Codification

DEFINITION:
A code may be defined as a brief title
comprised of either letter or number or both
and is used to identify an item of data and
express its relationship to other items of
same or similar nature.
- The complexity of relationship governs
complexity of coding structure

Types of Codes-Sequence Codes

Sequence Code:
This is simplest method of coding. It is
assignment of consecutive numbers beginning
with 1 to a list of items as they occur,
- just as Account No given by Banks to its
customers.
Advantage of sequence code is its ability to
accommodate unlimited number of items by
using fewest possible digits.

Types of Codes-Sequence Codes

- As new items occur they are simply given
next higher unused number in sequence.
Sequence code always requires directory for
decoding.
There is no provision for classifying group of like
items according to specific characteristics and
cannot be used where such requirements exist.

Types of Codes-Sequence Codes

- It is practical only for coding lists or for
numbering longer lists where code serves only
as a convenient title as in account No. by banks.
Sequence plan of coding, however, is an
inherent part of almost all other more specialized
and sophisticated coding methods.
Division of data set forth by most classification
plans is arranged in sequence & individual
data items within division are arranged with
use of simple sequence code.

Types of Codes-Block Codes

Block Codes:
It is minor refinement of sequence code i.e. a
series of consecutive code number is divided
into block and
- each block of numbers being reserved for
identification of group of item which have
some common characteristics,
- plus some unassigned nos for new items

Types of Codes-Block Codes

Block coding provides a data classification
system,
- which uses a few code digits to identify each
item,
- expansion of code to include additional items
within each block is confined to those
numbers left unassigned when plan is
originally established.

Types of Codes-Block Codes

New blocks of any quantity of code nos for new
classification may be added as required,
beginning with next higher unreserved code No
in sequence
As in case of sequence code, decoding in this
method also requires some form of crossreference directory.
However, decoding is comparatively easy to
accomplish as reference is directed to a range of
code nos within blocks thus narrowing scope of
search.

Types of Codes- Group Classification codes

Group Classification Codes:
Group classification codes are those which
designate major and minor data classification by
successively lower order group of code of digits.
Number of different classifications, subclassifications, type, kinds and sizes, necessary
for data identification, determines quantity of
digit, groups required in code.

Types of Codes- Group Classification codes

A scientific and rationalized materials coding is
based on group classification code system
Group code is readily construed and easy to
understand and apply.
Capacity of expansion is also very large.
Machine processing is facilitated since a sort on
specific digit groups causes separation on
desired class of data for processing.

Types of codes- Mnemonic

Mnemonic codes:
Mnemonic code construction is characterized by
use of letters and number combination, which
describe items coded, combination having been
derived from description of items themselves.
Combinations are designed to be an aid to
memorizing codes and associating them with
items they represent.

Types of codes- Mnemonic

There are no definite rules to follow in
constructing a mnemonic code except that an
effort be made to select combination which best
suggest item, they represent.
- Letter I, O & Q should be avoided because of
their similarity to number 1 and 0.

Type of Codes-Numeric Alphabetic

Numeric Alphabetic codes:
Numerical alphabetic codes are designed to
maintain data they identify in some form of
alphabetic sequence without use of alphabetic
characters in codes.
This system is used for individuals or company
names.

Type of Codes-Numeric Alphabetic

Numerical construction of these codes is
particularly advantageous for machine
processing, rather then an unwieldy alphabetic
code.
Numerical alphabetic code is constructed in
such a way that two high order digits are 01 to
26 correspond to the letters of alphabetic.

Advantages of coding system:

Accurate identification.
Prevents duplication
Assistance in standardization & variety reduction
Facilitate efficient/economical buying.
Basis for sorting stores documents
Simplification of mechanical recording
Central analysis of unit store house records.

Characteristics of a good coding

system:
Covers whole range of stores in use & likely to
be used
Classifications are designed to meet
requirements of organization
No. of digits is constant.
Sufficient room for future expansion or
amendments

Method of coding-Group Classification

Code
Coding by nature of items:
Inherent characteristics of all stock items are
reviewed and in first instance similar items are
collected into series of Main Group such as raw
materials, tools, machinery spares etc.
Each of these groups is then divided into Subgroups of section.

Method of coding-Group Classification

Code

A 10 digits code system in line with the above may work as under:
_______________________________________________Main Group
____________________________________________Sub-Group
_________________________________________Sub-subgroups
______________________________________Item serial
number
__________________________________Check digit
XX XX XX XXX X

Method of coding-Group Classification

Code
For purpose of inventory control & grouping of
related items on purchase requisition or order,
number is tied to system of 100 basic
classifications or Main Groups (00-99) of all
materials.
The first two digits represent number assigned
to any class and identify an individual item in
that class or group or family.

