Standardization and codification aim to achieve order and efficiency. Standardization involves making products or processes consistent, while codification represents items using unique codes. This reduces costs and variability. Standardization can occur at various levels from international to company-specific. Codification benefits include accurate identification, prevention of errors, simplification, and efficient purchasing. Various coding systems exist, such as numerical, alphanumeric, and color-based approaches. The objectives of both standardization and codification are to lower costs and improve quality, inventory management, and other operational efficiencies.

1. Standardization & Codification
Presented by :
Manoj kumar

2. Standardization
According to ISO “standardization is an activity
giving solution to repetitive application essentially in
the sphere of science, technology and economics. Aim
at the achievement of the optimum degree of order in
a given context.

3. What to standardize?
Usually starts with a core product as the
foundation.
Various features are added, these may differ
according to the country market.
Can also involve modular design, where various
features are packaged as modules, different
assembly combinations in different markets.
100% standardization is rare.

4. How standard is standardize?
Modular Approach
Mix and match common components (Ford)
Core-Product (Platform) Approach
Uniform base
Attachments added to localize
 Electrolux

5. Objective of Standardization
To achieve maximum overall economy. This may
be in terms of cost, human effort, construction of
essential material and judicious choice of raw
material.
Reduction in materials cost, reduction of storage
and inventory.
Indigenization and import substitutions.
Improvement in quality.

6. Continued…
Availability of standardized materials, reduction in
the cost of maintenance and services.
Elimination of wastes and scrap.
Achieving higher productivity and higher profit.

7. International
Regional
National
Sectoral
Company
Terminology
Technical Specifications
Sampling and control
Testing and analysing
Reduction of the variety
Grading
Codes of Good Practices
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8. Product standards
 For product standards the benefits may
be broadly summarized under the
headings variety reduction,
interchangeability, and availability:
 the effects of variety reduction are well
known and can mostly be assessed in
terms of hard cash, taking due account
of the additional cost reduction effects
on associated parts and operations;

9.  interchangeability as a result of
standardization leads to higher
productivity and lower manufacturing
costs. These benefits are relayed to the
users as a result of increased
competition. lnterchangeability is also
very important to erection, installation,
maintenance, and repairs;
 easy availability implies that an
adequate number of varieties are
always in stock. This means shorter lead
times and less capital tied up on the
user side.

10. Criteria for International
standardization
 Improvement in universal technical
communication and mutual understanding;
 Facilitation of international exchange of
goods and services;
 Removal of technical barriers to trade;
 Transfer of technology.

11. Continued…
 Uniform terminology is created
 Sizes and dimensions are co-ordinated and adapted
 Variety is reduced
 Function requirements and characteristics are specified
 Unambiguous testing methods are established

12. Advantages of standardization
Cost reduction
Improved quality(reliability)
Global customers(mobility)
Synergy and Brand equity
Centralized R & D

13. Drawbacks of standardization
Lack of uniqueness
Vulnerability to Trade barriers(more barriers, less
standardization)
Strong local competitors

15. Definitions
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.

16. Benefits
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.

17. • Accurate and logical identification.
• Avoidance of Long and unweilding
description.
• Prevention of duplication.
• Product Simplification.
• Efficient Purchasing.

18. • Minimizing of clerical work.
• Efficient Purchasing.
• Accurate ane reliable accounting and
recording.
• Easier computerisation.
• Better alternative selection
• Simplifies Costing

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

20. Special Characteristics
Simple
Brief
Flexible
Unique
Layout should be easy to handle
Self Decoding
Objective Oriented

21. Speed
Unambiguity
Saving of efforts
Space saving on forms
 Ease of classification,
 Mechanization

22. Characteristics of Codes
Code should be Simple.
Code should be unique.
Coding should be compact, concise and consistent.
Code should be sufficiently flexible to meet future
demands

23. Objectives of Codification
Accurate and logical identification
 Prevention of duplication
Standardisation and reduction of varieties
Efficient purchasing
Easy computerization

24. Basic System
Arbitrary system
Numerical System
 Mnemonic system or alpha numeric system
Decimal system
Brisch system
Kodak system

25. Brisch System
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.

26. Brisch System
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.

27. • 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.
• Divided into few broad classification called
Basic Classification.

28. Kodak System
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

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

30. Advantages
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.

31. Advantages
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.

32. THANK
YOU……