CODIFICATION

Presented by:
1. Amol Chavan
2. Rimu Bhat
3. Sameer Dhurat

Subject: Materials Management

Under: Prof. Nitin Shinde
 CODING
 Systematic concise representation of equipment, raw material,
tools, spares, suppliers .

 Coding refers to the process of assigning symbols to the parts.

 Coding is define as process of allocating symbol to the parts.

The symbol represent design characteristics of parts ,
manufacturing attributes or both.
 IMPORTANCE OF CODING
 Due to industrial requirement organization has to store large
no. materials. Therefore there should be some mean of
identifying them hence Coding is used.

 Classification and codification of materials are steps in

maintaining stores in a systematic way.

 Materials are coded in such way that storing, issuing and

identifying of materials become easy.
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.
 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.

 STORES VOCABULARY
 When large number of materials have been given codes, it becomes
difficult to remember them. For easy reference, the organization is
publishing the codes and names of materials in books.

 The stores vocabulary may be published in number of volumes of books

when large number of materials are required in the organization.

 Number of volumes of books may be categorized depending upon group of

materials required in the organization

 Example: In the Railways, the categories of materials required are in lakhs.

 COMMON METHODS OF STORE
CODIFICATION
• Alphabetical codification
• Numerical codification
• Mnemonic codification
• Combined alphabetical & numerical codification
• Decimal codification
• British/Brisch codification
• Kodak codification
• Colour codification
 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.
 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.
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.
 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
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
 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
Example:
Parameters Main group Sub-group 1 Sub-group 2

Copper Cu

Sheet Sh

5mm thickness 05

Thus, code for Copper Sheet of 5mm thickness is : CuSh05

 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 the
other.
For example :
 Example
Main Group Sub- Group 1 Sub- Group 2

Copper 01

Copper Sheet 02

Copper Sheet 03
5mm Thick

Thus, the code of Copper Sheet 5mm Thick = 01.02.03

 COLOUR CODING
• Color-coding easily identifies small parts.

• The various cables and wires of different colours are

used in electrical fittings to identify their polarities.

• Colour codes are also used in foundries to identify

different patterns and metals.

• Generally is used for Pipelines,

Raw materials, lubricants etc.
 Example
Private Cars

Taxis
EXAMPLE
 British/Brisch Codification
• Consists of 7 digits and is applied in 3 phases

• The items are grouped into suitable preliminary categories, such as:
 Assemblies
 Sub assemblies
 Components
 off the shelf items.
in order to bring similar item together

• 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
EXAMPLE
 Kodak Codification
• Consists of 10 digits of numerical code.

• Originated by Eastman Kodak Company.

• Based on numerical system of codification and combines all good other

points.

• Divided into few broad classification called Basic Classification.

• The basic classification is restricted to 100.

• Each class is then further divided into sub classes.

• Grouping is based on Source of supply

 EXAMPLE
1. If bolt is listed as hardware item: Then will be available
under hardware suppliers
If this bolt is available as a part of the machine: It will be
available under maintenance

2. Eg – 40(Cutting Tools)0(drills)
• Each sub class is again further sub divided
• Eg – 400-00
 Advantages of Classification and
Codification
• Provides absolute clarity to the supplier as to what is
required by the buyer
• Variety reduction
• Allows buying from more than one manufacturer
• Reduces inspection and quality costs
• Ensures interchangability of Parts.
• Routinises procurement efforts and reduces clerical work.
• Reduces procurement lead time.
 Advantages of Classification and
Codification
• Systematic grouping of similar items

• Enables the easy recognition of an item in the stores

• Minimizing of clerical work

• Accurate and logical identification

• Accurate and reliable accounting and recording

• Prevention of duplication

• Avoidance of Long description of Items

 Groups of Materials Classification
• Raw Materials
• Components
• Consumables
• Spare Parts
• Supplies
• Tools
• Packing Materials
• Work-in-progress items
• Finished Goods
 Groups of Materials Classification
• Completely knocked down items

• Hard ware items

• Fasteners

• Subcontracted items

• Wires and cables

• Paints and chemicals

 Stages of Scientific Codification
1. Identification – To know the type of material in detail

2. Classification – Description, Nature, Source or origin.

3. Codification – As per the requirement and the system

 Need for codification
• Speed
• Saving of efforts
• Space saving on forms
• Ease of classification
• Mechanization
Codification for Axial Fans
 EXAMPLE – PAN CARD

