The foundation of Lean Manufacturing is eliminating waste. Initially, the Toyota Production System identified seven types of waste—activities that don’t add value for the customer and should be minimized or removed altogether. These are commonly referred to as the wastes of Lean manufacturing, also known simply as Lean waste. As Lean spread to the Western world, the framework evolved to include an additional waste category, reflecting the growing recognition of human potential in business processes.

However, as Lean evolved, a new form of waste emerged that was equally detrimental to operational efficiency: the 8th waste in Lean. The concept of the eight wastes (often remembered by the acronym TIMWOODS) is now widely used to identify inefficiencies in operations.

This often-overlooked category highlights a critical human dimension of Lean: underutilized talent. Recognizing and addressing this waste can improve efficiency, employee engagement, and overall performance.

What Is Lean Manufacturing? Understanding the 8th Waste in Lean

Lean Manufacturing is a robust methodology for optimizing resources and streamlining production processes, rooted in the renowned Toyota Production System. At its core, Lean is about eliminating waste and maximizing value for the customer. Lean methodologies are widely applied to improve business processes, not just manufacturing, by identifying and reducing inefficiencies across various operations. Lean principles provide the foundation for streamlining business processes and eliminating lean waste, helping organizations achieve greater efficiency and quality.

A key concept in Lean Manufacturing is the identification and removal of the 8 wastes of Lean—often remembered by the acronym TIMWOODS: transportation waste, inventory waste, motion waste, waiting waste, overproduction waste, overprocessing waste, defects waste, and skills waste (non-utilized talent). These are commonly referred to as the wastes of lean manufacturing and are central to lean principles. The concept of the 8th waste, non-utilized talent, was popularized in the Western world as Lean thinking spread beyond Japan. Understanding these wastes is essential for any organization that wants to optimize resources and create more value with less effort.

Management’s responsibility is to foster a culture of continuous improvement and actively involve frontline workers in problem-solving processes, ensuring that employee skills are fully leveraged to eliminate waste.

📘 Want to develop a culture that values people and eliminates all forms of waste? Enroll in our comprehensive Lean Management course for practical tools to spot and reduce both physical and human-related waste.

Introduction to Lean Thinking and Business Process Improvement

Infographic linking the 8th waste in Lean—unused talent—to five core Lean Manufacturing principles.

Lean thinking is a robust methodology designed to optimize resources and drive process improvement across production processes. Originating from the Toyota Production System, it has become a cornerstone for manufacturing companies seeking to enhance operational efficiency and reduce process variation. At its heart, lean thinking is about identifying and eliminating waste—activities that do not add value—so that every step in the business process contributes to customer satisfaction.

The foundation of lean principles lies in the systematic removal of the 8 lean wastes: transportation waste, inventory waste, motion waste, waiting waste, overproduction waste, overprocessing waste, defects waste, and skills waste. By focusing on these areas, organizations can streamline their production processes, ensure continuous flow, and create more efficient processes that deliver value to internal and external customers.

Lean thinking also emphasizes the importance of continuous improvement and employee engagement. Tools like process mapping help teams visualize workflows, identify bottlenecks, and optimize resources. By fostering a culture of ongoing improvement, manufacturing companies can reduce costs, improve quality, and maintain a competitive edge in the market. Ultimately, lean thinking transforms business processes by making them more responsive, flexible, and aligned with customer needs.

What Is the 8th Waste in Lean?

The 8th waste in Lean is non-utilized human talent (also known as unused human talent)—the failure to use employees’ skills, creativity, and ideas. Unlike the other seven wastes (Transportation, Inventory, Motion, Waiting, Overproduction, Overprocessing, and Defects), which focus on physical inefficiencies in the production process, the 8th waste concerns missed intellectual contributions.

This waste shows up in organizations that:

Ignore suggestions from frontline workers
Rely heavily on top-down decision-making
Provide insufficient training or development opportunities
Fail to recognize or reward innovation

It’s management’s responsibility to recognize and leverage employee skills and ideas to avoid this waste.

Why the 8th Waste Matters

Not engaging employees undermines your ability to sustain continuous improvement. Workers on the floor often see problems and opportunities before anyone else. When their insight is ignored, process improvement stalls and inefficient allocation of resources continues.

