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1st 2nd 3rd 4th 5th 6th

2 Stock
3 Non Stock 01 Pipe 4 Digit
4 Free Issue 02 Flanges Progressive
03 Valves
04 Wrought Fitting
05 Threaded Fitting 0001 to 9999
1 Raw Material
2 Finished Product 06 Forged Fitting
3 Semi-Finished Products 07 Strainers
4 Spare Parts 08 Special Fittings
5 Tools 09 Stud Bolts
6 Consumables 10

01 Architectural Items
02 Structural Items
03 Electrical Items
04 Instr. Items
05 Piping Items
06 Plumping Items
07 HVAC Items
08 Fire Fighting Items
09 Painting
10 Assembly
01 Carbon Steel
11 Non Categorized
02 Stainless Steel
03 Inconel
04 Duplex Steel
05 Special Alloy

Pipe Seamless SA106 Gr.B PE Sch 120 NACE ASME B36.10 Size: 8'' x 6 mtr. MTC

Code as per existing system- 3/80/20/000/2499 (Nonstock/Process Fitting/Mild Steel/”No Relevant Information”/Serial Number)

Code as per proposed system- 3/1/05/01/01/0001 (Non Stock/Raw Material/Piping Item/Pipe/Carbon Steel/ Serial Number)

Pros and Cons of implementing new system

Pros Cons
Simple and Unique coding philosophy Requires Time and effort to create new codes
Code contains relevant information
Codes can be directly linked with item description creator
As you can see in the above example, existing code doesn’t give you enough details about the material.
The only information you are getting is “Mild steel Non stock Process fitting”.
While in the new coding says “Raw material Carbon steel Non stock pipe”
Some categories of codes are reaching the maximum limit.
Such as “38020000”, we have around 3328 codes now and still counting.
This will not happen with the new coding philosophy, as there is finer categorization of codes.