Standardization, codification, and variety reduction • item is identified by several names, one person being identified by several names. • some parts differ from each other marginally and end up being identified as number of independent parts. • Functionally the difference is insignificant • This multiple names culture results into same item being held in inventory at several places under several identities. • we end up developing several suppliers for the same item. • process of identifying the parts with multiple names and with marginal physical differences and settling for one part, in place of those with marginal differences and multiple names is called standardization. Classification of materials: • management of variety becomes complex • Classification is the first step in simplifying the process of planning and implementation of a materials plan. 11/16/2013 1 chemicals. Unused items 11/16/2013 2 . common to all materials in a class. packaging material. inflammable items. inspection methods. fuel stock. Objectives of classification: • to devise procedures of planning and control for materials in a class instead of one item. scrap materials. [preference.• grouping materials as per some homogeneity is classification. unserviceable and obsolete items • finished and semi finished items. dead stock items. Classification based on nature of materials: raw materials. storing and issuing procedures. machinery and equipment. & general items Classification based on the usability of materials • serviceable. • To device accounting and evaluation procedures common to all materials in a class. furniture. individual/group • to device purchase procedures. consumable items. indexing and inspection • easy computerization 11/16/2013 3 .Codification • identifying each item based on classification like pin codes of postal dept 12 34 567 8 9 10 11 12 13 Point Major Dimensional Storage of use group characteristics location [T15] [R/M [rounds145] [yard 7] 01] Sub Variations User group [1cm depts [Steel 03] [turning 21] 17] Any other info [?] Objectives of codification: • accurate and logical identification • prevention of duplication • standardization and reduction in variety • efficient purchasing • efficient recording and accounting • easy location. blue and red for pipes 11/16/2013 4 . layout of codes. yellow and blue in electrical cables red and green on electrical switches • green. • And further subdivided into sub groups Color Codes: • red. proper choice of numbers. flexibility.45 • a seven digit system. easy understandability. every pair seperated by a decimal • identifies an item by its classification Kodak system: • a ten digit system with [-] • items are grouped into hundred groups based on supply or procurement considerations. capacity of system Codification system Brisch system: 01.essential features of codification system brevity.23. logical. uniqueness. Standardization has made inter changeability of parts possible enabling process of mass production. • Standardization results into variety reduction. •Mass production reduces the cost of production and also improvement of quality. American standard for a product. • Standard can be IS. QS or TS for system. the items produced or activities performed belong to a specific type or level or standard. And ISO.Standardization and Variety Reduction: Standardization is setting a standard for an item or a process and continuously adhering to this. DIN. 11/16/2013 5 . • Process of standardization and variety reduction. Follow principles of classification • group these items with similar functional characteristics and sub group them according to major dimensional values. 11/16/2013 6 . • prepare a list of all items required to make the product • classify the items according to their performance and dimensional characteristics. • Now study the sub group as above and see how many parts performing similar functions have very close dimensional features. reports etc. procedures. Now try and replace our part with the existing standard taking care not to upset performance characteristics. in offices •Benefits of standardization • standardization helps reduce inventory items.• If performance characteristics are not altered same part should be used as a standard in place of several parts with similar dimensional features • Look for an existing standard that either coincides with the standard chosen by us very is very close to it. • Better means of communication in the industry • Base for inventory analysis • Specifications become clear and quality control strong • Insistance on standards promotes mutual trust 11/16/2013 7 . •Principles of standardization are applicable to forms.