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CLASSIFICATION AND CODIFICATION
In order to ensure the effective inventory control, it should be carried out with the classification and codification of materials. Codification is the process of representing each item by a number, the digits of which indicate the group, the sub group, the type and the size and shape of the items.
The codification process could be obtained by the nature of materials in grouping all items of the same metal content say ferrous and non-ferrous etc. The system of codification could be built by the end use of items, that is, items grouped according to maintenance, spinning, weaving, packing, foundry, machine shop etc.
Advantages of Codification
(1) Codes ensure the secrecy of materials.
(2) It is essential for mechanical accounting.
(3) Easy identification of material is possible.
(4) It ensures effective material control.
(5) It minimizes length in description of materials.
(6) Effective materials handling is possible.
(7) It helps in avoiding duplication of materials.
(8) Codification facilitates less clerical work.
(9) Cost reduction is possible.
Methods of Coding
The following are the three important Methods of Codification:
(l) Numerical Method.
(2) Alphabetical Method.
(3) Numerical Cum Alphabetical Method.
Numerical Method:
Under this method, each number or numerical digit is allotted to each item or material. Accordingly, each code should uniquely indicate one item. For example, in printing press following codes may be assigned:
Paper 145
Ink 155
Gum 165
There are various universal decimal classification of codification used in libraries may be indicated for identification of items.
Alphabetical Method:
In this method alphabets or letters are used for codification of each category of materials. Accordingly, each letter or alphabet is allotted for each item or material. For example, ‘C’ for copper, ‘S’ for steel and so on.
Numerical Cum Alphabetical Method:
This method is done by a combination of numerical and alphabetical method. Under this method both numerical along with alphabet is allotted for each item. For example, IR 5 may indicate Ink Red of Grade 5, Steel wire 6 may be denoted by SW 6 etc.