Muda is a Japanese word meaning “futility; uselessness; wastefulness”. It is a key concept in lean process thinking, like the Toyota Production System as one of the three types of deviation from optimal allocation of resources.
Muda means wastefulness, uselessness and futility, which is contradicting value-addition. Value-added work is a process that adds value to the product or service that the customer is willing to pay for.
There are two types of Muda, Type 1 and Type 2.
Muda Type 1 includes non-value-added activities in the processes that are necessary for the end customer. For example, inspection and safety testing does not directly add value to the final product; however, they are necessary activities to ensure a safe product for customers.
Muda Type 2 includes non-value added activities in the processes, but these activities are unnecessary for the customer. As a result, Muda Type 2 should be eliminated.
« Back to Glossary Index