To help identify the “Value added” and “Non-value added” activities in the material handling system that supports your product. Since the Non-value added touches are pure costs to your company, you want to clearly identify them so you can find ways to eliminate them.

Sample Touch History

• Value added activity: The academic definitions say anytime you change a product to make it more valuable to the end customer it is value added. A manufacturer might define it as any activity that actually makes money. Another way to look at it is from the customer's perspective. Would your customer pay for that activity? Examples include machining, forming, assembly, painting, packaging, or even shipping. These definitions change from company to company.
• Non-value added activity: From a manufacturer's point of view, generally these activities represent pure costs to the company but add no value to the product itself. Examples include moving materials within the plant, staging materials, picking materials, transferring items between plants, sorting, etc.

1. Obtain an electronic or hard copy plan view of your facility that you can write on or modify.
2. Select a typical SKU or part number. Be sure that the part you select is highly active and follows the majority of the operations in your plant.
3. Follow the part all the way through your process from the receiving docks to the shipping docks. As you go, identify every instance where the part is touched for any reason. Determine if that “Touch” is value added or non-value added. For value added touches, put a green hand symbol (+) on your drawing. For non-value added touches put a red hand symbol (-) on your drawing.
4. Use the drawing to identify problem areas in your operation. If you have more red hands on your drawing than green hands, it would indicate that your operation has many opportunities to reduce material handling costs.



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1. Product moved from one staging area to another.
2. Duplication of activities.
3. Excessive staging areas.
4. Transferring product from one facility to another.