What does the term 'waste' refer to in lean manufacturing?

In lean manufacturing, the term 'waste' specifically refers to activities that consume resources without adding value to the product. This concept is foundational to lean principles, which aim to streamline operations by identifying and eliminating waste to improve efficiency, reduce costs, and enhance product value.

Value-added activities are those that directly contribute to creating or delivering a product that meets customer requirements. Conversely, any activity that does not enhance the product's functionality or quality is considered waste. This can include unnecessary motion, overproduction, waiting times, excess inventory, and defects, among others. By focusing on eliminating these non-value-adding activities, organizations can achieve a more efficient and effective production process, ultimately leading to higher customer satisfaction and better resource utilization.

Energy consumption and excess inventory, while they can be symptomatic of waste, are more specific instances rather than the overall definition of waste itself. Therefore, the emphasis in lean manufacturing is on the broader concept of resource consumption without value addition.