The idea behind the theoryMuda is the Japanese term for waste and is a key concept in the Toyota production system. The definition of waste is basically anything that doesn't add value. “Value and waste are opposites. “Value” is what the customer is actually willing to pay for the product or service. Economists define value as the ratio between the utility of a product or service and its costs. This includes product functions and features and refers to the entire product, service or both. Costs include the price paid and also the cost in terms of time and effort to obtain and use the product or service” (Sowards, 2005). “It is common to find that in a factory less than 5% of the activities actually add value, 35% are necessary activities that do not add value, and 60% add no value” (Jones, Hines, & Rich, 2006, p. 154) . To truly eliminate waste from a process you need to know what waste you are looking for. There are seven wastes identified by Toyota's chief engineer, Taiichi Ohno, as part of the Toyota Production System.1. Overproduction. Producing items for which there are no orders, which generates waste such as excess staff and storage and transportation costs due to excess inventory. Ohno considered this the fundamental waste, as it causes most other waste.2. Waiting (time available). Workers who simply guard an automated machine or have to wait for the next processing step, tool, supply, part, etc., or simply have no work due to stock-outs, batch processing delays , equipment downtime and capacity bottlenecks .3. Transportation or transportation not necessary. Conduct work in progress (WIP) over long distances, create inefficient transportation, or move materials, parts, or finished products in or out of or between processes.4. Overprocessing or incorrect processing. Taking unnecessary steps to process parts. Inefficient processing due to poor tooling and product design, causing unnecessary movement and producing defects. Waste is generated when products of higher quality than required are supplied.5. Excess inventory. Excess raw materials, WIP or finished products cause longer lead times, obsolescence, damaged goods, transportation and storage costs and delays. Additionally, additional inventory hides problems such as production imbalances, delays in supplier deliveries, defects, equipment downtime, and long setup times.6. Useless movement. Any wasted movement that employees must perform during the course of their work, such as searching for, reaching for, or stacking parts, tools, etc...