an hour spent not creating value. Customers pay for value. The more value provided the more they are willing to pay. Create more value and your revenue will increase. It will increase because customers are willing to pay the value of your product or service. Or it will increase from increased customer retention due to increased customer satisfaction from receiving greater value for a given cost.
