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VARUN VENUGOPALANMD SAJID
STORE MANAGEMENT & CODIFICATION
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Store Management: An Introduction
The term stores, storehouse, warehouse etc refer to the physical place be it a building or a room etc. where materials components, tools, equipment’s and other items are kept.
Stores management is concerned with ensuring that all the activities involved in storekeeping and stock control are carried out efficiently and economically by those employed in the Store.
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Function of Stores
Receive raw materials, components, tools, equipment’s and other items and account for them.
Provide adequate and proper storage and preservation to the various items.
Meet the demands of the consuming departments by proper issues and account for the consumption.
Minimize obsolescence, surplus and scrap through proper codification, preservation and handling.
Highlight stock accumulation, discrepancies and abnormal consumption and effect control measures.
Ensure good house keeping so that material handling, material preservation, stocking, receipt and issue can be done adequately.
Assist in verification and provide supporting information for effective purchase action.
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Relationship with other Departments
The Production DepartmentStores Department must ensure that all items, materials and tools, as well as spare parts for machinery, are always available for continuous, uninterrupted production. Stores might also have responsibility for quality control and for inspection.
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Relationship with other Department
The Sales DepartmentClose liaison is necessary between the Sales and Stores Departments. There is no value in Stores holding stocks of items which the Sales Department cannot sell or items which Stores does not have. An adequate information, based on forecasts of future sales and trends, is required to assist in planning orders, setting stock levels, allocating storage space, etc.
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Relationship with other Departments
The Purchasing DepartmentStores must keep Purchasing up to date with information about stock levels, whilst Stores relies on Purchasing to buy all the items and materials needed by the enterprise for its operations.
The Maintenance or Engineering DepartmentThis department relies on Stores to have available all the spare parts, tools, equipment and materials required for maintenance. In return it must supply full information to Stores of all long-term and short-term maintenance plans and the items which will be needed.
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Relationship with other Departments
The Accounts DepartmentThis department requires information from Stores about the value of stock held, about any damages or losses, about the receipt of items for which payment has to be made, and about stock issued for various operations, processes or contracts, etc.house
8Codification
It is one of the functions of stores management. 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.
Describes an item in short, thus avoiding long statement every time the need to describe the item arises.
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Objectives of Codification
Bringing all items together.Enable putting up of any future item in its proper place.Classify an item according to its characteristics.Give an unique code number to each item to avoid
duplication and ambiguity.Reveal excessive variety and promote standardization
and variety reduction.Establish a common language for the identification of an
item.Fix essential parameters for specifying an item.Specify item as per national and international standards.Enable data processing and analysis.
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Basis of codification
Who will be the user?To what use is the codification going to be
put?What kind/degree of mechanization will be
needed to use the codification system?
Codification by Group Classification
Based on ‘shape’ of items 1. Wire 2. Tubing 3. Rod 4. Bar 5. Sheet 6. strip
Methods of coding of materials
Alphabetical method Numerical method Alphabetical-cum-Numerical method
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Alphabetical method
In this method first alphabet letters are used for codification of each category of materials. For example, steel wire is coded as SW or steam coal is coded as SC etc.
Alphabetical-cum-Numerical method
In this method, a combination of these two methods is used for coding of materials. For example, a steel wire of gauge 4mm quality A stored in rack/bin No.22, is given the code number SW4A/22. Such a method gives exact information than any of the above two methods.
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Numerical method
This method is used where materials accounting is to be mechanized by use of punched cards or computers. For numerical coding a list is prepared for various departments and allotting to each of them a suitable number. The first two digits of the code number represent the department for which the materials are meant and other two digits state the name of material as mentioned in the standard list or materials manual. For example, if code is 2341 it means Material No.41 [copper wire] is to be used in Department No.23.
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Codification of Raw-Material
Raw-Material
1 9 99 99
Generic Groupe.g. Magnesite, Alumina
Sub-Generic Groupe.g.Fused Mag, Fire clay
Running Serial No.e.g. 01
Codification of Generic Item
Item Typee.g. Stores
2 99 99 999
Generic Group (00-70)e.g. Bearing, Switchgear
Sub-Generic Groupe.g. Ball Bearing
Running Serial No.e.g. 201
Codification of Drawing/ Part No. Item
Item Typee.g. Stores, Service
2 99 99 999
Generic Group (80-98)e.g. Casting, Fabricated
Sub-Generic Groupe.g. Equipment Code
Running Serial No.e.g. 001
Codification of Capital Equipment
Item Typee.g. Stores
2 99 99 999
Generic Group (99)e.g. Capital Equipment
Equipment Classe.g. Mixer, Press
Running Serial No.e.g. 001
Codification of Service Items
Service Item
3 9 99 999
Type of Servicee.g.Transportation, AMC
Sub-Groupe.g. Truck Load, Trailor
Running Serial No.e.g. 001
Codification of Secondary Products
Secondary Products
4 9 99 99
Major Group Mining Pdt, Metal Scrap
Sub-Groupe.g. Clay, Ferrous Scrap
Running Serial No.e.g. 01
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Advantages of Codification
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
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