CLASSIFICATION

AND
CODIFICATION
Abhinandan Sawant
Rohan Mathkar
Rutuja Wagh
Sandeep Tajane

CLASSIFICATION

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Classification & Codification

CLASSIFICATION
Classification of materials is the process
of grouping of items into few categories,
according to some criteria.
Example: Classification of domestic
articles into cloths, kitchen wares,
grocery, electrical gadgets, furniture,
consumables, non-consumables, etc.

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Classification & Codification

CLASSIFICATION
Classification of materials is the process of
grouping of items into few categories,
according to some criteria.

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Classification & Codification

Why
Classify
???
Handling large no. of items
Planning
Accounting
Procurement

Storage
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OBJECTIVES OF CLASSIFICATION
Classification of materials is required to
Evolve procedures of planning and
control of materials in a class.
Decide systems of storage and issue of
materials in a class.
Devise accounting and evaluation
procedures common to all materials in a
class.

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Classification & Codification

BASIS OF CLASSIFICATION
Materials are classified according to
following basis:
Stage of conversion process
Nature of materials
Usability of materials

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Classification & Codification

1. STAGE OF CONVERSION
PROCESS

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2. NATURE OF MATERIALS
1.
2.
3.
4.
5.
6.
7.
8.
9.
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Raw Materials
Consumables
Chemicals
Inflammable Items
Furniture
Packaging
Perishable Materials
Empties
Supplies
Classification & Codification

RAW MATERIALS
DIRECT

INDIRECT

Identified as Individual
product.
Charged directly to cost
of product.
Ex:
1. Cloth in garment
manufacturing.
2. Steel in scooter
manufacturing.
3. Ink & glue in paper
manufacturing.

Unidentified with the

individual product.
Not charged to the cost of
the product.
Ex:
1. Coolants used in
machines.
2. Cotton waste used to
clean machines after
work.
3. Sand paper used for
polishing.

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CONSUMABLES
Materials which either cease to exist or
change their shape during
manufacturing process.
Cannot be used for second time.
Ex: Coal, lubricants, cotton wastes,
pencil, paper, etc.

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CHEMICALS
Material (Substances) in the form of
powder, liquid, tablets, etc that undergo
certain process according to certain
formula.
Needs to be stored, preserved, issued
very cautiously since they involve risks.
Ex: acids.

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INFLAMMABLES
Materials which are highly susceptible to
fire.
Should be stored farther from the main
store with complete fire-fighting
equipment.
Ex: petrol, kerosene, paints, etc.

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FURNITURE

Movable items.
Usually bulky.
Large storage space.
Requires maintenance, repairs &
replacements.
Ex: tables, chairs, almirahs, stools, etc.

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PERISHABLE MATERIAL
Short lived and decay easily.
Need to be stored at temperature
controlled rooms to prolong their life.
Ex: Milk, vegetables, eggs, medicines,
etc.
Ex: Some chemicals and rubber parts,
etc.

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PACKAGING
Wrapping paper , straw , saw dust, etc.
Protective covering wax , grease, etc.
Containers boxes , glasswares ( jars,
bottles ), metal containers ( cans, barrels
).
Storage of packaging material needs
space as they are bulky.

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Classification & Codification

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EMPTIES
Used packages which are scrapped after
use.
Some empties are recycled or reused.
Others are stored in heap in stockyard
for its disposal or to be burned.
Ex: wooden cases , metal containers ,
glasswares, etc.

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SUPPLIES
Materials used up in running the plant or in
making the products but are not part of any
product.
Miscellaneous brooms, cotton waste, toilet
paper, cleaning powder, etc.
Welding , soldering & tinning material
electrodes, gas, welding rods, solders, etc.
Abrasive material sand paper, etc.
Oils and greases.
Office supplies, Electric supplies & Printed
forms.
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3. USABILITY OF MATERIALS
1. Serviceable and Unserviceable
2.
3.
4.

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Materials
Semi-Finished and Finished Materials
Dead Stock Items
Obsolete Items

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SERVICABLE & UNSERVICABLE

SERVICEABLE ITEMS

Materials temporarily
out of order and can
be put to use after
repairs.
Ex : Chucks , fixtures,
hacksaw blades
needing grinding,
etc.

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UNSERVICEABLE ITEMS

Materials that are

gone out of order
permanently.
Ex : Wornout tools ,
steel chips from
machines , ash from
boilers, etc.

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SEMI-FINISHED & FINISHED

SEMI-FINISHED ITEMS

Partially processed.
Supplied parts.
Ex : Preformed
Plastic Bottle Tube.

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FINISHED ITEMS

Fully processed
products.
Ex : Plastic Bottle.

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DEAD STOCK
Equipments that have definite life &
cannot be written off before expiry date
of their life.
Ex : office equipment , material handling
equipment, tools , measuring
instruments, etc.

