What is considered "waste" in Lean terminology?

In Lean terminology, "waste" refers specifically to activities or processes that consume resources—such as time, money, or materials—without adding any value to the final product or service. The concept of waste is central to Lean principles, which focus on identifying and eliminating non-value-added activities in order to improve efficiency and enhance value for the customer.

By identifying these wasteful activities, organizations can streamline processes, reduce costs, and improve quality. This aligns with the core purpose of Lean, which is to create more value for customers with fewer resources.

While the other options discuss various issues that can affect efficiency or value within an organization, they do not encapsulate the essence of what constitutes waste in Lean practices. For example, beneficial activities that add value are inherently not considered waste; they are the very opposite. Excessive management oversight might indeed slow processes down, but it isn’t defined as waste in the same way as activities that do not add value. Similarly, underutilized employee skills relate to potential inefficiencies rather than direct waste since they indicate an opportunity for improvement rather than wasted resources.