Method of coding-Group Classification

Code
Each class/ Main Group is sub-divided into 100
sub-classes/Sub-groups arranged preferably
alphabetically and represented third and fourth
digits (Total 10,000 Sub-groups)
Each sub-group can further be assigned 100
sub-sub groups, representing fifth and sixth
digits. Here again sub-sub-group classification is
arranged preferably in an alphabetic manner.

Method of coding-Group Classification

Code
This implies that the entire stock holding can be
divided into 10,00,000 sub-sub-groups.
Individual items falling into a Main-group, sub
and sub-sub group are assigned item serial
number, using 7th, 8th and 9th digits.

NTPC Main Group classification

Main Group
Description
Code
---------------------------------------------------------00
Scrap
01
Metal Ferrous
02
Metal Non-ferrous
03
Non-Metallic Materials
04
Refractory & Thermal Insulation
Materials
05
Packing
07
Surface Coating Materials
10
Chemical & Gases

NTPC Main Group classification

Main Group
Description
Code
---------------------------------------------------------11
Oil & Lubricants
14
Medicines & Medical Equipments
15
Fasteners
16
Pipes & Hoses
17
Pipe Fittings & Flanges
18
Valves, Strainers, Traps
19
Bearings & Accessories
20
Tech Power Transmission System

NTPC Main Group classification

Main Group
Description
Code
--------------------------------------------------------------------------21
Building Hardware
22
Tools, Tackles & Accessories
23
Cutting Tools, Abrasives &
Accessories
24
Welding Electrodes & Accessories
26
Laboratory Items
27
Furniture
28
Office Stationery
29
Personal use/Domestic item

NTPC Main Group classification

Main Group
Description
Code
-------------------------------------------------------------------------31
32
33
34
35
37

Pumps- I
Pumps- II
Pumps- III
Compressors
Industrial Fans & Blowers
Spares for Valves

NTPC Main Group classification

Main Group
Description
Code
--------------------------------------------------------------------------40
Boiler 250 MW
41
Turbine 250 MW
42
Auxiliary Boiler
43
Turbo Generator 660 MW
44
Boiler 660 MW
45
Boiler 60 - 110MW
46
Boiler 200/ 210 MW
47
Boiler 500 MW

NTPC Main Group classification

Main Group
Description
Code
---------------------------------------------------------------------------

NTPC Main Group classification

Main Group
Description
Code
--------------------------------------------------------------------------Construction Equipments

NTPC Main Group classification

Main Group
Description
Code
--------------------------------------------------------------------------49
50
51
52
53

Turbo Generator 60 - 190 MW

Turbo Generator 200/210 Mw
Turbo Generator 500 MW
Gas Turbine Generator
Diesel Generator Set

NTPC Main Group classification

Main Group
Description
Code
--------------------------------------------------------------------------54
System
55
56
57
58
59

Fuel Management & Lube Handling

Coal Handling Plant
Ash Handling & ash Utilization System
C. W. System
Water Treatment System
Hydrogen Generation Plant

NTPC Main Group classification

Main Group
Description
Code
--------------------------------------------------------------------------62
Workshop items
63
Crane, Hoisting, Lifting & Materials
Handling
65
Construction, Earth Moving &
Automotive vehicles
66
Air Conditioning & Ventilation System
70
Engines (Without vehicles)
71
Locomotives
74
Wagons
75
Rail Track & Signaling System

NTPC Main Group classification

Main Group
Description
Code
--------------------------------------------------------------------------81
Cable, Conductor & Accessories
82
Electrical Lamps, Fitting & Installation
Materials
83
Electrical Circuit Components
85
Switch Gears
86
Motors
87
Transformers
90
Relays
92
UPS& Power Back Units

NTPC Main Group classification

Main Group
Description
Code
--------------------------------------------------------------------------94
95
96
97

Control & Instrument

DAS/ DCS & PLC System
Communication Systems
IT & Communication

Method of coding-Group Classification

Code
Check Digit:
With introduction of computerized stores
accounting system, it has now become usual to
add as last digit, 10th digit in code scheme, as
check digit.
This is a self- checking device, to ensure
correctness of code numbers fed to computer.
If there is an error in writing/reading/capturing
code no, this shall immediately be highlighted by
computer by not accepting code.

Method of coding- check digit

One of systems Modulus 11 for calculating
check digit is as under.
Check digit is remainder by multiplying all the
digits in the code number from right to left by 1,
2, 3, etc. respectively, adding products and
dividing sum by 11, for example:

Method of coding- check digit

_____________________________________________________
________________________________________________ __

X9=00

X8=24

_______________________________________________ X7=00
__________________________________

----

X6=30

__________________________________________ X5=00
______________________________________X4=08
___________________________________X3=00
_______________________________ X2=02
____________________________X1=05
69
0

The check digit for code 030502015 shall 3 i.e. by dividing 69 with 11
we get remainder of 3.

