The Objectives of Stores management play a vital role in the operations of company. It is in direct touch with the user departments in its day-to-day activities. The most important purpose served by the stores is to provide uninterrupted service to the manufacturing divisions. Further, stores are often equated directly with money, as money is locked up in the stores.
FUNCTIONS OF STORES
The functions of stores can be classified as follows:
It is one of the functions of stores management. Codification is a process of representing each item by a number, the digit of which indicates the group, the sub-group, the type and the dimension of the item. Many organizations in the public and private sectors, railways have their own system of codification, varying from eight to thirteen digits. The first two digits represents the major groups, such as raw materials, spare parts, sub-contracted items, hardware items, packing material, tools, oil, stationery etc. The next two digits indicate the sub-groups, such as, ferrous, non-ferrous etc. Dimensional characteristics of length, width, head diameter etc. constitute further three digits and the last digit is reserved for minor variations.
Whatever may be the basis, each code should uniquely represent one item. It should be simple and capable of being understood by all. Codification should be compact, concise, consistent and flexible enough to accommodate new items. The groupings should be logical, holding similar parts near to one another. Each digit must be significant enough to represent some characteristic of the item.
Objectives of Codification
The objectives of a rationalized material coding system are:
Advantages of Codification
As a result of rationalized codification, many firms have reduced the number of items. It enables systematic grouping of similar items and avoids confusion caused by long description of items since standardization of names is achieved through codification, it serves as the starting point of simplification and standardization. It helps in avoiding duplication of items and results in the minimization of the number of items, leading to accurate record. Codification enables easy recognition of an item in stores, thereby reducing clerical efforts to the minimum. If items are coded according to the sources, it is possible to bulk the items while ordering. To maximize the aforesaid advantages, it is necessary to develop the codes as concerned, namely, personnel from design, production, engineering, inspection, maintenance and materials.
Production and Operations Management Related Interview Questions
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Production And Operations Management Tutorial
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