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CODING
PRESENTED BY : DINESH NIKAM
ROLL NO. : MT14IND013
DEPARTMENT : MECHANICAL ENGINEERING
BRANCH : INDUSTRIAL ENGINEERING(2014-2015)
 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.
CODING
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.
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.
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.
ADVANTAGES OF CODING
 The long names and description of items need not to
be repeated every time.
 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.
 The storing of materials, sorting and documentation
becomes easier.
 It helps in location of materials.
 It helps in accounting and costing.
 It is useful for purchase department to select
suppliers.
 It is useful for communication of information about
materials.
DISADVANTAGES OF CODING
 The mistakes may be in writing codes and it is
difficult to find out correct codes.
 Codes may be misunderstood.
 When large number of codes is used for different
materials, there may be confusion and it may be
difficult to locate the materials without knowing the
codes.
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.
SYSTEM OF CODING
NUMERICAL
SYSTEM
ALPHA-
NUMERICAL
SYSTEM
ALBHABETIC
SYSTEM
MNEMONIC
SYSTEM
DECIMAL
SYSTEM
COLOR
CODING
 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.
NUMERICAL SYSTEM
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.
• 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.
ALPHABETICAL SYSTEM
Starting alphabets as codes helps in memorizing
the codes.
MNEMONIC SYSTEM
 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.
ALPHA-NUMERIC SYSTEM
DECIMAL SYSTEM
• 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.
COLOR CODING
EXAMPLE OF CODING
 PAN card
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
22
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 >
QUESTIONS
 What is coding?
 Write down importance of coding?
 What are different type of coding ? Explain
it with example.
 What are advantages and disadvantages of
coding?
 Give any real life (daily routing) example of
coding?
THANK YOU

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Coding in material management

  • 1. CODING PRESENTED BY : DINESH NIKAM ROLL NO. : MT14IND013 DEPARTMENT : MECHANICAL ENGINEERING BRANCH : INDUSTRIAL ENGINEERING(2014-2015)
  • 2.  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. CODING
  • 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. ADVANTAGES OF CODING  The long names and description of items need not to be repeated every time.  Systematic grouping for correct identification of similar items.  Avoids duplicate stocks of same items.  Reduction in sizes and varieties.  Helps in standardization of materials.
  • 7.  Ensures accuracy in correspondence, records and postings of receipts and issues in appropriate records.  The storing of materials, sorting and documentation becomes easier.  It helps in location of materials.  It helps in accounting and costing.  It is useful for purchase department to select suppliers.  It is useful for communication of information about materials.
  • 8. DISADVANTAGES OF CODING  The mistakes may be in writing codes and it is difficult to find out correct codes.  Codes may be misunderstood.  When large number of codes is used for different materials, there may be confusion and it may be difficult to locate the materials without knowing the codes.
  • 9. 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.
  • 11.  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. NUMERICAL SYSTEM
  • 12. 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.
  • 14. • 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. ALPHABETICAL SYSTEM
  • 15.
  • 16. Starting alphabets as codes helps in memorizing the codes. MNEMONIC SYSTEM
  • 17.  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. ALPHA-NUMERIC SYSTEM
  • 18.
  • 20. • 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. COLOR CODING
  • 22. 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 22
  • 23. 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 >
  • 24. QUESTIONS  What is coding?  Write down importance of coding?  What are different type of coding ? Explain it with example.  What are advantages and disadvantages of coding?  Give any real life (daily routing) example of coding?