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INTRODUCTION
Due to the growth of industrial activity and diverse kind of industrial requirements, a large
no
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Therefore, there should be some means of identifying them
...
Without it,
the control over inventory by rigorous exercises such as inventory techniques is not very
effective
...
Moreover for
a good quality control system a unique identification is a pre-requisite
...

Codification of materials can also be termed as the identification of materials
...
It is useful in requisitioning items or the
operational departments, in placing of orders by the purchase department, in receiving and
expediting the items on receipt from the supplier, in having a unique record of each of the
items in stores and in work-in-process or in warehouse so as to facilitate the control over
the inventory levels, and also in having a good control over the loss, deterioration,
obsolescence, non-movement, or pilferage of the items in the inventory
...
An item may be called a ‘nut and bolt’ by one section of the organization, whereas
another may call it a ‘fastener’ and because of this there are two separate requisitions
made, two separate purchase orders sent out, and two separate inventory levels of the
items built into the system
...
This increases the inventory level
unnecessarily
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

Prevention of duplication:

All items are separately codified and are arranged in a logical order
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

Standardisation and reduction of varieties:

For codification, grouping of identical item is done and it enables the stores to examine
the entire range of items
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This reduces the number of varieties to
a minimum
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

Efficient purchasing:

The filling up of purchase requisition, and preparation of purchase orders are simplified
by the use of codes which easily indicates the materials required
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Chances of mistakes are minimized
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Easy computerization:

The computer work better with codes then with long description of materials
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ii) Code should be unique
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iv) Code should be sufficiently flexible to meet future demands
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TYPES OF CODIFICATIONS

1) Numerical Codification System
In numerical codification, each item is allotted a number, The numbering may be
straight or in groups or blocks
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2) Alphabetical Codification System
In alphabetical codification, each item is denoted by a combination of the
alphabets, for example, A for nut, B for screw and so on
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3) Alpha-numeric Codification System
In alpha-numeric codification, alphabets along with numbers are used for coding
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The number of digits in
the code will depend upon the extent of classification required
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CODIFICATION SYSTEMS
There are mainly six types of codification systems used worldwide
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Rather , as
and when an item is received by Stores in its receiving bay, a running and unique serial
number is assigned to it
...
While this system is the easiest one to use, it does not help in scientific
management of inventory
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For example, a 10 digit code such as 2145098344 can be explained as –
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145

Class

Sub Class

098
Running Number

344
Location Code

Mnemonic System
The alphabets and numbers are together used in this system of coding
...
The numbers are used to give
information of size, length, breadth, height, volume, weight, etc
For example, the carriage bolt described under the numerical system in the following manner :
P Fa BCS 503
P denotes a purchased part, Fa is a fastener, BCS stands for bolt, carriage, with a square neck, and
503 represents the specific number of the bolt
...
Thus, the whole range of items in stores can be codified
without difficulty
...
Under this system items up to 5,00,000 can be
easily codified and at the same time each symbol will give the history, size, specification and
complete picture of the item
...
In the decimal codification system, each digit indicates
some thing or the other
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specification or any other details required

Brisch System
The Brisch system consist of seven digits applied in three stages
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After these preliminary categories, items are grouped within the respective
class in order to bring similar items together
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Kodak System
The Kodak system has been developed by East Man Kodak Company of New York which
consists of 10 digits of numerical code
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All materials are divided into 100 basic classifications, contributed only by
procurement considerations
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If this bolt is available as a part
of the machine, it will be available under maintenance
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b) It enables systematic grouping of similar items and avoids confusion caused by long
description of the items
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d) It helps in avoiding duplication of items and results in the minimization of the number of
items, leading to accurate records
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f) Simplifies in ordering process

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BIBLIOGRAPHY

1) http://www
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com/116388/8-common-methods-of-of-storemanagement-and-codification
2) http://www
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com/4466-codification-in-materials-management
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materialsmanagement
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htm
4) http://accountlearning
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in/2010/05/clasification-and-codification-of
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nokomis
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20Codfication%20Standardisation%20and%20variety%20Reduction/PPT/ch%2010

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