Part II: Organizational Prerequisites for Smart Materials, Automatic Identification, and Quality
Chapter 10: The Chorafas Classification/Identification System for Supply Chain Requirements
10.5 Coding for Organized Complexity in a Global Market
x0 = 0; ANSI-norm x0 = 1; ISO-norm
x0 = 2; ISO-norm, afterward reworked by this company x0 = 3; Catalog part without known norm
x0 = 4; Catalog part without known norm, afterward reworked by this company
x0 = 5; This company's own old product design specifications, to which cataloged parts do not correspond
x0 = 6; Reserved x0 = 7; Reserved x0 = 8; Reserved x0 = 9; Reserved
Exhibit 10.12: Allocation of Digits in the Classification Systems
This is by no means the only solution possible. Each company can choose its own approach on how to design further definiens. In fact, it can do so for each family in the matrix if this reveals itself to be necessary. For example, another company that applied DCS divided the further definiens into the following groups:
x0 is a one-digit decimal number that extends the classification capability of the taxonomical code without belonging to the latter. This gives some families the freedom to drop x0 while others may need to use it.
x1 x2 x3 x4 is a four-digit field of further definiens that helps to uniquely identify an item in terms of technical characteristics.
In this particular implementation, a basic code corresponds one-to-one to KL, MN, PR, (x0x1x2x3x4).
Hence, the <basic code>, a running number on a first-come, first-served basis necessitates 11 classification digits: six taxonomical and five descriptive.
In yet another implementation of DCS, x0x1x2 is a three-digit decimal field that identifies the company that made the original design of the machine or component. This is vital information for many parts associated with their original manufacturers. Subsequently, x3x4x5x6x7x8 is a six-digit field acting as a box able to store and retrieve, through serial numbering, the file for each machine component or part — past the x0x1x2 filter.
In practical terms, such an explanation provides considerable flexibility. This concept also applies to other further definiens (e.g., y0y1y2 that are suffix oriented). As will be remembered, the suffix was added to the ID system to permit identification of nontechnical characteristics — or, more precisely, characteristics that are of a non-core technical nature; for example, in the case of lamp manufacturing, voltage and wattage of a lamp, as well as whether it is incandescent, fluorescent, or other type, are core issues. In contrast, color, such as matte or transparent, is non-core; the same is true of the brand (this vendor was handling four different brands).
Commercial characteristics (including brand name and non-core technical issues) may also need to be classified. This is done in the further definiens through the y0y1…yn field(s). Order and flexibility are the keywords. The system just explained permits a flexible approach to classification and identification, while providing the possibility of bringing them together into a parallel code structure.
time make the process of data management more complex. This suggests the need for a systematic arrangement of similar items into suitably selected categories that can be restructured without having to start the classification work from scratch.
As discussed in the preceding chapter sections, a coding system able to cope with demands for fully distributed storage and retrieval must allow options for the development of methods that would formalize organizational issues without ossifying them. It should also permit a flexible determination of
performance criteria, including efficient search algorithms, database-wide cross-indexing, and effectiveness coupled with dependability.
Chapters 10.3 and 10.4 explained why flexibility for making alterations in system structure can be provided by dividing the classification part into taxonomy and further definiens. Taxonomical rules are unique for the entire system; more precisely, from one family to the next. Contrasted with the
taxonomical criteria, the structuring of further definiens must consider the fact that an information system contains elements assumed to:
Have their own objective function, generally not coinciding with that of the total classification system
Present particular requirements for optimal search, preferably by a family of items (or data), with allowance for expected future activity
The solution that one chooses should therefore be one that enables a good exploitation of classification potential by family, performing the family, group, and class oriented search better than can be
accomplished through generalizations. In a global context, this provides for greater individuality in a taxonomical approach within a general framework.
In the background of decisions made in structuring DCS has been a grand design that permits building the overall system step-by-step rather than trying to make everything at once, as if one wanted to have a monolithic approach. Step-by-step allows one to combine the interests of an element (family, group, class) to that of the entire system through the development of a plan leading to homogeneous solutions.
Basic prerequisites include:
A valid methodology that is properly implemented
An understanding of the potential of classification/identification by designers and users
Success depends on management's ability to ensure consistency in the overall classification program, on the researcher's determination to test multiple assumptions with the aim of reaching efficient solutions, on the need for effectively planning for future requirements, and on the organization's propensity to evaluate many alternatives as well as to integrate diverse requirements in a coherent whole.
Based on these premises, the design of a rational and compact parallel coding system can be satisfactorily completed. The solution was made possible through the completion of a management research project on a new article identification code for two leading industrial firms: Osram in Germany and Italcementi in Italy. It has been in operation for three decades.
The idea of DCS was advanced (and implemented) after considerable study and experimentation, which permitted one to focus on both technical and marketing characteristics, promote records accuracy, improve storage and retrieval perspectives, reduce transcription errors, ensure economic data
transmission, and guarantee a unique reference to articles and accounts. These design criteria are even more important today than they were in the late 1960s and early 1970s. Relatively minor upgrades are necessary to capitalize on global networks, smart materials, and expert systems.
The organizational work underpinning DCS is not limited to the classification of materials. Another look at the matrix in Exhibit 10.6 allows one to appreciate that one row is dedicated to top management information; while a second row is reserved for allocation and optimization processes connected to the sales-inventory-production (SIP) system; and the next seven rows are used for the classification of services, accounts, products, and machines. The last row is kept in reserve. The first column (rows 2 to 8 inclusive) is dedicated to labor and know-how (human resources); the second to assets, liabilities, and financial reporting; the following three columns classify raw materials and semi-manufactured products;
the next three columns concern themselves with finished products; and one column is used for machinery families, while the last column is held in reserve.
This pattern fits practically every manufacturing company that I know, and it is well-suited for global business operations. Families 22 to 28, 32 to 39, …, 82 to 88 classify and store data of a predominantly engineering nature. The files for each product, uniquely coded by family, are subdivided by means of groups; and as seen, greater detail in classification is ensured by means of classes.
Exhibit 10.13 illustrates the approach necessary for rigorous classification. A population is identified; it is composed of items that are first sorted into four families the analysts consider to be homogeneous. In this example, the criterion being used is shape. More detailed sorting is possible; in this case, it is based on dimension; up to 100 groups can be distinguished this way.
Exhibit 10.13: The Classification of Items in a Population According to Criteria of Homogeneity
A still more detailed item sorting might consider the type of materials as the basis for separating goods of the same shape and dimension. This, also should be done with homogeneous lists in the
background. Homogeneity and flexibility correlate. The structure of a classification system evolves as the population within a family, group, or class is sorted out in accordance with other preestablished criteria, ensuring that the objects of a classification find their proper pigeonhole. That is the goal of the preparatory work, and the more complex the environment with which one deals, the more rigorous and more ingenious the preparatory work that must be done.
Stored on smart materials, the <bc> <s> <o> code allows one to know the whereabouts of each unit.
The KL.MN.PQ code makes it possible to manage the global supply chain in the most efficient way.
Alternatively, taxonomy can be stored in databases and accessed when necessary.
To be successful, the implementation of DCS should begin at design level, include the factory floor and ERP chores associated with production, extend itself to warehousing for seamless inventory
management, and, obviously, address marketing, sales, and service — all the way to handholding with retailers and end customers assisted by CRM. The goal must be an open system that is dynamically managed and always able to operate online in an efficient way.