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1. CODING

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.

10. SYSTEM OF CODING
NUMERICAL
SYSTEM
ALPHA-
NUMERICAL
SYSTEM
ALBHABETIC
SYSTEM
MNEMONIC
SYSTEM
DECIMAL
SYSTEM
COLOR
CODING

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.

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

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

19. DECIMAL SYSTEM

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

21. EXAMPLE OF CODING
 PAN card

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

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-m
anagement.html
>
 < http://
www.shareyouressays.com/116388/8-common-met
hods-of-of-store-management-and-codification
>
 <http://
www.materialsmanagement.info/inventory/invento

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?

25. THANK YOU