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  1. 1. Presented by: KAMAL SINGH
  2. 2. 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.
  3. 3. Codification • This is the system adopted for accurate identification of materials by allotting a numerical number for each item procured and stored.
  4. 4. Definitions • Codification in an industry is the systematic concise representation of equipment, raw materials, tools, spares, supplies an abbreviated form employing alphabets, numerals, colours, symbols etc.
  5. 5. Characteristics of Codes Code should be Simple. Code should be unique. Coding should be compact, concise and consistent. Code should be sufficiently flexible to meet future demands
  6. 6. Objectives of Codification • Accurate and logical identification • Prevention of duplication • Standardisation and reduction of varieties • Efficient purchasing • Easy computerization
  7. 7. 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
  8. 8. Principles of Classification and Codification • Consistency • Comprehensiveness • Mutual exclusiveness • Simple • Easily adoptable
  9. 9. Groups of Materials Classification • „ Raw Materials • „ Components • „ Consumables • „ Spare Parts • „ Supplies • „ Tools • „ Packing Materials • „ Work-in-progress items • „ Finished Goods
  10. 10. • Completely knocked down items • „ Hard ware items • „ Fasteners • „ Subcontracted items • „ Wires and cables • „ Paints and chemicals
  11. 11. 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.
  12. 12. • Accurate and logical identification. • Avoidance of Long and unweilding description. • Prevention of duplication. • Product Simplification. • Efficient Purchasing. Benefits
  13. 13. • Minimizing of clerical work. • Efficient Purchasing. • Accurate ane reliable accounting and recording. • Easier computerisation. • Better alternative selection • Simplifies Costing Benefits
  14. 14. • 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
  15. 15. • Simple • Brief • Flexible • Unique • Layout should be easy to handle • Self Decoding • Objective Oriented Special Characteristics
  16. 16. Need for codification Speed Saving of efforts Space saving on forms  Ease of classification,  Mechanization
  17. 17. Common methods of store codification • „Alphabetical codification • Numerical codification • Mnemonic codification • Combined alphabetical & numerical codification • Decimal codification • British/Brisch codification • Kodak codification • Colour codification
  18. 18. 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 Number 2. Block Number 3. Dash/Stroke Number
  19. 19. 3. Mnemonic Codification: When we use letters to help memory, we call such a system a mnemonic system. 4. Combined Alphabetical & Numerical Codification:
  20. 20. 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:
  21. 21. 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.
  22. 22. 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.
  23. 23. How to control Variety? • „ By Simplifications • „By Standardization „ • By Specialization • Value Analysis
  24. 24. 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
  25. 25. • Higher equipment utilization • „ Easier inventory control „ • Better use of storage space • „ Quicker stock-checking „ • Reduction in purchasing effort Benefits of Variety Control count…..