Codification

There are many benefits to be realised from a robust codification system.

It is important to realise that codification has a direct impact on most activities in an organisation. In the maintenance case spares accuracy, activity reporting, fault reporting, and error costs are directly affected by having accurate codification. A similar explanation could be presented for administrative applications.

Benefits of Codification

Good codification usually results in quick value added service improvement and return on investment
Accurate delivery of products and services (includes internal and external transactions)
Integrity in the goods acceptance, installation, support, and operations processes (e.g.linking quality, purchase orders, maintenance, plant integrity)
Efficient linkages between different users of codification information (e.g. suppliers, maintenance, stores and financial personnel)
Reduced losses due to errors caused by codification and catalogue inaccuracies
Cost control and reporting for management and taxation purposes

If a business makes 5 errors per day due to codification issues and the cost of each error recovery is $100, the estimated annual cost of codification errors is $240 000.

But, this is usually a hidden cost, so you don't know what it costs you.

If you are looking for cost reductions, then a close look at your codification processes could result in significant savings.

We will codify almost any product, service or data element. For more information about codification services, please contact me.

We provide the following codification services using available standards where applicable, such as UNSPSC, for industrial or commercial type organisations, irrespective of size:

Our Codification Services

Strategy development
Policy development
Process development
Process review
Classification tasks
Codification tasks
Catalogue development
Standard Vocabularies
ISO 14224 Alignment