Lean manufacturing is all about creating more value for customers while reducing waste in production processes. In Lean, waste is anything that consumes resources but does not add value to the final product. Toyota originally identified 7 types of waste, which later became 8 to include underutilized human talent. Understanding and eliminating these wastes can help companies reduce costs, improve efficiency, and enhance the overall quality of their products. Let’s explore each waste in detail.
1. Overproduction
Overproduction occurs when a company produces more products than needed or produces them too early. This is one of the most costly wastes because it ties up capital in inventory, occupies storage space, and increases the risk of products becoming obsolete.
Example: Manufacturing 1,000 units of a product when only 500 units have been ordered by customers.
Impact: Higher storage costs, risk of unsold products, and possible quality deterioration over time.
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Solution: Use Just-In-Time (JIT) production, carefully monitor customer demand, and only produce what is needed.
2. Waiting
Waiting happens when workers, machines, or materials are idle due to delays in the production process. This waste reduces overall productivity and increases lead time.
Example: A worker waiting for materials to arrive before starting assembly, or a machine standing idle because the previous process is delayed.
Impact: Wasted time, reduced output, and delayed deliveries.
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Solution: Improve workflow planning, maintain proper scheduling, and use kanban systems to ensure a smooth flow of materials.
3. Transport
Transport waste is the unnecessary movement of materials or products between processes. Unlike motion (which focuses on human movement), transport is about the movement of items themselves.
Example: Moving parts multiple times between storage, workstations, and assembly lines.
Impact: Increased risk of damage, higher labor costs, and wasted time.
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Solution: Optimize plant layout, reduce the distance between workstations, and implement material handling best practices.
4. Overprocessing
Overprocessing happens when more work is done on a product than required by the customer. This includes extra steps, unnecessary features, or using higher-quality materials than needed.
Example: Polishing a component more than necessary or adding extra processes that do not improve functionality.
Impact: Increased costs, longer production time, and no added value to the customer.
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Solution: Standardize processes, focus on customer requirements, and avoid unnecessary procedures.
5. Inventory
Inventory waste includes excess raw materials, work-in-progress (WIP), and finished goods that are not immediately needed. Holding inventory ties up capital and may lead to storage problems or product obsolescence.
Example: Stocking raw materials for six months when production only requires one month’s supply.
Impact: High storage costs, risk of damaged or obsolete inventory, and cash flow issues.
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Solution: Implement pull-based production, monitor inventory levels, and use lean inventory techniques.
6. Motion
Motion waste refers to unnecessary movement of people that does not add value to the product. It is different from transport, which deals with the movement of items.
Example: Workers bending, stretching, or walking long distances repeatedly to fetch tools or materials.
Impact: Wasted energy, increased fatigue, and slower production.
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Solution: Use ergonomic workstation design, organize tools and materials efficiently, and implement 5S methodology.
7. Defects
Defects occur when products fail to meet quality standards, requiring rework, repair, or scrapping. Defects waste materials, labor, and time while harming customer satisfaction.
Example: A batch of parts failing inspection due to incorrect dimensions or poor assembly.
Impact: Increased production costs, delayed shipments, and dissatisfied customers.
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Solution: Improve quality control, implement poka-yoke (error-proofing), and provide proper employee training.
8. Talent / Underutilized Human Potential
The 8th waste is the underuse of employees’ skills, knowledge, and creativity. When employees are not empowered to contribute ideas or solve problems, organizations miss opportunities for improvement.
Example: Skilled operators performing only repetitive tasks without input on process improvements.
Impact: Lost innovation, lower employee motivation, and missed productivity gains.
Solution: Encourage employee involvement, provide training, and create a culture of continuous improvement.
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The 8 wastes in Lean Manufacturing, overproduction, waiting, transport, overprocessing, inventory, motion, defects, and talent are critical areas to identify and eliminate. By addressing these wastes, companies can lower costs, improve efficiency, deliver higher quality products, and create more value for customers. Lean is not just a set of tools; it’s a mindset focused on continuous improvement and efficiency.
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