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VARUN VENUGOPALANMD SAJID

STORE MANAGEMENT & CODIFICATION

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Store Management: An Introduction

The term stores, storehouse, warehouse etc refer to the physical place be it a building or a room etc. where materials components, tools, equipment’s and other items are kept.

Stores management is concerned with ensuring that all the activities involved in storekeeping and stock control are carried out efficiently and economically by those employed in the Store.

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Function of Stores

Receive raw materials, components, tools, equipment’s and other items and account for them.

Provide adequate and proper storage and preservation to the various items.

Meet the demands of the consuming departments by proper issues and account for the consumption.

Minimize obsolescence, surplus and scrap through proper codification, preservation and handling.

Highlight stock accumulation, discrepancies and abnormal consumption and effect control measures.

Ensure good house keeping so that material handling, material preservation, stocking, receipt and issue can be done adequately.

Assist in verification and provide supporting information for effective purchase action.

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Relationship with other Departments

The Production DepartmentStores Department must ensure that all items, materials and tools, as well as spare parts for machinery, are always available for continuous, uninterrupted production. Stores might also have responsibility for quality control and for inspection.

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Relationship with other Department

The Sales DepartmentClose liaison is necessary between the Sales and Stores Departments. There is no value in Stores holding stocks of items which the Sales Department cannot sell or items which Stores does not have. An adequate information, based on forecasts of future sales and trends, is required to assist in planning orders, setting stock levels, allocating storage space, etc.

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Relationship with other Departments

The Purchasing DepartmentStores must keep Purchasing up to date with information about stock levels, whilst Stores relies on Purchasing to buy all the items and materials needed by the enterprise for its operations.

The Maintenance or Engineering DepartmentThis department relies on Stores to have available all the spare parts, tools, equipment and materials required for maintenance. In return it must supply full information to Stores of all long-term and short-term maintenance plans and the items which will be needed.

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Relationship with other Departments

The Accounts DepartmentThis department requires information from Stores about the value of stock held, about any damages or losses, about the receipt of items for which payment has to be made, and about stock issued for various operations, processes or contracts, etc.house

8Codification

It is one of the functions of stores management. A process of representing each item by a number, the digit of

which indicates the group, the sub-group, the type and the dimension of the item.

Describes an item in short, thus avoiding long statement every time the need to describe the item arises.

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Objectives of Codification

Bringing all items together.Enable putting up of any future item in its proper place.Classify an item according to its characteristics.Give an unique code number to each item to avoid

duplication and ambiguity.Reveal excessive variety and promote standardization

and variety reduction.Establish a common language for the identification of an

item.Fix essential parameters for specifying an item.Specify item as per national and international standards.Enable data processing and analysis.

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Basis of codification

Who will be the user?To what use is the codification going to be

put?What kind/degree of mechanization will be

needed to use the codification system?

Codification by Group Classification

Based on ‘shape’ of items 1. Wire 2. Tubing 3. Rod 4. Bar 5. Sheet 6. strip

Methods of coding of materials

Alphabetical method Numerical method Alphabetical-cum-Numerical method

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Alphabetical method

In this method first alphabet letters are used for codification of each category of materials. For example, steel wire is coded as SW or steam coal is coded as SC etc.

Alphabetical-cum-Numerical method

In this method, a combination of these two methods is used for coding of materials. For example, a steel wire of gauge 4mm quality A stored in rack/bin No.22, is given the code number SW4A/22. Such a method gives exact information than any of the above two methods.

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Numerical method

This method is used where materials accounting is to be mechanized by use of punched cards or computers. For numerical coding a list is prepared for various departments and allotting to each of them a suitable number. The first two digits of the code number represent the department for which the materials are meant and other two digits state the name of material as mentioned in the standard list or materials manual. For example, if code is 2341 it means Material No.41 [copper wire] is to be used in Department No.23.

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Codification of Raw-Material

Raw-Material

1 9 99 99

Generic Groupe.g. Magnesite, Alumina

Sub-Generic Groupe.g.Fused Mag, Fire clay

Running Serial No.e.g. 01

Codification of Generic Item

Item Typee.g. Stores

2 99 99 999

Generic Group (00-70)e.g. Bearing, Switchgear

Sub-Generic Groupe.g. Ball Bearing

Running Serial No.e.g. 201

Codification of Drawing/ Part No. Item

Item Typee.g. Stores, Service

2 99 99 999

Generic Group (80-98)e.g. Casting, Fabricated

Sub-Generic Groupe.g. Equipment Code

Running Serial No.e.g. 001

Codification of Capital Equipment

Item Typee.g. Stores

2 99 99 999

Generic Group (99)e.g. Capital Equipment

Equipment Classe.g. Mixer, Press

Running Serial No.e.g. 001

Codification of Service Items

Service Item

3 9 99 999

Type of Servicee.g.Transportation, AMC

Sub-Groupe.g. Truck Load, Trailor

Running Serial No.e.g. 001

Codification of Secondary Products

Secondary Products

4 9 99 99

Major Group Mining Pdt, Metal Scrap

Sub-Groupe.g. Clay, Ferrous Scrap

Running Serial No.e.g. 01

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Advantages of Codification

It enables systematic grouping of similar items and avoids confusion caused by long description of items since standardization of names is achieved through codification, it serves as the starting point of simplification and standardization. It helps in avoiding duplication of items and results

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