CLASSIFICATION AND

CODIFICATION OF MATERIALS
OF CONSTRUCTION
MODULE 2

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Classification of
Materials

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• Classification is the systematic division, grouping,
or categorization of materials or items based on
some common characteristic.
• Classification of materials can be performed on
different bases (e.g., nature, manufacturing
process, value, and purpose). To identify materials
that are purchased and stored for commercial
purposes, they should be properly classified.
• The department in charge of storage should closely
study and monitor the materials, ensuring their
safe custody, meticulous handling, and protection
from damage, fire, pilferage, and spoilage.
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A broad classification of materials is shown below,
based on their nature, use, and service.
• Raw Materials
• Consumable Stores
• Machinery and Plant
• Factory and Office Equipment
• Inflammable Stores
• Chemicals
• Furniture and Fixtures
• Scrap Materials
• Packaging Materials
• General Stores
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 Advantages of Classification of
Materials
Classifying the items that a business holds in its
stores leads to many advantages. These include:
1. Helpful in Grouping of Stores Items: Classification
helps to group different items in the store. Items that
fall under a particular category can be stored in one
location, ensuring optimal use of storage space.
2. Easy Location: Proper classification of stores items
helps in the easy identification of the various items.
Storekeepers can easily find materials whenever they
are required in the production departments.
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3. Proper Accounting: Record-keeping processes
are easier when items are properly classified.
Furthermore, simplified record-keeping ensures
accuracy in posting receipts and issues in the stores
records.
4. Proper Care: By classifying items based on value,
storekeepers can ascertain their relative
importance. Accordingly, a suitable degree of
supervision and control can be exercised that is
proportional to the value of each item.

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5. Avoidance of Duplication: Proper
classification helps to avoid the possibility of
duplicate stock items and materials.

6. Standardization: Classification helps to

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Codification of
Materials

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• After classifying and grouping the various
items in an organization’s stores, it is useful to
codify them.
• Codification is the process of assigning a
number or symbol to each store item, along
with a name, in order to make it easy and
convenient to identify.
• The codification of store items thus leads to
time-saving and labor efficiencies.
• Different kinds of store codes are used today.
Most have been specially designed to suit the
requirements of a particular organization.
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• These codes may be based on the nature of stock
items, the purpose for which the items are used,
or on any other basis that is viewed as suitable
according to the local circumstances.
• Also, the accurate identification of the materials
may require a lengthy description. This can be
complicated and, hence, may add to the
confusion.
• Codification is necessary because it involves the
assignment of logical and systematic numbers or
alphabets (or both) to help in the simple but
accurate identification of the materials.

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 Advantages of Codification
• The main advantages of codification include:
• Avoidance of long and unwieldy descriptions
• Accurate and logical identification of items
• Avoidance of duplication
• Standardization of purchasing and storage
• Reduction of variety
• Effective planning and high-quality production

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The use of codification also leads to efficiencies
in the following areas:
• Purchasing
• Recording
• Accounting
• Computerizing pricing
• Costing
• Indexing
• Inspection
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Systems of Codification

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 Alphabetical System
• In the alphabetical codification system,
alphabetical codes rather than numerical codes
are applied to items.
• Each item in the storehouse is first classified and
grouped based on its nature, use, and other
factors. In turn, the items are analyzed to create a
unique and descriptive alphabetical identifier.
• For example, under an alphabetical codification
system, iron ore may be assigned the code IN-O,
whereas iron bars may be assigned the code IN-
BA.
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 Numerical System
• In a numerical system, the codes assigned to
materials are numerical. Numbers are allotted
as codes, which is useful for future expansion.
• For example, iron ore may receive the code of
05—10 and iron bars may have 11—67.

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 Combined Alphabetical and
Numerical System
• Hybrid systems exist that combine all three of
the above. Codes in a hybrid system may look
like IN–05.10 (e.g., for iron ore) and IN-11.6
(e.g., for iron bars), and so on.

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 Decimal System
• Codes in a decimal system consist of numbers,
but instead of dashes in between two
numbers, decimals (i.e., periods or full stops)
are placed.
• This makes the codes more flexible and makes
future expansion a straightforward affair. For
example, iron may be assigned the code
11.67.02 and iron bars may have 11.67.03.

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 Bins
• A bin is a compartment or a separated portion of
a cabinet or pigeon-hole used to store a specific
material.
• A bin card is used to show, at a glance, the quality
and quantity of the materials stored inside. It
functions as a materials movement record and as
a replenishment index.
• A bin card is a brief version of the stock ledger
pertaining to an item. It serves the purpose of a
ready-reckoner for the binned item. As such, it is
a kind of mirror for the bin.

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 Racks
• A rack is a fixed or movable frame of either
wood or metal bars.
• Racks are used to keep materials inside a
store. They are just like almirahs, whether
open or closed. Racks are mostly used to hold
general store items, and they are in common
use.
• Racks are commonly applied to store tubes,
bars, sheets, plates, cables, drums, and other
items. Other racks may also be specially
designed.
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