CHAPTER THREE

CLASSIFICATION AND CODIFICATION OF MATERIALS

Need for classification and codification

Large number of items Avoid confusion Accuracy

CLASSIFICATION OF MATERIALS
General Classification
1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14.

Raw materials Purchased components Work-in-progress Finished goods Spares Consumables Machinery and equipment Inflammables Chemicals Furniture Scrap material Packaging material Fuel stock General stores

Classification According to the Conditions of Material

Serviceable
Temporarily out of order

Unserviceable
Items which have outlived their life and fit only for scrap

Obsolete store
Out of date because of new inventions

Finished and semi finished store Dead stock item

Have some definite life but can not be written off

Unusable stock

MERITS OF CODIFICATION
Avoiding long description Accurate and logical identification Prevention of duplication Standardisation and variety reduction Efficient purchase department performance Efficient store room performance Ease of computerization Ease of pricing and costing Facility in physical location of item Efficient inspection

DEMERITS OF CODIFICATION

Mistake in coding Detection of coding mistake Codes are often misunderstood Large number in one group

MAIN CLASSIFICATION: 07 STATIONARY ITEM SUB-CLASSIFICATION 39-3 INDICATING PENCIL 9 INDICATING LEAD PENCIL Main Code no: 07 Sub Code no: 39 Descriptive Code no: 1234 Vocabulary Description Lead writing pencil Black of HB quality Within price range of 1-3 rupees 1. Indicating lead colour 2. Indicating quality 3. Indicating use (writing) 4. Price range 1-3 Rs. Lead writing pencil Black of HB quality Price range 4-6

07-39-1234

07

39

1235

07-39-1235

MAIN CLASSIFICATION: 03MAIZ, 06MAIZ STARCH

Main Code no: 03 Sub Code no: 01-10 Descriptive Code no: 1153 Vocabulary 03-01-1153 Description Maize for production of maize starch powder (thin boiling quality) from xyz Indigenous supply 1. Indigenous supply 1. For use in production 3. Quality of production (thin boiling starch) 5. Market for which production is used (xyz)

Illustration of Decimal Codification system

PARTICULARS Main STATIONARY Pencil Pen Paper Ink Pencil Lead Blue Red Blue-red 47 Sub1 CODES Sub2 Full code 47

01 02 03 04

47.01 47.02 47.03 47.04

51 52 53 54

47.01.51 47.01.52 47.01.53 47.01.54

Illustration of Combined codification system Alphabetical and Numerical

PARTICULARS CODES

Main

sub1 SP CB -

Sub2

Full code

1. Sulphur
Sulphurous acid Sulphuric acid Sulphur oxide

11 12 13

SP-11 SP-12 SP-13

2. Carbon
Carbonic acid Carbon monoxide Carbon dioxide

56 57 58

CB-56 CB-57 CB-58

Illustration of Numerical Codification System

MATERIALS simple No: Block No: Dash or Stroke No:

Raw materials Iron ore Iron pig Iron melted Iron bright Iron steel Iron sheets Iron bars Stainless steel Full plate Half plate Quarter plate Spoon Fork Glass

01 05 06 07 08 09 10 11 12 13 14 15 16 17 18

1-100 1-10 11-20 21-30 31-40 41-50 51-60 61-60 200-400 281-290 291-300 301-310 311-320 321-330 331-340

17 17-1 or 17/1 17-2 or 17/2 17-3 or 17/3 17-4 or 17/3 17-5 or 17/5 17-6 or 17/6 17-7 or 17/7 205 205-3 or 205/3 205-4 or 205/4 205-5 or 205/5 205-6 or 205/6 205-7 or 205/7 205-8 or 205/8

CLASSIFICATION AND CODIFICATION OF MATERIALS

Stores vocabulary
A booklet known as stores vocabulary

Marking of stores
Colour Marking Secret marking