“What do you call that thing, you know the one with 3 holes for the X50 Large model?” I have been hearing quite a bit of this kind of talk lately in many companies, either making products and even buying and selling products. It prompted me to write a little about how these kinds of questions/conversations waste so much time in small and medium size companies alike. The thing is that it is so easy to reduce time wasting and frustration with some simple coding structures that can be used across the organization. You dont need to have an ERP system or even use a central database to implement one (although it sure helps when you decide to implement a software system!).

Below is a simple structure I have been used at many of my clients’ companies for creating a Code ( call it an SKU, Part Number, Item number, Inventory Code, Stock Code or any other number of names).  A Code can be used as the key that enables easier barcoding and identification as well as linking to a specific description. By using a code that stays static, the description can be updated and changed without requiring relabelling for identification or creating new barcodes.

First, create a list of product groups ie: the types of components you buy, sell or make and then assign a code prefix to them as per the example below:

CODE       DESCRIPTIONMS            Mild SteelSS              Stainless SteelFAS          FastenersELE          Electrical ItemsHDW        Hardware ItemsTLG          ToolingPLU         Plumbing FittingsPKG         Packaging supplies

………………………

If need be you can add a sequential number to these codes to give each item a unique code, or if you want to expand the code use a similar structure to this one:

The first coding group signifies type of material – Refer to a master list of Group codes for details. Second  coding group picks up an abbreviation of the Grade or type of the product. Third coding group identifies the product by first size (if applicable) or as a consecutive identifier in the group. Fourth coding group identifies the product by second size (if applicable) or as a consecutive identifier in the group.

Grp 1        Grp 2            Grp 3        Grp 4                                         DescriptionMSS    -    HR250  -     06.00  -  1500-3000        Mild Steel Sheet, HR 250 Grade, 6 mm th , 1500 x 3000

FAS    -    SHCS      -      M10    –   40               Socket head cap screw,  M10,  40 MM LONG

ACS    -    CLR        -     03.00  -  2400-1200       Acrylic Sheet, Clear, 3mm, 2400 x 1200

EL       -    SW          -     30A     -  001              Switch, 30 Amp, Style No 1

Note : Dashs can be used between the group codes to enable easier identification.

So you could have a code such as the one below where a sequential number is used:

PLU-3500        Elbow, 90Deg, 50mm x 50mm

OR a full code using the groups:

PLU-ELB-90-50-50         Elbow, 90Deg, 50mm x 50mm

Either way, everyone in the organization can now identify, standardize and really start to improve productivity.

Need some more info/ideas? Email me at This e-mail address is being protected from spambots. You need JavaScript enabled to view it

Till my next post

Tim