Complete analysis of the ERP system module-material encoding (1)

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    • Complete analysis of the ERP system module-material encoding (1)
Complete analysis of the ERP system module-material encoding (1)

MaterialsCodeCode is used to represent materials. Each material has a unique code. The material code is equivalent to the person's ID card number. Material code is very important in enterprises with a wide range of materials. In ERP systems, material code is the basis for system operation. A material code has many attributes.

1. Function of material code

(1) improve the accuracy of materials. All material management tasks such as material collection, distribution, requisition, follow-up, inventory check, storage, storage, and accounting are checked through the material code. The material management is easier and the accuracy is high, if the material name is messy, it will not happen.
(2) improve material management efficiency. In material management, material codes are used to replace text records. Various material management transactions are simple and easy to handle, increasing efficiency.
(3) facilitate the management of ERP systems. All materials are numbered and processed by a computer system. retrieval, analysis, query, and computation are very convenient and efficient.
(4) reduce material inventory and costs. The material code is conducive to controlling the stock of materials, preventing dull waste, improving the efficiency of material activities, reducing the backlog of funds and reducing costs.
(5) prevent various material frauds. It is easy to track incoming and outgoing materials, and the materials are recorded correctly. The materials are stored in an orderly manner, which can reduce or prevent material fraud incidents.
(6) facilitate the collection of materials. Each type of material has a unique item number, which facilitates the collection and delivery of materials and reduces the error rate.

2. Considerations for creating material codes
(1) each material code can only define one unique component.
(2) no matter how small the difference is, different parts must have different material codes.
(3) If any component needs to be stored or a clear semi-finished product needs to be managed during the production process, it is necessary to define an independent material code.
(4) if parts need to be manufactured on the production line, do not transfer them to the warehouse for storage, and do not manage them independently during the production process, no new material code needs to be defined.
(5) a virtual item is a special, temporary, and virtual material code.
(6) establish the material code system within the company and stick to the material code system of the company.
(7) the material code outside the company should never be used as the material code within the company.
(8) Avoid using special symbols in the material code.
(9) do not use meaningful material code.

3. Meaningful material code and meaningless material Code
traditional material code uses meaningful coding methods. Many companies still think they need a meaningful coding system. Of course, if there are not too many material codes, meaningful material codes can help you remember them. In fact, in a factory, raw materials, parts, components, and many semi-finished products and finished products, tens of thousands or even hundreds of thousands. Even if so many pieces of material are meaningful, a comparison table is often required to decode these meaningful materials. Therefore, its value is not only small but also impractical. At present, the product's life cycle tends to be short-lived. To add new products, the original meaningful material Code may not be applicable. If you want to revise the code, the cost will be very huge. It is recommended that the material code be numbered sequentially. The material code is irrelevant to the specifications, properties, and features of the component. Its advantages are as follows:
(1) it is easy to manage without design.
(2) do not add any meaning to the material code.
(3) the code is independent of the description and category of the component.
(4) there will never be a lack of valid and available material code.
(5) It is easier to create and modify the directory for the technical documents of the material code.

4. Long or short material code

The shorter the material code, the better. There are several advantages:
(1) fewer errors may occur.
(2) Shorten the input time.
(3) It is easy to remember at a glance. A digital material code with no special meaning in order allows us to build the shortest number system.

5. Material code establishment principles

In general, the following principles can be observed when formulating material codes:
(1) Remove the meaning of the product from the material code.
(2) Place the meaning of the product in the description and classification code of the product.
(3) Use the minimum number of digits, the simpler the better.
(4) do not use special symbols in the material code.
(5) identify the new material code and establish a step-by-step control method.
(6) All materials should have the corresponding material code.
(7) The code should be regular during creation.
(8) There must be room for scalability, taking into account the future expansion of new products and new materials.
(9) Material numbers should be organized in order to facilitate query, input, and retrieval.
(10) Material numbers should also be easily remembered.

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