Waste is defined as anything within your business or processes that doesn’t add value to the customer or the long-term goals of the organization. Many businesses are more wasteful than they realize.

The waste of excess processing is more common than most business owners realize. It happens in every industry and can be a drain on labor, which increases costs while reducing overall quality and productivity.

Motion waste happens any time people or machinery are required to make movements that don’t add any value to the overall process. Each step of your processes should be completed with as little movement as possible.

Inventory waste occurs when the on-hand supply of any product or component is in excess of actual customer demand. This excess inventory mimics productivity, yet does not have the same positive result since it is really just taking up space.

Transportation waste occurs when information, items, or people are transported around unnecessarily. This is most common in manufacturing industries, but can also apply to any business environment.

Recognizing and utilizing the skills, knowledge and talents of your team is essential to the success of a business. People are the most valuable resource your business has, and by not using this resource to the fullest extent, you are wasting opportunities.

Waiting occurs whenever work has stopped for any reason, and the waste of waiting could be bad for your business since it usually has a negative impact on efficiency, profitability, and overall satisfaction.

The waste of over-production is most common in manufacturing industries, but this type of waste can be seen in any business that provides physical materials, including documents, for consumers or internal use.