The document discusses codification in materials management, highlighting the process of systematically representing materials, equipment, and suppliers through individual codes. It outlines the importance and criteria for effective coding, common methods of codification, and the advantages of classification systems in improving efficiency and organization. Various coding methods such as alphabetical, numerical, mnemonic, and color coding are explained, along with the application of barcodes and GS1 standards in modern supply chains.

1. CODIFICATION
Presented by:
1. Amol Chavan
2. Rimu Bhat
3. Sameer Dhurat
Subject: Materials Management
Under: Prof. Nitin Shinde

2. CODING
 Systematic concise representation of equipment, raw material,
tools, spares, suppliers .
 Coding refers to the process of assigning symbols to the parts.
 Coding is define as process of allocating symbol to the parts.
The symbol represent design characteristics of parts ,
manufacturing attributes or both.

3. IMPORTANCE OF CODING
 Due to industrial requirement organization has to store large
no. materials. Therefore there should be some mean of
identifying them hence Coding is used.
 Classification and codification of materials are steps in
maintaining stores in a systematic way.
 Materials are coded in such way that storing, issuing and
identifying of materials become easy.

4. CRITERIA FOR EFFECTIVE CODING
 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. OBJECTIVES OF CODING
 To bring all similar items together under one classification
or group.
 To classify an item according to its nature of characteristics.
 To avoid duplication and confusion.
 To fix essential parameters to specify an item.

6. STORES VOCABULARY
 When large number of materials have been given codes, it becomes
difficult to remember them. For easy reference, the organization is
publishing the codes and names of materials in books.
 The stores vocabulary may be published in number of volumes of books
when large number of materials are required in the organization.
 Number of volumes of books may be categorized depending upon group of
materials required in the organization
 Example: In the Railways, the categories of materials required are in lakhs.

7. COMMON METHODS OF STORE
CODIFICATION
• Alphabetical codification
• Numerical codification
• Mnemonic codification
• Combined alphabetical & numerical codification
• Decimal codification
• British/Brisch codification
• Kodak codification
• Colour codification

8. ALPHABETICAL SYSTEM
• 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.

10. NUMERICAL SYSTEM
 The numerical system of codification 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.

11. 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.

13. • When we use letters to help memory, we call such a system a
mnemonic system.
• A special application of the alphabetical system.
• Alphabets are allotted to an item according to its initials or
abbreviation
• Eg: Stainless steel: SS
Copper: Cu
MNEMONIC SYSTEM

14. Advantages:
• It is an alphabetic system designed with an objective of
easy memorization.
Disadvantages:
• This system is confusing: one symbol may convey
impression of two or more objects
• Eg: Tb : Tablet or Tube

15. • It is the combination of both the alphabetical and the numerical
system
• In order to improve upon the alphabetical system, and also to take
advantage of the numerical system, this system allows alphabets
to be retained to a limited extent and then uses the number codes.
• The materials are first grouped under some main classes and then
it allows sub grouping under numbering system
COMBINED ALPHABETICALAND
NUMERICAL CODIFICATION

16. Parameters Main group Sub-group 1 Sub-group 2
Copper Cu
Sheet Sh
5mm thickness 05
Thus, code for Copper Sheet of 5mm thickness is : CuSh05
Example:

17. Decimal Codification
• It is simple and easy to codify items under this system.
• Under this system items up to 5,00,000 can be easily codified and at the
same time each symbol will give the history, size, specification and
complete picture of the item.
• Modern industrial concerns are generally adopting 7 to 11 digits for
codifying the materials.
• In the decimal codification system, each digit indicates some thing or the
other.
For example :

18. Example
Main Group Sub- Group 1 Sub- Group 2
Copper 01
Copper Sheet 02
Copper Sheet
5mm Thick
03
Thus, the code of Copper Sheet 5mm Thick = 01.02.03

19. COLOUR CODING
• Color-coding easily identifies small parts.
• The various cables and wires of different colours are
used in electrical fittings to identify their polarities.
• Colour codes are also used in foundries to identify
different patterns and metals.
• Generally is used for Pipelines,
Raw materials, lubricants etc.

20. Example
Private Cars
Taxis

21. EXAMPLE

22. British/Brisch Codification
• Consists of 7 digits and is applied in 3 phases
• The items are grouped into suitable preliminary categories, such as:
 Assemblies
 Sub assemblies
 Components
 off the shelf items.
in order to bring similar item together
• The second block gives next level of classification based on the type of
materials
• The third block gives the lowest level of classification normally the
specifications

23. EXAMPLE

24. Kodak Codification
• Consists of 10 digits of numerical code.
• Originated by Eastman Kodak Company.
• Based on numerical system of codification and combines all good other
points.
• Divided into few broad classification called Basic Classification.
• The basic classification is restricted to 100.
• Each class is then further divided into sub classes.
• Grouping is based on Source of supply

25. EXAMPLE
1. If bolt is listed as hardware item: Then will be available
under hardware suppliers
If this bolt is available as a part of the machine: It will be
available under maintenance
2. Eg – 40(Cutting Tools)0(drills)
• Each sub class is again further sub divided
• Eg – 400-00

26. Advantages of Classification and
Codification
• Provides absolute clarity to the supplier as to what is
required by the buyer
• Variety reduction
• Allows buying from more than one manufacturer
• Reduces inspection and quality costs
• Ensures interchangability of Parts.
• Routinises procurement efforts and reduces clerical work.
• Reduces procurement lead time.

