ABSTRACT

Extending resources to maximize revenues can be applied in almost any setting – not just manufacturing – for the simple reason that the word 'resources' doesn't only refer to 'raw materials'. Indeed, 'resources' also pertains to information, labour, markets, furnishings, machinery and so on. Several years of research has shown that there are two ways a more efficient 'lake economy' or 'service economy' can be created. The first is to reuse, repair or remanufacture products, which facilitates job creation, and ultimately recycles materials and molecules. The second is to optimize the performance a product provides by converting the product into a service so as to keep its materials in the hands of the manufacturer for as long as possible so they can be reused. Large production-oriented businesses traditionally invest more in capital expenditures because they are geared toward a production setup that is intent on making as many products as possible.