Imagine that you are playing with toys. You have different toys and you can only play with one at a time. When you are playing with the toy, you are in the "playing" state. When you put the toy down, you are in the "resting" state.
Computers are like humans with toys. They have different jobs to do and they can only do one at a time. When they are doing a job, they are in the "running" state. When they are waiting for something to happen, they are in the "waiting" state. When they are done with the job, they are in the "completed" state.
Sometimes a computer can't do the job because it's waiting for something else to happen or because it doesn't have enough resources, like memory or space. In this case, it's in the "blocked" state until the obstacle is removed.
In summary, process states are like different activities a computer can do. They can run, wait, complete or be blocked depending on the situation.