Codification is the systematic representation of items using abbreviated codes to identify equipment, materials, tools, and supplies. It provides accurate and logical identification while avoiding long descriptions. Codification systems typically use numbers, letters, colors or symbols to classify items into groups and subgroups. This allows for efficient purchasing, accurate record keeping, and simplifies inventory management. The document discusses different codification methods and standards used in industry.

1. By
Prof. R. V. Kolhe
Civil Engineering Department
Sanjivani College of Engineering, Kopargaon
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2.  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.
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3.  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.
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4.  Accurate and logical identification.
 Avoidance of Long and unweilding
description.
 Prevention of duplication.
 Product Simplification.
 Efficient Purchasing.
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5.  Minimizing of clerical work.
 Efficient Purchasing.
 Accurate ane reliable accounting and
recording.
 Easier computerisation.
 Better alternative selection
 Simplifies Costing
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6.  An electrical firm found that a simple item of
a screw with a width of 3/8" and length of 6"
had as many as 118 names depending on the
type of usage and the department using the
screw.
 A proper codification removed the 117
stocking points and with it the associated
inventories, entries, obsolete item, etc.
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7.  Identification – To know the type of material
in detail
 Classification – Description, Nature, Source or
origin.
 Codification – As per the requirement and the
system
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8.  Codification is a process of representing each
item by a number, the digits of which indicate
the group, the subgroup, the type and the
dimension of the item.
 Many organisations in the public and private
sectors, railways and DGS & D, have their own
system of codification, varying from eight to
thirteen digits.
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9.  The first two digits normally represent the
major groups, such as raw materials, spare
parts.
 The next two digits indicate the sub-groups,
such as ferrous, non-ferrous, etc.
 Dimensional characteristics of length, width,
head diameter usually constitute the further
three digits and
 The last digit is reserved for minor variations.
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1 2 3 4 5 6 7 8
MAJOR GROUP SUB GROUP DIMENTIONS RESERVED
FOR MINOR
VARIATIONS

11.  Nature of items, grouping all items of the same metal
content.
 End use of items, that is, items grouped according to
maintenance, spinning, packing, foundry, shop, etc.
 Source of purchasing where items obtained from one
source of purchasing are grouped together and given
codes.
 Alphabetical listing.
 Numerical digits or by a combination of English letters and
numericals.
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12.  Simple
 Brief
 Flexible
 Unique
 Layout should be easy to handle
 Self Decoding
 Objective Oriented
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13.  Alphabetical System
Each material is assigned with a specific
group.
Then they are alloted sub group based on
there basic characteristics.
The advantage of the system is that it is
very easy to use.
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14.  Alphabetical System
Difficult to remember, duplication,
confusing and cannot be amplified.
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15.  Numerical System
 Sequential Code
 Block Code
 Decimal Code
 Alphanumeric Code
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16.  Concieved by Mr.E.G.Brisch with J.Gombinski.
 Divides all facets of organisation into number
of main categories according to nature of
business.
 The first block gives major classification e.g
packing, raw materials etc.
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17.  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.
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18.  Originated by Eastman Kodak Company.
 Based on numerical system of codification
and combines all good other points.
 The system employs ten digit codes.
 The Materials are classified according to
Purchase categorisation rather than their
nature.
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19.  Divided into few broad classification called
Basic Classification.
 The basic classification is restricted to 100.
 Each class is then further divided into sub
classes.
 Eg – 40(Cutting Tools)0(drills)
 Each sub class is again further sub divided
 Eg – 400-00(Augers)
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20.  Here colours are used to identify the content.
 Generally is used for Pipelines, Rawmaterials,
lubricants etc.
 GI pipes
 RED Class I
 BLUE Class II
 YEllOW Class III
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22.  Process of establishing agreement upon the
acceptable levels of various characteristics on
the basis of study, experiment, statutary
requirements etc.
 Standard is different from specification.
 Standard may relate to dimensions,
Performance req, design, safety, code of
Practice.
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23.  Individual Standard – Laid down by the
individual user, department or a firm.
 Industry Standard – Prepared by a group of
related interest in a given trade or profession.
 National Standard – Standard evolved at
national level by manufacturers, scientists,
users and government dept.
 International Standards – Standards evolved
by international bodies such as ISO.
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24.  Establishing the need for standard – BIS
genrally form IS and they are the ones who
initiate the process.The request can be also
made by a manufacturer to BIS. BIS can also
make suggestions in the said matter.
 Scrutiny of request by Divisional Council- BIS
has a divisional council according to the
subject matter scrutiny is made along with
technical council.
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25.  Preparation of Draft standard –
◦ This is done by relevant technical sectional
committee.
◦ They submit a draft as per the format of BIS.
◦ A minimum of three months are allowed for the
draft to be revised and correction to be made.
 Publication of Standard –
◦ The draft is received by divisional council who
accept it, receive it and publish it.
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26.  Provides absolute clarity to the supplier as to
what is required by the buyer.
 Eleminates need to create company‘s
specifications.
 Allows accurate comparison of quotes.
 Variety reduction
 Allows buying from more than one
manufacturer.
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27.  Reduces inspection and quality costs.
 Allows firm to enter into a running contract.
 Ensures interchangability of Parts.
 Routinises procurement efforts and reduces
clerical work.
 Reduces procurement lead time.
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28.  Standardisation helps reduce inventory items.
 It helps in evolving better means of
communication about an item in the
company.
 It forms a base for further inventory analysis.
 The specification of items can be more clearly
spelled out, making quality control firm.
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29.  In a developing economy like ours, where the
need is to promote exports, insistence on
standards helps in creating confidence in the
international market.
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