When we learn the ways of lean methodology, we’re taught that there are two types of waste: pure waste, which needs to be eliminated; and necessary waste, which does nothing to improve our performance or profits but must be produced anyway.

I’ve decided that there’s a third type of waste, called “smart” waste. It’s smart because it’s an investment. Let me explain, and then you can decide if I’m just playing with semantics or if a third definition is warranted.

First, let’s recap the two classic categories of waste. Pure waste fits into one of seven basic types:

1. Overproduction: Producing more than is needed
2. Waiting: Resources waiting for work
3. Motion: Unnecessary movement of resources 
4. Transportation: Work that is moving without improvement
5. Overprocessing: Doing more to work than is necessary
6. Inventory: Work that is waiting or in storage
7. Defects: Errors that result in extra effort to correct or are scrap

Pure waste is activity that we want to eliminate because it reduces our efficiency and damages our profits. Pure waste is the enemy.

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