This slideshow contains Materials Codification and Classification in Material Management

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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