OBSOLETE ITEMS

Items that went out of date because of

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& Codification
new inventionClassification
etc and
are no longer

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INVENTORIES CLASSIFICATION
1.
2.
3.
4.

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Production Inventories
MRO Inventories
In-process Inventories
Goods-In-Transit

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PRODUCTION INVENTORIES
Standard Industrial Items purchased fro outside
(broughtouts).
Non Standard Items (Purchase items).
Special items manufactured in the factory itself
(Works made parts/piece parts).

MRO INVENTORIES
Maintenance, repairs and operations supplies.
Consumed during process of manufacturing
but do not becoming part of the product.
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IN-PROCESS INVENTORIES
Items in semi-finished conditions.

GOODS - IN - TRANSIT
Materials which have been paid for but
not received by the stores.

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CODIFICATION

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CODIFICATION

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Codification in an industry is the

systematic concise representation of
equipment, raw materials, tools, spares,
supplies, etc, in an abbreviated form
employing alphabets, numerals, colors,
symbols, etc.
Example: - Client Code, Policy Number,
PAN, UID Number, Bank Account Number,
Vehicle Number, Telephone Number, Pin
code, Examination Seat Number, Student
Reference Number, etc.
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BENEFITS OF CODIFICATION

Accurate and logical identification.

Avoidance of long and unwieldy description.
Prevention of duplication.
Product simplification (Variety Reduction).
Efficient purchasing.
Minimization of clerical work.
Efficient storekeeping.
Accurate and reliable recording and
accounting.
Easier computerization.
Others.
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STAGES OF SCIENTIFIC CODIFICATION

1. Identification.
2. Classification.
3. Codification.

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IDENTIFICATION
Assigning Nomenclature / Description.
Specifications & Technical Name.
Ex : A 20 drill : Drill, HSS, Taper shank,
20 Standard length.
Above Example description are meant
for Kardex cards and stores
vocabulary(stores catalogue) only.

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CLASSIFICATION
Arrangements of items into groups
according to pre-determined patterns.
Grouping of items are done on the basis
of Description, As per supplier, As per
origin, Value and Function of the item.

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CODIFICATION
Allocation of specific codes to the items within the
broad framework of the selected system.
Codes should have following characteristics :
1. Simplicity.
2. Brevity.
3. Flexibility.
4. Uniqueness.
5. Coding symbols.
6. Layout of the code.
7. Self decoding.
8. Consistency.
9. Convenient for accounting.
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BASIC SYSTEMS OF CODIFICATION

Alphabetical System.
Numerical System.
Alpha-Numerical System.

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ALPHABETICAL SYSTEM
Example: Acids(AC)
Sulfuric Acid (AC-SU)
Nitric Acid (AC-NI)
Carbonic Acid (AC-CB)

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NUMERICAL SYSTEM
1. Sequential Code
2. Block Code
3. Decimal Code

Example: Tools(40)
- Drills(01)
- Centre drill B25 (40.01.01)
- SS Drill 4mm (40.01.02)
- TS Drill 20 (40.01.03)
- and so on.
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ALPHA-NUMERICAL SYSTEM
Example: Packaging & Packing Materials
(PM)
Packing Box 18
(PM-501)
Packing Box 24
(PM-502)
Drums 100 liters
(PM-503)
Drums 150 liters
(PM-504)
Drums 200 liters
(PM-505)

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FUNDAMENTAL SYSTEMS OF
CODIFICATION
1. The Brisch System.
2. The Kodak System.

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BRISCH SYSTEM
Established by Mr. E. G. Brisch jointly by Mr. J.
Gombinski
Divides all facets of organisation into number
of main categories according to nature of
business.
The first block gives major classification
(Usually 2 digits) E.g: Packing, Raw Materials,
Fasteners, Stationary, Tools, Finished
Products, etc.
The second block gives next level of
classification (Usually 2 digits) based on the
type and kind of materials.
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The third block gives the lowest level of

BRISCH SYSTEM
A 10 digit typical class breakdown in an
engineering company is given below:
0 Organization and operation.
1 Primary Materials
2 Boughtout commodities
3 Components
4 Sub assemblies and assemblies
5 Tools and portable equipment
6 Plant and Machinery
7 Building, Services and utilities
8 Scrap and Waste
9 Reserved
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BRISCH SYSTEM
Example:
22.15.453
Where,
In Main Class, 2 - Boughtout items
2 - Fasteners
In Sub Class,1 Type (B.S.W.
Threads)
5 Kind (Screws c sunk)
In Minor Class, 4 Material (SS)
53 - Size (1/2 X 1 kg )
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KODAK SYSTEM
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.
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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 40-0-01 (Augers)

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KODAK SYSTEM
Example:

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COLOR CODING

Here colours are used to identify the

content.
Generally Colour code are used for:
1. Identification of pipelines.
2. Raw materials.
3. Lubricants.
Etc.

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DABBA CODING SYSTEM

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THANK YOU

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