2. Standardization
According 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.
3. 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.
4. How standard is standardize?
Modular Approach
Mix and match common components (Ford)
Core-Product (Platform) Approach
Uniform base
Attachments added to localize
Electrolux
5. Objective of Standardization
To 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.
6. Continued…
Availability of standardized materials, reduction in
the cost of maintenance and services.
Elimination of wastes and scrap.
Achieving higher productivity and higher profit.
8. 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;
9. 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.
10. 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.
11. 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
12. Advantages of standardization
Cost reduction
Improved quality(reliability)
Global customers(mobility)
Synergy and Brand equity
Centralized R & D
13. Drawbacks of standardization
Lack of uniqueness
Vulnerability to Trade barriers(more barriers, less
standardization)
Strong local competitors
14.
15. Definitions
Codification 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.
16. Benefits
Important 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.
17. • Accurate and logical identification.
• Avoidance of Long and unweilding
description.
• Prevention of duplication.
• Product Simplification.
• Efficient Purchasing.
18. • Minimizing of clerical work.
• Efficient Purchasing.
• Accurate ane reliable accounting and
recording.
• Easier computerisation.
• Better alternative selection
• Simplifies Costing
19. Stages of Scientific
Codification
Identification – To know the type of material in detail
Classification – Description, Nature, Source or origin.
Codification – As per the requirement and the system
22. 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
23. Objectives of Codification
Accurate and logical identification
Prevention of duplication
Standardisation and reduction of varieties
Efficient purchasing
Easy computerization
25. Brisch System
Concieved 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.
26. Brisch System
The 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.
27. • 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.
28. Kodak System
The 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 divided
Eg – 400-00
29. Colour Coding
Here colours are used to identify the content.
Generally is used for Pipelines, Rawmaterials,
lubricants etc.
30. Advantages
Provides 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 reduction
Allows buying from more than one manufacturer.
31. Advantages
Reduces 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.
Brisch System
The Brisch system consist of seven digits applied in three stages. The items are grouped into suitable preliminary categories, such as assemblies, sub-assemblies,components and off the shelf items. After these preliminary categories, items are grouped within the respective class in order to bring similar items together. The Brisch system through it consists only of seven digits, is quite comprehensive as the basis is on logical major groupings.
Kodak System
The Kodak system consists of 10 digits of numerical code. The logic of major grouping is based on sources of supply. All materials are divided into 100 basic classifications, contributed only by procurement considerations. For instance, a bolt is listed as hardware item if this is listed in hardware catalogues and available with hardware suppliers. If this bolt is available as a part of the machine, it will be available under maintenance.