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This could mean laying off workers and cutting some wages. In fact, those actions might only work for a short time. Unless the company implements a culture of continuous improvement and alters its method of operation, the situation may recur and become even worse. This brings us back to the purpose for which the Toyota production system was developed.\u003c\/p\u003e\u003cp\u003eWaste is anything that uses resources but offers the customer nothing in return. Most activities are waste, or muda, and can be divided into two categories. Although type one muda does not provide value, it is inescapable given the production assets and technologies available today. An illustration would be checking welds for safety, that type we also call necessary non-value-added activity. Type two muda does not add value and can be quickly eliminated. 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