In the context of Lean Thinking, what does 'waste' refer to?

In the context of Lean Thinking, 'waste' specifically refers to activities that do not add value to the customer. This definition aligns with the core principles of Lean philosophy, which aims to streamline processes by eliminating any steps or activities that do not directly contribute to the creation of value for the customer. Lean Thinking emphasizes efficiency and maximizing value, focusing on activities that enhance the customer experience while minimizing unnecessary expenditures of time, resources, and effort.

While completed projects that are not successful, financial losses, and excessive administrative tasks may illustrate aspects of inefficiency or resource misuse, they do not capture the essence of what constitutes waste in Lean terminology. Waste is solely about the lack of value-added activities within a process—anything that does not contribute to meeting customer needs is considered waste and therefore should be targeted for elimination or improvement.