HOW DO WE DEFINE WASTE OR MUDA?

Waste is Lean is not the same as "waste" according to the dictionary. In Japanese we refer to the waste in Lean as "muda" (無駄). Muda or waste is just another way of referring to a non-value adding activity or NVAA. Its opposite is a value adding activity or VAA. A value adding activity meets 3 conditions:

1. There is transformation of some kind (in form, function, value etc.)

2. Customer is willing to pay for that transformation.

3. The transformation is done right the first time. No repairs or rework is needed that is directly or indirectly paid by the customer.

   
   

If all three conditions hold, we are talking about a VAA, If even one of them does not hold, we speak of a NVAA or "muda" or waste. Example: Cooking pasta in a restaurant is a VAA. Raw paste is transformed to cooked pasta. The mainstream customer will value cooked pasta more than raw pasta (not that tasty, trust us!) and we assume it is done correctly the first time, which means that the chef did not burn it time after time whilst charging the customer for each attempt. However, standing in line to get served is not a VAA. There is no transformation, let alone that the customer is willing to pay for waiting in line. It is waste or muda or NVAA.