Method of coding- check digit

Another method of calculating check digit, which is followed in NTPC is as under:
________________________________________________________
X
7=14
_____________________________________________________ X 3= 6
________________________________________________
X 1= 7
_ _____________________________________________ X 7= 0
__________________________________________ X 3=12
_______________________________________ X 1= 0
__ ___________________________________ X 7=21
____________________________________
X 3= 0
_________________________________
X 1= 6
66
2

2 7 0

0 3

0 6

Dividing 66 by 10 we get remainder of 6 and by subtracting 6 from

10 we get remainder 4 i.e. check digit. Check digit for first time to be
generated through computer and later form integral part of code

Code by End use

This means arranging code to correspond
purpose for which various items are eventually
used.
In a motor- car unit first division of materials
would be into production stores and nonproduction stores.
Further sub-divisions may be arranged in line
with somewhat as follows.

Code by End use

Production Engine, Body, transmission,
Stores
steering, suspension.
Engine: Ignition, valve gear, fuel system,
cylinder block, cylinder Head.
Valve GearIndividual items such as inlet
valve and exhaust valve etc.

Code scheme Common use items

We shall seldom come across with suppliers
O&M Spare Parts List which includes many
items which are not manufactured by them.
Such items are bearing, V-belts, oil seals, pipes
and pipe fittings, nut and bolts, electrical fuses,
relays, contactors, indicating lamps, bulbs etc.
and these are their Bought Out Items

Code scheme Common use items

These might have already been included in our
vocabulary in some other classification because
they are also in use for other purposes.
In these instances, it is advisable to indicate in
catalogue for equipment spares that these items
are Common User items and can be bought
more cheaply from the actual manufacturers
than from OEM, who himself has to treat them
as bought out parts.

Code scheme Common use items

By buying items from actual manufacturers,
lead- time also is drastically reduced and so are
inventory levels.
- In addition, if they are not so identified, same
will appear under several vocabulary No, will
be stocked separately and may have effect
of increasing stock-holdings unnecessarily `
involving duplicate locations in store house.
If a particular common item is used in many
types of equipment, advantage of bulk
purchasing can also be availed of.

Code scheme Common use items

If a particular common item is used in many
types of equipment, advantage of bulk
purchasing can also be availed of.
In beginning when consumption data are not
available, it is advisable to incorporate on the
stock cards the details of such equipments for
which the particular common item is required.

Code scheme Common use items

This information helps in materials planning. A

particular bearing may be used in 2 equipments
and another in 10 machines. Quantities to be
requisitioned may vary based on above
information.

Three Basic Stages of Scientific Codification

Three basic stages of scientific codification are:
Identification
Classification and
Codification
Identification: is the process of assigning correct
nomenclature to each item which must take into
consideration complete specification including
technical nomenclature. Identification system
shall be uniform for all items. Most commonly

Three Basic Stages of Scientific Codification

Used method is to begin the nomenclature with
Noun i. e. name of item, followed by distinguishing
(distinctive) features and ending dimensional
details for example:
A 20 mm DIA drill may be described as
Drill HSS, Taper Shank, 20mm DIA
standard length
A bolt may be described as Bolt Hex M. S.
(grade of MS) 1inch X 3 inches BSW

Three Basic Stages of Scientific Codification

A 200mm dia side and face cutter may be
described as
Cutter milling. Side and face, HSS 200mm
(OD), x 40mm (ID) x 25mm (thick)
Item is not a nose pliers- it is pliers nose, pliers
cutting etc.
Item is not a ring spanner- it is rather spanner ring,

Spanner box, spanner open jaw etc

Three Basic Stages of Scientific Codification

Classification- is arrangement of items into groups
according to a pre-determined pattern, governed
by the common features of the items held in
stock and likely to be added in future. Grouping
of stores item had to be organization specific i.e.
a grouping which good for X organization, may
not meet the requirement of Y organization.
- This may however be done on basis of
description, nature of items, sources of
purchase or function of the items etc

Three Basic Stages of Scientific Codification

Description classification: refers to grouping of
items of similar description irrespective of end
use, into one class.
- bearings are put under one class
- oil seals & O rings another category
- pipes and pipe fittings
Nature of materials: items are classified
according to nature such as raw materials,
machinery and equipment, consumables,
chemicals, fuel stock, furniture, packing material

Three Basic Stages of Scientific Codification

Codification: is allocation of specific code to items
within broader framework of selected system
- A codification system is usually tailor made to
satisfy specific needs of the organization.
-Usual approach is to employ general
principles of one of the standard systems &
design specific codes to suit need of
organization
However, codes should have following
characteristics.

