The document discusses various methods for managing store operations and coding items in a store. It describes 10 key functions of store management including receipt, storage, retrieval, issue, records keeping, housekeeping, control, surplus management, verification, and coordination. It then explains different coding methods used to systematically represent items stored in a warehouse or store, such as alphabetical, numerical, mnemonic, combined alphabetical/numerical, decimal, and color coding systems. The objectives and criteria for effective coding are also outlined.

1. Function of store management &
Coding methods
Presented By:
Debasish Ghadei

2. Contains
1. Introduction
2. Function of stores
3. Coding methods
4. Objective of coding
5. Criteria for effective coding
6. Methods for store coding

3. Drug store
• pharmacy also called "drugstore"
in American English is a retail shop which
provides prescription drugs, among other
products.
• At the pharmacy, a pharmacist oversees the
fulfillment of medical prescriptions and is
available to give advice on their offerings
of over-the-counter drugs.

4. Introduction
• Store management is “ to receive materials,
to protect them while in storage from
damage & unauthorized removal, to issue
the material in the right quantities, at the
right time to the right place and to provide
these service promptly and at least cost”.

5. Functions of Stores
1.Receipt
2. Storage
3. Retrieval
4. Issue
5. Records
6. Housekeeping
7. Control
8. Surplus management
9. Verification
10. Interaction & coordination

6. Receipt
• Any item of goods or material that enters the
organization always enters through the stores.
Similarly, every item unless specifically
excluded, has to leave through the store. Stores
is the final account keeper of all materials.
• Material sent by any supplier after the security
clearance comes to the stores. Stores check the
document carried by the carrier, known as
Delivery Challan, against the copy of the
Purchase Order placed on the supplier by the
organization.

7. Cont.
• Once the adequacy is established and quantity
is verified the material is sent for testing for
quality parameters.
• Some times quality control tests are elaborate
and time consuming. If the policy of receipt is to
unload the material subject to quality control
acceptance, it is cleared for unloading.
• Unloaded material is kept on the hold if it not
yet cleared by quality control department. If the
material is rejected it is sent back to the
supplier.

8. Storage
• Once the unloaded material is approved by
the quality control department, as per the
quality plan in the quality system, it is
moved to a specific place in the stores
layout.
• The material is so stored that it becomes
easy to retrieve and issue subsequently.
• Storage should also ensure protection
against deterioration, damage and pilferage.

9. Cont.
• Detailed system is adopted for location and
labeling of items while in storage. Storage
plan is made keeping in mind,
1. nature of the product- physical state,
toxicity,in flammability and other hazards
2. volume and weight- heavy or light
3. movement frequency- fast moving or slow
moving

10. Retrieval
• Easy and quick retrievability of items that are
demanded by the internal customers.
• Easy identification, maximum space utilization
and minimum handling are key factors to
retrieval functions.
• It is common knowledge in many of the
companies that after hours of searching for the
item is declared to be out of stock. This causes
hold up of production process and avoidable
urgent purchase of out of stock material. This
function takes place as per established retrieval
system.

11. Issue
• Fulfilling customer demand for the item in
minimum time, keeping quality high and
cost minimum is issue.
• An internal customer doesn’t pay the price
but he has to fulfill requirement of
authorization for the demand.
• A duly authorized indent or requisition for
the item is the key

12. Records
• Maintaining records of receipt and issue.
• Updating the stock levels as per movement of
materials.
• Basic records of store are bin card and stock
register.
1. Bin card is placed on the bin in which items
are stored.
2. This gives information about receipt, issue
and balance.
3. stock register gives all the information in
the bin card and also the value.

13. Housekeeping
• Maintenance of spic and span cleanliness in
the store and ensuring principle of Place for
Everything and Everything in its place is fully
implemented.
• Good housekeeping ensures satisfactory
work practices

14. Control
• Taking measures to ensure material plan is
being adhered to.
• Any changes in consumption pattern or
replenishment pattern are closely monitored
for corrective action.
• Material movement is watched to identify
nonmoving material for disposal. Effective
control puts into effect management
objective of ‘no shortage and no excess’.

15. Surplus management
• Effective disposal system for unneeded
material to reduce inventory cost and
proactive measures to eliminate
deterioration and obsolescence.
• Obsolete items are good in all respect but
have no useful role in the company due to
changes that have occurred in the course of
time.

16. Cont.
• Surplus items are those that have
accumulated due to faulty planning,
forecasting and purchasing. Hence a usage
value is associated with these items.
• Scrap is wastage generated due to processes
like turning, boring drilling etc. and also due
to bad manufacturing. it is said that in India
nearly Rs. 2500 crores are tied up as
obsolete, surplus and scrap items.

17. Verification
• Stock verification to eliminate gap between
information and physical stock. In stores
some items are maintained as stock items.
The stores triggers the procurement cycle for
such items when a predetermined reorder
level is reached. Hence correct stock
position through verification is critical to
ensure ‘no shortage and no excess’ for the
item.

18. Interaction & coordination
• Very close interaction between Purchasing,
production, quality control and engineering
functions is obviously needed in the
discharge of the functions discussed so far. It
also becomes necessary to coordinate the
flow of material samples and information
through a network of departments for
performance of stores functions. Besides,
every management function being an
internal customer interaction is very
important.

19. Coding methods

20. Coding
• Coding is the systematic concise
representation of equipment, raw materials,
tools, spares, supplies etc.in an abbreviated
form employing alphabets, numerals,
colours, symboles etc.
• Coding refers to the process of assigning
symbols to the parts.

22. 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.

23. 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.

24. METHODS OF STORE
CODIFICATION
• Alphabetical codification
• Numerical codification Mnemonic
codification
• Combined alphabetical & numerical
codification
• Decimal codification

25. 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.

26. 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.

27. Cont.
• 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.

29. MNEMONIC SYSTEM
• 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

30. • 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

31. COMBINED ALPHABETICAL AND
NUMERICAL CODIFICATION
• 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

33. 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 theother.
• Example:

35. Colour Coding
• Here colours are used to identify the
content.
• Generally is used for Pipelines,
Rawmaterials, lubricants etc.

36. 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.

37. • QR CODE

39. Sectors
 Retail & FMCG
 Healthcare
 Food & Agriculture
 Transport & Logistics
 Government