BNZPM2501F
 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.
 GS1
• GS1 is a not-for-profit, industry-led
global organisation headquartered in
Brussels and oversees operations of
112 GS1 Organisations across the
world.
• Over two million companies, across 25
industry sectors such as Retail,
Healthcare, Transport and Logistics
use GS1 standards.
• The majority of GS1 standards are
endorsed and referenced in ISO
standards.
 Sectors
• Retail & FMCG
• Healthcare
• Food & Agriculture
• Transport & Logistics
• Government
Omnidirectional
Today's consumers expect to seamlessly research, purchase and interact with the
products they want to buy, no matter where they shop. GS1 standards are helping
industry meet the challenges of omni-channel commerce and satisfy the
expectations of consumers before, during and after purchase - whether they're
shopping online, in-store or via mobile

GS1 Keys
GS1 ID Keys give companies efficient ways to access information about items in
their supply chains, and share this information with trading partners.
 Types of Barcode
• GS1 EAN/UPC Family Barcodes

ID Key Used to Identify Example

Global Trade Item Number (GTIN) Products and services Can of soup, chocolate bar, music album

Global Coupon Number (GCN) Coupons Digital coupons

• GS1 DataBar Family Barcodes
• GS1 1D Barcodes
• GS1 2D Barcodes
How Barcode system saves our time in India?
-Suppose a customer purchase 40 items (sugar ,detergent ,soap ,biscuits etc)
Below situation is From year 1990 to 2017*
Before Computerization After Computerization After Barcode System

Year 1990 During 2000 After 2005 to till now

Shopping Medium General Store General Store/Retailer Retailer

(Kirana shops) (D-mart, Big Bazaar)

Time per Customer 9 mins/customer 5 mins/customer 1 mins/customer

Waiting time in More Medium Less

Queue
Saving Of Time No 4 mins 8 mins
Fulfillment of No Yes/No Yes
Customer’s
Unsatisfactory Needs
 Dmart
Powai Nerul
8 am to 10 pm 10 am to 10 pm
People typically spend 15- People typically spend 15-
45 min here 45 min here
 Big Bazaar
Vile Parle Vashi
10.30 am to 10 pm 11 am to 10 pm
People typically spend 15- People typically spend 20
45 min here min -1 hour here
In Supermarket Working Hours:10 am to 10 pm
Demand is Always Fluctuating
Days(per day) No. of Customer
Weekday (Monday) Below 6000
Weekend (Sunday) or During Festival Days Above 10000

If 1 Counter Covers 300 Customers per If 1 min per customer = 300 mins
counter per day If 2 min per customer = 600 mins
Average=450 mins
Approx. 7 hrs and 30 mins
Then 20 Counters 300 customers per counter 6000 customers in approx. 7 hrs and 30
per day mins

D mart is available at 132 locations of India

Big Bazaar available at 217 locations of India
Even you can send link of Website/Application through Barcode
 REFERENCES
• Sadiwala, C.M., & Sasiwala, Ritesh C. (2007). MATERIALS AND FINANCIAL MANAGEMENT.
New Delhi: New Age International Publisher.
• http://www.citeman.com/4466-codification-in-materials-management.html
• http://www.shareyouressays.com/116388/8-common-methods-of-of-store-management-
and-codification
• http://www.materialsmanagement.info/inventory/inventory-cataloguing.htm
• https://www.gs1india.org/
• https://www.google.co.in/maps/place/D+Mart/@19.1137341,72.8952685,15z/data=!4m8!1m2
!2m1!1spowai+d+mart!3m4!1s0x3be7c7e5e89fa7cb:0x459b3d2d8905add3!8m2!3d19.11650
03!4d72.9103888
• https://www.google.co.in/maps/place/D+Mart+Nerul/@19.0311611,73.0197809,17z/data=!3
m1!4b1!4m5!3m4!1s0x3be7c3c0b8726fb5:0x2e0d5332b960d244!8m2!3d19.0311611!4d73.0
219696
• https://www.google.co.in/maps/place/Big+Bazaar/@19.100518,72.8433463,17z/data=!3m1!4
b1!4m5!3m4!1s0x3be7c9b41e8aa0c3:0x5ee1657ac714bfc3!8m2!3d19.100518!4d72.845535
• https://www.google.co.in/maps/place/Big+Bazaar/@19.0640392,72.9946797,17z/data=!3m1!
4b1!4m5!3m4!1s0x3be7c14da4b5ae11:0x472e121eb63ef35c!8m2!3d19.0640392!4d72.99686
84
Thank you

Any Questions