Material coding problems

I. Introduction

Material coding for the manufacturing industry, is a very professional and difficult work, many companies have repeated three / five times to modify the coding principles of materials, still believe that the company uses the material coding technology has many problems or difficulties, but it seems to be unable to find a better solution. In particular, the coding rules are easy to set, but set a good or bad, but will affect the operating efficiency of the company as a whole, because the material number as long as the booking of a time, but once the material number after the booking, every day the company's R & D, manufacturing, sales, production management, quality control, procurement, quality control, warehousing, manufacturing, outsourcing, cost, after-sales service, import and export ...... And other departments of dozens, hundreds, thousands or tens of thousands of employees, are to use this material number to work, the impact of this level of business performance is very significant.

Once the material code is wrong, the subsequent modification is quite difficult, so the material code is equivalent to the foundation of the building, the beginning should be sure to be correct, or should spend more time on it. Material coding is correct/successful or not, is the whole PDM/ERP information technology cornerstone.

In order to assist many in the material coding on the troubled enterprises to find a solution, I based on years of experience in counseling business management and enterprise information technology, I hope to help customers from the root of the material coding problem.

Second, how to determine the material numbering rules set reasonable or not

In the compilation of material numbering, must first think about the following key issues:

1, high efficiency:

Since the material coding is almost every department within the enterprise each day's work of each person to deal with countless times of matters, how to allow each user to quickly and efficiently query, enter the material code.

2, easy to learn:

An enterprise's employees will continue to flow in and out, the larger the enterprise, the number of personnel flow in and out of course will be more, how to make new employees in the shortest possible time to fully grasp the situation, will be able to avoid personnel because of the work of the handover of the losses caused by the mistakes. If you can let the new staff to reduce the memory of the matter, so that the learning curve is shortened, but also be able to do a good job, this material coding principles will be a better and reasonable management system.

3, expandability (growth):

The scale of an enterprise can continue to grow and expand, not only in the number of people on the growth and expansion, the factory will expand to increase the number of business offices or offices will expand to increase the number of subsidiaries will expand to increase the number of products will expand to increase the number of business units will expand to increase the number of companies across the country's investment will expand to increase, when a manufacturing industry, the material coding planner, the material coding planner, the material coding planner, the material coding planner, the material coding planner, the material coding planner, the material coding planner will be a better and reasonable management system. material coding planners, it is necessary to do for the company's long-term expansion and development of thinking, how to develop in the enterprise like Philips or Kiwi (GE) the size of the time, your material coding principles are still an effective coding system.

4, clarity:

Material coding principles must be set very rigorous, to avoid unclear coding rules, for example, there are many companies in the coding rules set a: "other classes", this unclear coding principles will create a lot of future work on the trouble. Another example: "packaging class", which is also a vague unclear coding rules, in the end is the carton, partition, Polycarbonate, plastic bags, roll labeling, manuals, warranties, internal labeling, origin labeling, pallets, wooden boxes ......, etc., should be a clear distinction between the definition out of the Coding principles. After all, cartons and roll labeling must have different coding rules, should not be merged in the same big classification.

5, analyzable:

Material coding is not only in the daily work of each department will be used, but also must be in charge of high-level and middle-ranking managers by the analysis of the management system to apply. Including: BY product category, BY machine type (model or Model No), BY application, BY material category, BY origin, BY product family ...... and so on. How to plan the material number coding rules, as well as the data structure of the basic information of the material, is indeed a very important study.

Third, the definition of materials and the scope of inclusion

The so-called materials, including: raw materials, indirect materials, finished products, semi-finished products, commodities, maintenance parts and components ...... used in the direct input product manufacturing, or indirectly auxiliary manufacturing, or for the business sector to sell products, or for the factory machine maintenance purposes. Materials that are used directly in the production of products, or indirectly in support of production, or in the sale of products by the sales department, or in the maintenance of machines in the factory ...... In addition to the above material items, an industry will be used: drawing number, fixed assets, molds, tools, jigs, fixtures, stencils ...... and so on, will also involve the issue of coding, the coding of the planning principles are the same or similar, we are here for the first time for the production of all the company's operations on the definition of the materials used to be explained as follows:


1, raw materials: refers to the purchase of goods from the material manufacturers, and must be put into the workshop (production line) after processing and manufacturing, in order to produce another product, and then can be sold for the original goods. For example: the textile industry to use the yarn, injection molding industry to use the ABS plastic, the electronics industry to use the IC semiconductor, the chemical industry to use the nitric acid ...... and so on.

2, indirect materials: refers to the purchase of goods from the material manufacturers, but indirectly used for manufacturing purposes, or because of its cost price is too small, in the manufacturing cost can not / do not need to express the goods. For example: gloves, bags, stain remover, lubricating oil ......, and so on.

3, finished products: by the company's own factory, or by outsourcing the completion of the final product, the finished product for sale.

4, semi-finished products: by the company's own factory, or by outsourcing the processing of production of unfinished goods, can be reclaimed through production, or outsourcing the use of operations, continue to carry out production and processing of goods.

5, commodities: directly to the supplier to order, do not need to go through the production process, you can sell the goods directly.

6, commissioned products: customers because of commissioned processing and provide materials into the factory, because these materials are not raw materials purchased by the company, must be separately coded control.

7, maintenance parts: for the maintenance or repair of machinery and equipment, plant facilities and the use of spare parts, or spare parts, rather than for direct production of material items.

8, fixed assets materials: in the requisition / purchase / acceptance process, has not been compiled before the fixed asset number, fixed assets materials need to be coded? And how to code?

9, the cost of materials: daily in the company or factory will be used, or consumed materials, belonging to the cost of the project, is there a need to code? And how to code?

9.