Muda (無駄?) is a Japanese word meaning "futility; uselessness; wastefulness",[1] and is a key concept in the Toyota Production System (TPS) as one of the three types of deviation from optimal allocation of resources (the others being mura and muri).[2] Waste reduction is an effective way to increase profitability. Toyota adopted these three words beginning with the prefix mu-,[3] which in Japan are widely recognized as a reference to a product improvement program or campaign. From a customer's point of view, value-added work is a process that adds value by producing goods or providing a service that a customer is willing to pay for. However, muda is any process that consumes more resources than needed, which causes waste to occur.

1. 8 Wastes To Eliminate
In Order to Lean Out Your
Processes
Lin Fisher, CSM

2. Defects
Production Examples:
• Unclear customer specifications
• Incapable processes
• Lack of process control
• Unskilled personnel
• Departmental rather than total company
quality improvement initiatives
• Incapable suppliers
Service Examples:
• Rejections in sourcing applications
• Incorrect data entry
Strategies to reduce:
• Design review
• Reduce defective materials
• Train employees
• Maintenance of machines and
equipment

3. Waiting
Production Examples:
• Unsynchronized processes; line imbalance
• Inflexible workforce
• Over staffing
• Unscheduled machine downtime
• Long setup times
• Material shortage or delay
• Manpower shortage or delay
Service Examples:
• Customers waiting to be served in a
contact centre
• System downtime

4. Inventory
Production Examples:
• Overproduction
• big batch sizes
• Long lead times
• Local optimization (turf mentality)
• Large minimum order quantities
• High rework rate (ties into defects)
• Just In Time (JIT) incapable suppliers
• Lack of material requisition and issuance
standards
Service Examples:
• Files and documents waiting to be processed
• Excess promotional materials sent to market
• More infrastructure than required
Strategies to reduce:
• Dispose of obsolete material to save
space and avoid confusion
• Do not produce items ahead of
customers delivery requirements
• Do not manufacture products in
excess of customer's requirements

5. Motion
Production Examples:
• Poor workstation layout - excessive bending, walking
and reaching
• Poor method design - transferring parts from one hand
to another
• Reorientation of materials
• Poor layout and housekeeping
• Disorganized workplace and storage locations
• Unclear, non-standardized work instructions
• Unclear process and materials flow
Service Examples:
• Looking for data and information
• Movement of people to and from office equipment
Strategies to reduce:
• Motion economy principal
• Effective supervision

6. Over Processing
Production Examples:
• Unclear customer specifications
• Frequent engineering changes
• Excessive quality (refinements, "polishing")
• Inadequate value analysis/value
engineering
• Unclear work instructions
Service Examples:
• Too much paperwork in process
• Same data required in multiple places in a
process
• Follow up coordination costs
• Too many approvals
• Reporting overburden
Strategies to reduce:
• Improve work allocation
• Identify more effective methods
• Limit overproduction

7. Over Production
Production Examples:
• Volume incentives (sales, pay, purchasing)
• High capacity equipment
• Poor scheduling/shifting
• Poor production planning
• Cost accounting practices that encourage build
up of inventory
Service Examples:
• Information sent automatically even when not
required
• Printing documents before they are required
• Processing items before they are required by the
next person in the process
Strategies to reduce:
• Strong production planning and
control
• Production according to customer
schedule
• Firm delivery requirements

8. Underutilized Talent
Production Examples:
• Inappropriate policies
• Incomplete measures
• No time made available in operators work schedule
• Problem solving only done with "experts" ignoring
employees
• Top down improvement ideas
Service Examples:
• Limited authority and responsibility
• Person put on a wrong job
Strategies to reduce:
• Give staff ownership of work