A typical manufacturing organization has various types of materials. These types may range from raw materials, work in progress (WIP), maintenance, repair and overhaul (MRO), finished goods, high usage, medium usage, low usage, spare parts, components etc. The variety of materials in the store therefore necessitates a systematic way of identifying and locating the materials in the store. This is effectively done through classification and coding.
Classification refers to identifying materials into broader groups such as WIP, High usage, low usage among others.
Coding is the process of giving each material in the store a name. It is a system of identifying specific materials by use of letters or figures or a combination of both. The longer the code, the longer the information it represents.
Common Codification System
- Alphabetical system: It involves the use of alphabetical letters as the basis of codification e.g. P/Q/R
- Numerical system: the use of numbers or figures e.g 04/07/2009
- Alphanumerical: the combination of alphabets and numbers e.g DBM/346/16