Failing to use talent can also lead to:

Higher turnover rates
Low morale
Lack of innovation
More waste from miscommunication and disengagement

Additionally, underutilized talent can create imbalanced workloads and fluctuating work demands, making maintaining a smooth production flow and flexibility harder.

Connecting Non-Utilized Talent to the Other Wastes

The 8th waste amplifies all others. Consider these examples:

An employee sees unnecessary motion at a station but isn’t empowered to suggest changes.
A machine breaks down repeatedly, but operators with deep experience aren’t asked for input.
A business process requires unnecessary steps, but nobody questions its logic due to a rigid hierarchy.

When human intelligence is underused, waste occurs more frequently and remains unresolved. Empowering employees to share their insights enables organizations to identify waste more effectively throughout their operations, helping them systematically identify and uncover more waste that may otherwise go unnoticed.

The Original Seven Wastes of Lean (TIMWOOD)

Before we dive deeper into talent, let’s revisit the original seven wastes:

Transportation Waste – Unnecessary movement of materials, including excessive movement of tools, materials, or personnel. Excessive movement can lead to product damage, inefficiency, and increased wear and tear.
Inventory Waste – Holding excess stock like raw materials, work in progress, or extra materials that don’t add value. Excess inventory, often caused by overproduction or unnecessary buffering, leads to inefficiencies such as increased lead times and hidden defects.
Motion Waste – Excessive or inefficient movement by workers or equipment, often due to poorly organized workspaces. This includes excessive motion, repetitive movements, and tasks that require excessive motion, which do not add value and can be minimized through better workspace organization.
Waiting Waste is delays in the manufacturing process, especially at production stations. It can also include idle equipment, where machines or tools are unused due to process disruptions or scheduling issues.
Overproduction is making more than needed, also known as overproducing. Producing in small batches can help align output with customer demand and reduce the waste and costs associated with overproducing.
Overprocessing Waste is extra steps or complexity that don’t add value or exceed customer requirements. Overprocessing waste and extra processing are unnecessary steps that should be eliminated to align work with the customer’s needs.
Defects—Errors that require rework or scrap create waste in materials, time, and labor. Defects also result in additional costs, such as rework and scrap, which add expenses without providing value to the customer.

Once non-utilized talent is added as the 8th waste, the focus shifts toward people as agents of change and untapped assets.

Extra Processing Waste: The Overlooked Culprit

Extra processing waste—also known as overprocessing waste—is one of the most commonly overlooked forms of waste in production. It occurs when unnecessary steps, actions, or features are added that do not increase the customer’s value. This can result from poor process design, lack of standardization, inadequate training, or outdated equipment.

Examples of extra processing waste include requiring unnecessary signatures on documents, performing repetitive movements that don’t contribute to the final product, or adding features that customers haven’t requested. These unnecessary steps slow production, increase costs, and reduce overall productivity.

To tackle extra processing waste, lean manufacturing encourages companies to streamline processes by eliminating redundant actions and focusing only on what adds value. This might involve redesigning workflows, minimizing paperwork, or automating repetitive tasks. By continuously reviewing and refining the production process, organizations can boost customer satisfaction, reduce waste, and create a more efficient and agile operation.

Lean Thinking and Culture

Lean thinking is more than a set of tools—it’s a mindset that transforms how organizations approach their production process. Originating from the Toyota Production System, lean thinking encourages manufacturing companies to optimize resources and reduce process variation at every step. The foundation of this philosophy is the relentless pursuit of eliminating waste and delivering maximum value to customers.

Central to lean thinking is the identification and removal of the 8 lean wastes: transportation waste, inventory waste, motion waste, waiting waste, overproduction, overprocessing, defects, and non-utilized talent. By focusing on these wastes, organizations can streamline their production processes, reduce unnecessary steps, and ensure that every action adds value.

A lean culture thrives on continuous improvement and the active involvement of employees. Tools like process mapping and waste walks empower teams to spot inefficiencies and suggest improvements. Engaging employees in these activities helps identify and eliminate waste and fosters a sense of ownership and pride in the production process.

