Standardization & Codification

Presented by :

RAVI KUMAR

13MT07IND010

What is Standardization?

Standardization (Seiketsu)

“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.

- ISO

What to standardize?

Usually starts with a core product as the foundation.

Various features are added, these may differ according to the country market.

100% standardization is rare.

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.

Improvement in quality.

Continued…

Availability of standardized materials, reduction in the cost of maintenance and services.

Elimination of wastes and scrap.

Achieving higher productivity and higher profit.

International

Regional

National

Sectoral

Company

Terminology

Technical Specifications

Sampling and control

Testing and analysing

Reduction of the variety

Grading

Codes of Good Practices

Electrical

Food industry

Agriculture

Forestry

Textile industry

Chemical products

Information Technology

Education and Training

Management

Product standards

For product standards the benefits may be broadly summarized under the headings variety reduction, interchangeability, and availability:

variety reduction Interchangeability Availability

Types of standard

Company individual standards National standards International standards

For international and national standards 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

Advantages of standardization

Cost reduction

Improved quality(reliability)

Global customers(mobility)

Centralized R & D

Drawbacks of standardization

Lack of uniqueness

More barriers, less standardization

Standardization - Examples

Project Management (PA)

Employee Performance AppraisalMaintenance

Quality

© ABB Group

9AKK105151D0123

15 July 2010, Slide 17

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.

Need for codificationSpeed

Unambiguity

Saving of efforts

Space saving on forms

Ease of classification,

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

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

Objectives of Codification 

Accurate and logical identification

Prevention of duplication

Standardisation and reduction of varieties

Efficient purchasing

Easy computerization

TYPES OF CODES

AlphabeticalEg: Sulphuric acid~AC-SU

NumericalEg: Pan number, Pin code

Alpha-numericalEg: Vehicle no MH 02 BF 5462

Color codeEg: private vehicle-white number plates

Commercial vehicles-yellow number plates

Basic System

Arbitrary system

Numerical system

Mnemonic system or alpha numeric system

Decimal

Frisch system

Kodak system

Arbitrary system

As the name suggests ,this approach does not use any design for

codification. Rather , as and when an item is received by stores in its

receiving bay, a running and unique serial number is assigned to it.

This number becomes the code of the item for subsequent use at

different stages. While this system is the easiest one to use, it does

not help in scientific management of  inventory

Arbitrary approach is useable only where perhaps items are non-

repetitive and the inventory management need not be scientific.

Numerical system

Here it uses some set of numerical

Also known as intelligent code system

Eg. 2 145 098 344

2 145 098 344 Class Sub-class Running-number Location-code

Frisch System

Concieved by Mr. E. G. Frisch with J. Gombinski.

Divides all facets of organisation into number of main categories according to nature of requirements.

The first block gives major classification e.g packing, raw materials etc.

Frisch 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.

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.

Kodak System

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

Colour Coding

Here colours are used to identify the content.

Generally is used for pipelines, raw materials, lubricants etc.

Advantages

Provides absolute clarity to the supplier as to what is required by the buyer without knowing the technical details.

Eleminates need to create company‘s specifications.

It automatically leads to standardization.

Allows accurate comparison of quotes.

Variety reduction

Allows buying from more than one manufacturer.

Communication between different department is improved.

Continued…

Reduces inspection and quality costs.

Ensures interchangability of parts.

Routinises procurement efforts and reduces clerical work.

Reduces procurement lead time.

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