Presented by: Ritwik raje Kunal patel Atul pathrabe Ashish sawant

1. CODIFICATION Presented by: Ritwikraje Kunalpatel Atulpathrabe Ashishsawant

2. 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.

3. 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.

4. Benefits • Accurate and logical identification. • Avoidance of Long and unweilding description. • Prevention of duplication. • Product Simplification. • Efficient Purchasing.

5. Benefits • Minimizing of clerical work. • Efficient Purchasing. • Accurate ane reliable accounting and recording. • Easier computerisation. • Better alternative selection • Simplifies Costing

6. Stages of Scientific Codification • Identification – To know the type of material in detail • Classification – Description, Nature, Source or origin. • Codification – As per the requirement and the system

7. Special Characteristics • Simple • Brief • Flexible • Unique • Layout should be easy to handle • Self Decoding • Objective Oriented

8. Need for codification Speed Unambiguity Saving of efforts Space saving on forms Ease of classification, Mechanization

9. 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

10. Objectives of Codification • Accurate and logical identification • Prevention of duplication • Standardisation and reduction of varieties • Efficient purchasing • Easy computerization

11. Basic System • Arbitrary system • Numerical System • Mnemonic system or alpha numeric system • Decimal system • Brisch system • Kodak system

12. 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.

13. 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.

14. 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.

15. 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)

16. Colour Coding • Here colours are used to identify the content. • Generally is used for Pipelines, Rawmaterials, lubricants etc.

17. Advantages of codification • reduced the number of items. • enables systematic grouping • avoiding duplication and confusion • reducing clerical efforts

18. Advantages • 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.

19. 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.

20. THANK YOU……

21. THANK YOU……