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Classification of Materials | Codification of Materials | Alphabetic | Numeric

Arjun EP

Published on: April 25, 2021

Classification and Codification of Materials

All the received materials in the store should be kept in systematic way.

When materials are required, they can be obtained quickly and easily.

Classification and codification are systematic method to keep materials on proper place and find out easily.

Generally, classification and codification go together.

In classification, materials of similar nature are classified in major groups.

Again, these groups are classified into sub-classified.

The classification of materials may be done either on the basis of nature or usage.

In large organization, store items may be classified as raw materials, consumable stores, inflammable stores, chemicals, packaging stores, machinery, equipment, general stores etc.

For example, stores of a restaurant may be classified as food and beverage.

Food items are sub-classified as rice, flour, pluses, vegetable, fruits etc.

While beverage items are sub-classified as hard drinks, soft drinks, cold drinks, juice etc.

Under this method, each item of stores is assigned a symbol.

This symbol may be numeric or alphabetic or a combination of the two.

Advantages of classification and codification

The major advantages of classification and codification are as follows:

With the help of symbols, it is easy to identification of materials.

It helps to keep the materials in the store systematically.

Particular symbol is used instead of full name in item, so it saves time.

It helps for systematic recording of accounting.

It ensures secrecy about the internal transaction of the stores etc.

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Methods of Codification

Different organizations can use different codification according to their requirement.

However, there are three common codifications:

Alphabetic method

Numeric method

Alpha-numeric method

Alphabetic method

Under this method, the first letter of the name of the material is taken as of alphabet codification.

Again, sub-alphabet may be used for sub-classified materials.

For example, alphabetic codifications of construction materials are shown in the box.

Construction materials	Codification
Cement	Ce
Gitti (Roda)	Gi
Bricks	Br
Iron bar	Ib
Sand	Sa

Numeric method

In numeric method, each item of store is allotted a number.

Generally, a register is maintained to record name of the items and allot numbers for every individual item.

The numbers are allotted as codes.

These numbers may be simple number, block number or group numbers.

Sub-groups may be indicated by decimal.

This method is also known as decimal system.

For example, numeric codifications of construction materials are shown in the box.

Construction materials	Codification
Cement	1
Gitti/Roda	2
Bricks	3
Iron bar	4
Sand	5

Alpha-numeric method

This method is a combination of the alphabetic and numeric system.

In this method, some code may be expressed in alphabets and some by numbers.

For example, food and beverage items of a restaurant are shown in the box.

Store items of restaurant	Codification
Food	F
Rice	F1
Flour	F2
Pulses	F3
Vegetables	F4
Fruits	F5
Beverage	B
Hard drinks	B1
Soft drinks	B2
Cold drinks	B3
Juices	B4