Respect for people is a cornerstone of lean thinking. Organizations can unlock innovative solutions and drive ongoing process improvement by valuing and utilizing every team member’s unique skills and insights. A lean culture encourages everyone to think critically, challenge the status quo, and contribute to more efficient and effective production processes.

How to Identify the 8th Waste in Your Operations

Start with a waste walk—an observational tour to spot forms of waste. Ask yourself:

Are employees empowered to improve processes?
Do supervisors actively seek worker feedback?
Is training aligned with employee potential?
Are processes and job roles designed to match skill sets and optimize workflow through effective design processes?

Identifying the 8th waste is key to streamlining processes and maximizing value. A Lean culture requires engaging employees, flexible multi-skilled workers, and ensuring they contribute beyond basic tasks.

🎓 Learn how to build that culture in our Teamwork and Leadership course.

Consequences of Ignoring the 8th Waste

When organizations ignore human potential:

Problems remain hidden
Over-processing, over-purchasing, and unnecessary transportation persist.
Workers become disengaged
Health and safety levels may drop due to burnout or fatigue

Organizations that don’t engage their workforce miss opportunities to reduce waste and improve efficiency.

How the 8th Waste Affects the Lean Journey

The Lean journey isn’t just about adopting tools like single-piece flow, continuous flow, or process mapping—it’s about changing mindsets. By recognizing that utilizing talent is a core principle of Lean, businesses can achieve:

Lower costs
Simplified processes
Higher employee retention
Greater adaptability to change
Reducing waste and inefficiencies across the organization

📈 Ready to drive continuous improvement across your entire company? Explore our Continuous Improvement course and learn to spread kaizen beyond the shop floor.

Continuous Improvement in Lean Manufacturing

Continuous improvement is at the heart of lean manufacturing. It’s the ongoing effort to refine production processes, eliminate waste, and enhance customer value. Rather than settling for the status quo, lean organizations are committed to regularly reviewing and improving how work gets done.

Practical tools such as process mapping, root cause analysis, and structured experimentation support this commitment to continuous improvement. By systematically analyzing production processes, teams can identify sources of waste, uncover bottlenecks, and implement changes that lead to more efficient operations.

The benefits of continuous improvement are significant: organizations can reduce costs, improve product quality, and boost customer satisfaction. But achieving these results requires more than occasional tweaks—it demands a culture where learning and adaptation are part of everyday work. Employees are empowered to take ownership of their roles, suggest improvements, and help drive the business forward.

In lean manufacturing, continuous improvement is never finished. It’s a cycle of identifying and eliminating waste, reducing variability, and improving flow. By embracing this mindset, organizations can stay agile, respond quickly to changing demands, and achieve lasting operational excellence.

Leadership in Lean Manufacturing

Leadership is the driving force behind successful Lean implementation. Management is responsible for creating a culture prioritizing continuous improvement, waste reduction, and employee engagement. Leaders set clear goals, provide necessary training and resources, and empower teams to eliminate waste at every production stage.

Leaders ensure continuous flow and reduce unnecessary movement throughout the organization by creating an environment where employees are encouraged to contribute ideas and take ownership. Lean thinking begins at the top; when leaders demonstrate commitment, it inspires the entire workforce.

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Implementing Lean Manufacturing: From Theory to Practice

Turning lean manufacturing from a theoretical concept into a practical reality starts with a deep understanding of your production process and a commitment to continuous improvement. The first step is to identify the 8 wastes of lean within your operations and prioritize which areas need the most attention.

A practical way to begin is by conducting a waste walk—an on-the-ground review of your processes to spot inefficiencies and sources of waste. This hands-on approach helps teams see where excess materials, unnecessary steps, or bottlenecks are slowing production.

Once wastes are identified, the next step is designing processes that ensure continuous flow and minimize excess materials. Implementing efficient methods like single-piece flow can help reduce waiting times and inventory build-up, improving productivity and reducing costs.

Engaging employees is crucial throughout this journey. By utilizing talent and providing training on lean principles, companies can empower their teams to suggest improvements and take ownership of process changes. This collaborative approach helps eliminate waste and fosters a culture of innovation and accountability.

