This document discusses codification systems for organizing materials in industries. It defines codification as representing equipment, materials, tools, and other items with abbreviated codes using letters, numbers, colors, or symbols. The objectives of codification are accurate identification, standardization, prevention of duplication, efficient purchasing, and computerization. Common codification methods described include alphabetical, numerical, mnemonic, combined alphabetical-numerical, decimal, British, Kodak, and color coding systems. Benefits of codification include accurate identification, simplified purchasing and inventory processes, and enabling computerization.

1. CODIFICATION
OF
SYSTEMS
Presented by:
D.SAIKUMAR.
PM/2016/404.

2. Definition
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.

3. Objectives of Codification
Accurate and logical identification
Prevention of duplication
Standardisation and reduction of varieties
Efficient purchasing
Easy computerization

4. 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

5. Groups of Materials Classification
Raw Materials
Components
Consumables
Spare Parts
Supplies
Tools
Packing Materials
Work-in-progress items
Finished Goods

6. Completely knocked down items
 „Hard ware items
Fasteners Subcontracted items
Wires and cables
Paints and chemicals

7. Special Characteristics
Simple
Brief
Flexible
Unique
Self Decoding
Objective Oriented

8. Common methods of store codification
Alphabetical codification
Numerical codification
Mnemonic codification
Combined alphabetical & numerical codification
Decimal codification
British/Brisch codification
Kodak codification
Colour codification

9. uses only numbers as codes of various materials kept
in the stores.
It is simple method and easy to understand.
Simple Number:
To represent different groups of items.Either one
number 0 to 9 is allotted to each item of a group.
If total items in a group are more than 10, then two
numbers 00 to 99 are allotted and so on.
NUMERICAL METHOD

10. Block Number :
To represent material belonging to each of the items as
subgroups.
The material of same characteristics or having similarities are
sub grouped as one item.
The block can be of three or more numbers
Dash(-) or stroke(/):
 It is used in between numbers to represent the material
belonging to sub-group.

12. The ‘Alphabets’ are used as symbols or codes to identify
the items of stores.
Group of items according to their nature and use are
allotted an alphabetical starting code and other alphabets
are used to identify exact items.
For tiny organisations
while the no.of items to be coded are very limited.
ALPHABETICAL SYSTEM

13. • BT-Bolt
• NT-NUT
• PN-PIN
• SC-Screw
• RT-Rivet
• SM-Steel Mild
• SMA-Steel Mild Angle
• SMC-Steel Mild Channel
EXAMPLES

14.  It is a special type of alphabetical classification.
 We use letters to help memory.
 Makes confusion since one symbol may convey impression of
two/more objects.

16. The alphabets and numbers together are used in this system of
coding.
The group of items is coded by alphabets and subgroups and
items of these groups are coded by numbers to identify the
exact item.
The numbers used also give specifications like size, length,
breadth, thickness, height, volume and weight etc.

19.  Under this system of codification, within the range often numerals
0-9, some significance is attached to every digit in the code.

21. Color-coding easily identifies small parts.
The various cables and wires of different colors are used in
electrical fittings to identify their polarities.
Color codes are also used in foundries to identify different
patterns and metals.

22. PAN card

23. The fourth character of the PAN must be one of the
following, depending on the type of assesse:
C — Company
P — Person
H — HUF(Hindu Undivided Family)
F — Firm
A — Association of Persons (AOP)
T — AOP (Trust)
B — Body of Individuals (BOI)
L — Local Authority
J — Artificial Juridical Person
G — Govt
23

24. 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.

25. Kodak Codification:
The Kodak system has been developed by East Man Kodak Company of
New York which consists of 10 digits of numerical code.
Major grouping is based on the source of supply.
Coding is contributed by only procurement.
Hardware suppliers
Hardware catalogues
Hardware item
123
456
789

26. 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.

27.  Minimizing of clerical work.
 Accurate ane reliable accounting and recording.
 Easier computerisation.
 Better alternative selection.
 Simplifies Costing.