Standardization & Codification

Presented by : Manoj kumar

StandardizationAccording to ISO “standardization is an activity

giving solution to repetitive application essentially in the sphere of science, technology and economics. Aim at the achievement of the optimum degree of order in a given context.

What to standardize?Usually starts with a core product as the

foundation.Various features are added, these may differ

according to the country market.Can also involve modular design, where various

features are packaged as modules, different assembly combinations in different markets.

100% standardization is rare.

How standard is standardize?Modular Approach

Mix and match common components (Ford)

Core-Product (Platform) ApproachUniform baseAttachments added to localize

Electrolux

Objective of StandardizationTo achieve maximum overall economy. This may

be in terms of cost, human effort, construction of essential material and judicious choice of raw material.

Reduction in materials cost, reduction of storage and inventory.

Indigenization and import substitutions.Improvement in quality.

Continued…Availability of standardized materials, reduction in

the cost of maintenance and services.Elimination of wastes and scrap.Achieving higher productivity and higher profit.

International

Regional

National

Sectoral

Company

Terminology

Technical Specifications

Sampling and control

Testing and analysing

Reduction of the variety

Grading

Codes of Good Practices

Electrical

Food industry

Agriculture

Forestry

Textile industry

Chemical products

Information Technology

Education and Training

Management

Product standards For product standards the benefits may

be broadly summarized under the headings variety reduction, interchangeability, and availability:

the effects of variety reduction are well known and can mostly be assessed in terms of hard cash, taking due account of the additional cost reduction effects on associated parts and operations;

interchangeability as a result of standardization leads to higher productivity and lower manufacturing costs. These benefits are relayed to the users as a result of increased competition. lnterchangeability is also very important to erection, installation, maintenance, and repairs;

easy availability implies that an adequate number of varieties are always in stock. This means shorter lead times and less capital tied up on the user side.

Criteria for International standardization

Improvement in universal technical communication and mutual understanding;

Facilitation of international exchange of goods and services;

Removal of technical barriers to trade;

Transfer of technology.

Continued… Uniform terminology is created

Sizes and dimensions are co-ordinated and adapted

Variety is reduced

Function requirements and characteristics are specified Unambiguous testing methods are established

Advantages of standardizationCost reductionImproved quality(reliability)Global customers(mobility)Synergy and Brand equityCentralized R & D

Drawbacks of standardizationLack of uniquenessVulnerability to Trade barriers(more barriers, less

standardization)Strong local competitors

DefinitionsCodification in an industry is the systematic concise

representation of equipment, raw materials, tools, spares, supplies etc.in an abbreviated form employing alphabets, numerals, colours, symbols etc.

BenefitsImportant factor in indenting, purchasing and issuing

activities.Wrong identification results in wrong purchases.Words description can be used but they are too

long,totally inadequate and Prone to errors.

• Accurate and logical identification.• Avoidance of Long and unweilding

description.• Prevention of duplication.• Product Simplification.• Efficient Purchasing.

• Minimizing of clerical work.• Efficient Purchasing.• Accurate ane reliable accounting and

recording.• Easier computerisation.• Better alternative selection• Simplifies Costing

Stages of Scientific CodificationIdentification – To know the type of material in detail

Classification – Description, Nature, Source or origin.

Codification – As per the requirement and the system

Special CharacteristicsSimpleBriefFlexibleUniqueLayout should be easy to handleSelf DecodingObjective Oriented

SpeedUnambiguitySaving of effortsSpace saving on forms Ease of classification, Mechanization

Characteristics of Codes

Code should be Simple.Code should be unique.Coding should be compact, concise and consistent.Code should be sufficiently flexible to meet future

demands

Objectives of Codification

Accurate and logical identification Prevention of duplicationStandardisation and reduction of varietiesEfficient purchasingEasy computerization

Basic SystemArbitrary systemNumerical System Mnemonic system or alpha numeric systemDecimal systemBrisch systemKodak system

Brisch SystemConcieved by Mr.E.G.Brisch with J.Gombinski.Divides all facets of organisation into number of main

categories according to nature of business.The first block gives major classification e.g packing,

raw materials etc.

Brisch SystemThe second block gives next level of classification

based on the type of materials.The third block gives the lowest level of classification

normally the specifications.

• Originated by Eastman Kodak Company.• Based on numerical system of codification

and combines all good other points.• The system employs ten digit codes.• The Materials are classified according to

Purchase categorisation rather than their nature.

• Divided into few broad classification called Basic Classification.

Kodak SystemThe basic classification is restricted to 100.Each class is then further divided into sub classes.Eg – 40(Cutting Tools)0(drills)Each sub class is again further sub dividedEg – 400-00

Colour CodingHere colours are used to identify the content.Generally is used for Pipelines, Rawmaterials,

lubricants etc.

AdvantagesProvides absolute clarity to the supplier as to what is

required by the buyer.Eleminates need to create company‘s specifications.Allows accurate comparison of quotes.Variety reductionAllows buying from more than one manufacturer.

AdvantagesReduces inspection and quality costs.Allows firm to enter into a running contract.Ensures interchangability of Parts.Routinises procurement efforts and reduces clerical

work.Reduces procurement lead time.

THANK

YOU……