Codification

Presented by:KAMAL SINGH

Classification

The materials procured by a firm must be

classified and coded before the materials are

inspected, accounted in stores ledgers and

stored ,hence materials are broadly classified

according to their nature, use and service before

the job codification is taken up.

Codification

• This is the system adopted for accurate

identification of materials by allotting a

numerical number for each item procured

and stored.

Definitions

• Codification in an industry is the systematic concise representation of equipment, raw materials, tools, spares, supplies etc.in an abbreviated form employing alphabets, numerals, colours, symbols etc.

Characteristics of CodesCode should be Simple.

Code should be unique.

Coding should be compact, concise and consistent.

Code should be sufficiently flexible to meet future

demands

Objectives of Codification 

• Accurate and logical identification

• Prevention of duplication

• Standardisation and reduction of varieties

• Efficient purchasing

• Easy computerization

Advantages of Classification and Codification

• Systematic grouping for correct identification of similar items.

• Avoids duplicate stocks of same items • Reduction in sizes and varieties • Helps in standardization of materials • Ensures accuracy in correspondence, records

and postings of receipts and issues in appropriate records

Principles of Classification and Codification

• Consistency • Comprehensiveness • Mutual exclusiveness • Simple • Easily adoptable

Groups of Materials Classification • „ Raw Materials • „ Components • „ Consumables • „ Spare Parts • „ Supplies • „ Tools • „ Packing Materials • „ Work-in-progress items • „ Finished Goods

• Completely knocked down items• „ Hard ware items • „ Fasteners • „ Subcontracted items • „ Wires and cables • „ Paints and chemicals

Benefits• Important factor in indenting, purchasing

and issuing activities.• Wrong identification results in wrong

purchases.• Words description can be used but they are

too long,totally inadequate and Prone to errors.

• Accurate and logical identification.• Avoidance of Long and unweilding

description.• Prevention of duplication.• Product Simplification.• Efficient Purchasing.

Benefits

• Minimizing of clerical work.• Efficient Purchasing.• Accurate ane reliable accounting and

recording.• Easier computerisation.• Better alternative selection• Simplifies Costing

Benefits

• Identification – To know the type of material in detail

• Classification – Description, Nature, Source or origin.

• Codification – As per the requirement and the system

Stages of Scientific Codification

• Simple• Brief• Flexible• Unique• Layout should be easy to handle• Self Decoding• Objective Oriented

Special Characteristics

Need for codificationSpeedSaving of effortsSpace saving on forms Ease of classification, Mechanization

Common methods of store codification

• „Alphabetical codification• Numerical codification• Mnemonic codification• Combined alphabetical & numerical

codification• Decimal codification• British/Brisch codification• Kodak codification• Colour codification

1. Alphabetical codification: In this method,

letters of the alphabet are used to describe an item.

Sometimes combinations of alphabets are designed to give a

mnemonic meaning e.g.BT-Bolt

2. Numerical codification: the numerical system is based on numbers, simple numbers, block

numbers or dash/stroke numbers.1. Simple Number2. Block Number3. Dash/Stroke Number

3. Mnemonic Codification: When we use letters to

help memory, we call such a system a mnemonic system.

4. Combined Alphabetical & Numerical Codification:

5. Decimal Codification: Under this system of

codification, within the range often numerals 0-9, some

significance is attached to every digit in the code.

(digital numbering order will be first digit will signify the

broad class, the second digit, will signify the group, third digit

will signify the sub-group, fourth digit will signify the type,

fifth digit will signify the size, sixth digit will signify the

grade, seventh digit will signify the shape and eighth digit will

signify the condition and so on.)

6. Colour Codification:

7. British/Brisch Codification: The Brisch system

named after a prominent consulting engineer in the UK

consists of seven digits and is applied in three phases. The

items are grouped into suitable preliminary categories, such

as assemblies, sub assemblies, components, off the shelf

items.

8. Kodak Codification: The Kodak system has been

developed by East Man Kodak Company of New York

which consists of 10 digits of numerical code.

Variety Reduction of Materials• The process of standardization logically leads to

simplification and variety reduction.

• Variety reduction defined as a form of

standardization consisting of the reduction of the

number of types of products, or materials or parts

within a definite range to a lesser number which is

adequate to meet prevailing needs at a given time.

How to control Variety?

• „ By Simplifications• „By Standardization „ • By Specialization• Value Analysis

Benefits of Variety Control

• „ Better after sales service • „ Greater technical productivity „• Better understanding of technical problems• „ Lesser set up times • „ Higher equipment utilization „• Reduction in inventory „ • effort

• Higher equipment utilization• „ Easier inventory control „• Better use of storage space• „ Quicker stock-checking „• Reduction in purchasing effort

Benefits of Variety Control count…..