ABSTRACT
Lean manufacturing uses some well-known definitions of waste, non-value-added activities, and value-added activities, all of which make targets for improvement visible:
Taiichi Ohno viewed waste (as it pertained to work) as, "The needless, repetitious movement that must be eliminated immediately" (Taiichi Ohno, 'Toyota Production System, Productivity Press, 1988). Simply put, waste is any activity that adds costs but does not add value to a product. This activity is not required at all and should be eliminated. Toyota has identified seven types of waste: overproduction, wait time, transportation, overprocessing, inventory, motion, and defects. These wasteful activities should be eliminated.
Non-value-added activities are considered waste because they do not add value for the customer but are required under the present working conditions. Examples include machine setup and daily work area cleanup. The objective with lean is to reduce these activities, if not eliminate them.
Value-added activities are any activities that change the shape or configuration of a product in a way that creates value for the customer.
