When there are numerous items handled by an organization, their planning and coordination becomes extremely. Difficult, if not impossible, if each one of them is handled separately. Classification of materials involves grouping of items according to some criteria. We are quite familiar with classifying our domestic articles into clothes, kitchenware, electric appliances, electronic gadgets, furniture, professional articles, entertainment articles, groceries, consumables, non-consumables etc. It is easy to see that an item may belong to more than one class depending on the criteria used. For example, a radio set is an electronic gadget as well as a non-consumable and entertainment article.
What is the purpose of classification? Following are the major objectives of classification:
- To devise procedures of planning and control for materials in a class
- To devise purchase procedures, inspection methods, and storing and issuing procedures, common to all materials in a class
- To devise accounting and evaluation procedures common to all materials in a class
Obviously; the concentration of effort according to class system would be more efficient and effective as compared to diluted effort corresponding to each individual item.
Following are the major classification systems.
On the Basis of Nature of Materials
Raw Materials: Raw materials include all those materials which are purchased from the original producer or other manufacturers and are used directly in producing. The firm’s product For example, cotton and yarn are raw materials for cotton textile mills for they help in producing the final product-cloth. Cotton is purchased from the original producer, i.e., cotton grower, whereas yarn is procured from other manufacturers, i.e., spinners. The product in one trade may become the raw material for the other trade.
Machinery and Equipment: All the machinery, both power and hand-driven, such as, presses, lathe machines, typewriters, electric motors, fans, and other machines used in the production and other departments, is classified as such. Tools also come under this category, and they are issued on loan basis to the various departments for a definite period, generally till their life-time.
Consumable Items: Those materials used in the manufacturing process which cannot be used for the second time for the same purpose since their utility for the purpose in question has ceased and the shape changed are referred to as consumable items. Coal, coke, mineral oil, lubricants, cotton waste, paints, varnishes, oxygen, stationery items like pencil, paper, carbon papers, ink, etc., are a few examples of the consumable items.
Chemicals: Substances obtained after undergoing certain processes in chemistry according to a formula devised for the purpose may be known as chemicals. They should be stored, preserved and issued very cautiously after a careful scrutiny and proper analysis since their use involves risk even to life. Items like carbide, acids, etc., can be classified under the head.
Inflammable Items: Items highly susceptible to fire, such as petrol, kerosene, films, dopes and paints, fall under the category. Due to their hazardous nature, they are generally stored as far away as possible from the main building with complete fire-fighting arrangements standing by
Fuel Stock: These are also consumable items. But there is a slight difference between the two in respect of their uses. When an item is directly used for production and is a fuel for the furnace, oven, etc., it is classed as fuel stock. It is a necessary item for completing, rather starting, the manufacturing process and of course one of the important items in a manufacturing unit, but it can never constitute the finished product. However, sometimes it may rightly be taken as a raw material. Coal is a fuel stock but is also a raw material for an iron and steel industry.
Furniture: Movable contents of a house or a room like chairs, tables, almirahs, benches, stools, etc., are furniture items. Their repairs, renewals and replacements also require proper maintenance of records since they are issued temporarily on loan basis.
Scrap Materials: On the expiry of life of a particular item, the residue is called the scrap. Such material as is left over as waste in the process of production is also known as scrap. The scrap is sold out in the market so as to fetch some value out of it. Kabadis are the best purchasers of scrap in this country.
Packaging Materials: These include all kinds of wrapping materials, such as paper wood carvings, sawdust, straw, etc., Containers like boxes, crates, drums and bottles, protective coatings, such as, wax, grease, as also plastic cans, bags, etc.
General Items: This category includes all those items which do not fall under any of the above categories of items. In a large undertaking, general stores section is separated from other stores under an independent in charge since they cover a large number of items,. Which, although not directly linked with the production processes, are required for day-to-day smooth and efficient running of the enterprise? Cleaning materials like soap, brooms, and uniforms for the staff, stationery and all other items of general use are handled in the general stores department.
On the Basis of Usability of Materials
Serviceable, Unserviceable and Obsolete Items: Serviceable items are those items which go temporarily out of order. After repairing and replacement they may become serviceable again and their usable life may thus be extended for some more time. Unserviceable items are those items which have outlived their life. No amount of repairs, renewals or replacements can bring them back to their usable life. They are thus fit only for disposal as scrap. Obsolete items are those items which have gone out of date because of new inventions in design, use, etc., and which cannot profitably be used again.
Finished and Semi-finished Items: Finished items are those goods which have been manufactured in complete form by the production department and are ready for sale. On the other hand, semi-finished items are those which have not yet been manufactured completely and need some further processing before they can be put to sale in the market. They are thus taken back by the production department for turning them into a final product.
Dead Stock Items: This term is generally used in government departments. Furniture, equipments, machinery and other items which have some definite life and which cannot be written off before the expiry dates of their life are classed as dead stock items. They are issued temporarily on loan basis to their users.
Unused Items: These are not stock items in the real sense of the term. These cannot be used in the production unit, because, being defective, damaged beyond use, or because of some other reason they have been rendered unusable. Sometimes unused stocks are mistaken for scrap and unserviceable materials. But this is not the real position. Scraps are generally left out items from the production unit. They cannot be used, as either they are less in quantity or less in measurement, weight, etc. But unserviceable items are movable items which have been rendered unserviceable by constant use and are now beyond repair.
Classify all the items used in the house on the basis of nature of materials and on the basis of the usability. How many groups do you find? Regroup them if possible.
