Muda [moo-duh] is a Japanese word meaning ‘futility,’ ‘uselessness,’ or ‘wastefulness,’ and is a key concept in lean process thinking such as in the Toyota Production System (TPS), denoting one of three types of deviation from optimal allocation of resources. The other types are known by the Japanese terms ‘mura’ (‘unevenness’) and ‘muri’ (‘overload’). Waste in this context refers to the wasting of time or resources rather than wasteful by-products.
From an end-customer’s point of view, value-added work is any activity that produces goods or provides a service for which a customer is willing to pay; muda is any constraint or impediment that causes waste to occur.
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The Daily Omnivore 