In summary, implementing lean manufacturing involves:

Identifying the 8 wastes of lean and prioritizing improvement areas.
Conducting a waste walk to uncover inefficiencies.
Designing processes for continuous flow and reduced excess materials.
Implementing efficient processes like single-piece flow.
Engaging and training employees to drive ongoing process improvement.

Common Challenges in Lean and How to Overcome Them

While lean manufacturing offers significant benefits, organizations often encounter challenges during implementation. Resistance to change is common, as employees may be accustomed to existing routines and skeptical of new approaches. Additionally, a lack of training or insufficient resources can hinder progress and slow the adoption of lean principles.

Clear communication is essential to overcome these obstacles. Leaders should articulate the benefits of lean manufacturing, emphasizing how it can reduce waste, improve efficiency, and enhance job satisfaction. Providing comprehensive training on lean principles and techniques ensures that everyone understands their role in the transformation.

Allocating adequate resources—such as time, budget, and support—demonstrates organizational commitment to lean initiatives. Establishing a culture of continuous improvement and encouraging employee engagement helps sustain momentum and drive long-term success. Finally, regularly monitoring progress and being willing to adjust the implementation plan as needed ensures that the organization stays on track and continues to improve.

Measuring Success in Lean Initiatives

Evaluating the effectiveness of lean initiatives is crucial for sustaining progress and achieving desired outcomes. Companies can measure success using key metrics such as lead time reduction, inventory reduction, productivity improvement, quality improvement, and cost reduction. These indicators provide a clear picture of how lean manufacturing is impacting operational efficiency and overall performance.

Establishing a baseline before implementing lean initiatives is essential to accurately assessing progress. Regularly tracking these metrics over time allows organizations to identify trends, celebrate achievements, and pinpoint areas that need further improvement. Ongoing monitoring and evaluation ensure that lean efforts remain aligned with business goals and continue to deliver value.

Benefits of Lean Manufacturing: Why It Matters

Lean manufacturing delivers many benefits that can transform organizations’ operations. By eliminating waste and maximizing value-added activities, companies can achieve improved efficiency, reduced costs, and higher productivity. These gains enhance profitability, improve product quality, and reduce defects, boosting customer satisfaction and loyalty.

Implementing lean manufacturing also fosters a culture of continuous improvement and employee engagement, leading to higher morale and greater innovation. Organizations that are becoming more agile and responsive are better equipped to meet changing market demands and maintain a competitive advantage.

In summary, lean manufacturing is a proven methodology for achieving operational efficiency, reducing costs, and delivering superior customer value. By understanding and addressing the 8 wastes of lean, companies can unlock significant improvements and position themselves for long-term success.

Eliminating the 8th Waste: Best Practices

Create a Culture of Respect and Empowerment
- Bottom-up improvement
- Listen to frontline employees
- Celebrate ideas
Provide Continuous Learning
- Cross-training for more efficient processes
- Address insufficient training with tailored programs
Rethink Role Design
- Don’t assign tasks that don’t match skill sets
- Create clear career paths
Use Lean Tools to Utilize Talent
- Value-stream mapping to uncover hidden wastes
- Empower teams during waste walks and Kaizen events

📈 Ready to implement these practices in your facility? Get templates, checklists, and coaching inside the Lean Management course.

Industry Applications: Beyond Manufacturing

Although the eight wastes of Lean were born in manufacturing, they apply to:

Construction – e.g., poor site planning, underused labor. In the construction industry, Lean principles are applied to improve efficiency and reduce waste, with organizations like the Lean Construction Institute providing resources and events focused on Lean Construction methodologies.
Healthcare – e.g., underutilized nurses
Offices – e.g., unnecessary signatures, repetitive admin tasks

Lean is about optimizing human and material resources across any business process.

🎮 Prefer learning by doing? Try our immersive GET LEAN Simulation Game and experience TIMWOODS in real time.

Ready to Unlock the 8th Waste?

Enroll in our Lean Management course to unleash your people’s power and eliminate waste at every level. Based on 25+ years of hands-on experience, the program gives you practical tools to identify and remove physical and human waste.

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