Codification and Standardisation

Any manufacturing unit have several items which are procured for prodction it can be raw
material , packaging , engineering items , stationeries , misc items ,chemicals , general
equipments etc , spare parts etc . All these items need to be tracked for annual  consumption
and  last price , stock  hand , price compariso between two sources , po . Codification and
standardisation helps in getting all this information through ERP software which are now
almost installed in every organisation . As these software requires codes for ordering ,
issuance and despatch. Even finished good are codified for  price variance , material
variance , records , invoices and other datas related to  production .

Codification is a process of representing each item by  a  where by the digits indicates a
group , subgroup , location , nature of item  etc . It could be numerical as well as alphabet
numeric .

Each code should  be unique and represent one item . Easy to understand . Codification
should be concise , compact and consistent.

Popular systems for Codification are

  • Kodak System

  • Brisch System


Standardisation  is necessiated by the fact that  the one cannot have numerous items for  
same usage hence standards are set for each items . It can be arrived upto by discussing it
with user s and vendors  who can give enough insights on the most common standards used
in industry . Hence each items is defined  by correct specifications such as length , wt ,
density , thickness , power , capactites ,so on

The process of Standardisation can help in simplyfing procurement  process and variety
reduction . It would result in  reducing unnecessary  varieties and stadardising into most
economical size , grades , shapes ,colors , types  etc.

Thus Stadardisation helps in reducing inventory  , better communication to vendors and
users .
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