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.

• 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

MNEMONIC SYSTEM

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

• 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

COMBINED ALPHABETICAL AND

NUMERICAL CODIFICATION

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

Example:

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

5mm Thick

03

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

OmnidirectionalToday'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 KeysGS1 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

Before Computerization After Computerization After Barcode System

Year 1990 During 2000 After 2005 to till now

Shopping Medium General Store

(Kirana shops)

General Store/Retailer

(D-mart, Big Bazaar)

Retailer

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

Waiting time in

Queue

More Medium Less

Saving Of Time No 4 mins 8 mins

Fulfillment of

Customer’s

Unsatisfactory Needs

No Yes/No Yes

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*

Dmart

Powai Nerul

8 am to 10 pm 10 am to 10 pm

People typically spend 15-

45 min here

People typically spend 15-

45 min here

Big Bazaar

Vile Parle Vashi

10.30 am to 10 pm 11 am to 10 pm

People typically spend 15-

45 min here

People typically spend 20

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

counter per day

If 1 min per customer = 300 mins

If 2 min per customer = 600 mins

Average=450 mins

Approx. 7 hrs and 30 mins

Then 20 Counters 300 customers per counter

per day

6000 customers in approx. 7 hrs and 30

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!3d19.1165003!4d72.9103888

• https://www.google.co.in/maps/place/D+Mart+Nerul/@19.0311611,73.0197809,17z/data=!3m1!4b1!4m5!3m4!1s0x3be7c3c0b8726fb5:0x2e0d5332b960d244!8m2!3d19.0311611!4d73.0219696

• https://www.google.co.in/maps/place/Big+Bazaar/@19.100518,72.8433463,17z/data=!3m1!4b1!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!4d72.9968684

Thank you

Any Questions