27. Advantages of Classification and
Codification
• Systematic grouping of similar items
• Enables the easy recognition of an item in the stores
• Minimizing of clerical work
• Accurate and logical identification
• Accurate and reliable accounting and recording
• Prevention of duplication
• Avoidance of Long description of Items

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

29. Groups of Materials Classification
• Completely knocked down items
• Hard ware items
• Fasteners
• Subcontracted items
• Wires and cables
• Paints and chemicals

30. Stages of Scientific Codification
1. Identification – To know the type of material in detail
2. Classification – Description, Nature, Source or origin.
3. Codification – As per the requirement and the system

31. Need for codification
• Speed
• Saving of efforts
• Space saving on forms
• Ease of classification
• Mechanization

32. Codification for Axial Fans

33. EXAMPLE – PAN CARD
BNZPM2501F

34. Barcode
• Barcodes are machine readable
symbols in the form of numbers and
parallel lines used universally to
identity and track products.
• Barcodes play a key role in supply
chains, enabling retailers,
manufacturers, and transport
providers to easily identify and track
products as they move through the
supply chain.

35. GS1
• GS1 is a not-for-profit, industry-led
global organisation headquartered in
Brussels and oversees operations of
112 GS1 Organisations across the
world.
• Over two million companies, across 25
industry sectors such as Retail,
Healthcare, Transport and Logistics
use GS1 standards.
• The majority of GS1 standards are
endorsed and referenced in ISO
standards.

36. Sectors
• Retail & FMCG
• Healthcare
• Food & Agriculture
• Transport & Logistics
• Government

37. Omnidirectional
Today's consumers expect to seamlessly research, purchase and interact with the
products they want to buy, no matter where they shop. GS1 standards are helping
industry meet the challenges of omni-channel commerce and satisfy the
expectations of consumers before, during and after purchase - whether they're
shopping online, in-store or via mobile
GS1 Keys
GS1 ID Keys give companies efficient ways to access information about items in
their supply chains, and share this information with trading partners.

38. Types of Barcode
• GS1 EAN/UPC Family Barcodes
ID Key Used to Identify Example
Global Trade Item Number (GTIN) Products and services Can of soup, chocolate bar, music album
Global Coupon Number (GCN) Coupons Digital coupons

39. • GS1 DataBar Family Barcodes

40. • GS1 1D Barcodes

41. • GS1 2D Barcodes

43. Before Computerization After Computerization After Barcode System
Year 1990 During 2000 After 2005 to till now
Shopping Medium General Store
(Kirana shops)
General Store/Retailer
(D-mart, Big Bazaar)
Retailer
Time per Customer 9 mins/customer 5 mins/customer 1 mins/customer
Waiting time in
Queue
More Medium Less
Saving Of Time No 4 mins 8 mins
Fulfillment of
Customer’s
Unsatisfactory Needs
No Yes/No Yes
How Barcode system saves our time in India?
-Suppose a customer purchase 40 items (sugar ,detergent ,soap ,biscuits etc)
Below situation is From year 1990 to 2017*

44. Dmart
Powai Nerul
8 am to 10 pm 10 am to 10 pm
People typically spend 15-
45 min here
People typically spend 15-
45 min here

45. Big Bazaar
Vile Parle Vashi
10.30 am to 10 pm 11 am to 10 pm
People typically spend 15-
45 min here
People typically spend 20
min -1 hour here

46. In Supermarket Working Hours:10 am to 10 pm
Demand is Always Fluctuating
Days(per day) No. of Customer
Weekday (Monday) Below 6000
Weekend (Sunday) or During Festival Days Above 10000
If 1 Counter Covers 300 Customers per
counter per day
If 1 min per customer = 300 mins
If 2 min per customer = 600 mins
Average=450 mins
Approx. 7 hrs and 30 mins
Then 20 Counters 300 customers per counter
per day
6000 customers in approx. 7 hrs and 30
mins
D mart is available at 132 locations of India
Big Bazaar available at 217 locations of India

47. Even you can send link of Website/Application through Barcode

49. REFERENCES
• Sadiwala, C.M., & Sasiwala, Ritesh C. (2007). MATERIALS AND FINANCIAL MANAGEMENT.
New Delhi: New Age International Publisher.
• http://www.citeman.com/4466-codification-in-materials-management.html
• http://www.shareyouressays.com/116388/8-common-methods-of-of-store-management-
and-codification
• http://www.materialsmanagement.info/inventory/inventory-cataloguing.htm
• https://www.gs1india.org/
• https://www.google.co.in/maps/place/D+Mart/@19.1137341,72.8952685,15z/data=!4m8!1m2
!2m1!1spowai+d+mart!3m4!1s0x3be7c7e5e89fa7cb:0x459b3d2d8905add3!8m2!3d19.11650
03!4d72.9103888
• https://www.google.co.in/maps/place/D+Mart+Nerul/@19.0311611,73.0197809,17z/data=!3
m1!4b1!4m5!3m4!1s0x3be7c3c0b8726fb5:0x2e0d5332b960d244!8m2!3d19.0311611!4d73.0
219696
• https://www.google.co.in/maps/place/Big+Bazaar/@19.100518,72.8433463,17z/data=!3m1!4
b1!4m5!3m4!1s0x3be7c9b41e8aa0c3:0x5ee1657ac714bfc3!8m2!3d19.100518!4d72.845535
• https://www.google.co.in/maps/place/Big+Bazaar/@19.0640392,72.9946797,17z/data=!3m1!
4b1!4m5!3m4!1s0x3be7c14da4b5ae11:0x472e121eb63ef35c!8m2!3d19.0640392!4d72.99686
84

50. Thank you
Any Questions