Classification means systematic division, grouping or categorization of store’s material or items. It is the method and process of systematically defining and describing all items in stock. It includes preparation or store codes or vocabulary, the adoption of material specifications and the introduction of a degree of standardization. In a certain undertaking, part of this work must be done by design, planning or standards department.
Thus, classification may be defined as the process of dividing, arranging, describing of materials with different groups based on the nature, use or technical affinity.
Classification is division of materials into different groups used on similarities or technical affinity. In any factory, the assets can be broadly divided into capital equipment, tools, general stores and production materials (raw materials and finished components). By means of classification, each of these broad categories is sub-divided into smaller groups for convenience.
Functions of Stores Classification:
A well defined system of identification and classification will help in the proper performance of store keeping functions such as:
1. Inspection of material
2. Stock records
3. Stores accounting
4. Stock control
6. Inspection of materials
7. Receipt of materials
8. Issue or dispatch of materials