Material Identification & Codification

Definition

Material identification is the process of establishing the exact identity and characteristics of a material using its description, technical specification, size, grade, make, model, part number, UOM and other relevant attributes.

Material codification is the systematic assignment of a unique item code to each approved material identity so that the item can be consistently recognized, transacted, purchased, stored, issued, planned and reported throughout the organization.

A good coding system ensures that the same physical requirement does not unnecessarily appear as multiple inventory items under different names, while genuinely different materials remain separately identifiable.

Master-data principle Identify → Standardize → Verify → Classify → Code → Approve → Transact → Review

Objectives

Create one reliable identity for each material.
Prevent duplicate and ambiguous item creation.
Standardize descriptions and technical specifications.
Improve material search and retrieval.
Support accurate purchasing and supplier communication.
Improve inventory visibility and stock control.
Support MRP, Min-Max, ROP, ABC, FSN, VED and other analyses.
Improve physical identification inside Stores.
Maintain accurate ERP material master records.
Improve traceability from purchase through consumption.
Support inventory rationalization and standardization.
Reduce wrong purchases, duplicate stock and obsolete inventory.

Scope

Material identification and codification may cover raw materials, consumables, MRO spares, mechanical items, electrical items, instrumentation items, lubricants, chemicals, packing materials, safety items, tools, office and maintenance supplies, engineering items, capital spares and other controlled inventory.

Why Correct Identification Matters

Problem	Operational Effect	Management Risk
Duplicate item codes	Same material appears as multiple SKUs	Excess inventory and fragmented demand
Incomplete description	Buyer cannot clearly identify requirement	Wrong purchase or repeated clarification
Incorrect UOM	Purchase and issue quantities become inconsistent	Quantity and valuation errors
Missing specification	Technically unsuitable material may be supplied	Quality and equipment risk
Manufacturer-only description	Equivalent alternatives become difficult to identify	Supplier dependency
Uncontrolled item creation	Item master grows unnecessarily	Poor inventory visibility

Material Identity Structure

A professional item identity should contain enough information to distinguish one material from another without depending unnecessarily on a particular supplier.

Attribute	Typical Information	Example
Item Code	Unique organizational identifier	MECH-BRG-6205-2RS
Generic Description	Standard material name	Ball Bearing
Size	Dimensions or rating	25 × 52 × 15 mm
Type	Design or construction	Deep Groove
Grade / Material	Material or quality grade	Chrome Steel
Specification	Applicable technical standard	ISO / DIN / ASTM etc.
Make / Manufacturer	Approved make where required	SKF / FAG / equivalent
Part Number	OEM or manufacturer reference	6205-2RS
UOM	Controlled unit of measure	Nos

Standard Description Methodology

A standard description should normally move from the generic material identity toward the attributes that distinguish the item. The exact sequence should be standardized by the organization and applied consistently within each material family.

Generic Name → Type → Size → Grade / Material → Standard → Rating → Make / Part No. → Other Critical Attribute

For example, instead of maintaining several inconsistent descriptions such as “Bearing 6205”, “SKF Bearing”, “Ball Bearing” and “6205 Bearing”, a controlled description can be structured around the material identity and then supported by manufacturer information where necessary.

Description rule: The description should be sufficiently complete for a competent Stores, Purchase, Engineering or Maintenance professional to identify the item without depending on informal memory.

Generic Description vs Manufacturer Description

Approach	Example	Use
Generic identity	Bearing, Deep Groove, 6205, 25×52×15 mm, 2RS	Preferred for general inventory identity
Manufacturer attribute	SKF 6205-2RS	Use where make or OEM identity is technically important
Part number	OEM P/N ABC-12345	Essential for proprietary components

Codification Systems

Different organizations use different coding philosophies. The correct choice depends on the number of items, ERP capability, organizational structure, future expansion and master-data governance.

System	Description	Typical Characteristic
Sequential	Unique numbers assigned in sequence	Simple and scalable
Significant	Code contains meaningful classification information	Human-readable but requires governance
Non-significant	Code has no inherent meaning	Stable and less prone to redesign
Hybrid	Controlled family prefix plus unique identifier	Common practical approach

Example of a Practical Coding Structure

MECH-BRG-6205-2RS

Segment	Meaning
MECH	Material family / discipline
BRG	Material class
6205	Size / model identifier
2RS	Seal / configuration attribute

Such a structure is only an example. An organization should avoid making the item code unnecessarily long or dependent on attributes that may change frequently. The coding philosophy should be defined as a formal master-data standard.

Material Classification Hierarchy

Before assigning codes, materials should normally be organized into a logical classification hierarchy.

Department → Material Group → Material Class → Item → Technical Attributes

Level	Example
Department	Mechanical
Material Group	Bearings
Material Class	Deep Groove Ball Bearings
Item	6205-2RS
Attributes	25×52×15 mm, sealed, chrome steel

Item Creation Workflow

Receive the new material requirement or item-creation request.
Check whether an equivalent or identical item already exists.
Search the existing item master using description, specification, part number, manufacturer and keywords.
Obtain complete technical information from the requesting function.
Standardize the description and attributes.
Determine the correct material group and classification.
Select or generate the unique item code.
Define UOM and conversion factors where applicable.
Record manufacturer and OEM part number where required.
Check duplicate risk again before approval.
Obtain authorization according to the item-master approval matrix.
Create or release the item in ERP.
Communicate the approved identity to Stores, Purchase, Planning and the requesting department.

Duplicate Item Prevention

Duplicate prevention is one of the most important controls in material master management. A duplicate item can split consumption history, increase stockholding and distort planning parameters.

Before creating a new item, search using multiple combinations rather than only an exact description.

