Presented by: Ritwik raje Kunal patel Atul pathrabe Ashish sawant

Presented by: Ritwik raje Kunal patel Atul pathrabe Ashish sawant

Definitions

• Codification in an industry is the systematic concise representation of equipment, raw materials, tools, spares, supplies etc.in an abbreviated form employing alphabets, numerals, colours, symbols etc.

Benefits

• Important factor in indenting, purchasing and issuing activities.

• Wrong identification results in wrong purchases.

• Words description can be used but they are too long,totally inadequate and Prone to errors.

• Accurate and logical identification.

• Avoidance of Long and unweilding description.

• Prevention of duplication.

• Product Simplification.

• Efficient Purchasing.

Benefits

• Minimizing of clerical work.

• Efficient Purchasing.

• Accurate ane reliable accounting and recording.

• Easier computerisation.

• Better alternative selection

• Simplifies Costing

Benefits

• Identification – To know the type of material in detail

• Classification – Description, Nature, Source or origin.

• Codification – As per the requirement and the system

Stages of Scientific Codification

• Simple

• Brief

• Flexible

• Unique

• Layout should be easy to handle

• Self Decoding

• Objective Oriented

Special Characteristics

Need for codification

SpeedUnambiguitySaving of effortsSpace saving on forms Ease of classification, Mechanization

Characteristics of Codes

Code should be Simple.Code should be unique.Coding should be compact, concise and

consistent.Code should be sufficiently flexible to meet

future demands

Objectives of Codification 

• Accurate and logical identification

• Prevention of duplication

• Standardisation and reduction of varieties

• Efficient purchasing

• Easy computerization

Basic System

• Arbitrary system

• Numerical System

• Mnemonic system or alpha numeric system

• Decimal system

• Brisch system

• Kodak system

Brisch System

• Concieved by Mr.E.G.Brisch with J.Gombinski.

• Divides all facets of organisation into number of main categories according to nature of business.

• The first block gives major classification e.g packing, raw materials etc.

Brisch System

• The second block gives next level of classification based on the type of materials.

• The third block gives the lowest level of classification normally the specifications.

• 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.

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 – 400-00(Augers)

Kodak System

Colour Coding

• Here colours are used to identify the content.

• Generally is used for Pipelines, Rawmaterials, lubricants etc.

Advantages of codification

• reduced the number of items.

• enables systematic grouping

• avoiding duplication and confusion

• reducing clerical efforts

• Provides absolute clarity to the supplier as to what is required by the buyer.

• Eleminates need to create company‘s specifications.

• Allows accurate comparison of quotes.

• Variety reduction

• Allows buying from more than one manufacturer.

Advantages

• Reduces inspection and quality costs.

• Allows firm to enter into a running contract.

• Ensures interchangability of Parts.

• Routinises procurement efforts and reduces clerical work.

• Reduces procurement lead time.

Advantages

THANK

YOU……

THANK

YOU……