Characteristics of a good coding system:

System shall be as simple as possible in its form
to make it user friendly.
There is one and only one place for an item in
catalogue i.e. each item should have one unique
identification code and there is no scope of
duplication
Avoidance of descriptive nomenclature.

Characteristics of a good coding system:

Unit of measurement is standardized & given
against each code
Apart from identifying and classifying all existing
items, it should have enough unassigned codes
to absorb from time to time items added in future
without necessitating any changes in already
assigned numbers or sequence of numbers.
- that is the system should be capable of
expansion

Characteristics of a good coding system:

If possible, in code catalogue, it may be
reflected against each item,
- whether it is stock/ non-stock item.
- If feasible it may further be added if it is
an Insurance or UR or consumable
spare.
Descriptions are brief but accurate.

Characteristics of a good coding system:

It should be suitable to method of processing
data, if machine processing is to be adopted,
use of letter should be avoided.
However if alpha-numerical system is adopted,
characters with similar appearance shall not be
used. Letters O, Z, S, I & V can be confused with
number Zero, 2, 5, 1 and U
Least possible number of digit should be used to
adequately describe each item.

Characteristics of a good coding system:

As far as possible, code itself should indicate
some of characteristics of the items i.e.
significant code system.
Codes shall be symmetrical i.e. number of digits
used are consistent or all the items in
catalogues
Codes as far possible shall be capable of being
easily detoxified i. e. user shall get maximum
information of item without referring to catalogue

Process of codification
Preparation of code catalogues:
Best system of coding, if not implemented
properly, may prove an utter failure. It is
necessary to study process of compilation of
catalogues. Following are brief out-lines of a
typical procedure to be followed:
Constituting of task force:
A task force is to be constituted which should
include those persons who have fairly good
knowledge of subject & are made responsible
for accomplishing the job. They may be from
Materials, O&M, System and MIS Groups.

Process of codification
Study of present system:
This task force needs to study current system of
identification and to record full particulars of this
system, visits all Store units & record offices.
It is advisable to collect copies of stock
verification sheets,
- Which apart from giving fairly large no. of
various items in use, shall ensure that all
items stocked presently are definitely
coded.

Process of codification
Consultation with other departments:
Other deptts viz. Finance, Purchasing, Stores,
O&M and Design etc. are consulted and with
them, it is agreed:
The general contents of catalogue
Type of coding system to be adopted i.e.
whether the coding system is based upon nature
of items or end use to which they are put or any
other system.

Process of codification
Broad classification and sub-classification to be
used.
System of numbering and number of digits.
Estimated dates for the preparation and ultimate
issue of each catalogue & process of switching
over to new code.

Process of codification
Preparation of originating sheets:
Task force prepares list of items in respect of
each classification from lists in hand which
include stock-taking sheets, catalogues of
suppliers, OEM part list etc.
All such items are listed in the sub-group giving
a description and quoting sizes & specifications.

Process of codification
No item numbers are allotted at this stage. Lists
are sent to stock holding units and user
departments and their comments are obtained in
the appropriate columns.
Stock holding units may suggest inclusion of
new items or removal of some of the items so
listed. Changes in specification may also be
recorded.

Process of codification
Compilation of data:
When all originating sheets are received back,
those are analyzed.
All items, which are apparently not required, are
removed.
- New items are added at appropriate places,
if necessary items are rearranged.

Process of codification
Once the final list is ready, the details are broken
into sub-sub-groups and start assigning code
numbers.
It is very laborious task.
- Effort should be made to restrict varieties of
items stocked by limiting size ranges,
- by eliminating alternatives and omitting
items, which are used occasionally.

Process of codification
Allocation of numbering is made in a way that
there is sufficient room for future expansion/
adjustments.
Items shall be arranged alphabetically, if sizes
are there, starting from the lowest size and
proceeding further.
Catalogues so prepared are sent for printing or
multiplication, depending upon requirement of
copies

Process of codification
While distributing copies, care to be taken to
ensure that complete sets are issued to only
those who really require them.
- Individual volumes are issued to various stock
holding groups. Record of distribution is kept
Amendments-additions:
During course of operation, some new items are
added in catalogue and amendments are issued
periodically, say quarterly.

Process of codification
If organization is new, there may be frequent
amendments, which may make it essential to
reprint Cats. taking care of all such
supplements.
As far as possible, changes should not be made
in Main Group unless these are absolutely
necessary.

thanks