Muda (Japanese term)

Muda (無駄, on'yomi reading, ateji) is a Japanese word meaning "futility", "uselessness", or "wastefulness",[1] and is a key concept in lean process thinking such as in the Toyota Production System (TPS), denoting one of three types of deviation from optimal allocation of resources.

From an end-customer's point of view, value-added work is any activity that produces goods or provides a service for which a customer is willing to pay; muda is any constraint or impediment that causes waste to occur.

[3] There are two types of muda:[4] One of the key steps in lean process and TPS is to identify which activities add value and which do not, then to progressively work to improve or eliminate them.

Whether in the form of raw materials, work-in-progress (WIP), or finished goods, represents a capital outlay that cannot yet produce an income.

This can include wear and tear for equipment, repetitive strain injuries for workers or unnecessary downtime.

[citation needed] Having to discard or rework a product due to earlier defective work or components results in additional cost and delays.

Some examples follow: General uncertainty about the right thing to do, or absence of documented procedures and operating statements.

The plan is therefore to build a fast, flexible process where the immediate impact is to reduce waste and therefore costs.