Materials Codification and Classification

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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