•Within the range of ten numerals 0-9, some significance is attached to every digit in the code and whole range of items in stores can be codified.
•Generally 7 to 8 digits are found to be sufficient for all practical purposes but it may be extended up to 10 digits in order to accommodate any other characteristics of the material.
•As a first step, the entire range is classified under broad categories.
•Further, classification is done for type, size, grade, shape, conditions, etc.
•The first digit signifies the broad class, the second digit signifies the group, the third digit signifies the sub-group. fourth digit signifies the type, the fifth digit signifies the size, sixth digit signifies the grade, seventh digit signifies the shape, the eighth digit signifies the condition etc.
•Generally the primary classification should not be extended to more than 10 broad classes.
Materials Code Number Materials Code Number
Raw Materials including ferrous & non-ferrous metals 0 Electrical equipment, accessories and fittings 5
Steel sections-rolled, flat and square 1 Capital machinery including spares and parts 6
Casting and forgings 2 Jigs, tools and fixtures-production stores 7
Mechanical assemblies, sub-assemblies, components and accessories 3 Fuels, lubricants, chemicals and allied items 8
Work in progress, comprising of sub assemblies, components and semi finished goods. 4 Miscellaneous stores 10

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