Codification 130927235606 Phpapp02

8/9/2019 Codification 130927235606 Phpapp02

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Definition:-

Systematic concise representation of equipment, raw material, tools,

spares, suppliers

Importance of Coding

Due to industrial requirement organization has to store large no. materialsTherefore there should be some mean of identifying them hence Coding is

used

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


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Alphabetical Numerical Alpha-Numerical Color Code

Example

Sulphuric Acid- AC SU

Nitric Acid- AC NI


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Example

Pincode

Pan Number


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Example

Car Number

MH05 7719


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Example

Private Cars

Taxis


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Arbitrary System

Numerical System

Alpha Numeric System

Decimal System

Frisch System

Kodak System


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Arbitrary System

Items Code

Bolts 5090

Bearing 5091

Based on serial number under which material is

received

Sequence as they are added to the stores

account

Each item has discrete number

No systematic relationship to the numbers

assigned to related items

No fixed limit for codifying any number of items


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Numerical System

Assigns 6 to 10 digit codes number to each system

3 129 017 503

General Classification

1. Raw material

2. Manufacturing parts

3. Spares

4. WIP

Generic class Sub class Specific Item No.


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Alpha Numeric System

Combination of Numeric and Alphabetic nomination

P FAR BCS 503

Specific No. of bolt

Bolt, Carriage with square neck

FastenerPurchase Part


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Decimal System

Generally adopting 5 to 11 digit for codifying the materials

Class GroupType of

MaterialSpecificationSection

1st 2nd 3rd 4th 5th


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Frisch System

7 digits applied in 3 stages

Grouping is based on

Suitable Preliminary Categories:- Assemblies, Subassemblies,

Components and off the shelf item

Preliminary Categories:- Items are grouped within the respective

class in order to bring similar item together


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Kodak System

10 digit numerical data

Grouping is based on Source of supply

All the materials are divided in 100 basic classification

For example, if bolt is listed as hardware item if this is listed

in hardware catalogues & available with hardware suppliers

For example, if this bolt is available as a part of the machine,

it will be available under maintenance


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•

Result of rationalized codification reduces the no. of Items• Systematic grouping of similar items

• Avoid the confusion caused by long description of the items

• Helps in avoiding duplication of 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


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STANDARDISATION & CODIFICATION CASE

STUDY

• The problem- Railways in India

– Need thousands of parts to produce end product

– Necessary to number the parts for systemization &thus avoid

confusion

– necessary to deliver the right item in the right quantity to the right

place at the right time and at reasonable cost


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Railway’s Lead

• First in India to codify rules and procedures, stocking and purchasing, issueand disposal of stores

• No uniformity since each railways published its own nomenclature

• classified by alphabets A to F and H

• further divided into classes by adding more

alphabets or numbers.

• Eg.Ea1- parts and fittings of steam

locomotives

technical stores

• represented by letter G

• sub divided on the basis of types of stores

• Eg.Ga(small tools), Gb7(paints), Gb 1(Hardware), Gb 4 (metals). S(scrap) , R

rolling stock

general stores


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Paranjape Committee’s Recommendations

•

railways should compile and publish a catalogue ofstandardized items

• computerize inventory control

• 1967- committee appointed to examine the different systems

adopted by different railways


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Findings

• The UN - Universal system for classification of goods

• all the items of the technical to be accommodated under a

single trade group-”Transport equipment”

• Thus would entail the use of very long code number making it

cumbersome for the railways.

• Committee then considered the adoption of a fully significant

system or non-significant system or sequential system.


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Flaws

• fully significant - long code no. fully describing the item

• non-significant system – mere allotment of serial numbers


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• Railways has been allotted a code number which is also know as “PRICE LIST”

(PL)• This code represent unique identification & to all over the Railways

• Enable easy exchange of information among the 9 railway zones & 6

production units

•

3 types of codification system is used1. Fully Significant:- all the digits of the code signify some property of

the material

2. Non-Significant:- digits have no significance and one can not guess

anything about material by seeing only code no

3. Semi-Significant:-

SignificantNon

Significant

8 digit

4 digit 4 digit

Solution


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90 35 058 3

Part A Part B Part C Part D

• Part A representing the main group of stores to which the item belongs i.e.

90 which is steel items

• Part B representing sub-group i.e. 35 which is for various sizes of Mild Steel

Flats

• Part C representing the serial number of the item within the sub group

• Part D representing a special significance with reference to

computerization. This digit is unique

8 digit

Example


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Codification 130927235606 Phpapp02

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