Page 40 - DMGT525_MATERIALS_MANAGEMENT

Unit 3: Codification and Standardization

3.6 Keywords Notes

Assembly: Assembly refers to the action of fitting together the component parts of a machine or
other object.

Codification: The process of detailing a new standard is known as codification.
Coding System: Coding system is the process or system of assigning codes, abbreviations or
labels to represent a letter, item or message.

Inventory Analysis: Inventory analysis is the technique for determining the optimum level of
inventory for a firm.
Inventory: Inventory is the entire stock of a business, including materials, components,
work-in-progress, and finished products.
Just-in-time: Just-in-time denotes a manufacturing system in which materials or components
are delivered immediately before they are required in order to minimize inventory costs.
Mass Customisation: A process whereby small lots of individualized parts or products are
produced is referred to as mass customisation.
Punched Cards: A card perforated according to a code, for controlling the operation of a machine,
used in voting machines and formerly in programming and entering data into computers is
known as a punched card.
Standardisation: Standardisation means to establish rules or principles, within a specified
business sector, as an acceptable way of doing business.

Variety Reduction: Variety reduction is the analysis of the range of products or components
manufactured by a company with a view to minimizing the variety of products, parts, materials
or processes.

3.7 Review Questions

1. What do you understand by codification? Give the various bases on which codification is
done.
2. Explain the characteristics of a good coding system.
3. Explain the different types of coding systems used in inventory management.
4. Briefly discuss the numerical cum alphabetical method of coding.
5. Define standardization.

6. Discuss the benefits of standardization.
7. Out of the three types of coding systems, which one, do you think, is the most efficient and
why?

8. How does codification and standardization reduce the complexity which is otherwise
observed in inventory management?
9. Differentiate between the numerical method and the numerical cum alphabetical method
of coding.
10. Write a short note on:
(a) Brevity

(b) Flexibility

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