Generic material name
Technical specification
Size and rating
Manufacturer part number
OEM part number
Previous purchase description
Manufacturer name
Existing item code
Alternate terminology and common abbreviations

Duplicate-control rule: Never create a new item merely because the requester uses a different description. First establish whether the technical identity is actually different.

UOM Management

The Unit of Measure must represent how the material is purchased, stored, issued and reported. Where purchase and stock units differ, controlled conversion factors should be maintained.

Material	Possible Stock UOM	Important Control
Bearings	Nos	One physical bearing = one stock unit
Lubricant	Litre / Kg	Density and packaging conversion where relevant
Fasteners	Nos / Box	Controlled box quantity
Steel plate	Kg / Nos	Dimension and weight basis must be clear
Cable	Metre	Length conversion and cutting control

Critical Technical Attributes

The required attributes depend on the material family. A coding system should not force every material into the same attribute structure.

Material Family	Typical Attributes
Bearings	Bearing type, bore, outside diameter, width, seal, clearance, make
Motors	Power, voltage, frequency, RPM, frame, mounting, enclosure, efficiency
Valves	Type, size, pressure class, body material, end connection, trim
Cables	Conductor size, cores, insulation, voltage grade, construction
Fasteners	Type, diameter, length, thread, grade, finish
Lubricants	Product type, viscosity, grade, application, pack size
Chemicals	Concentration, grade, composition, pack size, applicable standard

Manufacturer and OEM Part Number Control

Manufacturer and OEM references are important identifiers but should be used appropriately. A manufacturer part number may identify a specific component, while the generic material identity determines whether an equivalent item can be considered.

For critical proprietary equipment, the OEM part number may be essential. For standard industrial items, the organization may permit technically approved equivalents subject to engineering and procurement policy.

Standardization and Rationalization

Material master management should not stop after creating item codes. Existing items should periodically be reviewed for opportunities to standardize equivalent materials and eliminate unnecessary variety.

Identify duplicate or near-duplicate descriptions.
Compare technical specifications.
Identify interchangeable or approved equivalent items.
Review different manufacturers for the same requirement.
Identify unnecessary sizes, grades or specifications.
Consolidate demand where technically justified.
Control obsolete items separately rather than deleting historical records.

ERP Material Master Fields

Field	Purpose
Item / Material Code	Unique transaction identity
Description	Standard material identification
Material Group	Classification and reporting
UOM	Quantity control
Manufacturer	Approved source identification
Part Number	OEM / manufacturer traceability
Specification	Technical identity
ABC / FSN / VED	Inventory control segmentation
Lead Time	Planning and replenishment
Min / Max / ROP	Inventory control parameters
Criticality	Service-risk control
Valuation Data	Inventory and financial reporting

Master Data Governance

Material master data should have clear ownership. The person creating the item should not necessarily be the only person responsible for technical validation, approval and ongoing governance.

Function	Typical Responsibility
Requesting Department	Define business requirement and technical need
Engineering / Technical	Validate specification and interchangeability
Stores / Materials	Identification, classification and inventory implications
Purchase	Supplier and commercial implications
ERP / Master Data	System creation and field governance
Approving Authority	Authorize creation, modification or blocking

Decision Rules

One technical identity should normally have one controlled item identity.
Do not create duplicates merely because the supplier or requester is different.
Do not change an existing item's technical identity without controlled review.
Use standard abbreviations and descriptions.
Do not encode temporary or frequently changing information into permanent item codes.
Maintain historical transaction integrity when an item becomes obsolete.
Use approved equivalent-item relationships where technically justified.
Review critical master-data changes through defined authorization.

Common Errors

Creating an item without checking the existing master.
Using supplier names as the complete material identity.
Using incomplete descriptions such as “Bearing”, “Bolt” or “Oil”.
Mixing dimensions and specifications inconsistently.
Using multiple UOMs without controlled conversion.
Creating separate items for the same material because of different suppliers.
Allowing free-text item descriptions.
Failing to maintain manufacturer part numbers.
Changing descriptions without considering historical reporting.
Allowing uncontrolled manual item creation in ERP.

Professional Item-Master Checklist

Check	Question
Identity	Can the material be uniquely identified?
Duplicate	Has the existing master been searched thoroughly?
Description	Is the description complete and standardized?
Specification	Are all critical technical attributes available?
UOM	Is the stock UOM correct and controlled?
Classification	Is the material group correct?
Manufacturer	Is the make / OEM information required and recorded?
Part Number	Is the manufacturer or OEM part number available where applicable?
Planning	Can the item be correctly classified for inventory planning?
Approval	Has the item passed the required authorization?

Excel / MIS Application

A practical item-master control sheet can contain the following fields:

A duplicate-review workbook can additionally compare standardized description, specification, manufacturer, part number, size, UOM and other technical attributes before an item is approved.

Key KPIs

Duplicate Item Rate

Number of duplicate or near-duplicate items identified relative to the reviewed item population.

Master Data Accuracy

Percentage of reviewed item records meeting defined master-data standards.

New Item Cycle Time

Time from approved item request to controlled ERP availability.

Standardization Rate

Extent to which technically equivalent materials have been standardized.

Industrial Application

In an MRO environment, a single equipment item may generate hundreds of material records over its life. Bearings, seals, belts, motors, valves, electrical components, instruments, lubricants and fasteners can easily develop inconsistent descriptions when item-master governance is weak.

A disciplined identification and codification system allows Stores, Purchase, Maintenance, Engineering and Planning to work from the same material identity. This improves historical consumption analysis, supplier comparison, replenishment planning, inventory rationalization and material availability decisions.

Professional practice: Codification is not merely assigning a number. The real objective is to create a reliable material identity that remains technically meaningful, searchable, transactionally controlled and useful for planning and management decisions throughout the material lifecycle.